OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-01-31-accounts

Charitable Incorporated Organisation Registered Number 1187297

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 January 2022

CONTENTS

CONTENTS
CHAIR & EXECUTIVE COMMENT 1
OBJECTIVES & ACTIVITIES 2
ACHIEVEMENTS & PERFORMANCE 3
HOW HAVE WE MET OUR OBJECTIVES? 4
THE HARGREAVES FOUNDATION EARLY INTERVENTION SCHEME 7
IMPACT ANALYSIS 10
FINANCIAL REVIEW 11
STRUCTURE, GOVERNANCE & MANAGEMENT 12
REFERENCE & ADMINISTRATION DETAILS 13
RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS 14
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES 15
STATEMENT OF FINANCIAL ACTIVITIES 19
BALANCE SHEET 20
STATEMENT OF CASH FLOWS 21
NOTES TO THE FINANCIAL STATEMENTS 22

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

CHAIR & EXECUTIVE COMMENT

Moving into our second year and much remains the same: we are committed to transforming young lives through sport and education.

The volume of requests we receive for charitable grants is substantial. We therefore have a rigorous process to ensure our awards improve the lives of young people in the areas of greatest need.

I am pleased with the Foundation’s progress at selectively finding the most worthwhile causes and identifying areas where we can make a real difference to young people’s lives and their futures.

Peter Hargreaves

The past twelve months has been as busy as ever and I am thrilled by some of the outcomes we are seeing from our earlier funding. As we build relationships with existing grant recipients and broaden out further with new projects, we know the Foundation’s funding is making a difference.

Our in-house Early Intervention Scheme is building momentum. This year has also seen some sizeable financial commitments in both education and mental health.

I am delighted we were joined by new Trustee, Rosemary Hargreaves, during the year.

I look forward to the next year with enduring enthusiasm. Post-pandemic and on the periphery of some tough times we shall continue our mission to transform young lives.

Alexandra Butler

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

1

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.

The Trustees have had regard to the Charity Commission’s guidance on public benefit.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

2

ACHIEVEMENTS & PERFORMANCE

OVERVIEW

----- Start of picture text -----
GRANTS FUNDING PAYMENTS
APPROVED APPROVED MADE
35 £774,511 £551,519
----- End of picture text -----

*This does not include funding for the Early Intervention Scheme project.

HOW DO WE DECIDE?

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 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 after this.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

3

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. Often a project will meet more than one objective.

AN EXAMPLE OF SOME OF THE PROJECTS FUNDED AND THE OBJECTIVES MET:

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

The Trustees of The Hargreaves Foundation are pleased to have awarded £17,971 to the Sport & Thought programme delivered by the Brent Centre.

The Brent Centre is an internationally renowned psychoanalytic therapeutic centre for young people in North West London.

The programme will support 15 adolescent boys who are on the fringes of school life, displaying severe emotional/behavioural issues and at high risk of exclusion. A third of young people supported by the Brent Centre are dealing with the effects of abuse, violence at home, bullying, past traumas and at least 80% have experienced family disruption.

During Sport & Thought sessions young people take part in football training drills and matches with others. The therapist will also join in, talking about football and behaviour.

The sessions aim to help young people understand their actions, and how they can make changes to avoid trouble in school or with friends. Sessions can also help young people feel more positive about their future, and help them to make the most of their time at school.

“We know that sometimes one to one therapy can be daunting. The Sport & Thought programme uses football to breakdown those fears, allowing young people to engage, experience participatory sport, strengthen their mental health and nurture better relationships and behaviour.”

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

4

“Ensures participatory sport is accessible.”

The Trustees of The Hargreaves Foundation are pleased to have awarded £9860.03 to fund the purchase of 19 bicycles – a range of two wheelers, recumbents and adapted bikes – for the children at Bidwell Brook School in Devon.

Bidwell Brook looks after students aged between 3 and 19 with severe, complex and multiple learning disabilities.

Pupils receive a meaningful education so that they can make a positive contribution to their own local community and the wider society.

“Cycling is a fun, stimulating way to provide exercise, boost mental wellbeing and develop confidence. We hope the children will enjoy getting out and about, making the most of their beautiful surroundings.”

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

The Trustees of The Hargreaves Foundation are pleased to have awarded £20,000 to Kendleshire Kids Foundation.

Using the Kendleshire Golf Club’s facilities, the Kendleshire Kids Foundation’s programme uses golf for the development of young people who have experienced adversity and trauma. With the support of PGA golf coaches and specialist mentoring support, the young people are provided with golf coaching, mentoring, equipment, food and drink.

