HEYWOOD FOUNDATION Charity No. 1180790 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2021
HEYWOOD FOUNDATION CONTENTS PAGE Page Legal and Administrative Information Letter from the Chair of the Board Trustees, Report Statement of Responsibilities of the Board of Trustees Independent Examiner's report 10 Statement of financial activities Balance sheet 12 Statement of cash flows 13 Notes to the financial statements 14-18
Heywood Foundation Legal and Administrative Information Trustees.. Suzanne Heywood (Chair) Zamila Bunglawala Garelh Davies David Halpern Simon Heywood Helen MacNamara Sue Owen Simon Robey Sue Gray { appointed 17th May 2021) Charity Number- 1180790 Registered Office: The Cabinet Office 70 Whitehall London SW1A2AS Independent Examiners.. Moore Kingston Smith LLP Devor)shire House Goswell Road London EC1 M 7AD Bankers.. Coutts & Co 440 Strand London WC2R OQS
Letter from the Chair of the Board The Heywood Foundation was established in November 2018 following the death of Lord Heywood of Whitehall with Ihe intention of continuing to promote iwo things that he made central to his own work innovation in public policy and promoting diversity. This has been the second year of the Foundation's work. I would like to thank, first and foremost, the many generous donors who have continued to make it possible for us to establish and maintain the Foundation. I know that Jeremy would have been honoured and touched by the contributions they have made, and as a Board we are determined to make the best possible use of those funds to fonmard the objectives of the Foundation. l am also very grateful to my fellow Trustees and to all those others who have offered their time and expertise to help set up and run the Foundation. In my last letter, which was written in the early stages of the COVID pandemic, I said that we were planning to launch a Heywood Prize. The aim of this prize was something that Jeremy would have strongly supported - making sure that the we did not stop innovating policy during Ihe crisis, so that we would emerge from it with ideas for how to make our country better. We launched The Heywood Prize on 4th January with an article in The Times and a series of follow up press briefings including slols on Tifftes Radio (Matt Chorley) and Westminster Hour. I was also able to use some of the interviews around the launch of my biography of Jeremy, 'What does Jeremy thin, to promote the Prize and it was also promoted through a number of our partners including the 8lavatnik School, the LSE, and Ark Schools. The Prize asked entrants to answer one or both of the following questions.. 1. What is a key challenge or opportunity presented by the COVID-19 pandemic and its consequences? 2. In Ihe case of a problem, how might we fix it? In the case of an opporlunity, how do we capitalise on it? A series of prizes were offered for the winners the top prize for the first question was £5,000 and the top prize for the second was £25,000. The competition was open to anyone (in the UK or abroad and of any age) and we closed it on 23rd March 2021, the anniversary of the first COVID lockdown in the UK. We were overwhelmed by the response to the competition, which generated over 1900 entries. This success, however, immediately posed a problem.. how to sift these entries? A problem that we solved by recruiting almost 80 'sifters' civil servants and consultants who generously volunteered their time to go through sets of the entries. Our sifters judged the entries based on three broad criteria.. The significance of the challenge or opportunity (and scale of impact if addressed)
Novelty of the issue identified. or slant on it {i.e. is this issue already well known?), or for the second question, the solution being proposed Incisiveness of the account (i.e. the impact or persuasiveness of the entry, including there being a prospect it might be soluble) and, for the second question, the practicalityldoability and possible impact of the solution being proposed. Once sifted, the ideas were then considered by our judging panel. This consisted lin addition to myself) of Ed Balls, Damon Buffini, Roger Carr, Amika George, Michael Gove, David Halpern, Gus O'Donnell, Minouche Shafik, Mustafa Suleyman and Sharon White. l am very grateful both to our sifters, who worked incredibly hard to go through the entries initially, and our judging panel. who made time in their extremely busy lives to consider the entries in a very thoughtful and considered way. We announced our Prize winners on Thursday, 1st July in a ceremony hosted jointly with Tortoise Media. You will find on our website (heywoodfoundation.com) all our winners and runners up and a link lo a recording of Ihe ceremony. We have also made all the top rated entries (the top 500 selected by our sifters} from the competition available on our website and are sharing the ideas with relevant government departments, academic institutions and think tanks to make sure as many as possible are considered and implemented. As a Board we are now considering our priorities for next year including the timing of the next Heywood Prize. We are also reflecting on some of the learnings from this year, including how we can ensure our entrants are as diverse and representative of society as possible. This has continued to be a difficult time for many, but we are delighted by the amount of creativity and innovation that the prize has revealed and are hugely grateful to you, our donors. for making it possible for us to capture and share this innovation with Whitehall and more broadly. Suzanne Heywood
