**Charity Registration No. 1188401** 

## **THE HINCHINGBROOKE FOUNDATION** 

**ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS** 

**FOR THE PERIOD ENDED 31 MARCH 2022** 



## **THE HINCHINGBROOKE FOUNDATION** 

## **LEGAL AND ADMINISTRATIVE INFORMATION** 

|**Trustees**|Mr Paul Feeney, Chair of Trustees||
|---|---|---|
||Mr P Cox, former Governor of St||
||Peter's School||
||Mr M Paterson, Principal of||
||Hinchingbrooke School||
||Mr A Butler, Representing Huntingdon||
||Almshouse chairty||
||Mr M Joyner, former Governor of||
||Hinchingbrooke School||
||Mr T R Wheeley, Teacher||
||Hinchingbrooke School||
||Mr J E Brown, Governor of||
||Hinchingbrooke School||
||Mr J Leaver, former Governor of St||
||Peter's School||
||Mrs M Bartimus, former Governor of||
||Hinchingbrooke School||
||Ms L Inskip, former student at|(Appointed 14 July 2021)|
||Hinchingbrooke School||
||Mr P Sadler, Governor of St Peter's|(Appointed 22 November 2021)|
||School||
|**Charity number**|1188401||
|**Principal address**|C/O Hinchingbrooke School||
||Brampton Road||
||Huntingdon||
||Cambridgeshire||
||PE29 3BN||
|**Auditors**|UHY Hacker Young (East) Limited||
||2B Vantage Park||
||Washingley Road||
||Huntingdon||
||Cambs||
||PE29 6SR||
|**Solicitors**|Roythornes Solicitors||
||The Incubator||
||Alconbury Enterprise Campus||
||Huntingdon||
||Cambs||
||PE28 4XA||
|**Investment advisors**|CCLA Fund Managers Limited||
||For Churches, Charities and Local Authorities||
||Senator House||
||85 Queen Victoria Street||
||London||
||EC4V 4ET||





## **THE HINCHINGBROOKE FOUNDATION** 

## **CONTENTS** 


**----- Start of picture text -----**<br>
Page<br>Trustees' report  1 - 6<br>Balance sheet  12<br>Notes to the financial statements  13 - 20<br>**----- End of picture text -----**<br>




## **THE HINCHINGBROOKE FOUNDATION** 

## **TRUSTEES' REPORT** 

## _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

The trustees present their report and financial statements for the period ended 31 March 2022. 

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the CIO's  constitution , the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". 

## **Objectives and activities** 

## a. Policies and objectives 

It is the policy of the Trustees to provide benefits in accordance with the objects of The Hinchingbrooke Foundation and to have regard, so far as possible, to maintaining the value of the capital of the Foundation. Having regard to the interests of future as well as current beneficiaries, Trustees budget on a conservative basis, seeking to match expenditure to annual income. Where grants in excess of annual income have been awarded for large scale building projects, prior arrangements have been made with the Charity Commission for replacement of capital so used. In addition, Trustees have agreed advances of annual grants from unrestricted reserves to assist capital renovations. 

## b. Activities for achieving objectives 

The Hinchingbrooke Foundation is a grant giving educational charity. Most funding is provided to Hinchingbrooke School, other local secondary schools and to local voluntary organisations working for the benefit of young people. 

Three times a year The Hinchingbrooke Foundation, through advertisements, invites applications for financial assistance to further the education of qualifying beneficiaries.  The applications are considered and awards made by the Bursary Committee. 

## c. Grant making policies 

The Trustees have a collective responsibility to ensure funds are disbursed appropriately.  Grants awarded to secondary schools and further education colleges in Huntingdon may provide special benefits of any kind for the school as may from time to time be determined by its governors. Trustees may award Hinchingbrooke School not more than one third of the net income for the year. 

Trustees generally consider appeals from local voluntary organisations from written applications and reports of their activities. Support for organisations working for and with young people assists the education, development and well being of young people outside school. Similarly, the availability of bursaries provides for individual opportunities not otherwise available. 

