Charity Registration No. 01191507
The InfraRed Charitable Foundation
Annual report and unaudited financial statements
For the year ended 31 December 2022
55 Loudoun Road St John's Wood London NW8 0DL
THE INFRARED CHARITABLE FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees W M F Von Guionneau E D Glover J G J Grumbar C P Gill Secretary E Mendes Charity number 01191507 Registered office Level 7 One Bartholomew Close Barts Square London EC1A 7BL Accountants MGR Weston Kay LLP 55 Loudoun Road St John's Wood London NW8 0DL
THE INFRARED CHARITABLE FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Accountants' report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 9 |
THE INFRARED CHARITABLE FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees present their annual report and financial statements for the year ended 31 December 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 charity's governing document, 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
The objects of the CIO are to advance such charitable purposes (according to the law of England and Wales) as the charity trustees see fit from time to time and in particular but not limited to:
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promoting social inclusion for the public benefit by preventing people from becoming Socially Excluded, relieving the needs of those people who are Socially Excluded and assisting them to integrate into society; and
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relieving sickness and the preservation of health by making grants to fund medical equipment, facilities or services for public benefit.
Nothing in the constitution shall authorise an application of the property of the CIO for the purposes which are not charitable in accordance Section 207 of the Charities Act 2011.
For the purpose of this clause "Socially Excluded" means being excluded from society, or parts of society, as a result of one or more of the following factors: unemployment; financial hardship; youth or old age; ill health (physical or mental); substance abuse or dependency including alcohol and drugs; discrimination on the grounds of sex, race, disability, ethnic origin, religion, belief, creed, sexual orientation or gender re-assignment; poor educational or skills attainment; relationship and family breakdown; poor housing (that is housing that does not meet basic habitable standards; crime (either as a victim of crime or as an offender rehabilitating into society).
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
During the period covered by the accounts, grants were made to three charities. Two of these charities had been awarded grants in the prior period; one supporting women and the other for men whose work is directed to the re-entry into employment of ex-offenders on their release from prison. A further grant was made to a charity which supports the provision of a free and nourishing breakfast for children in school. Details of the grants will be found in note 6 of the accounts.
Financial review
During the period charity's total income is £4,812 (2021: £1,000,000) and total expenditure is £154,557 (2021: £104,515).
The charity’s current activity is solely the making of grants. It has no employees and minimal expenses. In the circumstances, although it monitors its assets regularly to ensure that they are sufficient to meet its committed obligations it does not consider that a formal reserves policy is currently necessary.
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The charity is a charitable incorporated organisation.
The trustees who served during the year and up to the date of signature of the financial statements were:
W M F Von Guionneau
E D Glover J G J Grumbar C P Gill
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Tab 3 Trust885 Rey)rt- SyniTvJ page THE INFRARED CHARITABLE FOUNDATION TRUSTEES. REporfr {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Membership of the CIO may be grarrted kn anpne who is irferested in fi1rtring it5 puryKJses, and who. by applytng for memkrship. has indicated hi5. heror it5agrEemerrttD lne a member and acceptan of thE dutyof members. Membership mayvnty bE8rartsd with the prior wrrtten con5entof thE F(yJrKler MeMr. A member may be an IndidaL a botyor an Organi* whith 15 not InCL1ed. The trstee$. report was appro%td by the Board of Trustee5. E D Glover lI(ober2o2J 14of29 The IrtfraRed Cha¥ilabk Foundati017110T23
THE INFRARED CHARITABLE FOUNDATION
CHARTERED ACCOUNTANTS' REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF THE INFRARED CHARITABLE FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2022
In order to assist you to fulfil your duties under the Charities Act 2011, we have prepared for your approval the financial statements of The InfraRed Charitable Foundation for the year ended 31 December 2022, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made to the charity's trustees, as a body, in accordance with the terms of our engagement letter dated 24 April 2023. Our work has been undertaken solely to prepare for your approval the financial statements of The InfraRed Charitable Foundation and state those matters that we have agreed to state to the charity's trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The InfraRed Charitable Foundation and the charity's trustees as a body, for our work or for this report.