Trustees, Report The Board of Trustees presents its report and the financial siatements for the year ended 30th April 2021. The Trustees confirm that the report and financial statements of the Foundation have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with statutory requirements. Objectives of the Foundation The Heywood Foundation was set up to continue the work championed by fomier Cabinet Secretary Jeremy Heywood on innovative policy creation and diversity within the UK public services. These two issues mattered in the past and will continue to matter in the future whatever challenges our country faces. Jeremy believed that increasing innovation and diversity will create a more effective Civil Service. On innovative policy thinking Jeremy helped set up the Nudge Unit, he built and used a personal network of conlacts to source and test new ideas and he introduced areas of research interest (ARIS), which let academics know what the civil service doesn't know so they can help fill in the gaps. On diversity he believed that the civil service could lead the way, setting up champions for each area of diversity, pushing for clear information and setting individual targets for Permanenl Secretaries to achieve. But so much more is needed. The need for innovative policy will never disappear and there will always be new diversity challenges, to make the civil service better reflect the people it seNes and so achieve better policy making and delivery. Structure, Govemance and Management The Heywood Foundation was established as a Charitable Incorporated Organisation and registered at the Charity Commission on 22nd November 2018. It is run by its Board of Trustees, comprising a number of family, friends and colleagues of Jeremy Heywood who share his passion for increased innovation and diversity. The Board is chaired by Suzanne Heywood. Simon Heywood has responsibility for the Foundation's finances. The Board has been supported on a voluntary basis by many others, allowing the costs of running the Foundation to be minimised. The Foundation adheres to the principles of the Charity Governance Code. Under the Constitution, the original Trustees serve for a term of 4 years. New Trustees are appointed by the Board of Trustees for a term of 3 years. Any retiring Trustee is eligible for reappointment. An Investment Sub-committee has been established comprising at least three Trustees and one external member with professional investment expertise. The current overall investment objective is to generate a rate of return of around 50/0 per annum on money held in eXsS of £200,000 over the mediumllong term.
Achievements and Perfomiance In this second year of the Foundation, against the background of the COVID 19 pandemic, the Trustees decided the best way of meeting its objectives was through launching The Heywood Prize to seek innovative policy ideas from the general public and to present the best of these ideas to Government and others interested in developing policy. Thus providing an opportunity for these ideas to be implemented and play a part in building back better as the country emerges from the current crisis. The Trustees were overwhelmed by the response to the launch of the Prize, with over 1900 entries received, providing many different perspectives on a very wide range of issues. We are very grateful to all entrants, sifters and judges for making it such a success. We also remain extremely grateful to those who have generously donated this year and in the past, allowing our original fundraising targets to be met. During the year, donations totalled £70k and this income was supplemenled by dividend linterest income of £32k. Reserves were also bolstered by investment valuation gains of £60k. The Foundation's charitable expenditure during the year was to support The Heywood Prize. Prize money of £65k was accrued at the year end and additional costs of £5k were incurred for predominantly IT technical support. A Prize Ceremony was held after the Year End on 1st July. The winning entries, together with others that were shortlisted, are available on the Heywood Foundation's website and are being shared with relevant Government Departments and other interested bodies in the hope that as many as possible will be taken forward. As the Foundalion continued to be run by the Truslees with the support of family and friend volunteers, administration costs remained minimal {£159 - excluding bank fees and Audil Gosts). Overall, a surplus of £84k was generated in the year, leading to Totsl Reserves at the Year End of £1.34m. of which £46k were Restricted Funds. These are held to specifically support the work of future Heywood Fellows. Reserves Policy The Foundation was originally sel up with the intention of operating for 10 years, from the summer of 2019. Its Reserves Policy is to maintain sufficient Reserves to fund expenditure of at least £100,000 per annum (adjusted for inflation) on charitable activities until 2029. Additional funds held and raised in the future will be utilised on additional projects consistent with the Foundations objectives andlor to extend its timespan.