- 1 - 



## **THE HINCHINGBROOKE FOUNDATION** 

## **TRUSTEES' REPORT  (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **Achievements and performance** 

## a. Investment policy and performance 

The Hinchingbrooke Foundation’s quoted investments are managed by CCLA on a Discretionary Investment Management Service (DIMS). CCLA manage three portfolios on behalf of The Hinchingbrooke Foundation namely The Permanent Endowment Fund, the Unrestricted Fund and the Restricted Fund (for Prizes). 

The Trustees have a balanced attitude to risk and are therefore prepared to accept investment risk in order to achieve the longer- term objectives of the portfolios. 

The purpose of the Permanent Endowment Fund is to maintain and enhance the real value (as measured by CPI) in perpetuity. The Trustees are happy to receive the natural income yield of the underlying investments held in the portfolio. Capital cannot be used to fund expenditure. 

The purpose of the Unrestricted Fund and Restricted Fund is to maintain and enhance the real value (as measured by CPI) over the longer-term (10+ years). The Trustees are happy to receive the natural income yield of the underlying investments held in the portfolio. Capital can be used to fund expenditure. 

The objective of each portfolio is to achieve a return of CPI +4% per annum net of fees on a 5-year rolling basis. There is an annual income target of £250,000 from the combined portfolios, which is reviewed by Trustees annually. 

As at 31st March the portfolio is 95% invested in the Common Investment Fund and 5% in the Property Fund. The Permanent Endowment, Unrestricted Fund and Restricted Fund continue to be segregated within the DIMS. 

On January 12 th 2022 the sale of 14 acres of Land at Brampton approved on 16 th March 2021 was concluded. The proceeds of the sale were invested with CCLA as part of the Permanent Endowment Fund. The decision to sell allowed the Foundation to receive an improved yield for the asset in turn increasing the grant giving income going forward. The contract for sale included an overage clause allowing the Foundation to benefit from any ongoing sale of the land in the next twenty years. 

Total resources arising to The Hinchingbrooke Foundation in 2021/22 were £290,797 versus £292,475 in the previous year.  Resources arising from returns on quoted investments and cash deposits were £290,847, a small rise on the prior year.  This gave a 3.23% return on the market value of holdings at the year end.  The value of quoted investments held was £805,376 higher at the end of 2021/22. Resources arising from rents and wayleaves on real property was £6,582, a rise of £179 from the previous year. No value is attributed to the School site as no value could be realised. 

Net total funds for The Hinchingbrooke Foundation increased by £837,746 to £10,897,181 during the financial year. This compared with an £1,617,098 increase in total net funds to £10,059,435 in 2020/21 In the predecessor charity. 

Details of the investments of The Hinchingbrooke Foundation at 31 March 2022 and of the movements during the year ended on that date will be found on page 10 as well as in the Notes to the Financial Statements on page 21. 

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## **THE HINCHINGBROOKE FOUNDATION** 

## **TRUSTEES' REPORT  (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## b. Donations 

Additional income for prizes and other restricted funds financed from The Hinchingbrooke Foundation investments totalled £3,906. 

## c. Charitable contributions 

During the year £244,276 of current and accumulated surplus income was used for charitable purposes, including: £42,196 of direct bursaries made to individuals to further their education. £20,000 of The Hinchingbrooke School grant was retained as capital repayment on a current loan advance of £153,.000. The original advance was £150,000 in 2011 for repairs to Hinchingbrooke House , £45,000 in 2017 for additional car parking and £108,000 in August 2021 for further repairs to Hinchingbrooke House. The advance is due for repayment in 2028/2029. 

An annual grant of £5,000 is awarded to the charity for the St John's Almshouse Charity in Huntingdon. This grant was used to meet the capital repayment and interest charged on the reducing balance of the £50,000 loan made to the charity to renovate the Almshouses in 2011. At 31 March 2022 there remained £1,843 of capital repayment to be made. The loan to be repaid in 2022/23. 

