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 2023
HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 CONTENTS Page Annual Rewrt of the Trustees Independent Auditocs Report 8-10 ststement of Financial Activities (including Income and Expenditure Account) 11 Balance Sheet 12 Slatement 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 2023 The Trustees present their report and the independently audited financial statements of the Hollyhod( Charitable Foundation {'the Foundation. or'the CIO.). for the year ended 31 December 2023. These have been prepared in accordance wth the accounting policies set out on pages 14 to 16 and compty wilh applicable charity law. REFERENCE AND ADMINISTRATIVE DETAILS Hollyhock Charitable Foundation, (Regislered Charity Number 1186232 and Company Number CE019508) 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 th8 Foundation who held office during the period and continue to serve at the date of this report are- Berta Burguera Simon Brooks Slmon Peck Rupert EeS Simon Jeffries The Trustees did not hold any beneficial interest in the Foundation al 31 December 2023 or at any lime during or since the accounting period. Bankers: C Hoare & Co 37 Fleet Streel, London. EC4P 4DQ Investment Managers: Rothschild Asset Managem8nt New Court, St Swithin's Lane, London EC4N 8AL Sarasin & Partners LLP 100 St. Paul's Churchyard, London EC4M 8BU Waverton Investments Ltd 16 Babmaes St, St. James's, London SW1Y 6AH Accountants: Rawlinson & Hunter LLP Eighth Floor, 6 New Street Square. New Fetter Lane, London, EC4A 3AQ Independent Auditor: Azets Audit Services Limrted Ashcombe Court, Woolsack Way, Godalming. Surrey, GU7 1 LQ Website: https'.In)ollyhockfoundation.co.ukl
Page 2 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT The Foundation is 8 charitable incorporated organisation governed by its Constitution dated 8 November 2019 and is registered a5 a charty with the Charity Commission for England and Wales. The majority of Trustees are resident in the United Kingdom and meet regulady lo discuss and devetop the Foundation's goa15 and strategy and to Teview grant proposals and general grant requests. The numberofTrustees shall be a minimum ofthree and a maximum of six al any one time and new Trustees shall be appoinled by ordinary resolution by the exisling Trustees. The range of skills repsented on the Trustee Board will be kept under VIeW as the Foundation develops over time. The Trustees delegate the day to day running of the Foundation to R8wlinson & Hunter LLP. Inductlon and Tralnlng As part of their training, Trust88s are given an information pack whith includes the Foundation's Constitution and the Charily Commission guidance on Trustees, Responsibilities. All Trustees are aware of their legal duties and obligations in respect of the management of the Foundation, including in relation to the protection of its assets. Statement of Tru$tee$' Responsibilities The Trustees are responsible for preparing the Annual Report of th8 Trustees and the financial statements accordance with applicable law and Untted Kin9dom Accounting Standards (United Kingdom G8nerally Accepted Accounting Praclicel. The law appliGable to Gharities in England and Wales requires the Trustees lo prepare financial stalements for eaGh financial year which gIV8 a true and fair view of the stale of affairs of the Foundation and of the incoming resources and application of resources, incSuding the income and expenditure of the Foundation for that p8riod. In preparing these financial slatemenls, the Trustees are required to- select suitable accounting policies 8nd then apply them consistent, obsetve the methods and principles in the Charrties SORP 2019 (FRS 102); make judgements and estimates thal are reasonable and prudent- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statemenls- and prepare the financial statements on the going concem basis unless it is inappropriate to presume that Ihe Foundation will continue in operation. The Trustees are responsible for keeping proper accounting records that dis¢lose with reasonable accuracy al any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Charities Act 2011 and where applicable, the Charities Act 2022, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Foundation's Constitution. They are also responsible for safeguarding the assels of Ihe Four)dation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporale and financial information included on the Foundation's website. Legislation in the United Kingdom governing the preparation and dissemination offinancial statements may differ from legislalion in otherjurisdictions.
