Reglstered number: 08861248 Charlty number. 1180372 THE FOUNDATION FOUNDATION (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021
THE FOUNDATION FOUNDATION IA company limit•d by guarants•l CONTENTS Page RefeTence and admlnlstratlye detrlls of the Compaiiyj Its Trustees and advlstvs Tru8t608' report Indfrpendent audito. report on the financial statsments 8-11 ststemftnt ol Ilnanclal actlvltleg 12 Balarfcg shoet 13-14 Statement of cash flows 15 Not•s to th8 financi41 stato'rn•nts 16-26
THE FOUNDATION FOUNDATION (A company limited by guarantee) REFERENCE AND ADMINISTrATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JANUARY 2021 Truste Slr Antony Gormley Lady Vicken Gormley Marco Compagnoni Richard Galvocoiessi Laura Heath Company reglstered number 08861248 Charsty reglstered number 1180372 Reglstered office 15-23 Vale Royal London N7 9AP Ind•pond8nt auditors MHA MaclntyTe Hudson Chartered Accountants Victoria Court 17-21 Ashford Road Maidstone Kent ME14 5DA 8ank•rs HSBC Private Bank 8 Corf( Street Mayfair London W1S3LJ Brown Advisory Investment Management 10 Bruton Slr*t New Bridge Street London EC4V 6BJ Sollcltors W1 Gotshal & Managers (London) LLP 110 Fetter Lane Holbom London EC4A 1AY Page 1
THE FOUNDATION FOUNDATION IA company lirnited by guarantgel TRUSTEES. REPORT FOR THE YEAR ENDED 31 JANUARY 2021 Tru$te&s Re ort Forthe Yearended 31stJanuary 2021 The Trustees present Iheir annual report together with the audited financial statement5 of the company for the year 1st February 2020 - 31st January 2021. The Trustees confirm that the Annual Report and financial stslements of the company comply with the current statutory requirements. the requirements of the company's governing document and the provisions of the Statement of Recommended Practice ISORPI applicable to> charities preparing their accounts In accordance wlh the Fin8naal Reporting Slanrlard applicable in the UK and Republic of Ireland {FRS 1021. Aims Ob'ectives and Activities The Foundation Foundation was established for the advancement of art for the public benefft by athancing education in the arts in particular bul not exdusively through.. The provision of grants lo students at Central Saint Martin's College The provision of residencies to graduates of Norwch University of the Alts The provision of arts education facilities including studio space In shaping the objectives and planning tho Foundation's activities, Trustees have considered the Charity Commission's guidance on public benefit. The Foundation continued to draw on donations made in 201812019 land income derived from Ihernl to cover its running costs during the reporting periad. Its actiV.eS are offered without charge lo benefiaaries. The Foundation is registered as a charity IregistratlDn number 1180372) and is not liable to UK taxation as il has no tsxable activities. In the exercise of their powers, the Trustees have paid due regard to the published guidance from the.Ch8rity CThrmission on the oper8tion of the Public Benefit requirement under thè Charities Act2011. The following notes record the chief elements in the Foundation's programme during the year with particular reference to the accompanyng finanaal stslemenls. Review of Activities During this reporting perbod the chanty continued ils 3Ctivities and responded tD the Coviik19 pandemic. The Trustees made strategic decisions about the charitS programme and the long-term objectives of The FoundatlDn Foundation. The Foundation Founclation's scholar at Central Saint Martin's conts'nued their studies this year and charity trustees Antony and Vicken Gormley met with them to see their work. discuss the course at Central Saint 'Martin's, and their plans for future work. In January 2021 the scholar (leferred the completion of their coursè because of the impact of the Covid-19 pandemic bul the charity looks forward lo their gradu8tion in the coming academic years. 11 was anticipated that The Foundation Foundab'on would welccffle more graduates from Norwich University of the Arts. Fine Art BA programme to the residency facilities at High House in the summer of 2020. Unfortunately, because of the Covid-19 pandemie. these young arb'sts were un3bl8 to lake acfvantage of the opportunity but The Foundation Foundaliory and NUA have planned for the 2020 and 2021 s¢holaT5 to take up consecutive plaS during the Summer of 2021. Each wll receive the £5DO Stipend to cover living expense5 and materials. Selected by staff al Norwich University of the Arts. the gradu3les wll spend 4 weeks C&f the summer away from the demands of their everyday lives to work on developing their practice at this crucial moment in their careers. At the end of the month, Antony and Vi¢ken Gomley will join mèmbers of the NUA faculty to discuss the artists, progres5 and the next steps in their development. Page 2
