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2021-01-31-accounts

Charitable Incorporation Organisation Registered Number 1187297

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS

for the period from 10 January 2020 to 31 January 2021

CONTENTS

CONTENTS
CHAIR & EXECUTIVE COMMENT 1
OBJECTIVES & ACTIVITIES 2
ACHIEVEMENTS & PERFORMANCE 3
ADAPTING TO 2020 4
HOW HAVE WE MET OUR OBJECTIVES? 4
IMPACT ANALYSIS 6
FINANCIAL REVIEW 6
PLANS FOR 2021 7
THE HARGREAVES FOUNDATION EARLY INTERVENTION SCHEME 7
STRUCTURE, GOVERNANCE & MANAGEMENT 8
REFERENCE & ADMINISTRATION DETAILS 8
STATEMENT OF TRUSTEES' RESPONSIBILITIES 9
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES 10
STATEMENT OF FINANCIAL ACTIVITIES 14
BALANCE SHEET 15
STATEMENT OF CASH FLOWS 16
NOTES TO THE FINANCIAL STATEMENTS 17

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS for the period ended 31 January 2021

CHAIR & EXECUTIVE COMMENT

It has been a challenging year to launch a Charitable Foundation and we have seen as much uncertainty over the past 12 months as I can remember.

Our mission remains unaffected: Transforming young lives through sport and education.

Our aim, through the Foundation, is to improve the lives of young people whether with disabilities or from disadvantaged backgrounds, and to assist them in leading the fullest and happiest lives possible.

We have received many applications covering a huge range of projects and initiatives. We have taken our first steps into funding and have selected a broad cross-section of schemes. Our focus is always on changing lives.

Peter Hargreaves

I am delighted to bring together this annual report and I hope it will provide a brief snapshot of our work to date. We have negotiated some testing times, but speaking on behalf of the Board of Trustees, we have also experienced much joy from the funding we have been able to approve this year. We look forward to the next 12 months with great anticipation; new projects, strengthening relationships and many more young people benefitting from grants from The Hargreaves Foundation.

Alexandra Butler

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS for the period ended 31 January 2021

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TRUSTEES' REPORT

OBJECTIVES AND ACTIVITIES

The charitable objectives of The Hargreaves Foundation as stated in our constitution document are:

The main activities undertaken to further the charity's purposes for the public benefit are grant making, details of grants awarded are included in the achievements and performance section of this report.

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ACHIEVEMENTS AND PERFORMANCE

OVERVIEW

GRANTS APPROVED

12

FUNDING PAYMENTS APPROVED MADE £335,341 £165,741

Alongside the impact of COVID on charities’ operations, our first year has been a learning curve and we are starting to understand more about the types of project we would like to fund. We work hard to review every application we receive and provide an update to all applicants. It is our intention to further refine our eligibility criteria in the early stages of 2021.

HOW DO WE DECIDE?

ONLINE APPLICATION

INITAL TRUSTEES FURTHER FINAL SCREENING REVIEW INFORMATION DECISION

We consider our application process to be light touch, whilst still providing detail. We only accept applications online meaning everyone must follow the same process and we have invested in technology to make managing applications as seamless as possible.

Our initial screening includes a full review of the application against our criteria, website review, Charities Commission check (if appropriate) and a check for news stories.

The Trustees have access to all the application data and make their final selections. They are looking for projects or initiatives that have the potential to inspire and make a significant impact on a young person's life.

If an application is shortlisted we will usually request that a brief video is prepared by the organisation to showcase their project.

The closing stage is normally a meeting with the Trustees which is currently being carried out remotely. A final decision is communicated with the recipient afer this.

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ADAPTING TO 2020

During Spring 2020 we implemented the use of video presentations, asking shortlisted applicants to prepare and submit a 90 second video clip outlining their values, proposal, strategy and longer term ambitions. It's proved a creative, COVID friendly way to allow the Trustees to get a real feel for the organisations.

HOW HAVE WE MET OUR OBJECTIVES?

We have five objectives which underpin our mission “transforming young lives through sport and education”. Our application form asks organisations to confirm which of our objectives their project supports and we then go on to assess which initiatives will make the biggest impact. We try to ensure that we fund a range of projects meeting as many of our objectives as possible. Ofen a project will meet more than one objective.

BELOW IS AN EXAMPLE OF SOME OF THE PROJECTS WE HAVE FUNDED AND THE OBJECTIVES MET:

“Enables individuals to experience the mental and physical health benefits of participatory sport.”

The Hargreaves Foundation’s Trustees awarded a grant of £117,264 to the Netball 4 Change programme run by The Change Foundation.