The programme supports young people who have experienced violence, abuse, neglect, racial, social, emotional or health inequalities, helping them to develop resilience and self-esteem whilst fostering teamwork and teaching life skills.

“We are delighted to support Kendleshire Kids Foundation in their drive to help young people who have encountered adverse childhood experiences improve their lives, develop their skills and capabilities and encourage them to participate in society as mature and responsible adults.”

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

5

“Aims to improve academic engagement and attainment.”

The Trustees of The Hargreaves Foundation are delighted to be working with Reed’s School.

From September 2021 funding will provide a life-changing education for a vulnerable child at Reed’s School. Funding has been earmarked to cover the full cost of the child’s education until completion of Year 13.

The Andrew Reed Foundation is committed to supporting at least 10% of the population of Reed’s School as Foundation pupils on funded bursaries. These pupils have lost the support of one or both parents and their family life is in crisis with some having sadly been exposed to a range of social issues including bereavement, domestic abuse and abandonment. In these cases, the need for strong pastoral care is as important today as it was 200 years ago when the Foundation was founded as the London Orphan School.

“We are pleased to support a child who will benefit enormously from the education, support and pastoral care that Reed’s School will offer. We are looking forward to following his progress through school and being part of a life-changing journey.”

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

The Trustees of The Hargreaves Foundation are pleased to have awarded £10,000 to Out of Class.

A small charity dedicated to changing the lives of disadvantaged young people, particularly those who are less likely to receive help elsewhere, such as those who have committed an offence and are trying to better themselves.

Working with a specific group of young offenders, those on the course have also been identified as being particularly vulnerable. Out of Class works differently to the standard education system route, teaching young people practical business skills and entrepreneurship. They learn that hard work, lateral thinking and dedication pays off.

Out of Class uses horses to help students explore behavioural habits. Horses not only have their own way of being, they often mirror the behaviour and mood of the humans around them. Observing these behaviours in another being is considered a less confrontational way to learn.

Out of Class actively encourages the young people on the project to get involved in working directly with the horses as a base for practical, reflective practise. Horses are big and strong, yet gentle. It’s rare to find a student who doesn’t quickly feel some kind of connection.

“We are pleased to help those who may have struggled with their education in the past learn more about entrepreneurship, including the development of their own business ideas. Horses are used to help the young people better understand their own behaviours, actions and emotions. We support the aim of the project to reduce re-offending and encourage exploring self-employment opportunities.”

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

6

THE HARGREAVES FOUNDATION EARLY INTERVENTION SCHEME

The premise of the EIS programme is the belief that the biggest difference we can make to the future health, wealth and happiness of disadvantaged children is to ensure they are literate when they leave primary school.

“To be literate is to gain a voice and to participate meaningfully and assertively in the decisions that affect one’s life.”

Y Kassam

Social Mobility and Child Poverty Commission 2014

134 disadvantaged children (67% of disadvantaged children) at Ashcombe Primary School are below the expected level for reading, 146 (72%) are below the expected level in writing.

These statistics would suggest c117 of these children are unlikely to get 5 good GCSE’s significantly increasing the likelihood they will join the population of 16-24 year olds not in employment, education or training.

EIS PROGRAMME GOAL

By the end of the 2023/24 school year, 80% of disadvantaged children will leave Ashcombe Primary School in year 6 at the expected standard in both reading and writing and 40% will leave exceeding the expected standard.

This will place the school in the top 5% nationally in terms of primary school performance for disadvantaged children, as measured by FFT, an independent school performance and research organisation.

The aim beyond 2023/24 is to maintain a top 5% position within FFT benchmarking.

To achieve this ambitious target we will support the school in the development and delivery of a world class literacy programme, building on the work that the school is already undertaking and utilising the latest research in learning behaviour and teaching methods.

We recognise that many disadvantaged children will experience additional barriers to accessing excellent teaching no matter how well designed or delivered.

We will ensure every disadvantaged child can access the literacy programme and remove those barriers

through targeted interventions, therapies and where appropriate personalised 1:1 support.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

7

----- Start of picture text -----
LITERACY PROGRAMME
TARGETED
INTERVENTIONS
1:1
SUPPORT
----- End of picture text -----

Available to all. Teacher training, new literacy hub fostering a creative, enjoyable, reading and writing environment, pupil assessments.

Targeted at disadvantaged children. Speech and language, reading interventions, therapies, emotional wellbeing, parental engagement

Extremely vulnerable children, at risk of exclusion, exposure to Adverse Childhood Experience. Mentoring, counselling in addition to targeted interventions.