THE FOUNDATION FOUNDATION {A company lirnited by guarantee) TRUSTEES, REPORT ICONllNUEDI FOR THE YEAR ENDED 31 JANUARY 2021 Eafty in the year the trustees recogni5ed that the Covid-19 pandemic was resulting in unprecedented challenges for practitioners in the visual arts. In order lo support the continued creats.on of artwork through this difficult lime they approached indèpendent directors of charitable art instrtutions to nominate arb'sts whose excellent work recommended them for a small grant lo contribute lo the continued practice of their work in this exceptionally difficult year. Grants of £2500 were offered to 8 artists in May 2020 and another 8 artssts in January 2021, although 3 payments from the January round of grant making occuffed post year-end. In these ways the charity continued to fvlfill its aims through ils activth"es. The chaTity is ath.vely furthering ils objective to support education in the arts by funding a post-graduate place at Central Saint Martin's lunts'l the CUTrenl student completes their sludiesl and by developing young artists, practice through a funded residency at High House that includes an opportunity to receive constructive feedback from inlernalionally r&cognised arb"stS, Antony and Vicken Gomiley. By supporting artists during the pandemic via the Covid-19 grants the trustees helped to ensure that there was no interruption lo the developfllent of excellent work for the public to a¢c&ss in the future. Thls year there have been changes to the way that the trustees seek to meet their aims and objectives. The trustee5 have reviewed the provision of a ljursary to Central Saint Martin's and decided that the £12,000 cost could be more effectively deployed in support of their aims and objectives. With this in mind they have informed Central Saint Martin's thai they wll not be renewing their relats"onship wth the college when the current scholar completes their studies. In 2019-20 the charity offered weekly stipends to artists at all stages of their careers taking up residencies at High House. After board discussion this programme has been paused. pending further athce on ils appropriate structure. As the charity'5 activities conts'nue, the Foundation will be assessing success by archiving images of work created at High House and seeking feedback trom residency recipients as well as NUA faculty stsff on the programme. The Foundation will similarly track the academic career of the 2019-21 bursary reapient and those who have received Covi&19 grants. The comments, thoughts and suggestions of all ben&ficiari8s wll be used by the Trustees to record success and develop the charitys work so that it always responds to the needs of those it seeks to assist. The Trustees are satisfied with the progress made by the charity in achieving activities durlng and subsequent to th& reporting period. Volunteers The Foundation is grateful for the assistsnce of 1 adminislralive volunteer, Aice O'Reilly. It is estimated that approximately 130 volunteer hours were provided during the year. If this lime 1$ conservatively valued al £50 per hour. the volunteer effort amounts to £6500 in the reporting period. Grant Makin Polic The Foundation Foundation wishes to make grants available to Working artists at all stages of their careers. The overall intention is to use the monies of the Foundation to promote innovation. collaboratson, education, and the extension of an ever-widening field of Practi in sculpture, paintsng. performance and time based media. The trustees wsh to use their expertise in the field and the expertise of others to identty individuals and areas of practice that would benefit from support. This wll always be done in line with the objects of the charity to advance educab.on in the arts and lo advance the arts by encouraging high'slandards. Whilst final responsibility for granl-making lies Wth the board of TTUStees, decisions to offer grants to particular recipients are made by designated persons and board rnembers as well as being delegated to Central Saint ma"n'S School of Art lin the case of the grant to cover tuition fees) and with the partiapation of staff from Norwch University of th8 Art5 lin the case of the residencies for BA Fine Art graduates). In the case of the Covid 19 grants trustees retained independence by requesting nominations of recipionts from Page 3
THE FOUNDATION FOUNDATION IA company limit&d by guarante&l TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JANUARY 2021 experts working at a senior level of public faang. chari(able arts organi58tion5 In the U.K. Flnancial Anal sls Al year end the Foundation holds Totsl Funds of £6,687,062 of which.. £6.263,893 is held In investments £423,369 is in net current assets The totsl incoming resources for the year were £81.471 12020 - £51,488). Total resources expended were £115,371 12020 £47,028). Al 31 January 2021, the charity held fund balances of £6,687,062 12020 £6,284,413) of whith unrestricted funds was £6,694,562 12020 - £6.284,4131. There were no restricted or designated funds in either 2021 or 2020. The Trustees have dlded to treat their investments for operational purposes as an expendable endowment in order to fund the current and future activities Df The Foundation Foundats"on. Investments The investment aims of the charTty are long tem and rts investrnent pc4icy is therefore steered toward growth and wotection against the threat of inllation. The investments of the Foundation are managed by Brown Advisory 8nd the Trustees maintain a diversified portfolio so as not to expose the Foundation lo undue risk. The Foundation's investment policy is reviewed annually to ensure Its CC•ntinued efficacy and relevance. Income from investments wll be disbursed'as part of the Foundab"on's work andlor reinvested at the discretion of the Trustees. The Trustees expect that the fund managers wth thom the Foundation's assets are invested to behave wth integrity, to be fully compliant wth all iegulatory requirements an(a lo