Page 3 HOLLYHOCK CHARrrABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT (contlnufrd) 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 time the financial position of the Foundation and enable them to ensure that Ihe financial statements follow best practice and all applicable law, regulation and guidance. The Trustees are also responsible for the Foundation saleguarding its assets and for taking reasonable sleps for the prevention and detection of fraud and other irregularities. The system of inlemal controls is designed to provide reasonable, but not absolute. assurance against material misstatement or loss. Rlsk Management & Corporate Governance A risk assessment has been undertaken which comprises.. An annual review of the risks the Found8tion may face., The eslablishmenl of systems and procedures to mitigate those risks., and The implementation of procedures designed to minimise 8ny potential impact on the Foundation should those risks materialise. This continuing process will identify risk areas to which the FoundalK)n is vulnerable and highlight any ne$Sary safeguards that will need lo be put in pla. No major risks were identified at th6 date of these financial statements. The Trustees have signed fit and proper declarations in line with HMRC guidance. In addition, the Trustees have taken due constderation of Good Govemance A Code for the Voluntary and Communty S8Ctor, ensuring that the seven main prlnciples of the Code are 8dhered to. These are.. Organisalional purpose., Leadership., Integrity., Decislon-making, risk and control., Board effectlV8ness', Equality. diversty and inclusSon', and Qpenness and accessibility. The Trustees recognise that good governance plays an essential p8rt in securing Ihe future ol the Foundation and confirm that the said main principles of the Code are followed by them in leading, directing and managing the Foundation. No Trustee received any remuneratlon éuring the year ended 31 Dember 2023. The Foundation does not carry out fundraising activitles. All fundraising costs relate to the management of the investment assets.
Page 4 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFrr Tha objects of the Foundation are restricted specifically to the application of CIO funds, al such lime or times and in such manner, for the public benefit, as Ihe Foundation Trustees may in Iheir discretion think fit for any exclusively charitable purposes in any part of the world. The Foundation operates as a grant-m8klng Charity, SUPPOrting charitable projects and organis8lions with gr8nts of varying sizes and durations. The Trustees have defined a programme of grant-maklng to charities. For the foreseeable future, the Foundation's primary focus will be to.. prevent or relieve poverty worldwide for individuals in need., advance the heatth and wellbeing of the general public (including preventing or TelvIng sickness, diseaso or suffering, as well as the promotion of good health). support progr8mmes which promote and advance the educalion of the general public., and promote and support Christianity for the benefit of th8 general public. The Trustees have pursued a broad strdtegy of ensuring proper due diligen in the assessment of potential grants and ensuring that grants are m8de subject to appropriate temis and condrtions. Statement of Publi¢ Benefit As a granl-funder, the Foundation's activities will provide public benefit to the individuals and communities who are beneficiaries of the Foundation's funded projects. The Foundation's public benefit is nol limited with reference to geography. by the charging of fees or olherwise. The Trustees are aware of the Charity CommissiDn guidance on Public Benefil and wnfirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to it. They consider the information which follows in this annual report, about the Foundation's aims, activities and achievements In the areas of interest Ihat the Foundation supports, demonstrates the benefit to its beneficiaries and Ihrough them lo Ihe public, that arise from those activities. Grant Making Policios The Trustees, grant making policy has been to generally consider making donations by way of direct funding and also by way of grants to charitable organisations recognised as such in their respective jurisdictions for projects that are exclusively charitable under English law. The Foundalion has put in place sound grant arrangements so thal11 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 DECEMBER 2023 ACHIEVEMENT AND PERFORMANCE Charilable Acllvltles After starting each year's report commenting on the Foundation operating in a drficult time it seems we have to accept that this is now the new nom)81. As well as evenls of previous years still with us we have seen high levels of tension in the Middle East. Coupled wilh that Government funding reduces each year meaning that all Charities are struggling to rneet their goals and have the impact they want. The Trustees have continued to meet the challenges by a continuing programme of donations to large and small Charities across our obj'ects. The Foundalion's objects have not changed, with its four key pillars being Poverty, Health and Wellbeing, Education and Chrislianity- Poverty This accounted for £1,288,242 (2022.. £712,817) in donations. We continued to support large national organisations such as CRISIS, Shelter and The Trugsell Trust bul also continue to help smaller organisations that make big benefits to poorer areas of the country. Hoalth and Wellbeing As in 2022 this made up a higher proportion of donations than the other areas we support. Donations totalled £2,656.16712022= £ 1,340,077). Mental health issues continue lo be a high-profile issue and constantly in th8 news. We have conlinued lo provide medium size donations to a wide number of Charities both in the UK and overseas, helping with ald in India, Ukraine and Syria. Education This was an area that only made £298.612 {2022= £165.8701 of grants in 2023. This Sncluded £58,95212022: £50,000} to help send GB'S team to the Special Olympics. The first series of Mixmups {see 2021 report) was broadcast in November 2023 and was very well received. Channel Four have commissioned a second series (subject to funding) and it has also been shown in other countries. Christianity The amount donated in 2023 of £1,202,074 {2022= £18,000) is predominantly due to us assisting in acquiring 8 house in Magdala to house volunteer workers. We have strongly supported Magd8la since our formation and still have an outstanding obligation to fund a restaurant at the complex but work on this has been delayed again due to the tensions in Ihe Middle EasL Overall The Trustees will continue its commitment to benefit small and large charities in all four areas of our objects for sueh as our funding allows.
