HOLLYHOCK CHARITABLE FOUNDATION (Registered Charity No. 1186232 and Company No. CE019508) ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 RAWLINSON &HUNTER
HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 CONTENTS Page Annual Report of the Trustees Independent Audilor's Report 8-10 Statement of Financral Activities (including Income and Expenditure Account) Balance Sheet 12 Statement of Cash Flows 13 Notes to the Financial Statements 14-22
Page 1 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees present their report and the independently audited financial slatemenls of the Hollyhock Charitable Foundalion {'Ihe Foundation. or'the CIO"), for the year ended 31 December 2022. These have been prepared in accordance wilh the accounting policies set out on pages 14 to 16 and comply with applicable charity law. REFERENCE AND ADMINISTRATIVE DETAILS Hollyhock Charitable Foundation. {Régislered Charity Number 1186232 and Company Number CE0195081 is based and administered in the United Kingdom. The registered address is Eighth Floor, 6 New Street Square, London. EC4A 3AQ. Trustees: The Trustees of the Foundation who held office during the period and continue to serve at the date of this report are.. Berta Burguera Simon Brooks Simon Peck Rupert Elwes Simon Jeffries The Truslees did not hold any beneficial interest in the Foundation al 31 December 2022 or at any time during or Sin the accounting period. Bankers: C Hoare & Co 37 Fleet Street, London, EC4P 4DQ Investment Managers: Rothschild Asset Management New Court, Sl Swilhin's Lane, London EC4N 8AL Sarasin & Partners LLP 100 St. Paul's Churchyard, London EC4M 8BU Waverton Investments Ltd 16 Babmaes Sl, St. James's, London SW1Y 6AH Solicitors: Ince Gordon Dadds LLP Aldg8te Tower. 2 Lem8n Street, London E1 8QN Accountants: Rawlinson & Hunter LLP Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ Independent Auditor: Azets Audit Services Limited Ashcombe Court. Woolsack Vvay, Godalming, Surrey, GU7 1LQ Wgbsitg: https'.Ilhollyhockfoundation co.ukj
Page 2 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT The Foundation is a charitable incorporated organisalion governed by its Constitution dated 8 November 2019 and is registered as a charity with the Charity Commission for England and Wales. The majority of Trustees are residenl in the United Kingdom and meet regularly to discuss and develop the Foundation's goals and strategy and to review grant proposals and general grant requests. The numberofTrustees shall be a minimum of three and a maximum of six at any one time and new Trustees shall be appoinled by ordinary resolulion by the exisling Trust6es. The range of skills represented on the Trustee Board will be kept under review as the Foundation develops over time. The Truslees delegate the day to day running of the Foundation lo Rawlinson & Hunter LLP. Inductlon and Tralnlng As part of their training, Trustees are given an information pack which includes the Foundation's Constitution and the Charity Commission guidance on Trustees, Responsibilities. All Truslees a aware of their legal duties and obligations in respect of the management of Ihe Foundation, including in relation to the protection of its assets. Statgmgnt of Trustees, Responsibilities The Trustees are responsibl@ for preparing the Annual Report of the Trustees and the financial statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounling Practice). The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of Ihe incoming resources and application of resources, including the income and expenditure of the Foundation for that period. In preparing these financial slalements, the Trustees are required to= select suilable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP 2019 (FRS 102); make judgements and estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Foundation will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy al any time the financial position of the Foundation and enable them to ensurè thal the financial statements comply with the Charities Act 2011 and where applicable, the Charities Act 2022. the Charity (Accounts and Reporls) Regulations 2008 and the provisions of the Foundation's Constitution. Théy arè also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and delection of fraud and other iegUlar1ties. The Trustees are responsible for Ihe maintenance and inlegrily of the corporate and financial information included on the Foundation's website. Legislalion in Ihe United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions.