meet relevant cod8s of practice. In addition, investment managers a expected to tske account in their decision•making of environmental, social and govemance issues. Although the charitable objects of the Foundation do not require the aulomatyc avoidance of inveslmenl in any particular geography, 5eGtor or GofpoTation the Trustees have deaded lo adopt an investment policy that prohibits exposure lo those equities. bonds and other asset classes that might open the Foundation lo criticism on ethical OT environmental grounds. They regnISe that this policy may impact the grovrth potential of their investments but have decided that this risk 15 acceptable to protect the Foundation's reputslion. The Foundation's long-temi investment objective is to achieve CPI +3% per annum. The strategic asset allo(31ion largels are currently.. equities 70%, fixed interest assets 30%. Reserves Polic The Trustees aim lo maintain general funds at a levèl and with such liquidity as lo enable twelve to eighteen months of unrestricted chaTilable expenditure lo be undertaken at any time. At the end of the reporting period the charty had £98.041 in available cash. The Trustees recognise that they are still dèveloping a full programme of activty and therefore they have decidèd to continue to kaèp their reseThes 81 a higher level than required by their reserves policy in order lo provide for potential feasibiltty studies relating to possible building works and consultancy fees associated wth investigating new avenues of grant making actiwty. The Trustees will regularly review their reserves policy lo ensure it remains appropriate in the context of their evolving range of aclivilies. Page 4
THE FOUNDATION FOUNDATION IA company limited by guaranteel TRUSTEES, REPORT ICONTINUED} F,OR THE YEAR ENDED 31 JANUARY 2021 Risk Mana ement The Trustees Tewew the malor financial and non-financ4al risks to the Foundation in Order to ensure that steps have been taken lo minimise Tisk and to take action to mitigate the impact of any unavoidable risks. Risk is reviewed at least annually th action resulting from this analysi5 represented in the Foundation's Risk Policy. One of the prinupal risks is inflation which has the potential to threaten the value of the Foundation's investments. This 18 particularfy challenging when political and economic uncertainty in the wider vrtd may cause volatility in the markets. Ttustees have sought lo minimise this risk by spreading the Foundation's investments over a broad strategic asset base and across global markets. A key reputational risk has been idenbfied by the Trustees in the types of equities and bonds to be invested in by the Foundation. Seeking lo minimise this risk, the Trustees have devised a stringent investment plan for their investment manager (Brown Advisory) which proscribes classes of inveslmenls, for example equities in fossil fuels. tobacco and defence. In this financial year the Iruste8s identffied the potential private benefit to artists receiwng the Covi&19 grants as potential repulalional and financial risk. It was, however. agreed that in this case private benefit 15 iricidental considering the small size of the grants and thè arcumstanS in which the grants are made. Infonnatlon on Fundraisln Practices The Foundation does not currently rely on ftjndraising as a major source of income nor does It ernOY or engage profession81 fiJndr8isers. The Foundatson does not currently receive funding from the public OT make applications lo, other trusts and foundations. As a result. the Foundation is not registered with the Fundraising Regulator, however, should fundraising activities tske pla in the future the Foundation will VIeW this. The Foundation is committed to avoiding any intruyve fundraising approaches and vrill never apply undue prèssure to donate. Goln Concern The Foundation has substantial resources to conts'nue in operational existence for the foreseeable future. For this reason the Trnstees continue to adopt the going concem basis in preparing the financial slatements. Strate Ic Revlew and Future P ans At the date of this report the proposed ch8nges lo the charrtls objects described in the 201 2020 report continue to be discussed with thè Charity Commission. Throughout 2021>2021 the trustees have been making decisions towards a new grant making program. It is anticipated that this wll offer tharitable arts institutions across the country the opportuntty to apFAy to the charlS Emerging Art1515 Exhibition Fund. This fund will offer support to meet the costs of exhibrtions by artlsls enjoyng their first solo exhibrtion In the U.K. The strategic priorities of the Foundation will always be towards ihe charity's aim of 8dvanang art for the public benefit by SUppo.n9 education in the arts, recognising and f05tering the potential of art$15 and thereby 5UPPOrting a thriving, crealivo society in the U.K. Page 5