Page 6 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW The Statement of Financial Activities on page 11 shows tolal incoming resources for the period of £3,854,68712022.' £26,673,826). £154.105 {2022'. £28,152) was expended on Ihe management of inveslment portfolios and grant expenditure amounted lo £5,445,095 {2022'. £2,236.7641. Support costs amounted to £54.89312022'. £33,30118nd are included within charitable activities. The principal funding foT the Foundation came by way of voluntary donations from an unconnected third party and there were no restrictions attached to these. The funding has allowed the Foundation to operate and award 63 grants to 57 organisations totalling £5,445,095 12022.. £2.236,764 comprising 39 grants to 37 organisation) which has in turn benefitted countless thousands. The balance of reserves at 31 December 2023 is £27.371.505 (2022.. £26,002.6471 and all fijnds are unrestricled. Investment pollcy and performance The investment objective is to generate over the long term a lolal return per annum before grant making & expenditure, ave inflation (as measured by CPl+3.5 /0} while providing adequale liquidity for annual grant making & expendilures. At current or even higher granl making levels. this approach should allow Ihe Charity at least lo maintain the value of its assets whilst keeping to the expected spend down schedul8. The Ch8rity relies on the investment portfolios to fund its grant making. The key rlsk lo the long-term sustainability of the Charity is inflation. over and above the spend-down schedule, and so the assets should be invesled to mitigate this risk over the long term. The truste8s understsnd that this is likely to mean that investment will be concentrated in real assets and that the capital value will fluctuate. The truslees are able lo lolerate volatility of the capital value of the Charity, consistent with the investment objectives. as long as it is able to meet its ongoing grant m8king 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 8sset that is deemed suitable for the Charty- The portfolio should be diversified and invested in line with the Ethical Restrictions. Given the geographic area in which the Charity operates and their attitude to risk the Trustees request that any investment manager build a portfolio in line with the following guidelines. A neutral equity weighting of 70 /0 of the portfolio,. and Sterling reporting mandates with a minimum of 50 /0 held in steding assets. The Trustees are satlsfied with the performance of their investment portfolios since they were gifled the investments, which produced income during the year of £324,473 {2022'. £53,396) and capitsl appreciation of £2.930.536 {2022'. £124,178). The Trustees monitor performan of the underlying investments and managers on a regular basis. through investment reports provided on a quartedy basis and comparisons to peer groups and appropriate indices. The quarlerly reports are provided by 8 qU81ified investment analysis who has been retained on a non-remunerated basis.
Page 7 HOLLYHOCK CHARITABLE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW (continued} Reserves Policy The Trustees have examined the Foundation's requirement for resources in light of the main risks to the organisation and have no outstanding commitments or cash demands which are not adequatèly covered by existing resourees. The net assets of the Foundation are regarded as free reserves and Ihe funds at 31 December 2023 will be retained to make grants in accordance with the Foundation's charitable objects and policies. The Trustees consider thot the fre8ly 8xpendable funds are appropriate and adequate taking into account plans for grants to be awarded in future and have al present therefore not design8led any spectfic reserves. However, Ihe Trustees will keep Ihts uler constant review. In fulure years, a specific reserves policy may be r8quired. The ongoing conflicts in Ukraine and the Middle Easl, the resulting high energy costs and other cosi inflating factors have affected the global economy. Having considered Ihe contingency plans in place and having reviewed updated cashflow forecasts, the Trustees consider the adoption of the going concem basis in preparing these financial slatemenls continues lo be appropriaté. PLANS FOR THE FUTURE The Trustees do not propose to deviale from the current objectives and activities of the Foundation as detailed in Section 3 of this report but will fvrther develop and refine their strategies, policies and procedures in future. Approved by the trustees and signed on their behalf by: £" 2024 Date Trustee
Page 8 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HOLLYHOCK CHARITABLE FOUNDATION Oplnion We have audited the financial statements of the Holtyhock Charitable Foundation (the 'Foundation' or'the CIO,) for Ihe year ended 31 December 2023 which comprise Ihe statement of financial activities, the balance sheet, Ihe slalement of cash flows and the notes to the financial ststemenls, including a summary of significant accounting policies. The financial reporting framework that has b&en applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial R8POrting Standard 102 The Financial Reporting Standard 8ppIic8ble in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In Dur opinion the financial statements: gwe a true and fair view of the stste of the Foundation's affairs as at 31 DeGember 2023 and of its incoming resources and application of resources, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounling Practic6. and have been prepared in a¢¢ordance with the requirements of the Charities Act 2011. Basls for oplnlon We Conducled our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our sponsIbl1]t1eS under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the Foundation in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordanc8 Wlth these requirements. We believe Ihal the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to going concern In auditing the financial statements. we have concluded that the trustees, us8 of the going concern basis of accounting in the weparation of the financial stslemenls is appropriate. Based on the work we h8ve perfomied, we have not identified any mateTial uncertainties relating to events or conditions that, individually or colle¢tively, may cast significant doubt on the Foundation's ability to continue as a going concern for a period of al leasl Iwelve months from when the financial stalemenls are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going ¢on¢em are described in the relevant section$ of this report. Other Informatlon The other information comprises the information included in the annual report other than the financial statements and our auditorfs report Ihereon. The Trustees are responsible for the othèr infr)miation conlained within the annual report. Our opinion on the financial statements does not cover the other information and we do nol express any fomi of assurance conclusion Ihereon. Our responsibilty is to read the olher infomiatlon and, In doing so, consider whether the other information is materi811y inconsistent with the financi81 slalemenls or our knowledge obtsined in the course of the audit. or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstalements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is 8 material misst8temenl of this other Information, we are required lo report that fact. We hove nothing to report in this gard.