Principal Risks and Uncertainties The Trustees are responsible for monitoring and mitigating the principal risks being faced by the Foundation and are satisfied that processes are in place which ensure good governance. prevent fraud or malpractice and retain the good reputation of the Foundation. The principal risks are those which, without mitigation, would have a serious impact on the activities of the Foundation: The Cabinet Office is unwilling or unable to support the Foundation's activities. Regular contact is made at both senior official and ministerial level to ensure ongoing buy-in and a range of other options is available to further the Foundation's objectives of increasing innovation and diversity within the UK public sector, whether or not the Cabinet Office actively supports its activities. Reputational risks as a result of a project not being successfully concluded or having a disappointing impact. The Trustees tske a rigorous approach to decision making and projects only proceed when there is a clear buy-in from all interested parties and when the objectives and scope are clear. Once initiated, the progress of the project is monitored closely by the Trustees. Additionally, the Trustees have considered the impact COVID19 has had and may continue to have on the Foundation and are confident there has been no direct impact on its fundraising plans or its cost base. Its reserves are strong. The Trustees have been able to continue to meet by Zoom. As descrrbed in the Letter from the Chair of the Board, the Trustees considered how the Foundation can help society respond to the challenges arising from the pandemic and, as a result, launched the Heywood Prize.
Statement of Responsibilities of the Board of Trustees The Trustees 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 Practi1. The18w applicable lo charities in England & Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the stsle of the affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards, including FRS102 have been followed, subject lo any material departures disclosed and explained in the financial statements., prepare the financial statements on the going COnM basis unless it is inappropriate to presume that the charity will continue in business., and state whether a Statement of Recommended Practice ISORPI applies and has been followed, subject to any material departures which are explained in the financial statements. The Trustees are responsible for keeping proper accounting records that disdose with reasonable accuracy al any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity {A¢counls and Reports) Regulations 2008 and the provisions of the trust deeds. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for Ihe maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by the Trustees on 6th October 2021 and signed on their behalf, by.. Simon Heywood Trustee
Independent Examiner's Report to the Trustees of Heywood Foundation I report to the trustees on my examination of the accounts of Heywood Foundation for the year ended 30 April 2021. Responsibilities and basis of report A5 the charity trust88s of the Trust you are responsible for the preparation of the 8w)unts in 8¢wrdance with the requirements of the Chariiies Act 20111'the Act'l. I report in respect of my examination of the Trust's aco)unts carried out under section 145 of the 2011 Act and in carrying out rny examination I have followed all the applicable Diredions given by the Charity Comrni5sion under section 14515llbl ol the Act. Independent examiner's statement I have cornpleted my examination. I confirm that no matters have Come to my attention in connection with the examination giving me cause to believe.. 11 accounting records were not kept in respect of the Trust as required by section 130 of the A¢l'. or 21 the awounts do not aword with thos8 records,. or 31 the accounts do not comply with the applicable requirements concerning the fom and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give 'true and fair view which is not a matt81 consid8r8d as part of an indep8nd8nt 8xatllination. I have no concems and have Come aeioss no other matters in connection with the examination to which attenb.on should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Nall Flnlayson IACA, ICAEWI For and on bahalf of Moor8 Klngston Smlth LLP Charter8d Aocountants Devonshire House 60 Goswell Road London EC1 M 7AD Date.. 11 October 2021