## **Financial review** 

## a. Reserves policy 

As use of permanent endowment capital for new buildings resulted in reduced income, it remains current policy to accumulate and re invest retained unrestricted income. These reserves were reduced during the year by early transfer to endowment funds of an additional £14,200 repayment to the deferred grant account. At 31 March 2022 the market value of unrestricted funds was £537,341 (2021: £570,458), representing 5.19% of The Hinchingbrooke Foundation's net assets (2021: 5.67%). 

## b. Management and administration 

Income in 2021/22 exceeded expenditure (excluding the costs of capital repayments) by £32,371. Income was 4.4% higher and charitable expenditure was 5.0% higher than in the previous year. Resources used for governance, administration, property maintenance and insurance of The Hinchingbrooke Foundation were £33,120 versus £44,660 in the previous year. This includes the audit costs for the year of £5,160 including VAT. 

## c. Building Grants 

In 1997 the Charity Commission authorised Trustees' use of Permanent Endowment funds to extend a £1 million Local Authority building programme which was completed in July 1999. The Hinchingbrooke Foundation's capital contribution of £850,000 is being replaced from annual income over sixty years in accordance with Charity Commission requirements. This commenced in 1999/2000 with a payment of £12,200.  From 2000/01, annual payments are made at the rate of £14,200 for 59 years.  During the year an additional £14,200 was replaced for this building programme. 

## d. Plans for future periods 

The Trustees continued to monitor the impact of Covid-19 on the charity in terms of income and asset values during the year. The Trustees are able to confirm that there was no impairment in respect of grants made throughout the year. 

- 3 - 



## **THE HINCHINGBROOKE FOUNDATION** 

## **TRUSTEES' REPORT  (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **Structure, governance and management** 

## a. Constitution 

The Hinchingbrooke Foundation's charity registered number, address of its principal office and names of all its trustees are detailed on the administrative details pages of these financial statements. The Hinchingbrooke Foundation is subject to the terms  of it ’ s Constitution approved by the Charity Commission in March 2020.  The Trustees agreed that it would benefit the Charity to have an updated constitution, replaced by a single set of objectives and rules to broaden the scope of the charity and to change the name to “The Hinchingbrooke Foundation”. 

At the year-end 31st March 2021 the beneficial ownership of the assets remained with the Foundation of Hinchingbrooke School and this continued to be recognised in these accounts until the establishment of the new bank account for the CIO in June 2021 at which time the ownership of the assets passed to the CIO. 

The Charity Commission approved the transfer and the legal title of the investments and land were transferred from the Official custodian to the CIO on 8th June 2020 and 19th June 2020, respectively. 

The Charity number is 1188401 and the assets (Land and Investments) of The Foundation of Hinchingbrooke School were transferred to the CIO. The former trust base charity (311848) was closed in October 2021 after the assets and liabilities were transferred to The Hinchingbrooke Foundation. The Hinchingbrooke Foundation has carried on the work of the Foundation of Hinchingbrooke School and therefore throughout these accounts, and in the Trustees report, we have returned to comparative information which relates to the predecessor charity. 

The Charity is required to make a financial contribution to the St John's Almshouse Charity after which the Trustees may apply the net annual income after administration expenses in the following manner. 

In providing special benefits of any kind for Hinchingbrooke School; 

In providing other education benefits for young people under the age of twenty five who live in Huntingdon, Godmanchester and the neighbouring area. This may be discharged by making financial awards to enable them to further their education or to voluntary organisations in the area whose objects are compatible with those of the Foundation; and In providing special benefits of any kind for any other Secondary School serving the area. 

## b. Method of appointment or election of Trustees 

The management of the Charity is the responsibility of the Trustees who have been elected under the terms of the CIO approved in March 2020 by the Charity Commission. Trustees are nominated by the Chairman of Trustees and appointed for a term of four years by resolution of the Trustees. 

The Trustee body comprises between seven and twelve Trustees including the Principal of Hinchingbrooke School, one School Governor from Hinchingbrooke School and one representative from St John’s Almshouse Charity in Huntingdon. Other Trustees are drawn from local community organisations and schools/colleges who serve in a personal capacity only. 