THE FOUNDATION FOUNDATION IA company limlted by guarantee) TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021 Structure Governance and Mana ement Constitution The Foundation is registered as a charitsble company limited by guar8ntee and was set up by a Memorandum of Association. It is a registered charity number 1180372. anisat40n The Board of Trustees is appointed by majority agreement of the Charitys membership and meets regularfy to review and make decisions by majority vole on the Foundati¢)n's adivilies and strategy. Day to day management of the Foundation is undertaken by Alice O'Reilly. The Board of Trustees keeps under review the skills required of the Board. Vvhen necessary the Board will seek new Trustees in order to ensure that the Board has a relevant and appropriate mix of skills for the activities and plans of the Foundation. The induction of new Trustees is designed to give them a proper vnderslanding of all aspects of the work of the Foundation. On their appointment new trustees are given a copy of the Memorandum and Arkndes of Association, previous reports 8nd accounts and the Annu81 Review. Statement of Trustees, Res OnsibilieS The Trustees (who are also directors of The Found8tion Foundab'on for the purposes of company lawl are responsible for preparing the Trustees, report and the financial statements in accordan wth applicable law and United Kingdom Accounting Standards {United lfjngdom GenorallyAccopted A¢Gounting Prarticel. Company law requires the Trustees lo prepare financial stslements for each financial year. Under company law the Trustees musl not approve the financial slalements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including th8 income and 8xpendilure, of the charitsble group for that period. Irb preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consislenuy. observe the methods and principles in the Charities SORP., make judgments and accounb.ng esb"mates that are reasonable and prudent,. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the haritable group will continue in operation. The Trustees 8re responsible for keeping adequate accounting records that arè sufficient to show and explain the ch81ilable company and the group's Iiansactions and disc105e with reasonable accuracy al any time the financial positson of the charitable group and enable them to ensure that the financial statements comply wth the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevenbon and detection of fraud and other irregulaTities. Legislation in the United Kingdom goveming the preparation and dissemination of fjnancial statements may differ from legislation in otherjurisdictions. DI closu f In rm dl Each of tha person5 who are Ttustees at the tine when this Ttustees, report is approved ha8 confirnied that.. so far as that Trustee is aw8re, there is no relevant audit information of which the charitable group's auditors are unawaie, and that TrkJstèÈ has takÈn all thè slÈps th81 ought to havÈ been takèn as a Trustee in order to be aware of Page 6
THE FOUNDATION FOUNDATION {A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JANUARY 2021 any relevant audrt information and to e5tabli5h that the charitable group's auditors are aware of that infomiation. In prèparing the report, the Trustees have taken advantage of the small companies exemptions available under the Companies Act 2006. Th"is report was approved by the Trustees, on 13 and Signgd on their behalf by.. Richard Calvocoressi Chairman. Board of Trustees Vicken Gormley Trustee & Director Page 7
THE FOUNDATION FOUNDATION IA company limitèd by guarantèe) INDEPENDENT AUDITORS, REPORT TO THE MEIABERS OF THE FOUNDATION FOUNDATION Oplnlon We have audit&d Ihe financial slalemenls of The Foundation Foundalion Ilhe'charitable company'l for thè year ended 31 January 2D21 which comprise the Statement of financial activities, the Balance sheet, the Slaternenl of cash fl¢)ws and the related notes, incluoling 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 Finanaal Reporting Standard 102 'The Financsal Reporb"ng Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Apted Accounting Practi¢el.. In our opinion the financial slatemenls.. give a true and fair view of the state of the charitsble company's affairs as at 31 January 2021 and of its incoming resources and application of resources, induding its income and expenditure for the year then ended., have been propet1y prepared in accordance with United lQngdom Generally Accepted Accounting Practice,. and have been prepared in accordan with the requirements of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance vrith Inleinalional Standards on Auditing IUKI IISAS (UK)) and applicable law. Our re5ponsibililies under those 51andard5 are further described in the Auditors. responsibilities for the audit of the financial statemènts section of our report. We are independent of the tharit8ble company in accordance with the ethical requirements that are relevant lo our audit of the finanaal statements in the United Kingdorn, induding the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in acGc)rdance with Ih?se requirements. We Ixlieve that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Concluslons relatlng to golng concern In audng the financial statements, we have conduded thal the Trustees. use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based Dn 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 Ihe charitsble cowpany's ability to continue as a going concern for a period of at least e1ve months from when the financial statement5 are aulhorised for issue. Our responsi.1111es and the responsibilitie5 of the Trustees wth respect to going concern are described in the relevant sections of ihis reporL Page 8