Netball 4 Change uses the game of netball to teach girls affected by social media how to stay safe online. It empowers them to think more positively about their online network, how it can affect their future prospects and raises awareness of negative social media influences.

Netball 4 Change started in 2017 and has helped over 700 girls increase their knowledge about social media safety and reduce the time they spend on social media. By using netball drills the programme also encourages physical fitness and team bonding.

“We are delighted to help Netball 4 Change bring their programme to Bristol, supporting vulnerable and at-risk girls and young women aged 11-17 to stay safe online. Through the power of sport, participants will be empowered to engage with social media in a healthier and more constructive way that does not compromise their mental health,

“Ensures participatory sport is accessible.”

The Trustees of The Hargreaves Foundation have approved funding for an initial four pieces of specialist mobility equipment for Action for Kids Charitable Trust.

AFK provides specialist mobility equipment not available on the NHS to disabled children and young people. The right piece of equipment can mean the difference between playing outside with friends or watching from the side lines; between participating in sport or spectating. It can help with pain management, muscle strength and independence.

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“One of our objectives is to make sport accessible – we are delighted to fund mobility equipment to allow several young people the opportunity to participate in their chosen sport.”

“Provides sporting or educational activities that foster life skills.”

The Trustees of The Hargreaves Foundation awarded £8,535 to Bristol based Square Food Foundation.

Through food and cooking Square Food works towards reducing hunger, improving health and building resilience. The funding will be used to support a group of local 16-18 year olds who are no longer in mainstream education attend a specialist cookery course ‘A Toolkit for Independent Living’ at The Park in Knowle West.

“We are delighted to support Square Food help a group of young people learn how to prepare a set of simple dishes. Not only does cooking from scratch encourage healthy eating, it is also a skill for life. Additionally the course drives attainment in basic literacy and numeracy, commitment, team work and resilience. We are also pleased to supply attendees with a set of basic kitchen equipment and store cupboard essentials for use at home. Our hope is that some of the students will be inspired to continue their studies within the catering and hospitality sector.”

“Aims to improve academic engagement and attainment.”

The Hargreaves Foundation awarded £30,000 to The Literacy Pirates.

Founded in 2010 to support children who are falling behind in literacy, The Literacy Pirates works with children aged 9-12 whose teachers think they would benefit from some extra support.

The children – or young pirates – attend weekly sessions afer school at ‘ships’ in Dalston, Tottenham or, in response to the pandemic, online. The learning support is devised and delivered by teachers and additional support is provided by a community of trained volunteers.

Children who become young pirates are on average 18 months behind national reading age and come from backgrounds with fewer opportunities.

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We continue to work towards helping children and young people gain access to the support they need – the tremendous work carried out by The Literacy Pirates is life changing; narrowing the attainment gap in literacy. On average 16 months progress is made in reading in just 9 months, alongside progression in the children’s writing skills, confidence and perseverance, helping them to achieve at school and beyond.”

“Encourages the development of skills and personal attributes to aid future employability.”

The Hargreaves Foundation awarded £16,880 to Tall Ships Youth Trust.

Having heard about the support given to the personal development of young people from all walks of life through the crewing of ocean going vessels, the Trustees have approved the funding of two voyages for 16-18 year olds.

Tall Ships works with young people from across the UK, helping them redefine their horizons. Out at sea they are encouraged to grow in confidence and develop skills which set them up for life; teamwork, social skills and leadership.

“The results speak for themselves; a Tall Ships initiative working with 80 unemployed young people saw an exceptional 97% of participants move into employment, education or training within six months of completing the project. We support the ethos of raising aspirations, developing life skills and building self-esteem.”

IMPACT ANALYSIS

During the application stage applicants are asked to explain the difference their work makes to the lives of young people and this is something we consider carefully as part of our assessment and decision-making process. The recipients of the grants we awarded this year will be reporting on their progress in 2021. We look forward to learning from these grants and reporting on the difference our funding has made in our next annual report.

FINANCIAL REVIEW

The accounts have been prepared from the date of incorporation to 31 January 2021 and reflect the transfer of shares received from Mr Hargreaves on incorporation of £89,146,500. The Foundation awarded the first grants to successful applications in August 2020 and in the period to the year end awarded a total of £335,341. At the period end the market value of investments had fallen and an unrealised loss on investments of £7,150,500 has been recognised in the Statement of Financial Activities. The net incoming resources for the period were £83,907,406 and have been carried forward as unrestricted reserves.