Page 3 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued> Internal Controls The Trustees have overall responsibility for ensuring that the Foundation has appropriate systems of internal controls. They are responsible for keeping proper accounting records which disclose with reasonable accuracy at any lime the financial position of the Foundation and enable them lo ensure that the financial slalemenls follow best practice and all applicable law. regulation and guidanc8. The Trustees are also responsible for Ihe Foundation safeguarding it's assets and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The system of inlemal controls is dèsignèd to provide reasonable, but not absolute. assurance against material misslatement or loss. Risk Management & Corporate Governance A risk assessment has been undertaken which comprises: An annual review of the risks the Foundation may face., The establishment of systems and ProdureS to mitigate those risks- and The implementation of prOdureS designed to minimise any potential impact on the Foundation should those risks materialise. This continuing process will identify risk areas to which the Foundation is vulnerable and highlight any necessary safeguards that will need to be put in pla. No major risks were identified at the date of these financial slatemenls. The Trustees have signed fit and proper declarations in line with HMRC guidance. In addition, the Trustees have taken due consideration of Good Govemance A Code for th8 Voluntary and Community Seclor, ensuring that the seven main prir)ciples of the Code are adhered to. These are.. Organisational purpose- Leadership-, Integrily., Decision-making, risk and control., Board effectiveness., Equality, diversity and inclusion,. and Openness and accessibility. The Trustees recognise that good governance plays an essential part in securing the future of the Foundation and confimi that the said main principles of the Code are followed by them in leading, directing and managing the Foundalion. No Truslee received any remuneration during the year ended 31 December 2022. The Foundation does not carry out fundraising activities. All fundraising costs relate to the management of their investment assets.
Page 4 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT The objects of th8 Foundation are restricled speGifically lo the appliGation of CIO funds, at such time or tlmes and in such manner, for the public benefit, as the Foundation Trustees may in their discretion think fit for any exclusively charitable purposes in any part of the world. The Foundation operates as a grant-making charity, supporting charitable projects and organisalions with grants of varying sizes and durations. The Trustees have defined a programme of grant-making to charities. For the foreseeable future, the Foundation's primary focus will be to.. prevent or relieve povety worldwde for individuals in need-, advance the health and wellbeing of the general public (including preventing or relieving sickness. disease or suffering, as well as the promotion of good health); support programmes which promote and advance the educalion of the general public. and prornole and support Christianity for the benefit of the general public. The Trustees have pursued a broad stratégy of ensuring proper due diligence in the assessment of potential grants and ensuring that grants are Tnade subject lo appropriate terms and conditions. Statement of Public Benefit As a grant-funder, the Foundation's activities will provide public benefit to the individu81s and communities who are beneficiaries of the Foundation's funded projects. The Foundation's public benefit is not limited with referenGe to geography, by the charging of fees or otherwise. The Trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have omplied with the duly in SeGtion 4 of the Charities Act 2011 to have due regard to it. They Gonsider the infomiation which follows in this annual report, about the Foundation's aims. activities and achievements in the areas of interest that the Foundation supports, demonstrates the benefit to its beneficiaries and through them to the public, that arise from those activities. Grant Making Policies The Trustees. grant making policy has been lo generalty consider making donations by way of direct funding and also by way of grants lo charitable organisations reGognised as such In their respective jurisdictions for projects that are exclusively charitable under English law. The Foundation has begun lo put in place sound grant aangeMentS so that it can properly select appropriate grantees and impose prudent terms on grants. including. as appropriate, monitoring and evaluation of the way in which funds are applied by grantees.
Page 5 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEkqBER 2022 ACHIEVEMENT AND PERFORMANCE Charitable Activities The Foundation has continued to work in a world that is ever changing- the conflict in Ukraine, increases in cosl of living and the ongoing backlash from the pandemic. All these factors have created great demand on the Foundation and, as in previous years, it has met that challenge. Whilst Charitable giving is always at the forefront of this report, 2022 was a watershed year for the Foundation. Over the past three years the Foundation has been reliant on the generosity of ils donor. In 2022 that donor decided to close its doors and, at the same time, donate three investment portfolios tolalling nearly £26 million. This has made an enormous differen and allowed us to start considering annuilies to several charities. alongside a large number of individual granls. The Foundation's objects have not changed, with ils four key pillars being Povety, Heallh and Wellbeing, Education and Christianily. Poverty This accounted for £712,817 in donations. The foundation continued lo help Shelter and CRISIS with further amounts of £100,000. It also made a Ihree-year commitment to Fareshare of £200,000 per year, with the first amount paid in 2022. As in 2021 numerous smaller grants were made lo small charities. Health and Wellbeing Not surprisingly, this made up a higher proporlion of donalions than in 2022, with donations totalling £1,340,077. The reason for this was twofold, as the fall-oul from the pandemic and increases in cost of living both Caught up with society, which enhand mental health problems. In this instance, there are no large donations lo highlight, and wè are more inclined to note that this amount was distribut8d over 25 different charities. Educatlon This was an area that only made up £165,870 of grants in 2022. This included £50,000 to help send GB'S team to the Special Olympics. It is also worth mentioning here Ihal the first episode of Mixmups which was referenced in 2021, will be broadcast on 4 November 2023. We are delighted lo have helped bring this to its ¢on¢lusion with the large grant made last year. Christianity Due to the fact that we still have a large commitment to the restaurant in Magdala {see 2021 report) there was only one small donation of £18,000 in this area in 2022. The projgct in Magdala will continue to take Tllost of this area of donations as the restauranl project re starts this Autumn aft&r a r8vision to costs. Overall The Trustees are delighted to now have a fund to allow us to benefrt small and large charities in all four areas of our objects for some time into the future.