THE FOUNDATION FOUNDATION IA company Ilmlted by guaranteel INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE FOUNDATION FOUNDATION ICONTINUEDI Other Inforniatlon The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the finanaal statements and our Auditr)rs' report thereon. Our opinion on the financAal statements does not cover the other information and, exeepl lo the extent otheTrMse explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of th8 financial slatemenls, our responsibility is to read the other information and, in doing so, consider whether the other infomation is materially inconsistent with the finanaal slalemenls or our knowledge obtained in the audr( or olherwse appears to be materially misstated. If we identify such material inconsistencies or 8pparenl material misstatements, we aTe required to detemiine whether there is a material misslalement in the financial statements Dr a material misstatement of the other information. If, based on the work we have perfomied, we condude that there is a material misstatemenl of this other infoimation, we are required lo report that fact. We have nothing to report In thls regard. Opinion on othèr mattèrs prescrlbed by the Companies Act 2006 In our opinign, based on the work undertaken in the course of the audit.. the infomialion given in the Tru5tees' report for the financial year for which the financial statements are prepared is consistent th the finanaal statements. the Trustees, report has been prepared in accordance wth applicable legal requirements. Matters on whlch wo are requlTed to Rport by exceptlon In the light of our knoedge and understanding of the charitable company and its environment obtsined in the course of the audit, we have not identified material misstatements in the Trustees, report. We have nothing to report in respect of the followng matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion- adequate accounting records have not been kept, or retums adequate for our audit have not boen received from branches not visited by us," or the financial statements are not in agreement with the accounting records and returns.. or certain disclosures of Trustees. remuneration specified by law are not made.. or we have not received all the informalion and explanations we require lor our audit., or the Trustees were not entitled to prepare the financial statements in accordance wth the small companies regime and lake advantage of the small companie5, exemptions in preparing th8 Trustees, report and from the Tequiremenl to prepare a Strategic report. Page 9
THE FOUNDATION FOUNDATION {A company limited by guaranteg INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE FOUNDATION FOUNDATION ICONTINUEDI Responslbllltles of trustees As exFAained more fully in the Trustees, SponSibl1111es statement, thè Trustees (who are also the directors of the charrtable eompany for the purposes of company lawl are responsible for the preparats'on of the financial slalemenls and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees detemiine is necessary to enable the preparalign of financial statements that are free from material misstalemenl, whether due lo frayd or error. In preparing the financial statements. the Trustees are responsible for assessing the charitable mpan$ ability lo continue as a going concern, disdosing. as applicable, matters related to going concem and using the g¢ing COnM basis of accounting unless the Trustees erther intend lo liquidate the charitable company or to cease Dperation5, or have no ieali51ic altemalive bul lo do so. Audltor8' re8ponslbllltles for the audSt of the flnancial statements Our objectives are to obtsin reasonable assurance about vthether the financial statements as a vthole are free from material misstatement, whether due to fraud or error, and to issue an Audrtors, report that includes our opinion. Reasonable assurance is a high level Df assuran, but is not a guarantee that an audit conducted in accordance with ISAS (UK) wll abmays detect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could Teasonably be 8xpected lo influence the economic decAsions of users taken on the basis of these financial statements. Irregularit'es, including fraud, are instances of non-compliance wrth laws and regulations. We design procedures in line vrith our responsibilities. oudined above, to delect material misslatem8nls in respect of irregularities, including fraud. The extent to which our PTocedure5 are capable of detecting irregularities. induding fraud is detailed below. Enquiry of management and those charged wth governance around actual and potential litigation and daims.. Perfomiing audit wot* over the risk of management override of controls, including testing of joumal entries and other adjustments for appropriateness, evaluating the business rab"onale of signrficant Iransaetions outside the normal eourse of business and revieing accounting estimates for bias. Reviewng minutes of meetings of those charged wth governance., Reviewing financial statement disclosures and testing lo supporting documentation tg assess compliance th applicable law5 and regulations. Because of the inherent limitations of an audit, there Is a risk that we wll not detect all irregularities, induding those leading to a material misstatement in the ffinancial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is Temoved from the events and transactions Teflected in the fin8nGial Ststemenls, as we wll be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional coneealment, forgery, collusion, omission. or mipreSention. A further description of our responsibilities for the auLlit of the financial statements is located on Ihe Financial Reporting Council's website at.. wv4w.frc.or .uklauditorsres onsibilities. This description fomis part of our Auditors. report. Page10