No person shall act as a Trustee until he or she has signed a declaration of acceptance and of willingness to act in the Trust.  On appointment, Trustees receive regular reports on the management of The Hinchingbrooke Foundation finances and the legal requirements of Trustees who develop their knowledge and understanding through personal study and peer group discussion at Trustees meetings. 

At the end of the year the Trustee Body consisted of one Trustee nominated by the Trustees of the St John's Almshouse Charity,The Principal, One School Governor and eight other appointments made in accordance with the Constitution. 

## c. Pay policy for senior staff 

The Charity does not employ any staff directly and therefore has no such policy. 

- 4 - 



## **THE HINCHINGBROOKE FOUNDATION** 

## **TRUSTEES' REPORT  (CONTINUED)** 

## _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## d. Organisational structure and decision making 

During the year, the Trustees agree to meet three times a year to consider appeals received from eligible local community organisations and to review the investment and disbursement of Foundation funds and management of property and facilities. In addition, Trustees have appointed a Bursary Committee from among them to consider, three times a year, applications for grants from individuals. Ad Hoc committees are formed on an as need basis to consider particular issues.   In August 2011, the Trustees agreed terms for a lease to the Academy school of the property owned by the Foundation for a period of 125 years, having first commissioned a Report under Section 36 (1) of the 1993 Charities Act from Chartered Surveyors, Carter Jonas, in respect of the disposition.  This Report concluded that a transfer of property maintenance and repair responsibilities from the County Council to the Academy Foundation did not place the Foundation in a worse position than before the disposition.  Property ownership, previously vested with the Official Custodian, following the creation of the CIO is now vested with the CIO. 

In exercising their responsibilities, The Hinchingbrooke Foundation Trustees have a duty to ensure that they avoid any conflict of interest or duty with their roles as Governors of Hinchingbrooke School. 

On 5 July 2011 the Trustees agreed the School's change of status from Local Authority Voluntary Controlled School to Academy with effect from 1 September 2011. 

From 1 January 2018 Hinchingbrooke School and Cromwell Primary School formed ACES Academy Trust, a Multi Academy Trust (MAT).  The Foundation of Hinchingbrooke School took legal advice and were advised that no changes were required to the lease arrangements with Hinchingbrooke School, which continues to occupy the school property on a 125-year lease. 

As regards the representation of the Foundation on the MAT, it was agreed that the Foundation will have two representatives, one to sit on the MAT board and one to sit on Hinchingbrooke's Local Governing Body. 

It was further agreed that grants to Hinchingbrooke School would be for the exclusive benefit of that school. 

The Trustees appoint a Manager to administer The Hinchingbrooke Foundation. The Manager is Mr A Henderson, appointed on 01 July 2015 for a period of 3 years and reappointed in July 2018 and July 2021. The Foundation Manager's responsibilities include all aspects of governance and financial management include handling appeals to the Trustees' Bursary Committee. 

## e. Risk management 

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity and are satisfied that systems are in place to mitigate exposure to the major risks.  The capacity of the Foundation to sustain its grant awarding function is largely dependent on the income flow from its investments. In assessing external risks, the Trustees agree an annual budget for grants in the light of expected income, monitor income and expenditure throughout the year and review their Risk Register and investment and reserves policy annually.  Internal risks are minimised by the implementation of procedures for authorisation of all transactions and by the annual statutory audit conducted. Accounting processes are set out in an operations manual.  Risk of deterioration to the property estate is mitigated by steps taken by Trustees to assist the School in its responsibilities. 

The Hinchingbrooke Foundation formalised its accounting processes to reduce the risk of error and now utilises Xero accounting software. 