Programme Overview

EDUCATE

  1. Teacher Training

  2. Speech & Language

  3. Reading and writing intervention

  4. Spelling intervention

  5. Classroom books

  6. Assessment

INSPIRE

An immersive literacy hub at the heart of the school for reading, creative writing and performance.

SUPPORT

Sensory room and therapy Art and play therapy Domestic violence counselling Emotional wellbeing support Mini police and primary futures Parental support to promote independence

Roll Out

Educate Support

EDUCATE

Rolled out from September 2021 onwards – term 1, year 1

Rolled out from September 2021 onwards – term 1, year 1

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

8

On hold pending plans for school building replacement

Literacy Hub

Est. Summer 2022/2023

Programme duration and review

The proposed duration of the EIS programme is 3 years.

This builds contingency into the goal and sufficient time for Ashcombe Primary school to assimilate new working practises and ensure ongoing success in achieving the goal set by the programme.

A performance review of each programme component will be undertaken annually and programme components amended as required to achieve the programme goal.

A full programme review will be undertaken in year 3 to determine the next stage of the EIS programme.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

9

IMPACT ANALYSIS

The impact assessment report has been introduced this year to better understand the impact of the grants awarded and to support the decision-making process when assessing future grant applications.

To achieve this, we have devised a report consisting of two parts.

The first part asks grant recipients to specify what the grant will be spent on and to detail what a successful outcome would look like when the grant has been used.

Part one then asks which measures will be used to tell us whether that outcome has been achieved and for an appropriate timeframe to apply those measures.

The second part of the form is the actual impact assessment which details what has been achieved and includes the results of the measures detailed in part one. The impact assessment is completed according to the timeframe set in part one.

The second part of the report also includes space for a comment by the Hargreaves Foundation and a RAG rating determined by how well the grant has met its success criteria.

In September 2021 we began the process of contacting the organisations that had been awarded grants prior to the introduction of the impact assessment, asking them to complete part one of the report and set the timeframes for completing the impact assessment at an appropriate time.

On December 1st 2021 the online application form was changed to incorporate the questions in part one of the impact assessment ensuring the parameters of the impact assessment are established before the grant is awarded.

To date 5 are complete, 14 have part 1 complete and are ready to be assessed at the appropriate time set in part 1 and a further 16 continue to be worked on with grant recipient.

Completed Assessments:

Tall Ships

Sirona Therapeutic Horsemanship

Bidwell Brook School

The Literacy Pirates

The Connie Rothman Trust

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

10

FINANCIAL REVIEW

Income from investments in the year amounted to £2.424m (2021: £2.4m). Expenditure on charitable activities was £1.05m (2021: £489k) including grants and donations of £923k (2021: £335k), resulting in net income before investment gains and losses of £1.374m (2021: £91.058m). The prior year result included a donation of shares of £89.147m.

After net realised/unrealised losses on investments of £17.939m (2021: £7.151m) funds decreased by £16.565m (2021: increased by £83.907m) resulting in unrestricted funds at the year end of £67.343m (2021: £83.907m).

During the financial year ending 31 January 2022 the Trustees decided to liquidate the Foundation’s holding in Hargreaves Lansdown PLC shares.

This transaction has proved fortuitous. The shares were realised throughout January 2022 and February 2022 at an average price of c.£13.32. This transaction should be viewed in the light of the current share price of Hargreaves Lansdown, c.£8.92 (13th September 2022), some 33% lower than the price obtained during the realisation. The proceeds will be phased into a wide range of appropriate investments. This process has commenced and currently 25% has been committed.”

RESERVES POLICY

The Trustees will endeavour to ensure that suitable cash balances are maintained at all times 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.

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 had owned for many years. Although the shares were gifted in full to The Hargreaves Foundation, when Mr Hargreaves made the donation he stipulated that he would like The Hargreaves Foundation to hold those shares for a minimum period of two years and to use the dividend income generated to fund the Foundation’s operating costs and charitable giving.

In January 2022 the Board of Trustees made the decision to diversify the investment portfolio and initiated the sale of the shares in Hargreaves Lansdown plc.

The Board of Trustees are in the process of appointing an external Investment Manager to oversee the investment portfolio.

The basis of the Investment Policy will likely be a balanced portfolio within the risk tolerance set by the Trustees, invested in a broad range of asset classes and any cash maintained in money market funds. The income generated by the invested portfolio will be used to fund operating costs and charitable distributions.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

11

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.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

12

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
Rosemary Jane Hargreaves
Principal Offce Address: The Old Surgery
Swan Barton
Sherston
Malmesbury
Wiltshire
SN16 0LJ
Bankers and 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

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

13

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

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.