THE FOUNDATION FOUNDATION IA company limlted by guarantoel INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE FOUNDATION FOUNDATION (CONTINUED) Use ofour report Thls report is mado solely to the charitsble company's members, as a body, in accordance wrth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stste to the Charitable companls members those matters we are required lo slate lo them in an Audiiors. report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilty lo anyone other than the charitable company and its member5. as a body. for our audr( work, for this report, or for the opinions we have forrned. Duncan Co¢hran&Dyet Bsc BFP FCA (Senlor statutory audltor) for and on behalf of MHA Maclntyre Hudson statutory Auditor Maidstone United Kingdom Date.. 4 October 2021 Page11
THE FOUNDATION FOUNDATION IA company Ilmlted by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 JANUARY 2021 Unrestrlctgd funds 2021 Total funds 2021 Total funds 2020 Note Income from: Dtsnations and legades Investments 6,50D 74,971 6,SOO 74971 29,796 21,690 Totsl Income Expendlture on: Raising fijnds Charitsble activi(ies 81.471 81.471 51.486 51,396 63,975 51,396 63,975 17,916 29,112 Total expenditure 115,371 115,371 47,028 Nel gains on investments 436,$49 436,649 51,437 Ngt movoment In funds Re¢onclllallon of funds: Totsl fijnds OUght fOard Net movement in funds 402.649 402,649 55,895 6,284,413 402,649 6,284.413 402,649 6,228,518 SS,895 Totsl funds carried forward 6.687.062 6,687,062 6,284,413 The Statement of financial activib.es 4ndudes all gains and losses recognised in the year. The notes on pages 16 to 26 form part of these financial statements. Page 12
THE FOUNDATION FOUNDATION {A company Ilmlted by guaranteel REGISTERED NUMBER.. 08861248 BALANCE SHEET AS AT 31 JANUARY 2021 2021 2020 Note Flxed assets Investments Current assets 12 6,283,693 6,101,818 Debtors Inveslments Cash al bank and in h8nd 13 14 4,759 341.050 98.041 4.759 47,410 137,853 443.850 190,022 Creditors.. amounts falling due within one year 15 120.4811 17,427) Nèt current assets 423.369 182,595 Totsl net assets 6.687,062 6,284.413 Charity funds Unre5tricte(kfiJnds 16 8.687.062 6.284,413 Total funds 6,687,062 6.284,413 Page 13
THE FOUNDATION FOUNDATION IA company limitèd by guarnnteel REGISTERED NUMBER: 08861248 BALANCE SHEET ICONTINUEDI AS AT 31 JANUARY 2021 The Trustees aCknoedge their responsibilities for complying wth the requirement$ of the Act with respect lo accounting records and preparation of finanaal statements. The entity was entitled lo exemption from audit under section 477 of the Companies Act 20C6 and under section 144 of the Charities Act 2011. The trustees have voluntarily opted for an audit under the Companies Act 2006. Inancial slalements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. Marco Compagnoni Date.. The notes on pages 16 to 26 form part of these finanual ststements. Page 14
THE FOUNDATION FOUNDATION (A company Ilmlted by guarant881 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2021 2021 2020 Cash flows from operatlng actlvltles Net cash used in operating ath'vrtie8 195.8171 1,208,954 Cash flows from Inveytlng actlvltles Dividends. inte$ts and rents from investments Proceeds from sale of investments Purchase of investments 74,971 21,690 1,340,430 72,117 11,085,758) 16,122,49ei Net cash provided byllusgd In) Investlng actlvltles 349.645 16,028.6911 Changg In cash and cash equlvalents In the year Cash and cash equivalents at the beginning of the year 253,828 14,819.737) 185.263 5,005,000 Cash and cash equlvalents at th¢ ond of the year 439.091 185,263 The notes on pages 16 10 26 fc*rm part of these financial statements Page 15
TrtE FOUNDATION FOUNDATION IA company Ilmltod by guarant801 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 General Infomiation The Foundation Foundation is a charitable company limited by guarantee and incotporaled in the United Kingdom. The aim of the charity is the adVanMeTrt of art for the public benefit by advanang education in the arts in parbcular, not exclusively through.. A. the provision of grants to students at Central Saint Martin's College., B. Ihe provision of residencies lo graduates of Norwch University of the Arts.. C. the provision of arts eduGalion facilities including studio Space. All amounts in the finandal ststements'are presented in Brrtish Pounds and are rounded to the nearest £1. Accounting policies 2.1 Basls of preparatlon of financlal ststements The finandal statements have bèen prepared in accordance wth the Charities SORP {FRS 1021- Accounting and Reporting by Charities. Statement of Recommended Practice applirable to charities preparing their acGounts in aCcdanCe wth the Financial Reporting Standard applicable in the UK and Rèpublic of Ireland IFRS 1021 (effective 1 Janu3ry 20151, the Financial Reptsrts'ng Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Foundation Foundation meets the definition of a ¢ubliG benefft entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise slated in the relevant accounting wlicy. 