- 5 - 



THE HINCHINGBROOKE FOUNDATION
TRUSTEES, REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2022
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Mr P Fenney, Chair of Trustees
Mr P Cox, fomier G0Ven￿r of Sl Pelerfs ScPKM)I
Mr M Pat8rson, Prinrypal of Hinchingbrcrt)ke
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Mr M Joyner, fom)er G0vew￿￿ of
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Sir Peter Brown
Mr T R Wheeley, Teather Hi￿￿¥J￿￿O0ke
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Mr J E Brown. (knmor of Ninch￿￿￿k*
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Mr J Leaver
Mr AA Bartimus. Vicelhair, f0m￿r (5)Vern￿ of
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Ms L Inskip
Mr P Sadler, Goverrw of Si Peterfs Sc*K¥oI
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## **THE HINCHINGBROOKE FOUNDATION** 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

## _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

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 and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO and of the incoming resources and application of resources of the CIO for that period. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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

In so far as the trustees are aware: 

- There is no relevant audit information of which the charity's auditor is unaware; and 

- The Trustees have taken all reasonable steps that they ought to have taken to make themselves are of any relevant information and to establish that the auditor is aware of that information 

- 7 - 



## **THE HINCHINGBROOKE FOUNDATION** 

## **INDEPENDENT AUDITOR'S REPORT** 

## **TO THE TRUSTEES OF THE HINCHINGBROOKE FOUNDATION** 

## **Opinion** 

We have audited the financial statements of The Hinchingbrooke Foundation (the ‘CIO’) for the period ended 31 March 2022 which comprise the statement of financial activities, the balance sheet and the 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, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). 

In our opinion, the financial statements: 

- give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources, for the period then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on 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 CIO 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  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 entity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

## **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 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. 

- 8 - 



## **THE HINCHINGBROOKE FOUNDATION** 

## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE HINCHINGBROOKE FOUNDATION** 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of our audit: 

- the information given in the trustees' Report, which includes the  d irectors’  r eport prepared for the purposes of company law, for the financial period for which the financial statements are prepared is consistent with the financial statements; and 

- the  d irectors’  r eport included within the trustees'  r eport has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the CIO and its environment obtained in the course of the audit, we have not identified material misstatements in the  d irectors’  r eport included within the trustees'  r eport. 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the statement of trustees' responsibilities, who are also the directors of the charity for the purpose of company law, 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 the trustees 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 CIO'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 cease operations, or have no realistic alternative but to do so. 

## **Auditor's responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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** 

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 procedures are capable of detecting irregularities, including fraud, is detailed below. 

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, end use of funds and management override of control. Our audit procedures to respond to these risks included enquiries of management, analytical review and sample testing of income, sample testing and review of grants made, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. 

- 9 - 



## **THE HINCHINGBROOKE FOUNDATION** 

## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE HINCHINGBROOKE FOUNDATION** 

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

## **Other matter** 

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. 

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice. 

## **Use of our report** 

This report is made solely to the charity's trustees as a body in accordance with part of the charities accounts and regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 

## **UHY Hacker Young (East) Limited** 

......................... 

## **Chartered Accountants Statutory Auditor** 

22 July 2022 

2B Vantage Park Washingley Road Huntingdon Cambs PE29 6SR 

- 10 - 



## **THE HINCHINGBROOKE FOUNDATION** 

## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

|**Unrestricted**<br>**funds**<br>**2022**<br>**Notes**<br>**£**<br>**Funds transferred on**<br>**conversion to CIO**<br>570,458<br>**Income from:**<br>Donations and legacies<br>**3**<br>-<br>Investments<br>**4**<br>18,494<br>**Total income and endowments**<br>18,494<br>**Expenditure on:**<br>Charitable activities<br>**5**<br>241,476<br>Other<br>**9**<br>-<br>**Total resources expended**<br>241,476<br>Net gains/(losses) on<br>investments<br>**10**<br>34,889<br>Gross transfers between<br>funds<br>254,198<br>**Net movement in funds**<br>(188,093)<br>**Fund balances at 31 March**<br>**2022**<br>636,563|**Restricted Endowment**<br>**funds**<br>**funds**<br>**2022**<br>**2022**<br>**£**<br>**£**<br>143,640<br>9,345,337<br>50<br>-<br>3,906<br>268,397<br>3,956<br>268,397<br>2,800<br>-<br>-<br>14,200<br>2,800<br>14,200<br>11,300<br>759,186<br>-<br>(254,198)<br>12,456<br>1,013,383<br>156,096 10,104,522|**Total**<br>**2022**<br>**£**<br>10,059,435<br>50<br>290,797<br>290,847<br>244,276<br>14,200<br>258,476<br>805,375<br>-<br>837,746<br>10,897,181|Total<br>2021<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|---|---|



The statement of financial activities includes all gains and losses recognised in the period. 