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. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed: Date: 04/11/2022 Peter Hargreaves

On behalf of the Trustees

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

14

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE HARGREAVES FOUNDATION FOR THE YEAR ENDED 31 JANUARY 2022

OPINION

We have audited the financial statements of The Hargreaves Foundation (the “Charity”) for the year ended 31 January 2022 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.

In our opinion, the financial statements:

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 Trustees’ 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 directors with respect to going concern are described in the relevant sections of this report.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

15

OTHER 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

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.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

16

AUDITOR’S 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 thereafter. 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 financial statements.

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 laws 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:

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

17

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.

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 become 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: 04/11/2022

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

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

18

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 JANUARY 2022

Income and endowments
Donation
Investments
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income/(expenditure)
before net gains/(losses)
on investments
Net gains/(losses) on
Investments
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Note
3
4		 Unrestricted
Funds
-
2,424,000
2,424,000
1,050,031
1,050,031
1,373,969
(17,938,720)
(16,564,751)
(16,564,751)
83,907,406
67,342,655
2022 Total
£
-
2,424,000
2,424,000
1,050,031
1,050,031
1,373,969
(17,938,720)
(16,564,751)
(16,564,751)
83,907,406
67,342,655		 Unrestricted
Funds
£
89,146,500
2,400,000
91,546,500
488,594
488,594
91,057,906
(7,150,500)
83,907,406
83,907,406
-
83,907,406		 2021 Total
£
89,146,500
2,400,000
91,546,500
488,594
488,594
91,057,906
(7,150,500)
83,907,406
83,907,406
-
83,907,406

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

19

BALANCE SHEET AS AT 31 JANUARY 2022

Fixed assets
Investments at market value
Current assets
Investment bank account
Cash at Bank
Debtors
Current liabilities
Creditors: amounts falling due within one year
Creditors - Grants awarded
Other creditors and accruals
Net current assets
Creditors: amounts falling due afer more than one year
Net assets
Allocation of the charity net assets:
The net assets are held for the
various funds as follows:-
Unrestricted income funds
Total charity funds
Note
2
5
6		 2022 Total
£
24,501,599
43,251,934
47,912
6,593
43,306,439
240,570
12,705
253,275
43,053,164
212,108
67,342,655
67,342,655
67,342,655		 2021 Total
£
81,996,000
2,072,250
14,426
-
2,086,676
106,676
9,506
116,182
1,970,494
59,088
83,907,406
83,907,406
83,907,406

Approved by the trustees on 04/11/2022 and signed on their behalf by

……………………………………………………………… Trustee

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

20

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2022

Net cash used in operating activities
Cash fow from investing activities:
Dividends and interest from investments
Proceeds from sale of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Representing:
Investment managers’ bank accounts
Cash at bank
Note
10		 2022 Total
£
(766,511)
2,424,000
39,555,681
41,979,681
41,213,170
2,086,676
43,299,846
43,251,934
47,912
43,299,846		 2021 Total
£
(313,324)
2,400,000
-
2400,000
2,086,676
-
2,086,676
2,072,250
14,426
2,086,676

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

21

NOTES TO FINANCIAL STATMENTS FOR THE YEAR ENDED 31 JANUARY 2022

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 2019) – (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 to give a ‘true 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’. The departure has involved following Accounting and Reporting applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has been withdrawn.

The Charity meets the definition of a public benefit entity under FRS102.

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 financial statements are rounded to the nearest £.

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

B. FUND ACCOUNTING

Unrestricted Income Fund - The Unrestricted Income Fund comprises those Funds which the Trustees are free to use in accordance with the charitable objects. This includes the donation of shares to the Foundation in the previous accounting period.

C. INCOME

Dividend and other similar investment income is shown gross and recognised on an accruals basis.

D. 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 revaluations and disposals throughout the year.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

22

E. GRANTS PAYABLE

Grants are included in the accounts on an accruals basis, and unconditional grant commitments payable within one year after the balance sheet date are included in the Statement of Financial Activities.

F. 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.

G. 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.

H. 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:

I. DEBTORS

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

J. 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.

K. 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 after allowing for any discounts due.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

23

2. FIXED ASSET INVESTMENTS

Market value at 1 February 2021
Additions
Disposal proceeds
Net loss on revaluation
Market value at 31 January 2022
2022
£
81,996,000
-
(39,555,681)
(17,938,720)
24,501,599		 2021
£
-
89,146,500
-
(7,150,500)
81,996,000

3. INVESTMENT INCOME

Investment income of £2,424,000 (2021: £2,400,000) was received during the year from investments listed in the UK.