2.2 Golng concom The finanryal statements have been prepared on a going concern basis. The Trustees have CA)nsidered relevant information, induding the annual budget, forecast future cash flows and thè impact of Subsequent events in making their assessment. The COWD-19 pandemic and the ensuing economic shutdown has had some impact on the company's operations as The Foundation Foundation reiVeS its income in the form of dividends from stock market investments however these investments have proven to be robust In response lo the COVID-19 pandemic, th8 Trustees have performed a robust analysis of forecast fvture cash flows taking into account the potential impact on the business of possible future scenarios arising from the impad of COVID-19. This analysis also considers the effecliveness of available measures to assst in mitigating the impact. Based on these assessments and having regard to the resources available lo the enlily, the Trustees have conduded that there is no material unrtaInty and that they can continue to adopt the going concern basis in preparing the annual report and accounts. 2.3 Incomg l income is r8cognised once the Company has entitlement tD the income, it is probable that the income wll bè rècwved and the amount of incDme tyceivable can be measured reliably. Incom8 lax recoverable in fftlation to investment income is recognised at the time the investment income is receivable. Page16
THE FOUNDATION FOUNDATION A company limited by gyaranto81 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 Accounting policles {conllnuedl 2.4 Expendituwe Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefrt to a third party, it is wobable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is dasstfied by aclivty. The costs of each activity are made up.of the total of direct C05t5 and shared costs, including support costs involved in undertakiny each adivity- Direct costs attn"butable to a single acts.vity are allocated direetly lo that activity. Shared costs urt)ich contribute lo more than one acb.vity and support costs which are not attn"butable to a singlè activity are apportioned be*een those 8ctivib.es on a ba%s consistent with the use of r&sources. Central stsff costs are all¢xated on the b8sis of time spent, and depreciation charges allocated vn the POOn of the asset's use. Expendrture on raising funds includes all expenditure incurred by the Company to raise funds for ils charitsble purposes'and indudes costs of all fundrai&ng activities events and noTrcharitatle trading. Expenditure on charitable activities is incurred on directly undertaking the activities ¥knich further the Companls objectiv&s, as well as any associated support costs. Grants payable are charged in the year vthen the offer is made except In those c8ses where the offer 18 conditional, such grants being recognised as expenditure when the condition5 attaching are fulfilled. Giants offered subject lo conditions which have not been met at the year end are noted as a commitment. but not accrued as expenditure. All expenditure 18 inclusive of irrecoverable VAT. 2.5 Investments Fixed asset investments are 8 form of finanryal instrument and are iniiially recognised al their transaction cost and subsequenlly measure(J at fair value at the Balan sheet dale, unles5 the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether reali5ed or unrealised. are combined and presented as 'Gainsl{Lossesl on investments, in the Statement of finanual ath'vities. 16 Debtors Trade and other debtors are recognised at the settlernent amount after any trade discount offered. PrepayTnents are valued at the amount ppaid net of any trade discounts due. 17 Cash at bank and In hand Cash at bank and in hand includes cash and 5hort-lerm highly liquid investrnents th a short rnatUTlty of three months or le55 from the date of acquisitson Dr opening of the deposit or similar account. Page 17
THE FOUNDATION FOUNDATION IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 Accountlng policies Icontlnuedl 2.8 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is prob8Ne th81 8 transfer of èconDmic benefit will be required in setllemenl, and the amount of the settlement can be estiTnaled reliably. Liatilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Where the effect of the time value of money is material, the provision is based on the Present value of those amr>unts, discounted at the pre-tax discount rate that reflects the risks speetfic lo the liability. The unvAnding of the discount is recognised in the Statement Df financial adivilies as a finance cost. 19 FinanGial Inslruments The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic fjnanual inslnjments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans whith ar& subsequently measured at amorbsed cost using the effective interest method. 2.10 Fund accountlng General funds are unrestricted funds which are available for use at the discretion ol Ihe Trustees in furtherance of the general otyectives of the Company and which have not been designated for other purposes. Investment income, gains and losses are allocated lo the appTopriale fund. Income from donatlons and legacles Unrestricted funds 2021 Total funds 2021 Total nds 2020 Donations 6,500 6.500 29,796 Total 2020 29,796 29,798 Page18