Heywood Foundatlon STATEMENT OF FINANCIALACTIVITIES for the year ended 30 April 2021 Unrostrtcted Regtrktsd Fur& Fund Totlll 20 ReIctd Fund Fur 20X INC(ADENLPEmrs FROPA.. BBr&lntereB1REwd 582 6,021 31.7 31.7 na115 44059 65.859 1.254.863 25.Q 1.279.863 TOTALINCOMEANDENDOVlllENTS 25. I..B4 1.2BS. ExPENDURE or4. ChaTr1abl# CoBtDfPaiEinu Fund4 AdNinis1r8lonCos1$ 1,955 7,492 7.492 TOTALEXPENDrruRE 15.5]9 19,221 PIETINCOMEI¢EXPENfATUREIAND NET PIO¥EklENTIIIFUNO$ bEFOR£GNSAN0 ILOSSES)ONINVESTMEpif6 1.245.315 12E&E62 .354 6D.354 IETMOVEMEPITINFUIDS FORTHEYEIR 59.7 M765 1.240.934 126l¥1 Funth brChifcrd 1 PAB¥ 1.24Q,934 .2622$1 TOTALFUNDSAT3upFL 46,$18 1.$471¢ 1.244.9J4 1281251
Heywood Foundatlon BALANCE SHEET as at 30th April 2021 2021 2020 FIXED ASSETS Investments 952.710 295.537 952.710 295.537 CURRENT ASSETS Debtors 223 Cash al bank and in hand 464.776 975,062 464.999 975.116 CREDITORS.. Amounts falling dua within one year 170,6921 18,4011 NET CURRENT ASSETS 394,306 966,714 NET ASSETS 1,7,016 1,262,251 CHARITY FUNDS Restricted Funds 46.318 21.318 UnrestriGted Funds 1,300,699 1,240,934 1,347,016 1.262.251 The finanaal $18l&rthnts were approved by lh& Tru8lees on 6th Octcber 2021 and signed on ihair behalf. by.. Imon H&ywood Trustee
Heywood Foundation STATEMENT OF CASH FLOWS for the yaar ended 30th April 2021 Note 2021 2020 Cash flows from operating ¥clivlli&s 54.265 1,268.989 Cash fiows from investing activities Inv8strnenl incom8 Purchase ofinveslments 32.268 1596.8191 6.021 1299,9481 Chango It) cash at)d cash equlval8nt8 In th8 year 1510.2861 975.062 Cash and Cash equivalents broughl foard 975.062 Cash and cash equlvalents carrled forward 464,776 975,062 13
Heywood Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 30th April 2021 Accounting Policies Basis of preparation of financial statements The financial statetnenls have been prepared in aCwrdaTh with Accounting and Reporting by Charities." Statement of Recomm8nded PractiC8.' Accounting and Reporting by Charities preparing their accounts in ac(x)rdance with the Financial Reporting Stsndard applicable in the United Kingdom and Republic of Iland leffeclive 1 January 20151- (Charities SORP IFRS 10211, the Financial Reporting Standard applitrable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. Heywood Foundation rneets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. These accounts are prepared on the historic cost basis of accounting except for investments which have been included at revalued atnounts. The financial statements a prepad in sterling. which is the functional Currency of the charity. Monetary amounts in these financial statetnents are rounded to the nearest pound. Goln9 Concem The Iruslees have assessed whether the use of the going concern basis is appropriate and have Consided possible event5 or conditions that tnight cast Significant doubt on the ability of the charity to continue as a going cOnrn. The Iruslees have made this assessment for a period of al least one year from the dale of approval of the financial st8t8m8nts. In parcUlar, the trust88s have consid8r8d the charity's forecasts and proj8Ctions and hav8 taken account of any wlenli81 pressures on income and the impact of Covid-19. After making enquiries. the trustees have concluded that there 15 a reasonable expectation that the charity ha5 adequate resource5 to continue in operational existence for the forseeable future. The charity therefore adopts the going COnM basis in preparing its financial statements. Reportlng Perfod The entity has prepared the finan¢ial stslements for a 12 month period however the ¢omparative ac¢ounls a presented for a longer period from incorpor8tion on 22nd November 2018 to 30 April 2020. Ther8fore the amounts pres8nt8d in the financial statements l including the related notes) are not entirely comparable. Fund Accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Investtnent incorne, gains and losses ale allocated to the appropriate fund. Income All income is reniSed onc8 th8 charity has entitlement to the incom8, It is probable that the InMe will be received, and the amount of income e1Vable can be measured reliably. Expendlture Expenditure is recognised on¢e there is a legal or constructive obligation to transfer economic benefit to a third patty. it is probable that a transfer of econornic benefit5 will be required in settlernent and the arnount of the obligation can be measured reliably. All expenditure is accounted for on an sccrua15 basis. 1 expen5e5 including support costs and governan costs are allocated to the applicable expenditure headings. 14