Page 6 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 FINANCIAL REVIEW The Statement of Financial Activilies on page 11 shows total in¢oming resources for the period of £26,673,826 {2021: £3,850,000). £28,152 was expended on Ihe management of investment portfolios12021: £nil) and granl expenditurè amounted to £2,236,764 (2021: £2,642.348). Support cosls amounled to £33,301 (2021.. £25,960} and are included within Charitable aclivities. The principal funding for the Foundation Came by way of voluntary donations from an unconnected third paty and there were no restrictions attached to these. The funding has allowed the Foundation to operate and award 39 grants lo 37 organisations totalling £2,236,764 {2021.- £2,642,348 comprising 29 grants 10 26 Drganisation} which has in turn benefitled countless thousands. The balance of reserves at 31 Dember 2022 is £26,002,647 (2021.. £1,240,377) ané all funds are unrestricted. Investment policy and perfornianco The investment objective is to generate over the long lerm a total retum per annum above inflation. before grant making & expenditure, las measur8d by CPl+3.5Oh) while providing adequate liquidity for annual grant making & expenditures. At current or even higher grant making18vels, this approach should allow the Charity at least to maintain the value of its assets whilst keeping lo the expe¢led spend dowr) schedule. The Charity relies on the inveslment portfolios to fund its grant making. The key risk to Ihe long-lemi 5UStainabilily of Ihe Charity is inflation. over and above the spend-down schedule, and so Ihe assets should be invested lo mitigate this risk over the long term. The trustees understand that this is likely lo mean that investment will be concentrated in real assets and that the capital value will fluctuate. The tnjstees are able to toleratè volatility of the capital value of the Charity, consistent with the investment objectives, as long as it is able to meet its ongoing grant making commitments through either income or liquidating capital assets. The Charity's assets can be invested widely and asset classes can include cash, bonds, equities and property, and any other asset that is deemed suitable for the Charity. The porlfolio should be diversified and invested in line with the Elhical Restrictions. Given the geographic area in which the Charity operates and their attitude lo risk the Trustees request thal any investment manager build a portfolio in line with the following guidelines.. A neulral equily weighting of 70 % of the portfolio,. and Sterlin9 reporting mandates with a minimum of 50 /0 hèld in sterling assets. The Trustees are satisfied with Ihe performance of their investment portfolios since they were gifted the investments, which produced income during the year of £53,396 and capit81 appreciation of £124,178. The Trustees monitor performance of the underlying investments and managers on a regular basis, Ihrough face lo face reviews, investment reports and comparisons to peer groups and appropriate IndiS.