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RESERVES POLICY

The trustees will endeavour to ensure that suitable cash balances are maintained at all times in the Foundation’s account with Lloyds Bank and in the Foundation’s account with Hargreaves Lansdown to ensure the smooth operation of the Foundation and appropriate liquidity at all times. Alexandra Butler will maintain a close watching eye on the running balance in the Lloyds account at all times and can request a transfer of additional cash balances from the Hargreaves Lansdown Vantage account within 24 hours. We have set no minimum cash balance to be maintained but will, instead, maintain a prudent careful watch to ensure that appropriate cash balances are maintained to ensure the smooth operation of the Foundation and its ability to meet all liabilities as they fall due.

Free reserves, which are considered to be unrestricted reserves less amounts held in investments are £1,911,406.

INVESTMENTS POLICY

The Hargreaves Foundation has been funded entirely by donations provided by the Chair of the trustees, Peter Hargreaves. Those donations were in the form of existing shares in Hargreaves Lansdown plc which Mr Hargreaves has owned for many years. Although those shares have been gifed in full to the Hargreaves Foundation, when Mr Hargreaves donated the shares he stipulated that he would like the Hargreaves Foundation to hold those shares for a period of a few years afer the donation and to use the dividend income generated to fund the Foundation’s operating costs and charitable giving to other good causes.

The trustees appreciate that holding a single share increases investment risk, but we are also very mindful of the condition Mr Hargreaves attached to the gif of the shares and we are therefore comfortable to retain the shares and use the dividend income as Mr Hargreaves envisaged when he made his gif. The trustees of the Hargreaves Foundation will continue to discuss the investment holding in Hargreaves Lansdown plc shares with Mr Hargreaves and may, at a future date, decide in conjunction with Mr Hargreaves to diversify into a broader range of investments.

PLANS FOR 2021

We have had a successful first year and our focus during 2021 will be to review our eligibility criteria and drive up our success rate and to shape our impact analysis.

We are in awe of the dedication, determination and care shown by those working with young people in need. 2020 has brought with it some unique challenges that have been met with diligence, stoicism and creativity; adapting to remote working, loss of income and increased uncertainty, and worrying about the impact of the pandemic on young people's mental health. In such complex times it is heartening to see so many people working towards improving young people's lives. We are unwavering in our desire to make material change, especially so given the turbulence of the past 12 months. Last year saw the start of a new in-house project. We are delighted to be in the early stages of designing and implementing an Early Intervention Scheme.

THE HARGREAVES FOUNDATION EARLY INTERVENTION SCHEME

We commenced work in 2020 on an ambitious scheme designed to benefit those children most in need during their Primary School years. We will work with children facing a number of different challenges, from Special Educational Needs through to those living in financial need, those with dysfunctional family backgrounds or those having experienced neglect or abuse.

The scheme will be designed and built around 3 Pillars and will likely include a range of interventions targeted to meet specific needs.

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THREE PILLARS:

EDUCATION

PERSONAL DEVELOPMENT

FAMILY SUPPORT & DEVELOPMENT

Following a successful application for funding from Ashcombe Primary (£25,800 awarded) we are building our relationship with the school to help us develop the Early Intervention Scheme. We hope to commence a phased roll out later in 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document: The Foundation is a Charitable Incorporated Organisation (CIO) with a written constitution dated 10 January 2020

Appointment of Trustees: The trustee body has the power to appoint new trustees.

If new or additional trustees are appointed they will be encouraged to receive appropriate training depending on their qualifications and experience.

Investment Powers:

The CIO has power to do anything which is calculated to further its object or is conducive or incidental to doing so.

Management and Control: Peter Hargreaves is the Chairman and has overall responsibility for the running of the CIO.

REFERENCE AND ADMINISTRATIVE DETAILS

Name of Charity:

The Hargreaves Foundation, Charity No. 1187297

Trustees: Nigel James Bence, Peter Kendal Hargreaves Louisa Rose Hargreaves, Robert Kendal Hargreaves

Principal Office Address: The Old Surgery, Swan Barton, Sherston, Malmesbury, Wiltshire SN16 OLJ Bank: Lloyds Bank Investment Managers: Hargreaves Lansdown, One College Square, South Anchor Road, Bristol BS1 5HL

Auditors: PKF Francis Clark Centenary House, Peninsula Park, Rydon Lane, Exeter EX2 7XE

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STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed: Peter Hargreaves

Date: 24 September 2021

On behalf of the Trustees

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE HARGREAVES FOUNDATION FOR THE PERIOD ENDED 31 JANUARY 2021

OPINION

We have audited the financial statements of The Hargreaves Foundation (the "Charity") for the period ended 31 January 2021 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (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 Charity 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 accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements , we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS for the period ended 31 January 2021