Pwje 9 INDEPENDEr AUDITOR'S REPORT Icontinuedl TO THE TRUSTEES OF HOLLYHOCK CHARITABLE FOUNDATION Matters on whlch we are requlred to report by exceptlon We have nothing to report in respect of the following matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion- the information given in the financial statements is inconsislenl in any material respect with the trustees. repott or sufficSenl accounting records have nol been k8pI', or the financial statements are not in agreement with the accounting records.. or we have nol received all the infomiation and explanations we require for our audit. Responsibllities of trustees As explained more fully in the statemenl of Iruslees, responsibiltlies, the Trustees are responsSble for the prep8ratK>n of the financial stalements and for being satisfied 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 th81 are free from material misslatemenl, whether due to fraud or error. In preparing the financial statemenls, the Trustees are responsible for assessing the Foundation's ability lo continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basi5 of accounting unless the Trustee5 either intend to cease operations, or have no realistic alternative but to do so. Auditorfs responsibilities for the audit of the financial statements We have teen appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thender. Our objectives are to obtain reasonable 8ssuranc£ about whether the financial ststements as a whole are free from material misstatement, whether due to fraud c)r error, and to issue an auditorf5 report that includes our opinion. Reasonable assurance is a high level of assurance bul is not a guarantee that an audlt conducted in accordance with ISAS IUKI will always deted a material misstatement when it exists. Misstatements can arise from fraud or error and a Considered material rf, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial st8tement8. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https=lthw.frc.org.uklauditorsresponsibiltties. This description forms part of our auditor's report. Extent to whlch the audlt was consld•r•d capabl• of d&t•dlng itr•gularltles, Includlng fraud Irregubarilies, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to delect malerial misslalements in respect of irregularities, including fraud. We oblain and update our understanding of ihe entity, its activities, its control environment, and likety future developments, including in relation to the legal and regulatory framework applicabl8 and how the enlity Is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of ihe financial statements, whether due to fraud or error. design and perfomi audit procedures responsive to those risks, and obtain audit eviden that is sufficient and appropriate to provide basis for our opinion. This includes consideralion of Ihe risk of acts by Ihe entity that were contrary lo applicable laws and regulations, including fraud.
Page 10 INDEPENDENT AUDITOR'S REPORT (continued) TO THE TRUSTEES OF HOLLYHOCK CHARITABLE FOUNDATION In response to the risk of irregularities and non-compllance wllh laws and regulatlons, Including fraud, we designed procedures which included: Enquiry of management and those charged with governance around actual and potential litigation and Claims as well as actual, suspected and alleged fraud., Reviewing minutes of meetings of those charged with governance., Assessing the extent of compliance with the laws and regulations considered to have a direcl material effecl on the financial slalements or the operations of the entily through enquiry and inspection., Reviewing financial statement disGlosures and testing lo supporting documentation to assess compliance with applicable laws and regulations; and Perfomiing audit work over the risk of management bias and override of controls. including testing of journal entries and other adjustmènts for appropriateness, evaluating the business rationale of significant transactions outside the normal Course of business and reviewing accounting estimales for indicators of potential bias. Because of the inherent limrtations of an audtt, the is a risk thal we will not detect all irregulariligs, in¢luding Ihose leading to a malerial misslalemenl in the financial statements or non<ompliance with regulation. This rlsk increases the more thal compliar)ce with a law or regulation is removed from the events and transactions reflected in the financial statements, as w8 will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstalemenl resulting from fraud is higher than for one resulting from error, as fraud may involve collusion. forgery. intentional omissions, misrepresentations, or the override of intemal control. Use of our report This report is made solely lo the Foundation's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken $0 that we might slate to the Foundation's trustees those matters we are required to slate lo tham in an auditors. report and for no other purpose. To the fullest extent permitted by law, we do not a¢pt or assume restx)nsibility lo anyone other than the Foundation and the Foundation's trustees as 8 body. for our audil work, for this report, or for Ihe opinions we have fom)ed. IA bUIAY&( b(u,kl Alex Tprnlett {Senior Statutory Auditorl For and on behalf of Azgts Audit ServiGes Llmited Statutory Auditor A5hcornbe Court 0015ack Way Godalming Surrey GU7 1LQ Date.. 10 October 2024 Azets Audit servIs Limited is eligible to act as an auditor in accordance with Section 1212 of th8 Companies Act 2006.