Page 7 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 FINANCIAL REVIEW {continuedl Reserves Policy The Trustees have examined the Foundation's requirement for resources in light of the main risks lo the organisalion and have no outstanding commitments or cash demands which are not adequately covered by existing resources. The nel assets of Ihe Foundation are regarded as free reserves and the funds at 31 December 2022 will be retained to make grants in accordance with the Foundalion's charitable objects and policies. The Trustees consider that the freely expendable funds are appropriate and adequate taking inlo account plans for grants to be awarded in future and have al present therefore not designated any specific reseNes. However. the Trustees will keep this under constsnl review. In future years, a specrfic reserves policy may bo required. The ongoing conflict in Ukraine and the resulting high energy costs and other cost inflating factors have affected the global economy. Having considered the contingency plans in place and having reviewed updated cashflow forecasts, the Trustees consider the adoption of the going concern basis in preparing these financial statements continues to be appropriate. PLANS FOR THE FUTURE The Trustees do not propose to deviate from the current objectives and activities of the Foundation as detailed in Section 3 of this report but will further develop and refine their strategies, policies and procedures in future. Approved by the trustees and signed on their behalf by: 241,.J 7oZ5 Date Trustee
Page 8 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HOLLYHOCK CHARITABLE FOUNDATION Opinion We have audiled the financial stalernenls of the Hollyhock Charitable Foundation (the 'Foundalion' or 'the CIO,) for the year ended 31 December 2022 which comprise the statement of financial activities, the balan sheet and the notes to the financial stalements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Slandard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclice). In our opinion the financial statements.. give a true and fair view of the stale of the Foundalion's affairs as al 31 Dècember 2022 and of its incoming resources and applicalion of resources, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We Conducted our audit in accordance with International Standards on Audits'ng (UK) (ISAS {UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Foundation in accordance with the ethical requirements Ihal are relevant lo our audit of the financial slalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concorn In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements Is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Foundation's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in thè relevanl sections of this report. Other Informatlon The other infomation comprises the infom)ation included in the annual r6POrt other than Ihe financial statements and our auditor's report Ihereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial ststements does not cover the olher information and we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent wilh the financial slaternents or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise lo a material misstslemenl in the financial statements themselves. If, based on Ihe work we have performed, we conclude that there is a material misstatement of this olher information, we are required lo report thal fact. We have nothing to report in this regard.
Page 9 INDEPENDENT AUDITOR'S REPORT {continued) TO THE TRUSTEES OF HOLLYHOCK CHARITABLE FOUNDATION Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation lo which the Chanlies (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the information given in the financial statements is in¢onsislent in any material respect wilh the Iruslees, report- or sufficient accounting records have nol been kept. or the financial statements are not in agr&ement with Ihe acwunling records; or we have not received all the information and explanations we require for our audit. Responsibilities of Irustees As explained more fully in the statement of trustees, responsibilities. the Trustees are responsible for the preparation of the financial statements and for being salisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whelher due to fraud or error. In preparing the financial stalements. the Trustees are responsible for assessing the Foundation's ability to continue as a going concern, disclosing, as applicable, matters related to going Gonrn and using the going concem basis of accounting unless Ihe Trustees either intend to ase operalions, or have no realistic alternative bul to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance wilh the Act and relevant regulations made or having effeGt thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS {UK) wi51 always detect a material misstalement when it exists. Misslatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities is available on the Financial Reporting Council's websile at: httPS:Ilwww.frc.org.uklaLKJitorsresponsibilities. This description fonns part of our auditor's report. Extent to which the audlt was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibililies, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, in¢ludin9 fraud. We obtain and update our understanding of the enlily, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we idenlify and assess the risks of malerial misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive lo those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity thal were contrary to applicable laws and regulations, including fraud.
Page 10 INDEPENDENT AUDITOR'S REPORT {continu•d) TO THE TRUSTEES OF HOLLYHOCK CHARITABLE FOUNDATION In response to the risk of irregularities and non-compliance with laws and regulations, including fraud. we designed procedures which included: Enquiry of management and those charged with govemance around actual and potential liligation and claims as well as actual, suspected and alleged fraud., Reviewing minutes of meetings of those charged with governance- Assessing Ihe extent of compliance with the laws and re9ulations considered to have a direct material effect on the financial statements or Ihe operations of the entity through enquiry and inspection.. Reviewing financial statement disclosures and lesting to supporting documèntation lo assess compliance with applicable laws and regulations., and Perfomiing audit work over the risk of management bias and ovèrride of controls, including testir of journal entries and other adjustments for appropriateness. evaluating the business rationale of Significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherenl limitations of an audil, there is a risk that we will nol detect all irregularilies. including Ihose leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likefy lo become aware of instances of non-compliance. The risk of not detecting a material misstslement resulting from fraud is higher than for one resulting from error. as fraud may involve collusion, forgery, intentional omissions, misrepresentations. or the override of Snlernal control. Use of our report This report is made solelyto the Foundation's trustees, as a body, in accordance with part 4 ofthe Charities {Accounts and Reports) Regulations 2008. Our audit work has been undertaken so Ihat we might stale lo the Foundation's truslees those matters we are required lo slate to them in an auéilors, report and for no other purpose. To the fullesl extent pérmitted by law. we do not accept or assume responsibility to anyone other than the Foundation and the Foundats'on's trustees as a body, for our audit work, for this report, or for the opinions we have fomied. Alex Temlett (Senior Statutory Auditor) For and on behalf of Azets Audit Services Limited Slalutory Auditor Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ Date.. 24 October 2023 Azets Audit seices Limited is eligible to act as an auditor in accordance with Section 1212 of the Companies Act 2006.