All income and expenditure derive from continuing activities. 

- 11 - 



THE HINCHINGBROOKE FOUNDATION
BALANCE SHEET
AS AT 31 MARCH 2022
2022
2021
Fixed assets
Investment properties
Investments
Current a$s•t8
Debtors falliNJ after c￿& y•ar
Debtors
Cash at bank and in hand
11
12
364.780
9,9PiI.812
13
13
453,402
21.843
82.164
Credltors: amourts falllng du• wlthln
on• y•¥r
Other credilcws
14
5.820
Net caJrrent assets
551.589
Total assets l•ss curr•nl Il•bllltl••
10.897.181
Copital funds
Endowment funds- general
Income funds
Re51n"cted funds
unrestn.cled furKIs
10.104,522
156,096
636,563
10,897.181
zc)/7/2L
cial stslementswere aFfm¥J by IheTrusteeson.........................
Mr P Fenney. Chair of Tru
Trustee

**THE HINCHINGBROOKE FOUNDATION** 

## **NOTES TO THE  FINANCIAL STATEMENTS** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **1 Accounting policies** 

## **Charity information** 

The Hinchingbrooke Foundation ("the CIO") is a charitable incorporation organisation, registered with the Charity Commission, with the Charity Registration Number 1188401. 

## **1.1 Accounting convention** 

The financial statements have been prepared in accordance with the CIO's constitution,  the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The CIO is a Public Benefit Entity as defined by FRS 102. 

The CIO has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. 

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. 

The  financial statements are prepared in sterling , which is the functional currency of the  CIO .  Monetary a mounts  in these financial statements are  rounded to the nearest £. 

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. 

## **1.2 Going concern** 

The CIO opened a bank account on 24th June 2021. The assets and liabilities of The Foundation of Hinchingbrooke School were transferred to the CIO on this date and it came out of dormancy. 

The CIO is now actively in operation, and at the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operation existence for the foreseeable future. The Trustees have considered all implications the charity continue to adopt the going concern basis of accounting in preparing the financial statements is appropriate. 

## **1.3 Charitable funds** 

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. 

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the CIO. 

## **1.4 Income** 

Income is recognised when the CIO is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. 

Cash donations are recognised on receipt. Other donations are recognised once the CIO has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

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## **THE HINCHINGBROOKE FOUNDATION** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **1 Accounting policies** 

**(Continued)** 

Legacies are recognised on receipt or otherwise if the CIO has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. 

## **1.5 Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.  Expenditure is classified by activity.  The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.  Direct costs attributable to a single activity are allocated directly to that activity.  Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. 

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. 

Charitable activities and governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities. 

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. 

## **1.6 Investment properties** 

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss. 

## **1.7 Fixed asset investments** 

Fixed asset investments  are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date.  Changes in fair value are recognised in  net income/(expenditure) for the year . Transaction costs are expensed as incurred. 

## **1.8 Cash and cash equivalents** 

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 

## **1.9 Financial instruments** 

The  CIO has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 

Financial instruments are recognised in the  CIO 's  balance sheet  when the  CIO becomes party to the contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

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**THE HINCHINGBROOKE FOUNDATION** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **1 Accounting policies** 

## **(Continued)** 

## _**Basic financial assets**_ 

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 

## _**Basic financial liabilities**_ 

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of  operations  from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 

## _**Derecognition of financial liabilities**_ 

Financial liabilities are derecognised when the  CIO ’s contractual obligations expire or are discharged or cancelled. 

