Northwestern University (USA) Foundation Limited Annual Report and Financial Statements
Year ended 31 August 2023
Company Limited by Guarantee Registration Number 11514191 (England and Wales)
Charity Registration Number 1184246
Contents
| Reports | |
|---|---|
| Reference and administrative information | 1 |
| Trustees’ report | 2 |
| Independent examiner’s report | 7 |
| Financial statements | |
| Statement of financial activities | 9 |
| Balance sheet | 11 |
| Principal accounting policies | 12 |
| Notes to the financial statements | 15 |
Northwestern University (USA) Foundation Limited
Reference and administrative information
| Trustees | M B Dalle |
|---|---|
| C Johnson (Resigned 1 June 2023) | |
| D Lively | |
| R E McQuinn | |
| D L Norton | |
| F H Seth | |
| Registered office | 99 Durlston Road |
| London | |
| E5 8RP | |
| Company registration number | 11514191 |
| Charity registration number | 1184246 |
| Independent examiner | Buzzacott LLP |
| 130 Wood Street | |
| London | |
| EC2V 6DL | |
| Bankers | J P Morgan Chase Bank |
| 25 Bank Street | |
| London | |
| E14 5JP |
Northwestern University (USA) Foundation Limited 1
Trustees’ report Year ended 31 August 2023
The trustees present their annual report together with the financial statements of Northwestern University (USA) Foundation Limited for the year ended 31 August 2023.
The financial statements have been prepared in accordance with the accounting policies set out on pages 12 to 14 of the attached financial statements and comply with the charity’s Memorandum and Articles of Association, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
Governance
Constitution
Northwestern University (USA) Foundation Limited (‘the Foundation’) is a registered charity, Charity Registration Number 1184246, and also a company with share capital, Company Registration Number 11514191. The £1 ordinary share capital is owned by Northwestern University, an organisation based in Evanston, Illinois, USA. The charitable company is governed by its Memorandum and Articles of Association.
The names of the trustees who served during the year are set out as part of the reference and administrative information on page 1 of these annual report and financial statements.
On agreeing to become a trustee of the charity, the trustees are thoroughly briefed by their co-trustees on the history of the Foundation, the day-to-day management, the responsibilities of the trustees, the current objectives and future plans. The trustees are also encouraged to attend any courses which they feel are relevant to the development of their role, and to keep up-to-date on any changes in legislation.
Structure and management reporting
The trustees are ultimately responsible for the policies, activities and assets of the charity. The trustees review the developments with regard to the charity, its grant giving activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including solicitors and accountants.
Risk management
Having assessed the major risks to which the charity is exposed, in particular those relating to its cash holdings and its finances, the trustees believe that by monitoring reserve levels, by ensuring that controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.
Northwestern University (USA) Foundation Limited 2
Trustees’ report Year ended 31 August 2023
Governance (continued)
Key management personnel
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis comprise the trustees of the charity. The trustees are not remunerated for their role.
Charitable objectives
The Foundation’s charitable objective is to advance education, in particular by supporting Northwestern University in Evanston, Illinois, USA. Northwestern University uses the funds it receives from the Foundation for charitable purposes. For example, students benefit from monies used to create scholarships and those given to support specific areas of activity, such as the Kellogg School of Management.
The charity raises funds in order to provide grant support to Northwestern University. During the year, the charity raised cash donations of £282,088 including recoverable Gift Aid, and donated a total of £264,142 to Northwestern University.
Review of the year
During the fiscal year ended 31 August 2023, Northwestern University (USA) Foundation Limited granted £264,142 to Northwestern University. Below is a brief overview of the programs and schools supported within the University:
ARCH Scholars Fund, Weinberg College of Arts and Sciences
Arch Scholars at the Weinberg College of Arts and Sciences is a suite of free-standing but overlapping summer and early academic career bridge programs designed to welcome, engage, and more fully support and empower students from low-income households or who are the first in their families to attend college. Weinberg College strives to eliminate financial barriers for students and offers these programs free of charge, covering the costs of room and board and, often, transportation and a stipend.
Kelly Kuhn Family Undergraduate Merit Scholarship Fund, Bienen School of Music The Kelly Kuhn Family Undergraduate Merit Scholarship Fund provides support to undergraduate students of musical merit at the Bienen School.