Page11 HOLLYHOCK CHARITABLE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED TO 31 DECEMBER 2022 Page 2022 2021 Income from: Donations (note 2) Investments Inole 3) 17 26,619,496 54,330 3.850,000 Total Income 26.673,826 3,850,000 Expenditure on: Charitable Activities (note 41 Raising funds (note 5) 19 19 2,270,065 28.152 2,668,308 Total Expenditure 2,298,217 2,668,308 Not income before other recognised gains 24,375,609 1,181,692 Gains on investment assets (note 6} 19 124.178 Net income 24,499.787 1.181,692 Other gainsl(losses) Net gainsl(lossesl on currency exchange 262.483 130) Not movèmènt in funds 24,762,270 1,181,662 Total Funds Brought Forward at 1 January 2022 1,240.377 58.715 Total Funds Carrled Foard at 31 Decembèr 2022 £26.002,647 £ 1.240,377 All amounts relate to continuing operations. There were no recognised gains and losses for the year ended 31 December 2022 other than Ihos8 included in the Income and Expenditure Account. No Trustee received any remuneration or reimbursement of expenses during the year ended 31 Dernber 2022. The notes on page 14 to 22 form part of these financial statements
Page 12 HOLLYHOCK CHARITABLE FOUNDATION (R8gist•red Charity No. 1186232 and Company No. CE019508} BALANCE SHEET AS AT 31 DECEMBER 2022 Page 2022 2021 Fixed Assets.. Investments and cash under management (note 6) 19 25,748,474 Current Assets: Debtors (note 7) Cash at bank (note 8) 20 20 52,297 381,081 2,585,424 Totsl Current Assets 433.378 2,585,424 Liabilities Creditors - amounts falling du8 within one year (note 9) 20 {179,205) {1,345,047) Totsl Liabilities 1179,205) {1,345,047) Net current assets 254.173 1,240,377 Total assets less current liabilities £26,002,647 £1,240,377 The funds of the charity: Unrestricted funds 26,002,647 1,240,377 Total charity funds £26,002,647 £ 1,240,377 The financial statements were approved and authorised for issue by th8 Trustees and were signed on their behalf by". 2*11-1?023 Trustee SI•M Ilr Date The notes on page 14 to 22 form part of these financial statements
Page13 HOLLYHOCK CHARITABLE FOUNDATION {Registered Charity No. 1186232 and Company No. CE019508} STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 Page 2022 2021 Cash flows from operating activities Nel movemenl in funds for the year Adjustments for.. Income from investments and deposils Nei gain on investment assets {Increaselldecreas8 in debtors {Decrease)lincrease in creditors Portfolios donated in specie 24,499,787 1,181,992 {54,330) (124,178) 152,297) (1,165.842) (23,067,132) 1,170,854 Net cash provided by operating activities 36,008 2,352,546 Cash flows from investing activlties Income from investments Deposil interest 48,162 6,168 Acquisition of inveslments Receipts from sales of Investments (7,740,273) 7,294,191 Net Gash (used in) by investing activities 1391,752) Net change in cash and cash equivalents for the year 1355,744} 2,352,546 Cash and cash equivalenls at 1 January 2022 Gainl(lossl on foreign Currency 2,585,424 262,483 232,908 130) Cash and cash equivalents at 31 December 2022 £ 2,492,163 £ 2,585,424 Cash and Gash equivalents consist of: Cash held with investment managers (note 6) Cash held at bank Inole 8) Ig 20 2,111,082 381,081 2,585,424 £ 2,492,163 £ 2,585,424 The notes on page 14 to 22 fomi part of these financial statements
Page 14 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDNG 31 DECEMBER 2022 ACCOUNTING POLICIES Basls of Preparation of Financial Statements Th8 Hollyhock Charitable Foundation ('the Foundation. or 'lhe CIO"), registered ch8rily number 1186232, is based and administered in the United Kingdom. The registered address is Eighth Floor, 6 New Street Square, London, EC4A 3AQ. The nature of Ihe Foundation's operations and principal activities are set out in the Trustees, Annual Report. The financial statements have been prepared in accordance with Accounting and Reporling by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 {Charities SORP FRS 1021, Ihe Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 102), the Charities Act 2011 and where applicable, the Charities Act 2022, and UK Generally Accepted Accounting Praclicè. The financial slalem8nts have been prepared lo give a 'twe and fair view, and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view.. This departure has involved following Accounting and Reporting by Charities.. Slatement 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) issued in October 2019 ralherthan the Accounting and Reporting by Charities.. Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The Foundation constitutes a public benefit entity as defined by Charities SORP FRS 102. In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in resped of significant accounting eslimales. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under Ihe circumstances. The nature of estimation means the actual outcomes could differ from those eslimales. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below. The significant accounting policies applied in the preparalion of these financial slatements are sel out below. These policies have been consistenlly applied to all years presented unless otheNis8 slated. Incoming Resources All incoming resources are included in the SOFA when the Trust is entitled lo the income and Ihe amount Gan be quantified with reasonable accuracy. Voluntary donations include donations under Gift Aid with the associaled tax credits included when receivable. Interest from deposit accounts are included when reived. Investment income is derived from interest and dividends receivable from investments and is accounted for in the period in which the Foundation is entitled to receipt. Interest from bank accounts are included when re1vable only.