## **2 Critical accounting estimates and judgements** 

In the application of the CIO’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

## **3 Donations and legacies** 

||**Restricted**|**Restricted**|
|---|---|---|
||**funds**|**funds**|
||**2022**|**2021**|
||**£**|**£**|
|Donations and gifts|50|-|



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## **THE HINCHINGBROOKE FOUNDATION** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **4 Investments** 

|**Unrestricted**<br>**Restricted Endowment**<br>**funds**<br>**funds**<br>**funds**<br>**general**<br>**2022**<br>**2022**<br>**2022**<br>**£**<br>**£**<br>**£**<br>Income from listed investments<br>18,494<br>-<br>-<br>Income from unlisted investments<br>-<br>3,906<br>261,636<br>Rental Income<br>-<br>-<br>6,761<br>18,494<br>3,906<br>268,397|**Total**<br>**2022**<br>**£**<br>18,494<br>265,542<br>6,761<br>290,797|**Total**<br>**2021**<br>**£**<br>-<br>-<br>-<br>-|
|---|---|---|



## **5 Charitable activities** 

|**Grant**<br>**funding of**<br>**activities**<br>**2022**<br>**£**<br>Hinchingbrooke School Prizes<br>2,800<br>Bursaries<br>30,068<br>St John's Almshouse Charity<br>5,000<br>School Grants<br>129,126<br>Arts & HS Projects Grants<br>13,000<br>Community Grants<br>31,162<br>211,156<br>Share of governance costs (see note 6)<br>33,120<br>244,276<br>**Analysis by fund**<br>Unrestricted funds<br>241,476<br>Restricted funds<br>2,800<br>244,276|**2022**<br>**£**<br>2,800<br>30,068<br>5,000<br>129,126<br>13,000<br>31,162<br>211,156<br>33,120<br>244,276<br>241,476<br>2,800<br>244,276|**2021**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|---|



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## **THE HINCHINGBROOKE FOUNDATION** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **6 Support costs** 

|**Support**<br>**costs**<br>**Governance**<br>**costs**<br>**£**<br>**£**<br>Accountancy and Professional fees<br>-<br>9,734<br>Miscellaneous expenses<br>-<br>153<br>Admin Fee<br>-<br>22,000<br>Insurance<br>-<br>1,233<br>-<br>33,120<br>Analysed between<br>Charitable activities<br>-<br>33,120|**2022**<br>**£**<br>9,734<br>153<br>22,000<br>1,233<br>33,120<br>33,120|**2021**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|---|



Governance costs includes payments to the auditors of £ 5,820 (2021- £ NIL ) for audit fees. 

The Hinchingbrooke Foundation had all off it's assets transferred from the Foundation of Hinchingbrooke School. In June 2021 the prior year audit fee for the predecessor charity was £5,160, 

## **7 Trustees** 

None of the trustees (or any persons connected with them) received any remuneration or benefits from the CIO during the period. 

## **8 Employees** 

There were no employees during the period. 

## **9 Other** 

||**Endowment**|**Total**|
|---|---|---|
||**funds**||
||**general**£||
||**2022**|**2021**|
|Deferred grant|14,200|-|
||14,200|-|



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## **THE HINCHINGBROOKE FOUNDATION** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **10 Net gains/(losses) on investments** 

|**Unrestricted**<br>**Restricted Endowment**<br>**Total**<br>**funds**<br>**funds**<br>**funds**<br>**general**<br>**2022**<br>**2022**<br>**2022**<br>**2022**<br>**£**<br>**£**<br>**£**<br>**£**<br>Revaluation of investments<br>34,889<br>11,300<br>759,186<br>805,375<br>**Investment property**<br>**2022**<br>**£**<br>**Fair value**<br>Transfer of assets from the Foundation of Hinchingbrooke School June 2021<br>474,780<br>Disposals<br>(110,000)<br>At 1 April 2021 and 31 March 2022<br>364,780|**Total**<br>**2021**<br>**£**<br>-<br>**2021**<br>**£**<br>-<br>-<br>-|
|---|---|



## **11 Investment property** 

The Foundation of Hincingbrooke School transferred the assets and liabilities to the CIO on 24 June 2021. 

The balance before the transfer in June 2021, in the Foundation of Hinchingbrook school was £474,780. Beneficial ownership transferred to the CIO in June 2021 when a bank accounts was opened. The the assets therefore transferred to the CIO on this date. 