Bluhm Legal Clinic, Northwestern University Pritzker School of Law
The Bluhm Legal Clinic at Northwestern University Pritzker School of Law - widely recognized as one of the most comprehensive and effective clinical programs in the country - allows students to gain direct experience representing clients and fine-tune their skills as advocates. Contributions allow the clinic to give students strong litigation, negotiation, and transactional skills; provide students with opportunities to work on live client cases; offer high-quality legal services to underserved and disadvantaged clients; empower students to evaluate and propose reforms for laws and legal institutions; and invest in the next generation of skilled, ethical, and reform-minded lawyers.
Northwestern University (USA) Foundation Limited 3
Trustees’ report Year ended 31 August 2023
Review of the year (continued)
Kellogg School of Management Annual Fund
Gifts to the Kellogg School of Management Annual Fund allow the school to support Kellogg’s areas of greatest need, including scholarships, faculty research, and curricular innovations, as well as generating impact on business worldwide well into the future.
Northwestern Annual Fund
The Northwestern Annual Fund provides flexible, immediate, and essential funding for the University to address its most pressing priorities and areas of greatest need. Contributions to the fund enable Northwestern to allocate resources throughout the year to support priorities like student services, financial aid, and faculty recruitment.
Pallak and Faiza Seth Endowed Scholarship Fund
The Pallak and Faiza Seth Endowed Scholarship provides financial assistance to Northwestern students from outside of the United States.
Trobman Family Scholarship, Northwestern University Pritzker School of Law
The Trobman Family Scholarship provides scholarship support to Northwestern University Pritzker School of Law students who demonstrate financial need.
Weinberg College of Arts and Sciences Annual Fund
The Weinberg College of Arts and Sciences Annual Fund enables the dean, faculty, and staff to support the college’s mission and expand opportunities for everyone in the Northwestern community. Contributions help Weinberg address the immediate needs of the community, fulfill its commitment to diversity and inclusion, and realize Dean Randolph’s strategic vision for the school.
Public benefit
The trustees have had regard to the Charity Commission’s guidance which sets out the requirements for charities to demonstrate that their aims and activities are for the public benefit.
Risk management
The trustees have assessed the major risks to which the Foundation is exposed, in particular those relating to the operation of the charitable company and its finances. Given the nature of the charitable company’s activities, the risks are limited. The trustees are aware of the need to monitor grant expenditure and manage foreign exchange risk. Monies are granted to a restricted number of recipients and the Foundation does not commit to making grants until income has been received to cover the grant.
Northwestern University (USA) Foundation Limited 4
Trustees’ report Year ended 31 August 2023
Financial review
During the year ended 31 August 2023, the charity received donations (including recoverable Gift Aid and donated services) totalling £292,241.
Expenditure for the year totalled £280,630. £264,142 of this total related to grants made to Northwestern University.
The funds at the year end totalled £29,020 of which £17,382 were restricted and £11,638 were unrestricted.
Reserves policy
The trustees have reviewed the requirement of the charity for reserves and have determined that the level of restricted funds allows the charity to undertake its future charitable activities as a grant giving entity. The trustees’ policy is to distribute the majority of income received in the period and to hold a minimal level of reserves.
Fundraising policy
The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities. During the year to 31 August 2023, the charity received no complaints about its fundraising activities.
Statement of trustees’ responsibilities
The charitable company’s trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the annual report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Company law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of Northwestern University (USA) Foundation Limited and of its income and expenditure for the financial period then ended. In preparing these financial statements, the trustees are required to:
-
♦ select suitable accounting policies and then apply them consistently;
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♦ observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102);
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make judgements and estimates that are reasonable and prudent;
Northwestern University (USA) Foundation Limited
5
Trustees. report Year ended 31 August 2023 statement of trustèès. rè$ponsibilities {conlinuerf) slate whethèr appIlble UK accounling standards hav8 b&8n folk)wed, sublecl lo any m8leri81 departures disckxed and explained in Ihe finanual slalemenls.. • prepare the finarKial statements on Ihe wng concern basts unless it is inappropri81e lo presume Ihal the d)arily will conlinue in operation. The Iwsloes are reS1b18 for maintaing proper accounting records which disclose with reasonable accuracy al any twn8 the finaal position of the charitable company and which enable Ihem to ensure that the financi81 slalemenls comply with the Comp8niès Act 20C6. The Iruslees aro also responsible for safeguarding the assels of the charitable company and hence for taking reaSonae sleps for the VentIOn and detection of fraud 8nd olhor irregularities. Thls confirmallon Is olven and shrNJld be in18rpretgd in accordance th the prowslons of 8418 of the Companies Acl 2(. Sloned on bèhall of ihe board of Iru$lges'. Davi ApproTr4ed by the board of Iruslees on: NorthY•estem Universty IUSAI Foundation Limited
Independent examiner’s report 31 August 2023
Independent examiner's report to the trustees of Northwestern University (USA) Foundation Limited
I report to the charity trustees on my examination of the financial statements of Northwestern University (USA) Foundation Limited for the year ended 31 August 2023, which are set out on pages 9 to 16.