Page11 HOLLYHOCK CHARITABLE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED TO 31 DECEMBER 2023 Page 2023 2022 Income from: Donations (note 21 Investments (not8 3) 16 3,525,613 329,074 26,619,496 54.330 Total Income 3,854,687 26,673,826 Exp•nditur• on: Charitable Actlvilies {note 41 Raising funds (note 5) 19 19 5.499.988 154,105 2,270.065 28,152 Total Expenditure 5,654,093 2,298,217 Net {expenditureyincome before other recognised gains {1,799,406) 24.375,609 Gains on inveslment assels {note 61 19 2,930,536 124,178 Nel in¢om¢ 1,131,130 24,499,787 Othor galnslllossos) Net gains on currency exchange 237,728 262,483 Net movernent in funds 1,368,858 24,762,270 Total Funds Brought Foard at 1 January 2023 26.002,647 1,240,377 Total Funds Carrled Forward at 31 Dec•mber 2023 £ 27,371,505 £26.002.647 All amounts relate to continuing operations. There were no recognised gains and losses for the year ended 31 Dember 2023 other than those included in the Income and Expenditure Account. No Trustee received any remuneration or reimbursement of expenses during the year ended 31 D8cember 2023. The notes on page 14 to 22 fom part of these finan¢ial stalements
Page 12 HOLLYHOCK CHARITABLE FOUNDATION (Rogistered Charily No. 1186232 and Company No. CE019508) BALANCE SHEET AS AT 31 DECEMBER 2023 Page 2023 2022 Flxed Assets: Investments and cash und8r management (note 61 19 23,824.413 25,748,474 Curront Ass•ts: Debtors (note 71 Cash at bank Inote 8) 20 20 52,297 381,081 3.698.019 Total Current Assets 3,698.019 433,378 Liabilities Creditors - amounts falling due within one year (note 9) 20 (150,927) {179,205) Total Liabilities 1150.927) (179,205) Net current assets 3,547,092 254,173 Total assets less current liabilities £27,371,505 £26,002,647 The funds of th• charity: Unrestricted funds 27.371,505 26,002,647 Total charity funds £27,371,505 £26,002,647 The financial statements were approved and authorised for issu8 by the Trust88s and were signed on their behalf by.. JI_I Trustee 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 2023 Page 2023 2022 Cash flows from operating activities Net income for the year Adjustments for.. Income from investments and depostts Net gain on investment assets Decreasellincrease} in debtors Decrease in creditors Portfolios donated in specie 1,131,130 24.499,787 (329.074) {54,330) (2.930.536) (124,178} 52,297 {52,297) {28.278) 11,165,842) 123,067,132) Net cash provldod by operating activities {2,104.461) 36,008 Cash flows from investing activities Income from investments Deposit interest 297,306 31,768 48,162 6,168 Acquisition of investments Receipts from sales of investm8nts {13.303.185) 17.740.273) 16.799.124 7.294.191 Net ¢ash generated by/(used in) investing a¢tivili0s 3.825.013 1391,7521 N¢t change in cash and cash •quivalents for the year 1,720.552 {355.744) Cash and cash equivalents at 1 January 2023 G8inllloss} on foreign currency 2,492,163 237,728 2,585,424 262,483 Cash and cash equlvalents al 31 December 2023 £ 4,450,443 £ 2,492,163 Cash and cash equivalents ¢onsist of: Cash held with investment managers {note 6) Cash held at bank (note 8) 19 20 752,424 3.698,019 2.111.082 381,081 £ 4,450,443 £ 2,492,163 The notes on page 14 to 22 fonn part of these financial statements
Page 14 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDNG 31 DECEMBER 2023 ACCOUNTING POLICIES Basls of Preparatlon of Flnanclal Statoments The Hollyhock Charitable Foundation ('Ihe Foundation. or 'the CIO.), registered charity 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 the Foundation's operations and principal activlties are sèt out in the Trustees. Annual Report. The financial st8tements have been prepared in accordance with Accounting and Reporting by Charities.. St81ement 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} {Ch8rities SORP FRS 1021, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 1021, the Charities Act 2011 and where applicable, the Charities Act 2022. and UK Generally Accepted Accounting Practice. The financial statements have been prepared to gNe a Irue and fair view, and have departed from the Charrties {Accounts and Reports) Regulations 2008 only to the extent required lo provide a Irue and fair view,. This departure has involved