4. CHARITABLE ACTIVITIES

Grants and donations (note 11)
Support and Governance costs (below)
Support costs
Legal charges
Consultancy fees
Subscription to Association of Charitable Foundations
Wages and salaries (1 Employee - key management personnel)
Staff NIC (Employers)
Staff pensions (Defned contribution)
Rent and rates
Telephone and internet
Insurance
IT cost
Sundry expenses
Governance costs
Auditors’ remuneration		 2022
£
923,337
126,694
1,050,031
-
18,380
305
80,833
9,936
2,425
3,120
-
1,294
2,950
251
7,200
126,694		 2021
£
335,341
153,253
488,594
18,000
6,000
299
78,500
9,724
2,356
7,521
62
1,294
21,014
2,483
6,000
153,253

The charity employed one member of staff during the reporting period.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

24

5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Grants awarded
Other creditors
Pension
PAYE & NI
Accruals
12		 2022
£
240,570
99
2,556
1,450
8,600
253,275		 2021
£
106,676
207
2,068
1,231
6,000
116,182

6. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Grants awarded
12		 2022
£
212,108
212,108		 2021
£
59,088
59,088

7. RELATED PARTIES

There have been no related party transactions in the year requiring disclosure (2021: A trustee made a loan to the foundation of £25,000 which was repaid during the year. The charity also received an unrestricted donation from a trustee amounting to £89,146,500).

8. TRUSTEES REMUNERATION AND EXPENSES

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

9. GRANT COMMITMENTS

As at 31 January 2022 binding grant commitments were £452,678 (2021: £165,764).

10. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net movement in funds
Deduct investment income donation of shares
Deduct gains/add back losses on investments
(Increase)/decrease in debtors
(Decrease)/Increase in creditors		 2022
£
(16,564,751)
(2,424,000)
17,938,720
(6,593)
290,113
(766,511)		 2021
£
83907,406
(91,546,500)
7,150,500
-
175,270
(313,324)

Investment income was included within Operating Cashflow in the Cashflow Statement in the 2021 published financial statements. It has been included within Investing Activities in the Cashflow Statement in the 2022 financial statements as this is considered to be a more appropriate accounting treatment under the Charities SORP. The 2021 comparatives have been restated in the 2022 financial statements to present investment income on a consistent basis with the revised 2022 treatment.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

for the year ended 31 January 2022

25

11. GRANTS MADE

During the year the trustees made institutional grants totalling £923,337.

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
Ashcome Primary
Action for Kids
The Change Foundation
Independence at Home
SportsAid
The Literacy Pirates
Square Food Foundation
Sirona Therapeutic Horsemanship
Ability Consultancy
Reed’s School
Level Water
St Mary’s College
Gympanzies
Bidwell Brook School
Brent Centre
Kendleshire Kids Foundation
Out Of Class
Real Action
Rett UK
Connie Rothman Learning Trust
Diverse Abilities
The Horse Rangers
Cleethorpes Community & Education
Herons Dale Primary School
Tiverton Primary School
Bryntail Cottage
Mountfeld School
Youth Action Alliance
Normandy Community Therapy Garden
Wigan Warriors
Dreams Come True
Cerebra
Alder Hey Children’s Charity
Chailey Heritage Foundation
Estudiantes
Lido Park Tennis
Access Sport
Lea Valley Primary School
Early Intervebtion Scheme (Ashcombe School)		 2022 £
25,500
-
-
30,715
-
-
-
90,000
160
1,800
5220
180,694
29,028
3,117
9,015
9,860
17,971
20,000
10,000
10,000
6,722
10,000
21,500
16,250
10,000
10,000
529
12,000
6,670
24,119
20,000
4,995
13,400
7,760
103,000
29,946
8,500
540
22,500
3,000
148,826
923,337		 2021 £
25,500
16,880
25,800
-
117,264
60,000
38,440
30,000
8,535
615
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,307
335,341

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

26

12. MULTI – YEAR GRANT COMMITMENTS

Included in the grants awarded are the following amounts which had not been paid as at the year end.

ear end.
Bristol Down Syndrome Trust
Ashcome Primary
The Change Foundation
Reed’s School
Independence at Home
The Literacy Pirates
The Jack Hazeldine Foundation
Lea Valley Primary School
Access Sport
Action for Kids
Ashcombe Project - Books
Ashcombe – Literacy Hub		 2022
£
-
19,120
78,176
157,520
40,000
60,000
-
3,000
22,500
5,473
5,329
61,560
452,678		 2021
£
12,750
25,800
78,176
-
40,000
-
9,038
-
-
-
-
-
165,764

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 January 2022

27