Responsibilities and basis of report
As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s financial statements as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with my examination giving me cause to believe:
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accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the methods and principles of the for “Accounting and Reporting by Charities: the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).”
Northwestern University (USA) Foundation Limited 7
Independent examiner’s report 31 August 2023
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Katharine Patel ACA Buzzacott LLP Chartered Accountants 130 Wood Street London EC2V 6DL
Northwestern University (USA) Foundation Limited 8
Statement of financial activities Years ended 31 August 2023 and 2022 (including income and expenditure account)
| Notes | Unrestricted funds £ |
Restricted funds £ |
2023 Total £ |
2022 Total £ |
|---|---|---|---|---|
| 1 Income from: Donations (including Gift Aid recoverable) Total income Expenditure on: Charitable expenditure Total expenditure Net income for the year and net movement in funds Reconciliation of funds Fund balances brought forward at 1 September 2022 Fund balances carried forward at 31 August 2023 |
10,153 | 282,088 | 292,241 | 258,510 |
| 10,153 | 282,088 | 292,241 | 258,510 | |
15,797 |
264,833 | 280,630 | 245,114 | |
| 15,797 | 264,833 | 280,630 | 245,114 | |
| (5,644) 17,282 |
17,255 127 |
11,611 17,409 |
13,396 4,013 |
|
| 11,638 | 17,382 | 29,020 | 17,409 |
All of the charity’s operations related to continuing activities during the above two financial periods.
The charity has no recognised gains and losses other than those shown above.
Northwestern University (USA) Foundation Limited 9
Statement of financial activities Years ended 31 August 2022 and 2021 (including income and expenditure account)
| Notes | Unrestricted funds £ Restricted funds £ 2022 Total £ 2021 Total £ 26,414 232,096 258,510 208,751 26,414 232,096 258,510 208,751 13,081 232,033 245,114 206,696 13,081 232,033 245,114 206,696 13,333 63 13,396 2,055 3,949 64 4,013 1,958 17,282 127 17,409 4,013 |
|---|---|
| 1 Income from: Donations (including Gift Aid recoverable) Total income Expenditure on: Charitable expenditure Total expenditure Net income (expenditure) for the year and net movement in funds Reconciliation of funds Fund balances brought forward at 1 September 2021 Fund balances carried forward at 31 August 2022 |
All of the charity’s operations related to continuing activities during the above financial period.
The charity has no recognised gains and losses other than those shown above.
Northwestern University (USA) Foundation Limited 10
Balance Sheets 31 August 2023 and 2022 2023 2022 Noles Currenl assets D8btor8 Cash at bank aTrJ in hand 11.401 25,620 37,021 7,801 17.409 25,210 Cr•dltor5'. OUntS fallry Ilue thIn om 8,000 7,800 Net currnn¢ 8$8•ts 29.021 Totsl ngt a$8et8 17,410 Repr880nt¢d by.. Callod up $Te c8pital Fundg Re51ricled fund$ Unreslilcled g8Mral lur Total fundg 17,382 11.638 29,021 127 17,282 17.410 For the year ended 31 August 2023 Ihe dwritab cornpany was enlilleil lo exemption from audit undet seclion 477 of the CoMpanS Act rthe Act'l relating 10 Small companies. The members hava not required the o)mpany lo obtain an 81Jdil of ils financial slalgmenls lor the nanclal Ye in queslion In accordance wilh section 476 01 the Act. Thè Iruslees 8cknuwledge Iheir re$ponsibilit*s for comptying with tha requkemenls of Ihe Companies Act 2CII8 wilh resp8cl lo a¢untIng records and the preparation ol flnancAal slatemenls. These finanaal Slalements have been prepared in accordance with tha provisions applicable to companies subject to the small companies, regime. Company reglslralkn number. 11514191 (England & Wales) Apwoved by the board oflruslees and on its David Livety Approved by the board of Injslees on.. Northwestern UnNersity (USA) Foundation LIMI 11
Principal accounting policies 31 August 2023
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.