Page15 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Resource$ Expondgd All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation committing the Trustees to the expenditure. It is ¢ategorised under the following heaéings.. Support CDSts - consists of advertising, markeling and direct mail malerials, including publicity costs not associated with educational material designed wholly or mainly to further the charitable company s purposes. Support costs are those that assist the work of the Foundation but do not directly represent charitable activities and include office costs and administrative payroll costs. They are incurred direclly in support of expendilure on the objects of the charilable company. Charitable activities comprise grants and donations made during Ihe period and are expended through the Statement of Financial Activities when the offer is conveyed to the recipient. Grants payable Grants payable are made to Ihird parties in furtherance of the Foundation's objects. Single or multi- year grants are accounted for then either the recipienl has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching lo the grant is outside of the control of the Foundation. Financial instruments The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial inslrurnents are recognised al trans8clion value and subsequently measured at their settlement value. Fixed Asset Invostments Quoted investments are included at closing mid-market value al the Balance Sheet date. Realised gains and losses on investments are recognised on disposal on investments and any gain or loss on revaluation is taken to the Statement of Financial Activities (SOFA). The detemiin81ion of any gains and losses is calculated by reference lo the value of such assets al the beginning of Ihe accounting period. Mid-market values are provided by independent dala feed rather than inveslmenl manager valuations. Cash held for investmenl is included within the Fixed Assets Investments in accordance with the applicable statement of Recommended Practi. Status of funds The entire reSoUrS of the Foundation are unreslricled and the Trustees have complete discretion for their use In pursuance of the Foundation's objeotives. Foreign curroncy Assets and liabilities denominated in foreign currencies are translated at the rate of excharge ruling at the Balance Sheet date. Transactions denominated in foreign currencies are converted at thè rate of exchange ruling at the date of the Iransaction. All translalion differences are taken to the statement of financial activities as Ihey arise.
Page16 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Taxation The Foundation is not subject to any taxes on its charitable activities. Irrecoverable VAT is charged againsl the category of resources expended for whi¢h it was incurred. Creditors payable within one year Creditors with no slated interest rate and payable wilhin one year are recorded at transaclion price. Any losses arising from impairment are recognised as expenditure. Cash and cash equivalents Cash and cash equivalents include ¢ash in hand, deposits held on call with banks, other short-lerm highly liquid investmenls with original maturities of three months or less and bank overdrafts. Bank overdrafts. when applicable, are included within borrowing in current liabilities. Provlslons Provisions are recognised when Ihe Foundation has an obligation at the Balance Sheet date as a result of a past event, il is probable that an oufflow of economic benefits will be required in settlemenl and the amount can be reliably estimated. Tangible Fixed Assets Tangible fixed assets are included at their cost value and depreciated using the straight line method over 5 years. Going concorn The financial statements have been prepared on a going concern basis as the Trustees believe that no matenal uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for e1ve months from the date of signing of these financial slatemenls. The forecast income and reserves are sufficient lo cover all of the budgeted expenditure to be able lo continue as a going concem. The current ongoing conflict in Ukraine and the resulting high energy costs and other cosl inflating factors have affected the global economy. Having Considered the contingency plans in place and having reviewed updated cashflow forecasts, the Trustees consider the adoplion of the going conrn basis in preparing these financial statements continues to be appropriate.