following Accounling and Reporting by Charities: Statement of Recommended Pr8CtiGe applicable lo charities preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 issued in October 2019 rather than the Accounting and Reporting by Charities: Ststement of Recommended Ptactice effective Irom 1 April 2005 which has since been withdrawn. The Foundation constitLrtes a public benefit entity as defined by Charities SORP FRS 102. In applying the financial rewrting framework. the Trustees have made a number of subjective judgements, for example in respect of significant accounting eslimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors. including expectations offuture events that are believed to be reasonable underthe circumstances. The nalure of estimation means the actual outcomes could differ from those estimates. Any signrficant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consislently applied to all years presented unless otherwise staled. Incomlng Resources All incoming resources are included in the SOFA when the Trust is enlttled lo the income and the amount can be quantified with reasonable accuracy. Voluntary donations include donations under Gift Aid with the associated tax credrts included when receivable. Interest from deposit accounts are included when received. Investment income is derived from interest and dividends re1vable from investments and is accounted for in the period in which the Foundation is entitled to receipt. Interest from bank accounts are included when receivable only.
Page 15 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Resources Exp8nd•d All expenditure is inclu(Jed on an accruals basis and is recognised when there is a legal or construclive obligation Gommitting the TTUStees to the expendilure. It is calegorised under the following headings- Support Costs - consisls of advertising. marketing and direct mail materials, including publicty costs not associated wilh educational material designed wholly or mainly to further the charitable company's purposes. SuppK)rt costs are those that assisl the work of the Foundation but do not directty represent charitable activities and include office costs and administrative payroll costs. They are inCued directly in support of expenditure on the oty'ects of the charitable company. Charitable activities comprise grants and donations made durir)g the period and are expended through the Statement of Financial Activities when the offer is Conveyed lo the recipient. Grants payabl• Grants payable are made to third partEs in furtheran of the Foundation's objects. Single or multi- year grants are accounted for when either the recipient has a reasonable expectstion that they will receive a grant and the Trustees have agreed to pay the grant wlthoul condition, or the recipient has a reasonable expectation that they will receive a grant and that any condttion allaching to the grant is outside of the contr()l of the Foundation. Financial instrumants The Found8tion only has financial assets and financial liabilitK*S of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement valu6. Fixod Assot InStments Quoted investments are included 8t closing mid-market value al the Balan Sheet date. Realised gains and losses on investments are recognised on disposal on investments and any gain or loss on revaluation is tsken lo the Statement of Financial Aclivilies (SOFA). The delem)inalion ol any gains and losses is Galculated by reference to the value of such assets at the beginning of the accountlng period. id-market values are provided by independent data feed rather than investment manager valuations. Cash held for investment is included within the Fixed Ass8ts Investments in accordan with the applicable statement of Recommended Practice. Status of funds The entire reSoUrS of the Foundation are unreslricled and the Trustees have (x)mplete discretion for their use in pursuance of the Foundation's objectives. Foreign currency Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling al the Ba18nce Sheet dale. Transactions denominated in foreign currencies are converted at the rale of exchange ruling at the date of Ihe transaction. All translation differences are taken to the statement of financial activities as they arise.
