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 eX￿sS 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 Practi￿1.
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 COn￿M 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
Re￿Ict￿d
Fund
Fur￿
20X
INC(￿A￿DENL￿￿P￿Emrs FROPA..
BBr&lntereB1RE￿￿w￿d
582
6,021
31.7
31.7
na11￿5
44059
65.859
1.254.863
25.Q
1.279.863
TOTALINCOMEANDENDOVlllENTS
25.
I.￿.B￿4
1.2BS.
ExPEND￿URE or4.
ChaTr1abl#
CoBtDfPaiEinu Fund4
AdNinis1r8lonCos1$
1,955
7,492
7.492
TOTALEXPENDrruRE
15.5]9
19,221
PIETINCOMEI¢EXPENfATUREIAND NET
PIO¥EklENTIIIFUNO$ bEFOR£G￿NSAN0
ILOSSES)ONINVESTMEpif6
1.245.315
12E&E62
.354
6D.354
IETMOVEMEPITINFUIDS FORTHEYEIR
59.7
M765
1.240.934
126l¥1
Funth brC￿hifc￿rd ￿ 1 PAB¥
1.24Q,934
.2622$1
TOTALFUNDSAT3upF￿L
46,$18
1.$47￿1¢
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 fo￿ard
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 I￿land 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￿ prepa￿d 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 Conside￿d possible
event5 or conditions that tnight cast Significant doubt on the ability of the charity to continue as a going cOn￿rn. The
Iruslees have made this assessment for a period of al least one year from the dale of approval of the financial
st8t8m8nts. In par￿cUlar, 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 COn￿M 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 re￿niSed onc8 th8 charity has entitlement to the incom8, It is probable that the In￿Me will be received,
and the amount of income ￿e￿1Vable 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 no￿allY 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 meaSU￿d 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 CHAR￿ABLE ACTwrrES
2021
2020
Competition prI￿S
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$TrATION COSTS
2021
2020
Independent Ex8miner's remuneralion
Other
Bank Charges
3,240
118
4,134
8,400
108
909
7.492
9,417
FIXEDASSET INVESTMENTS
2021
2fj2
MathttvaluÈ
Opèning B818nca- 1 May
295,537
596,819
60,3SI
299.918
Unrealised gainlllossl
clo￿￿9 Balan￿- 30 April
952.710
295,537
Investments at market value u)mprise".
2021
2n
Listed investsnents
952.710
295,537
DEBTORS
2021
2020
Other detr1￿$
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 defer￿d 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
LO￿98
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 RE￿TED 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$81ions whith mada donat￿n$ during the year
12020". such donations We￿ made totalling £110,000>.
18