Page17 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Page 2022 2021 INCOME FROM DONATIONS Investment portfolios and cash under management donaled in specie Cash donations received 25,869.496 750,000 3,850,000 £ 26,619.496 £ 3.850,000 INCOME FROM INVESTMENTS Sarasin & Partners LLP Rothschild Asset Management Waverton Investments Limited Bank Inlerest 14,945 16,905 21,546 934 £ 54,330 EXPENDITURE ON CHARITABLE ACTIVITIES Grants payable: Fareshare Jessie May Trust Breast Cancer Now Shelter CRISIS Greggs Foundation Mercy Corps Make a Wish Children's Hospice Southwest RNID Young Minds Trust Claire House Children's Hospice Little Village Centrepoint Soho Future Hope (U.K} Bels Brucha Sense MAD Foundation Special Olympics GB Carers UK Our Special Friends Children on the Edge Harrisons Fund Limited Luminary Luminary Charity No. 1100051 1086048 1160558 263710 1082947 296590 SC030289 295672 1003314 207720 1016968 1004058 169735 292411 1157547 1131109 289868 1111805 800329 246329 1156778 1101441 1146662 1181835 1181835 200,000 128.509 100,000 100,000 100,000 100.000 100.000 100,000 90.627 87,905 81.568 72.964 62.297 61,550 50.060 53.000 50,000 50.000 50.000 50,000 39,190 30,147 22,500 45.999 45,999 150,000 100,000 100,000 30,000 45,201 50,000 18,000
Pagè 18 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 EXPENDITURE ON CHARITABLE ACTIVITIES Icontlnued) Charity No. Kidscape Wesee Education Sense International Jedidiah UK Multiple System Atrophy Trust Sense The Brain Tumour Charity Wave Project Grief Encounter 21&Co Dame Vera Lynn Children's Charity The Message Trust Hotline Meals Royal Marine Charity Toy Like Me New Gale to Peace Foundation Youngminds Trust Music and the Deaf Vvestminster Roman Caiholic Diocese CAFOD Koala North West Refuge UK Magic Breakfast Same You CW+ Jedidiah UK Embracing Age Toy Like Me Mission Aviation Fellowship MicroLoan Foundation Mission Without Boarders Kidsout 326884 45,723 40,000 36,302 31,260 30,500 30,000 30,000 25,000 24,121 21,085 19,808 18.000 7,650 5.000 14.147 1076497 1190382 1137652 289868 1150054 1163421 1175837 1149464 1089657 3961183 1066575 1134205 10778527 EIN 55-0907295 1016968 1000025 233699 1160384 1139517 277424 1102510 1170102 1169897 1190382 1160400 10778527 1064598 1104287 270659 1075789 32,361 9,071 18,560 1,100.000 367.728 100.000 65.000 61.408 50.683 50.000 50.000 50.000 42.627 39.900 23.935 22.500 20.000 11.000 10.000 5.227 5.000 Total Grants payable 2.236.764 2,642.348 Support Costs: Bank charges 421 400 Total Support costs 421 400
Page 19 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Page EXPENDITURE ON CHARITABLE ACTIVITIES {continued) 2022 2021 Governance Costs: Accountancy fees Audit fees 24.120 8,760 19,200 6,360 Total Governance costs: 32.880 25,560 Total Charitable Activities: 11 £ 2,270.065 £ 2,360,278 Auditor remuneration in respect of their audil of the Financial Statements for the p&riod to 31 December 2022 lotalled £7,250 excluding VAT12021.' £5,250 exduding VAT). The Foundation had no employees during the years ended 31 Dernber 2021 and 2022. No Trustee received any rèmuneration or reimbursement of expenses during the year ended 31 December 2022. 2022 2021 EXPENDITURE ON RAISING FUNDS Investment Management Fee$: Waverton Investmenl Management Rothschild Asset Managem8nt Sarasin and Partners 11,543 8,745 7,864 28,152 FIXED ASSET INVESTMENTS Quoted invgstments and cash under management Inveslments al tnarket value as 1 January 2022 Additions at cost Disposals al carying value 30,807,405 (7,464,870) 23,342,535 Realised gainl(loss) on disposals Unrealised gain on revaluation (261,226) 385,404 Net Gain on Investment Assets 11 124,178 Markel value at 31 December 2022 Forward Currency Contracts awaiting settlement Cash 23,466,713 170.679 2,111,082 Total Value at 31 December 2022 12 £ 25,748,474