Basis of preparation
These financial statements have been prepared for the year ended 31 August 2023 with comparative information provided for the year ended 31 August 2022.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to the financial statements.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and applicable laws.
The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
There are no significant accounting estimates and areas of judgment that affect items in the financial statements.
Assessment of going concern
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment with respect to a period of one year from the date of approval of these financial statements.
The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.
Income
Income is recognised in the period in which the charity is entitled to receipt, the amount can be measured with reasonable certainty and it is probable that the funds will be received.
Northwestern University (USA) Foundation Limited 12
Principal accounting policies 31 August 2023
Income (continued)
Donations and the Gift Aid thereon is recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Expenditure
Expenditure is included in the statement of financial activities when incurred and includes attributable Value Added Tax (VAT) which cannot be recovered.
Expenditure is on charitable activities which comprise grants payable in promoting charitable work, the cost of administering the grant programme and governance costs. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued for but are noted as financial commitments in the notes to the financial statements.
Governance costs include costs which are directly attributable to the organisational procedures and the necessary legal procedures for compliance with statutory requirements. They are included as a constituent part of charitable activities.
Debtors
Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt.
Northwestern University (USA) Foundation Limited 13
Principal accounting policies 31 August 2023
Fund accounting
The unrestricted general funds represent funds available for the general charitable purposes of the charity at the discretion of the trustees.
Restricted funds comprise monies raised for, or their use restricted to a specific purpose or contribution subject to donor imposed conditions.
Foreign currency translation
Transactions denominated in foreign currencies are translated at the exchange rate prevailing on the date of the transaction. Assets denominated in foreign currency held at the balance sheet date are translated at the exchange rate at the year end date.
Northwestern University (USA) Foundation Limited 14
Notes to the financial statements 31 August 2023
1 Charitable expenditure
| Grants payable (see below) Administrative support costs Bank charges Governance- Independent examination and accountancy fees Foreign exchange losses(gains) |
2023 £ 264,142 6,053 4,173 4,100 280,630 2,162 |
2022 £ |
|---|---|---|
| 231,523 6,053 3,930 3,900 (292) |
||
| 245,114 |
| During the year, the Foundation made the following grants: Recipient |
2023 £ |
2022 £ |
|---|---|---|
| Northwestern University | 264,142 | 231,523 |
2 Staff costs, trustees’ remuneration and the remuneration of key management
personnel
The charity employed no members of staff during the years ended 31 August 2023 and 31 August 2022.
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprises the trustees. No trustee received any remuneration or expenses in respect of their services as trustees or reimbursed expenses during the years ended 31 August 2023 and 2022.
3 Taxation
Northwestern University (USA) Foundation Limited is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
4 Debtors
| Debtors | ||
|---|---|---|
| 2023 £ |
2022 £ |
|
| Other debtors | 11,401 11,401 |
7,801 |
| 7,801 |
5 Creditors: amounts falling due within one year
| 2023 £ |
2022 £ |
|
|---|---|---|
| Accruals | 8,000 | 7,800 |
| 8,000 | 7,800 |
Northwestern University (USA) Foundation Limited 15
Notes to the financial statements 31 August 2023
- 6 Called up share capital
| Called up share capital | |
|---|---|
| 2023 and 2022 £ |
|
| 1 Ordinaryshares of £1 – authorised and called up | 1 |
The £1 share capital is wholly owned by Northwestern University, an organisation based in Evanston, Illinois, USA.
7 Restricted funds
During the year ended 31 August 2023, the Foundation received restricted donations (including Gift Aid recoverable) of £282,088 (2022 - £232,096) to be granted on to Northwestern University for specific purposes, including scholarships. From these funds and the opening restricted funds of the Foundation at 1 September 2022, grants of £264,142 (2022 - £231,523) have been made to the University. In addition, £691 has been charged to restricted funds as a result of foreign exchange losses (2022 – charge of £510 of foreign exchange losses) and a balance of £17,382 (2022 - £127) remains within restricted funds at 31 August 2023.
8 Related party transactions
Three trustees made donations amounting to £96,777 to the charity during the year ended 31 August 2023 (2022 – one trustee donated £15,126). The charity has subsequently claimed Gift Aid on two of these donations.
There are no further related party transactions to report.
Northwestern University (USA) Foundation Limited 16