Page 16 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Taxallon The FoundalK>n is not subject to any taxes on ils charitable activities. Irrecoverable VAT is Gharge(I against the category of resources expended for which it was incurred. Croditors payable within one year Creditors with no stated interest rate and payable within one year are recorded al transaGlion pric8. ash and cash equivalents Cash and cash equivalents include cash in hand. deposits held on call with banks, other short-tem highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable. are included within borrowing in current li8bilities. Provlslons Provlsions a recognlsed when the Foundallon has an obllgatlon at the Balance Sheet date as a result of a past event, it is ¥Yobable that an outflow of economic benefits will be required in Settlement 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. Golng concern The financial statements have been prepared on a going concern basis as the Truslees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for twelve months from the dale of signing of these flnancial statements. The forecasl Income and reseNes are sufficlent lo cover all of the budgeted expendiiure lo be able to conlinue as a going concern. The currenl 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 adoption of the going concern basis in preparing these financial statements continues to b8 appropriate. Page 2023 2022 INCOME FROM DONATIONS Investment portfolios and cash under management donated in specie Cash donations received 6,310 3.519,301 25.869,496 750,000 11 £ 3,525,613 £ 26,619,496
Page 17 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR ThE YEAR ENDED 31 DECEMBER 2023 Page 2023 2022 INCOME FROM INVESTMENTS Sarasin & P8rtners LLP Waverton Investmenls Limited Rothschild Assel Managemenl Bank Inlerest 128,420 127,378 68,675 4,601 14,945 21,546 16,905 934 £ 329.074 £ 54,330 EXPENDITURE ON CHARITABLE ACTIVITIES Grants payabl•: New Gate to Peace Foundation Fareshare CRISIS Mercy Corps Hearing Dogs for Deaf People Good Faith Foundation Breast Cancer Now Foodcycle Children's Hospice Southwest Embracing Age Papyrus Great Ormond Slreet Hospital Children's Charity Magic Breakfast Age UK Bag Books Parkinson's UK Shelter Make a Wish NSPCC Trussell Trust Slarlighl Children's Foundation Willow Foundation RNID Little Village CHIVA Princess Alic8 Hospice Wesee Education Deaf Action Marie Curie L'Ar¢he Foundation Dementia Support Sl Vincent de Paul Society Motiv8 South Limited Special Olympics GB Book Trust Bloomsbury Football Foundation Jessie May Trust Charity No. EIN 55-0907295 1100051 1082947 SC030289 293358 1188639 1160558 1134423 1003314 1160400 1070896 1160024 1102510 1128267 1026432 258197 263710 295672 216401 1110522 296058 1106746 207720 169735 1122356 1010930 1,191,454 200,000 200,000 200,000 159,000 157,218 150,000 110,123 102,318 100,000 100,000 100.000 100,000 100.000 100.000 100,000 100,000 100,000 100,000 100,000 99,500 95,500 92.748 92.297 83.250 77,480 75,960 75,01)0 75,000 71,826 65,000 65.000 60,0(X) 58.952 55,0(Kl 53,095 50,000 200,CK)O 100,C0 100,000 100,000 90,627 100,000 100,000 87,905 62,297 40,000 SC009898 207994 264166 1158640 1053992 1069085 800329 313343 1178842 1086048 so.000 128,509
Page 18 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 EXPENDITURE ON CHARITABLE ACTIVITIES (continued} Charity No. MAD Foundation Refuge UK Thomage Hall S8feLive5 Futu Hope (U.K) Kisharon The For Batys Sake Trust Sense Pretty Gorgeous CIC Children on the Edge Re8urgo Twst Jedidiah UK Sense International Grief Encounter Harrisons Fund Limited 21&Co Toy Like Me Legionnaires of Christ Dogs for Good St Mary's Cenlfe Kidscape Greggs Foundation Young Minds Trust Clalre House Children's Hospice Centrepoinl Soho Bels Brucha Car8rs UK Our Special Friends Luminary Luminary Multiple System Atrophy Trust The Brain Tumour Charity Wave Projecl Dame Vera Lynn Children's Charity The Message Trust Hotline Meals Royal Marine Charity 1111805 277424 297496 1106864 1157547 271519 1126459 289868 50.000 50,000 50.000 50,000 49,864 43.700 42,418 30.000 30,000 30,000 30,000 28,740 26.846 25,191 25.000 21,085 17,960 10,620 9,054 50,000 50,1%$0 80,(K)O 1101441 1100885 1190382 1076497 1175837 1146662 1149464 30,147 31,260 36,302 24,121 22,500 21,085 1092960 1122054 326864 296590 1016968 1004058 292411 1131109 246329 1156778 1181835 1181835 1137652 1150054 1163421 1089657 3961183 1066575 1134205 45,723 100.000 81,568 72,964 61.550 53.000 50.000 39,190 45,999 45.999 30,500 30,000 25.000 19,808 18.000 7,650 5,000 Total Grants payable 5,445,095 2,236,764 Support Costs: Bank charges 593 421 Total Support costs 593 421