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE HARGREAVES FOUNDATION FOR THE PERIOD ENDED 31 JANUARY 2021

INFORMATION

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011

requires us to report to you if, in our opinion:

RESPONSIBILITIES OF THE TRUSTEES

As explained more fully in the Statement of Trustees' Responsibilities set out on page 9, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE HARGREAVES FOUNDATION FOR THE PERIOD ENDED 31 JANUARY 2021

OUR RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under S144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereafer. 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 auditor's 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) will always detect a material misstatement when it exists. Misstatements 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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our audit procedures are capable of detecting irregularities, including fraud is detailed below.

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the charity. The key law and regulations relevant to the charity were identified as being Charity law and the General Data Protection Regulation.

We also considered opportunities and incentives for fraud, which might arise in the understatement of expenditure, or incurring expenditure for non-charitable purposes , in the payment of fraudulent grants or management bias in accounting estimates.

Based on this we designed our audit procedures to identify irregularities. Our audit procedures involved the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements.

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE HARGREAVES FOUNDATION FOR THE PERIOD ENDED 31 JANUARY 2021

This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to be come aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

USE OF OUR REPORT

This report is made solely to the Charity's trustees, as a body, in accordance with Part 4 of the Charities (Account and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

PKF Francis Clark Statutory Auditor Centenary House Peninsula Park Rydon Lane EXETER EX2 7XE

Date: 24 September 2021

PKF Francis Clark is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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STATEMENT OF FINANCIAL ACTIVITIES PERIOD FROM 10 JANUARY 2020 TO 31 JANUARY 2021

Note Unrestricted Funds 2021 Total
£ £
Income from:
Donation 2 89,146,500 89,146,500
Investments 2,400,000 2,400,000
Total income 91,546,500 91,546,500
Expenditure on:
Charitable activities 3 488,594 488,594
Total expenditure 488,594 488,594
Unrealised loss on (7,150,500) (7,150,500)
Investments
Net income/(expenditure) 83,907,406 83,907,406
Net movement in funds 83,907,406 83,907,406
Reconciliation of funds
Total funds brought forward
Total funds carried forward 83,907,406 83,907,406

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BALANCE SHEET AS AT 31 JANUARY 2021

BALANCE SHEET
AS AT 31 JANUARY 2021
2021 Total
Note £
Fixed assets
Investmentsat market value 5 81,996,000
Current assets 2,086,676
Cash at Bank and held in investments
2,086,676
Creditors: amounts falling due within one year 6
Creditors 106,676
Other creditors and accurals 9,506
116,182
Net current assets/(liabilities) 1,970,494
Creditors: amounts falling due within one year 7 59,088
Net assets 83,907,406
Allocation of the charity net assets:
The net assets are held for the various
funds as follows:-
Unrestricted funds 83,907,406
Total charity funds 83,907,406
Approved by Trustees on 24th September 2021 and signed on their behalf of by Peter Hargreaves

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STATEMENT OF CASH FLOWS AS AT 31 JANUARY 2021

STATEMENT OF CASH FLOWS
AS AT 31 JANUARY 2021
2021 Total
Note £
Net cash from operating activities 10 2,086,676
Change in cash and cash equivalents in the reporting period 2,086,676
Cash and cash equivalents brought forward
Cash and cash equivalents forward 2,086,676
Representing: 2,086,676
Investment managers’ back accounts 2,086,676

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NOTES TO THE FINANCIAL STATEMENTS PERIOD FROM 10 JANUARY 2020 TO 31 JANUARY 2021

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

A. BASIS OF PREPARATION

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) — (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. There are no material departures from FRS 102.

The financial statements have been prepared on a going concern basis and the Trustees are not aware of any material uncertainties that would cast doubt on the Charity's ability to continue as a going concern.

The accounts are prepared in Sterling, which is the functional currency. Monetary amounts in these

The accounts have been prepared under the historical cost convention as modified by the fair value of investments.

B. DISCLOSURE OF LONG OR SHORT PERIOD

The accounts have been prepared for the period from 10 January 2020 to 31 January 2021 which represents the period from registration to the end of the first accounting period. Therefore, there are no comparatives.

C. FUND ACCOUNTING

All funds held by the Charity are unrestricted. Unrestricted funds are available to spend on any charitable purpose.

D. INCOME

Dividend income is shown gross. Interest on Government securities is paid gross to the trust and shown gross.