Page 20 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 DEBTORS Page Inveslmenl transactions awaiting settlement Dividends in thé ¢ourse of colledion 45,251 7,046 12 £ 52,297 CASH AT BANK C Hoare & Co GBP Current C Hogre & Co EUR Current 380.642 439 2,585,004 420 12 £ 381,081 £ 2,585,424 CREDITORS. amounts falling duo within one year Granl commilments Investment Management fees Audit fees Accountancy fees 20 145,999 19,406 8,700 5,100 1,329,147 6,300 9,600 12 £ 179,205 £ 1,345,047 Grant Gommilmenls falling due within one year are grants which have been awarded by Truslees prior to 31 Dember 2022 but not paid until after the year-end, and where there is a constructive obligation to pay them. As at the date of this report all bar one outstanding grant commitment have been paid. 2022 2021 10. GRANT COMMITMENTS Crisis Luminary Bakery Toy Like Me- Mixmups Shelter The Wesl Yorkshire Music Programme Magic Breakfast Whiteglasses Education 100.000 45,999 1,100.000 100.000 65.000 50,000 14,147 20 £ 145.999 £ 1,329.147
Page 21 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 11. GRANTS PAYABLE- CONTINGENT LIABILITIES The Trustees have made a number of commitments for which several conditions are réquired to be met before further paymenls may be released and therefore unpaid amounls have not been recognised in these Financial Slalements. In the period from 8 November 2019 to 31 December 2020 Ihe Trustees made a charitable pledge lo Breast Cancer Now totalling up to £500,000 over a five year period. At 31 December 2022, the lotal conting8nt liability remaining for Breast Cancer Now was £100,00012021.- £200.000}. Two further pledges were made during the year to 31 December 2021. The Trustees pledged up to $1,500,000 to New Gate lo Peace Foundation of which £367.728 ($500,000) was paid during Ihe year. At 31 December 2022, the total contingent liability remaining is £740,028 ($1,000,000). The Trustees also pledged up to £184,594 to Little Village of which £30.000 was paid during the year to 31 December 2021 and £62,297 in the year to 31 December 2022. AI 31 December 2022, the totsl conlingenl liability rernaining is £92,297. During the year lo 31 December 2022 the Trustees made three further pledges were made. Fareshare were pledged £600.000 overa three year period ofwhich £400.000 remained outstanding at year end, Sheller were pledged £500,000 over a five year period of which £400,000 remained outstanding at the year end and Sense International were pledged £91,335 over a three year period of which £55,033 remained oulstanding al the year end. Additionally Cenlrepoint Soho was pledged £194,037 over 8 three year period of which £132,487 was oulstanding al the year end. However it was confirmed after the year end that thg project would not be continuing, justifying the Trustees decision not lo recognise the grant in the Financial Statements. 12. RELATED PARTY TRANSACTIONS No related party transactions occurred during Ihe year ended 31 Dember 2022 {2021'. none). No Trustee received any remuneration or reimbursement of expenses during the year ended 31 December 2022 (2021- £nil). 13. ULTIMATE CONTROLLING PARTY The Truslees consider that the Foundation is joinlly controlled by the Trustees and thal there is no ultimate controlling party.
Page 22 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 14. FINANCIAL INSTRUMENTS Page 2022 2021 The carry amounts of the Foundation's financial instruments are as follows: Financial assels Measured al fair value through SOFA.. -Fixed asset investments -cash at bank and in hand 19 20 25.748,474 381,081 2.585,424 Financial liabilities Measured al amortised Gost -creditors 179.205 1,345,047 The nel gains attributable to the Trusl's financial Inslrumènls are summarised as follows-. Income and expense Measured al fair value through SOFA.. -Nel gains (including Ghanges in fair value) 386,661 (30)