In January 2022 The Hinchingbrooke Foundation sold it's interest in the land at Brampton valued at £110,000. The sales proceeds where then used to purchase units in the permeant endowment fund. See note 12 for details. 

||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Freehold|364,780|-|
|Long leasehold|-|-|
|Short leasehold|-|-|



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## **THE HINCHINGBROOKE FOUNDATION** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **12 Fixed asset investments** 

||**Listed**|
|---|---|
||**investments**|
||**£**|
|**Cost or valuation**||
|At 1 April 2021|-|
|Additions|124,200|
|Valuation changes|805,376|
|Transfer of investment|9,051,236|
|At 31 March 2022|9,980,812|
|**Carrying amount**||
|At 31 March 2022|9,980,812|
|At 31 March 2021|-|



Investment portfolio was transferred to The Hinchingbrooke Foundation on 8th June 2020 but the beneficial ownership transferred on 24th June 2021 when the bank account was opened. The beneficial ownership prior to this date remained with the Foundation of Hinchingbrooke School. 

|**13**<br>**Debtors**<br>**Amounts falling due within one year:**<br>Other debtors<br>**Amounts falling due after more than one year:**<br>Other debtors|**2022**<br>**£**<br>21,843<br>21,843<br>21,843<br>**2022**<br>**£**<br>453,402<br>453,402<br>453,402|**2021**<br>**£**<br>-<br>-<br>-<br>**2021**<br>**£**<br>-<br>-<br>-|
|---|---|---|



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## **THE HINCHINGBROOKE FOUNDATION** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 31 MARCH 2022**_ 

## **13 Debtors** 

## **(Continued)** 

Other debtors due within one year includes an Almshouses unrestricted loan balance of £1,843 (2021: £nil) and a Hinchingbrooke unrestricted advance grant balance of £20,000 (2021: £nil). 

Other debtors due after more than one year includes an Almshouses unrestricted loan balance of £nil (2021: £nil), a Hinchingbrooke unrestricted advance grant balance of £113,000 (2021: £nil) and an advance of loan grant unrestricted loan balance of £340,400 (2021: £nil) 

The balances were transferred from The Foundation of Hinchingbrooke School during the year. They amounted to £386,446 at the date of transfer in June 2021. 

## **14 Other creditors falling due within one year** 

|Accruals and deferred income|**2022**<br>**£**<br>5,820<br>5,820|**2021**<br>**£**<br>-<br>-|
|---|---|---|



## **15 Analysis of net assets between funds** 

|**Unrestricted**<br>**funds**<br>**2022**<br>**£**<br>Fund balances at 31 March 2022<br>are represented by:<br>Investment properties<br>-<br>Investments<br>439,152<br>Current assets/(liabilities)<br>197,411<br>636,563|**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2022**<br>**2022**<br>**£**<br>**£**<br>-<br>364,780<br>142,233<br>9,399,427<br>13,863<br>340,315<br>156,096 10,104,522|**Total**<br>**2022**<br>**£**<br>364,780<br>9,980,812<br>551,589<br>10,897,181|**Total**<br>**2021**<br>**£**<br>-<br>-<br>-<br>-|
|---|---|---|---|



## **16 Related party transactions** 

Owing to the nature of the  The Hinchingbrooke  Foundation operations and the composition of the board of trustees being  drawn from local public and private sector organisations, transactions may take place with organisations in  which the Foundation has an interest. All transactions involving such organisations are conducted in  accordance with the Foundation's financial regulations and normal procurement procedures. 

During the year  T he Hinchingbrooke Foundation paid grants of £ 44,536 (202 1 : £ Nil ) to ACES Academies Trust (the former charity 2021: £94,710) . There  are trustees in common to both organisations. ACES Academies Trust also occupies property owned by  T he Hinchingbrooke  Foundation on a rent free basis. 

During the year  T he  Hinchingbrooke  Foundation paid a grant of £ Nil (202 1 : £nil) to Fusion Family and Youth Projects.  There are trustees in common to both organisations (the former charity 2021: £7,000) . 

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