Heywood Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 30th April 2021 Accounting Policies leontinu8dl Investments Investments are a form of basic financial instrument and are initally COgnised al their transaction value and subsequently measured al their fair value as at the balan¢e sheet date using the closing quoted market price. The statetnent of Financial Activities includes the nel gains and Ios5e5 arising on ievaluations and disposals throughout the year. Interest re¢eivable Interest on funds held on deposit is included when weivable and the amount Can be measured reliably by the charity.. thi5 15 noallY upon notification of the interest paid or payable by the bank. Debtors Trade and other debtors are re¢ognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount paid net of any trad8 discounts du8. Cash at bank and in hand Cash at bank and in hand indudes cash and short term highly liquid investffl8ntS Wlth a short maturity of thr88 months or less from the date of a¢quisilion or opening of the deposit or similar account. Credltors and provlsoons Creditors and provisions are r8cognised where the ch8rity h8S 8 present obligation resulting from 8 past 8vent that will probably result in the transfer of funds to a third party and the smount due to settle the obligation can be measured or 8Stimated r81iably. Crediiors and provisions are normally r8cognised at their s8tt18m8nt arnount 8ft8r allowing for any trade discounts due. Financial instrument5 The charity only has financial 8SS8ts and financial li8bilities of a kind that qU81ify as basic financial instruments. Basic financial instruments are initially cOgnised al transadion value and subsequently meaSUd at their settlement value. 15
Heywood Foundation NOTES TO THE FINANCIAL STATEMENTS for tha year ended 30th April 2021 1021 2020 1 INCOME FROM DONATIONS Donations- unrestricted Donations- restricted 44,859 25,000 1.254.863 25.tK)o 69,859 1,279.863 2 EXPENDrruRE ON CHARABLE ACTwrrES 2021 2020 Competition prIS Administration support Hewjvood Fellow Event at Cumberland Lodge Other Heywood Fellow Events 65,000 5,147 3.682 3.535 632 70,147 7.850 3 COST OF RAISING FUNDS 2021 2O2fj Platform Fees Stationery Cos15 77 1,389 566 77 1.955 4 ADMINI$TrATION COSTS 2021 2020 Independent Ex8miner's remuneralion Other Bank Charges 3,240 118 4,134 8,400 108 909 7.492 9,417 FIXEDASSET INVESTMENTS 2021 2fj2 MathttvaluÈ Opèning B818nca- 1 May 295,537 596,819 60,3SI 299.918 Unrealised gainlllossl clo9 Balan- 30 April 952.710 295,537 Investments at market value u)mprise". 2021 2n Listed investsnents 952.710 295,537 DEBTORS 2021 2020 Other detr1$ L3 16
Heywood Foundation NOTES TO THE FINANCIAL STATEMENTS for tha year ended 30th April 2021 CREDrroR3'. amounts falllng due wllhlth one year 2021 2•2n Olhercredilors Acctuals and deferd income 2.452 88.240 8,40D 70.692 8,401 SUMMARY OF FUNDS Funds bl Incomlng resources Resources expended Galns Funds cl 2021 Unre51ricted Funds Restricted Funds 1.240.934 21.318 77,127 25,000 Tl.716 .354 1,3QQ,699 46,318 TOTAL 1.262.251 102,127 77.716 60,3 1,347,016 2020 Fund$ bl Incoming r•source Rosourcg8 •xpended LO98 Funds Unrfrslrided Funds Rasirlciad Funds 1,260,884 2S,OOD 15.539 3.682 1,240,934 21,318 TOTAL 1,285,884 19.221 4.411 1.262.251 ANALYSIS OF NET ASSETS BETWEEN FUNDS Unre5trlcted fund Restrfeted fund Totsl 2021 Fixed asset investments Debtors Cash 81 the b8nk and In hand Creditors due wilhin one year 952,710 223 418,458 952,710 223 464,77 46.318 1,300,fj98 46.318 1,347,01fj UnreStriCted fund ReSt¢ted nd Totsi 2020 Fixed asset inweslments Debtors Cash at the bank and in hond Creditors due within one year 295,537 295,537 953,744 21.318 975,062 1,240,934 21.318 1,262,251
Heywood Foundation NOTES TO THE FINANCIAL STATEMENTS for tha year ended 30th April 2021 10 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING A¢TIVITIE$ 2021 2O2fj Net movement on fund5 D•du¢i." Invèstment in¢om& Addloeducl." Gains on investments Deu8aselllncreasel in debt(8 Increase in creditors 84.765 132.2661 160.3541 1,262,251 1541 8,401 62.291 54,265 1,268.989 11 RETED PARTY DISCLOSURES PayTnenls of £11812020.. £1081 to a Trustee, Simon HeyNood. a5 reimbursement of the LEI Number Renewal Fee and ICO Registration Fee p81d. No Tw$186s12020'. 21 have 8 flnan¢ial in org8n1$81ions whith mada donatn$ during the year 12020". such donations We made totalling £110,000>. 18