Page 19 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Page 2023 2022 EXPENDITURE ON CHARITABLE ACTIVITIES (continued) Governance Costs: Accounlancy fees Audit fees 39,300 15,000 24,120 8,760 Total Governance costs: 54,300 32,880 Total Charitable Activities: £ 5,499,988 £ 2,270,065 Auditor remuneralion in respect of their audlt of ihe Financial Statements for the p8riod to 31 December 2023 totalled £9,750 excluding VAT (2022- £10,000 excluding VAT). The Foundation had no employèes during the years ended 31 December 2022 and 2023. No Trustee received any remuneralion or reimbursement of expenses during the year ended 31 December 2023. 2023 2022 EXPENDITURE ON RAISING FUNDS Investment Management Fees: Rothschild Asset Managemer)t Waverton Investment Management Sarasin and Partners 65,356 49,005 39,744 8,745 11,543 7,864 154,105 £ 28,152 FIXED ASSET INVESTMENTS Quoted investments and cash under management Investments & FFX at market value as 1 January 2023 Additions at cost Disposals at Gqrrying value 23,637,392 13,303,185 30,807.405 {16,799.124) 17.464.870) 20,141,453 23.342.535 Realised gainl{lossl on disposals Unrealised gain on revaluation 624,599 2,305.937 1261,226) 385,404 Net Gain on Invèstment Assets 11 2,930,536 124,178 Market valu8 at 31 December 2023 Cash 23,071,989 752,424 23,637,392 2,111,082 Total Value at 31 December 2023 12 £ 23,824,413 £ 25,748,474
Page 20 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Pag• 2023 2022 DEBTORS Inveslmenl transactions awaiting settlement Dividends in the course of colleclion 45.251 7,046 12 £ 52.297 CASH AT BANK C Hoare & Co GBP Current C Hoare & Co EUR Current 3,697,588 431 380,642 439 12 £ 3,698,019 £ 381.081 CREDITORS- amounls falllng due wlthln one year Inveslmenl transactions awaiting settlement Grant commitments Investment Management fees Audit fees Account8ncy fees 76.253 28.740 21,934 15,000 9,000 20 145,999 19,406 8,700 5,100 12 £ 150,927 £ 179,205 Grant commitments falling due within one year are grants which have teen awarded by Trustees pr¥)r 10 31 Deoember 2023 bul not paid until after the year-end, and where there is a constructive obligation to pay them. As al the dale of Ihi5 repori all granl commitments have been paid. 2023 2022 10. GRANT COMMITMENTS Jedidiah UK Crisis Luminary Bakery 28,740 100,000 45,999 20 £ 28,740 £ 145,999
Page 21 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 11. GRANTS PAYABLE- CONTINGENT LIABILITIES The Trustees have made a number of commitments for which Several conditions are required to b8 met before further payments may be released and therefore unpaid amounts have not been recognised in these Financial Statements. Year of Pledge Outstanding Pl•dg• 2023 Outstanding Plodge 2022 Total Pl•dged Charity Breast Cancer Now New Gate to Peace Foundation Little Village Fareshare Shelter Sense Inlernational Dame Vera Lynn Children's Charity Starlight Children's Foundation Hearing Dogs for Deaf People Papyrus Dementia Support St Vincent de Paul Society Bloomsbury Football Foundation 2020 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2023 2023 500,000 1,178,319 184,594 600,000 500,000 91,335 62,448 201,975 600,000 300,000 204,912 129,784 106,190 50,000 785,546 100,000 740,028 92,297 400,000 400,000 55,033 42,640 200,000 300,000 28,187 42,640 102,475 341,000 200,000 139,912 64,784 53,095 Total £ 2,264,999 £ 1,787.358 The agreernent with New Gale to Peace Foundation was made in US Dollars. The increase in outstanding pledge between 2022 and 2023 is to reflect movements in GUenCY exGhange. 12. RELATED PARTY TRANSACTIONS During the yeai ended 31 December 2023 a donation of £172,000 was received from the brother of trustee. There were no conditions attached to the donation12022: no related party transactions). No Trustee received any remuneralion or reimbursement of expenses during the year ended 31 December 2023 {2022. £nil). 13. ULTIMATE CONTROLLING PARTY The Trustees consider that the Foundation is jointly controlled by the Trustees and that there is no uttimate controlling paty.
Page 22 HOLLYHOCK CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. FINANCIAL INSTRUMENTS Page 2023 2022 The carry amounts of Ihe Foundallon's financlal inslrumenls are as follows.. Financial assets Measured al fair value through SOFA.. -Fixed asset investments -cash at bank and in hand 19 20 23.824,413 25,748,474 3,698.019 381,081 Flnanclal Ilabllltles Me88ured al amorlised Cost -Credilors 20 150,927 179,205 The net gains attributable to the Trust's financial instruments are Summarised as lollows.. Income and expense Measured al fair value through SOFA.. -Net g8ins (including changes in fair value) 3,168.264 386.661