E. INVESTMENTS

All investments held are listed on a recognised stock exchange and are included in the accounts at their market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on valuations and disposals throughout the year.

F. GRANTS PAYABLE

Unconditional grant commitments are included in the Statement of Financial Activities.

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NOTES TO THE FINANCIAL STATEMENTS PERIOD FROM 10 JANUARY 2020 TO 31 JANUARY 2021 (CONTINUED)

G. RESOURCES EXPENDED

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Governance costs are the costs associated with the governance arrangements of the charity which relate to the general running of the charity as opposed to those costs associated with fundraising or charitable activity. The costs will normally include internal and external audit, legal advice for trustees and costs associated with constitutional and statutory requirements e.g. the cost of trustee meetings and preparing statutory accounts. Included within this category are any costs associated with the strategic as opposed to day to day management of the charity's activities.

H. REALISED GAINS AND LOSSES

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

I. EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

J. DEBTORS

Trade and other debtors are recognised at the settlement amount due afer any discount offered. Prepayments are valued at the amount prepaid afer taking account of any discounts offered.

K. CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

I. CREDITORS AND PROVISIONS

Creditors and provisions are recognised when the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Creditors and provisions are normally recognized at their settlement amount afer allowing for any discounts due.

2. INVESTMENT INCOME

Investment income of £2,400,000 was received during the year from investments listed in the UK.

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NOTES TO THE FINANCIAL STATEMENTS PERIOD FROM 10 JANUARY 2020 TO 31 JANUARY 2021 (CONTINUED)

3. CHARITABLE ACTIVITIES 2021

3. CHARITABLE ACTIVITIES 2021
£
Grants payable 335,341
Support and Governance costs (below) 153,253
488,594
Support costs
Legal charges 18,000
Consultancy fees 6,000
Subscription to Association of Charitable Foundations 299
Wages and salaries 80,855
Social security costs 9,724
Staff training 1,500
Rent and rates 7,521
Telephone and internet 62
Insurance 1,294
IT cost 21,014
Sundry expenses 984
Governance costs
Auditors' remuneration 6,000
153,253

4. Employee numbers

4. Employee numbers
The charity employed one member of staff during the reporting period.
5. Fixed asset investments 2021
£
Market value at 10 January 2020
Additions 89,146,500
Fair value movement (7,150,500)
Market value at 31 January 2021 81,996,000
Fixed asset investments represent shares held in UK listed companies.

6. Creditors: amounts falling due within one year

6. Creditors: amounts falling due within one year
2021
£
Grants awarded 106,676
Other creditors 2,275
PAYE & NI 1,231
Accruals 6,000
116,182

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NOTES TO THE FINANCIAL STATEMENTS PERIOD FROM 10 JANUARY 2020 TO 31 JANUARY 2021 (CONTINUED)

7. Creditors: amounts falling due afer more than one year

7. Creditors: amounts falling due afer more than one year
Grants awarded 2021
£
59,088
59,088

8. Related Parties

During the year a Trustee made a loan to the trust of £25,000, balance was repaid during the year. During the year the charity received an unrestricted donation of shares from a Trustee amounting to £89,146,500.

9. Trustees remuneration and expenses

During the year trustees have not received any remuneration and were not reimbursed for any expenses.

Net movement in funds
Deduct interest income shown in investing activities
Deduct gains/add back losses on investments
(Decrease)/Increase in creditors		 2021
£
83,907,406
(89,146,500)
7,150,500
175,270
2,086,676

11. Grants made

During the year the trustees made institutional grants totalling £169,577.

There are no support costs attributed to grants made. Governance costs comprise all costs incurred by the charity and no apportionment is made between grant making activities and running of the charity.

The Trustees made the following institutional grants during the year:

Bristol Down Syndrome Trust
Tall Ships
The Change Foundation
Independence at Home
SportsAid
The Literacy Pirates
Square Food Foundation
The Jack Hazeldine Foundation
Sirona Therapeutic Horsemanship		 2021
£
12,750
16,880
39,088
20,000
38,440
30,000
8,535
3,269
615
169,577

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS for the period ended 31 January 2021

20

NOTES TO THE FINANCIAL STATEMENTS PERIOD FROM 10 JANUARY 2020 TO 31 JANUARY 2021 (CONTINUED)

Multi-year grant commitments:
Bristol Down Syndrome Trust
Ashcombe Primary
The Change Foundation
Independence at Home
The Jack HazeIdine Foundation
Total grants awarded		 12,750
25,800
78,176
40,000
9,038
165,764
335,341

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS for the period ended 31 January 2021

21