THE FOUNDATION FOUNDATION IA company limited by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 Investment Income Unrestrlcted funds 2021 Total funds 2021 Total funds 2020 Dlvidends accumulated 74,971 74,971 21.690 Total 2020 21.890 21,690 Investment management costs Unrestrictsd funds 2021 Total funds 2021 Totsl fvnds 2020 Investment management fees 51,396 51,39é 17,916 Total 2020 17,918 17,916 Analysls of grants Grants to Grants to Institutions Individuals 2021 2021 Total funds 2021 Total nds 2020 Grant making 40,000 40,000 13,450 Page19
THE FOUNDATION FOUNDATION IA company limited by gyaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 Analysls of expendlture on charltable actlvltles Summary by ftsnd type Unrestricted funds 2021 Total funds 2021 Total funds 2020 Charitable actiwties 63,975 63.975 29,112 Totsl 2020 29,112 29,112 Analysls of 8xp•nditure by activities Grant funding of activities 2021 Support costs 2021 Total funds 2021 Total fiJnds 2020 ' Charitable activities 40,000 23,975 63,975 29,112 Total 2020 13.450 15,e62 29,112 Page 2Q
THE FOUNDATION FOUNDATION IA company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 Analysls of expendSture by actlvltles Icontlnugd Analysis of support costs Total fund$ 2021 T¢Xal fiJnds 2020 Audit fees Accountancy fees Profe55ional fees Sundry Bank charges Trustee expenses Insurance Listed investment foreign exchange rale loss Professional f8es- Bookkeeping 3.224 3.338 6.000 4.523 3.000 2,030 76 12 24 292 4.609 6.500 6.000 Total 2021 23.97S 15,662 Audltors, remuneration 2021 2020 Fees payable to the Companls auditor for the audit of the Companls annual accounts 3,224 4,523 Fees payable lo the Company's auditor in respect of.. All non-audil sermces not included above 3,338 3,000 10. Staff costs Dunng the year the charitable company employed no 8taff12020'. Nill. As a result, no employees received any remuneration in either year. 11. Trustees. remunerntion and expenses During the year, no Trustees received any rernuneration or other benefits12020- £NIL). During th8 year ended 31 January 2021, no expenses were reimbursed or paid directly to Trustees12020 £9). Page21
THE FOUNDATION FPUNDATION IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 12. Flxed asset Investments Llsted Investments Cost Dr valuatlon At 1 February 2020 Addits"ons Disposals Revaluations 6,101,818 1,065,756 {1,401,9461 498,06S At 31 January 2021 6,263.693 Net book valu At 31 January 2021 6.263,693 At 31 January2020 6,101,818 13. Debtors 2021 2020 Due within one year other debtors 4.759 4,759 14. Current asset investments 2021 2020 Inve8tment8- Cash deposits 341.OSO 47.410 Page 22
THE FOUNDATION FOUNDATION IA company limited by guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 15. Credltoys.. Amounts falling due wlthln one year 2021 2020 Trade credf(ors Accruals and defeed income 13,500 6.981 7.427 20,481 7,427 16. Stal8ment of funds Statement of funds - currgnt year 8alance at 1 Fgbruary 2020 Balance at Gainsl 31 January {Lossesl 2021 Income Expendltura Unrestrlcted funds General Funds- all fvnds 6,284,413 81.471 1116,371) 436.549 6,687,062 ststement of funds- prlor yèav Balance at 1 February 2019 Balance at Gainsl 31 January (Losses) 2020 Incomè Expenditure Unrestricted funds General Funds- all fvnds 6.228.518 46,926 142.488) 51,437 6,284,413 Page 23
THE FOUNDATION FOUNDATION IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEME14TS FOR THE YEAR ENDED 31 JANUARY 2021 17. Surnmary offunds Summary offund5- cuTrentyear Balance at 1 February 2020 Balance at Galnsl 31 January {Lossesl 2021 Income Expendltttie General funds 6.284,413 81.471 1115,3711 4,549 6.687.062 Summary offunds- prior y&ar Balance 81 1 February 2019 Balance at Gain51 31 January (Los5esl 2020 Inctsme Expenditure General funds 6,228,518 46,926 142,468) 51,437 6,284,413 18. Analys1$ of net assets betwèon funds Analysls of net assets between fund5 - current period Unrestrlcted funds 2021 Total funds 2021 Fixed asset investments Current assets 6,263.693 443,850 120,481} 6,263,693 443,850 120A811 Creditors due within one year Total 8.687,062 6.687,062 Page 24
THE FOUNDATION FOUNDATION IA company limited by guarant80) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 18. Analysls of net assets between funds {conllnuedl Anaty$ls of net assets between funds- prfor period Unrestricted funds 2020 Total funds 2020 Fixed assèt inv&stmgnts Current assets Creditors due within one year 6.101,818 190,022 17,4271 6,101,818 190,022 17,4271 Total 6,284.413 6,284,413 Roconciliation of net movemont in funds to net cash flow from Opefating activities 2021 2020 Net incoTlle for the period las per Statement of Financ4al Activities) 401649 55,895 Adjustments for. Gains on investments Dividends and interest from investments Decreasellinueasel in debtors Increasèlldecreasel in creditors (436,S491 174,9711 (51,4371 {21,690) 1,252.466 121,941) 13.OS4 Net $h provlded byllusod Inl operatlng actlvllles (95,8171 1,213,293 20. Anatysls of cash and cash equlvalents 2021 2020 Cash in hand 439.091 185,263 Page 25
THE FOUNDATION FOUNDATIOM IA company Ilmlted by guarant?•l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021 21. Analysls of changes in net debt Changes in Maet value and At1 exchange February rate 2020 Cash flows movements At31 January 2021 Cash at bank and in hand Liquid investments 137,863 47,410 14B1.5821 298.249 441,770 14.6091 98.041 341.050 185.263 183.3331 437.161 439.091 22. Related party transactlons During the year, donations made wthout conditions tL) the charity by trustees totalled £Nil excluding Gift Aid12020.' £19,037). There WEre no further related party transactions during the year. Page 26