It is your duty to ensure that The InfraRed Charitable Foundation has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and deficit of The InfraRed Charitable Foundation. You consider that The InfraRed Charitable Foundation is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of The InfraRed Charitable Foundation. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
MGR Weston Kay LLP
Chartered Accountants 55 Loudoun Road St John's Wood London NW8 0DL
17 October 2023
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THE INFRARED CHARITABLE FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | - | 1,000,000 |
| Investments | 4 | 4,812 | - |
| Total income | 4,812 | 1,000,000 | |
| Expenditure on: | |||
| Charitable activities | 5 | 154,557 | 104,515 |
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (149,745) | 895,485 | |
| Fund balances at 1 January 2022 | 895,485 | - | |
| Fund balances at 31 December 2022 | 745,740 | 895,485 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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Tab 3 Tru5t&s Report- SwJning page THE INFRARED CHARITABLE FOUNDATION BALANCE SHEET AS AT 31 DECEMBER2022 20 Debtor5 Cath at bank and in hand io 748,105 923,685 748.240 923,685 CreditDr&' amourtsfallNvA due7wIthkn ar li 125(Y)I 128.20DI cvrrem assets 745.740 895,485 Incorne funds Unre#riued funds 745.740 895,485 74S.740 89S,485 The finanual statsmentswere apprO%d byd*Trusw on 4rktithr2023 E D Glover Tru5teÈ The InfraFwJ Charitable FouTrJabon-17111y23 15of29
THE INFRARED CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Charity information
The InfraRed Charitable Foundation is a Charitable Incorporated Organisation. The Registered address is Level 7, One Bartholomew Close, Barts Square, London, EC1A 7BL.
1.1 Reporting period
The InfraRed Charitable Foundation was incorporated on 28 September 2020. The charity's first financial statements were prepared for the period ended 31 December 2021. As a result, the amounts presented in the financial statements are not entirely comparable.
1.2 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document dated 28 September 2020, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.5 Income
Income is recognised when the charity 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.
Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.
1.6 Expenditure
Resources expended are recognised in the period to which they relate.
All costs which can be directly attributed to charitable activities are allocated to the relevant activity. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Costs of charitable activities include grants made, governance costs and support costs.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the accounting fees and costs linked to the strategic management of the charity.
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THE INFRARED CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with bank.
2 Critical accounting estimates and judgements
In the application of the charity’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
| Total | Total | Unrestricted | ||
|---|---|---|---|---|
| funds | ||||
| 2022 | 2021 | |||
| £ | £ | |||
| Donations and gifts | - | 1,000,000 | ||
| 4 | Investment income | |||
| Unrestricted | Total | |||
| funds | ||||
| 2022 | 2021 | |||
| £ | £ | |||
| Interest receivable | 4,812 | - | ||
| 5 | Charitable activities | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Grant funding of activities (see note 6) | 150,000 | 60,000 | ||
| Share of governance costs (see note 7) | 4,557 | 44,515 | ||
| 154,557 | 104,515 |
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THE INFRARED CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6 Grants payable
| Grants to institutions: The Switchback Initiative Working Chance Ltd Magic Breakfast |
2022 £ 50,000 50,000 50,000 150,000 |
2021 £ 30,000 30,000 - |
|---|---|---|
| 60,000 |
7 Support and governance costs
| Governance costs £ Accountancy 2,620 Legal and professional 1,500 Insurance 437 4,557 Analysed between Charitable activities 4,557 |
Governance costs 2022 2021 £ £ 2,620 4,800 1,500 39,715 437 - 4,557 44,515 4,557 44,515 |
Governance costs 2022 2021 £ £ 2,620 4,800 1,500 39,715 437 - 4,557 44,515 4,557 44,515 |
|---|---|---|
| 44,515 | ||
| 44,515 |
Governance costs includes payments to the independent examiner of £120 (2021: £4,800) for the prior year's accounts preparation and independent examination.
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
9 Employees
There were no employees during the current and preceding period.
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THE INFRARED CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
| 10 Debtors Amounts falling due within one year: Prepayments and accrued income 11 Creditors: amounts falling due within one year Accruals and deferred income |
2022 £ 135 2022 £ 2,500 |
2021 £ - |
|---|---|---|
| 2021 £ 28,200 |
12 Related party transactions
There were no disclosable related party transactions during the year (2021: The underlying donors of the £1,000,000 donation to fund the charity were InfraRed Capital Partners Limited and Charles II Realisation LLP in which the charity trustees Werner Marc Friedrich Von Guionneau and Christopher Paul Gill were interested as directors and/ or partners of the donor entities.)
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