Charity registration number 1192517
Company registration number 12674667 (England and Wales)
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Professor H W DeBurgh Professor A A Szczerbiak Mgr P Rendek R C Moorhouse Dr N V Murray Mr. J G Bartholomew Charity number 1192517 Company number 12674667 Registered office 30 Finsbury Circus London United Kingdom EC2M 7DT Independent examiner Ian Lansdown BSc ACA Azets Prospect House 5 May Lane Dursley Gloucestershire United Kingdom GL11 4JH
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 13 |
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2022
The Trustees present their annual report and financial statements for the year ended 30 June 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 Companies Act 2006 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 Charity's objects are to provide information and education about the history of totalitarianism, particularly in the 20th century. It aims to encourage study and research in a variety of ways including the creation of an annual history essay prize on a different subject each year.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
Achievements and performance
The Foundation’s history essay competition for sixth formers has continued and attracted an increased number of students. A total of 114 essays were submitted in 2021-2022 compared to 107 in 2020-21. We have bought an increasing number and variety of historic artefacts.
Financial review
The charity’s financial position remains strong. Funding has been secured that covers the cost of our operations for at least two years as at March 2023. This provides us with a secure background and the opportunity to expand our operations.
We have been able to broaden the range of our donors. We continue to work on fund-raising on a regular basis.
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 company limited by guarantee.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Professor H W DeBurgh Professor A A Szczerbiak Mgr P Rendek R C Moorhouse Dr N V Murray Mr. J G Bartholomew
Trustees are recruited by developing a wide circle of acquaintances who have knowledge and interest in aspects of the the history of totalitarianism. A diverse cross-section of this group is then invited to become trustees.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
- 1 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
The Trustees' report was approved by the Board of Trustees.
Mr. J G Bartholomew
Trustee Dated: 23 March 2023
- 2 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
I report to the Trustees on my examination of the financial statements of Foundation for the History of Totalitarianism Ltd (the Charity) for the year ended 30 June 2022.
Responsibilities and basis of report
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
1 accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Ian Lansdown BSc ACA Azets Prospect House 5 May Lane Dursley Gloucestershire GL11 4JH United Kingdom
Dated: 23 March 2023
- 3 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2022
| Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income from: Donations and legacies 3 111,371 61,100 Other trading activities 4 2,790 - Investments 5 75 - Total income 114,236 61,100 Expenditure on: Raising funds 6 2,790 - Charitable activities 7 62,540 - Total expenditure 65,330 - Net income for the year/ Net movement in funds 48,906 61,100 Fund balances at 1 July 2021 102,584 12,000 Fund balances at 30 June 2022 151,490 73,100 |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 172,471 117,425 17,000 2,790 - - 75 31 - 175,336 117,456 17,000 2,790 - - 62,540 14,872 5,000 65,330 14,872 5,000 110,006 102,584 12,000 114,584 - - 224,590 102,584 12,000 |
Total 2021 £ 134,425 - 31 |
|---|---|---|
| 134,456 | ||
| - | ||
| 19,872 | ||
| 19,872 | ||
| 114,584 - |
||
| 114,584 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 4 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
BALANCE SHEET
AS AT 30 JUNE 2022
| Notes Fixed assets Heritage assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Income funds Restricted funds 14 Unrestricted funds |
2022 £ 3,027 118,185 121,212 (5,886) |
£ 109,264 115,326 224,590 73,100 151,490 224,590 |
2021 £ 3,128 88,154 91,282 (2,672) |
£ 25,974 88,610 |
|---|---|---|---|---|
| 114,584 | ||||
| 12,000 102,584 |
||||
| 114,584 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with FRS102 SORP.
The financial statements were approved by the Trustees on 23 March 2023
Mr. J G Bartholomew
Trustee
Company registration number 12674667
- 5 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
1 Accounting policies
Charity information
Foundation for the History of Totalitarianism Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 30 Finsbury Circus, London, EC2M 7DT, United Kingdom.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 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 Charity is a Public Benefit Entity as defined by FRS 102.
The Charity 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 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.
1.2 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.
1.3 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 Charity.
1.4 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.
Cash donations are recognised on receipt. Other donations are recognised once the Charity 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.
Legacies are recognised on receipt or otherwise if the Charity 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.
- 6 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
1 Accounting policies
(Continued)
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. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs relating to that category.
1.6 Heritage assets
The Foundation's collection of artefacts are recorded at cost. The artefacts are deemed to have an indeterminate life and therefore no depreciation has been charged. However, at each balance sheet date, the Trustees carry out a review of the value of the artefacts held.
1.7 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.
1.8 Financial instruments
The Charity 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 Charity's balance sheet when the Charity 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.
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.
- 7 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
1 Accounting policies
(Continued)
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 payments 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 Charity’s contractual obligations expire or are discharged or cancelled.
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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.
- 8 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
3 Donations and legacies
| Unrestricted Restricted funds funds 2022 2022 £ £ Donations and gifts 111,371 61,100 Donations and gifts The Nigel Vinson Charitable Trust 75,000 - The Street Foundation - 15,000 The de Laszlo Founation - 5,000 Moynitrust - - Viscount M W Ridley 10,000 - Eamonn Butler - 10,000 Jeremy Hosking - 15,000 Patrick Barbour - 10,000 Professor T Congdon - 3,000 Barbara Yerolemou 20,000 - Tom Harris 5,000 - Jaden Lam Phan - 2,000 Other 1,371 1,100 111,371 61,100 |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 172,471 117,425 17,000 75,000 90,000 5,000 15,000 - 10,000 5,000 - 2,000 - 20,000 - 10,000 7,000 - 10,000 - - 15,000 - - 10,000 - - 3,000 - - 20,000 - - 5,000 - - 2,000 - - 2,471 425 - 172,471 117,425 17,000 |
Total 2021 £ 134,425 |
|---|---|---|
| 95,000 10,000 2,000 20,000 7,000 - - - - - - - 425 |
||
| 134,425 |
4 Other trading activities
| Unrestricted | Total | |
|---|---|---|
| funds | ||
| 2022 | 2021 | |
| £ | £ | |
| Services rendered | 2,790 | - |
5 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Interest receivable | 75 | 31 |
- 9 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
6 Raising funds
| 7 | Unrestricted funds 2022 £ Trading costs Staff costs 2,790 2,790 Charitable activities 2022 £ Staff costs 47,702 Essay prize money 5,200 Charity events 2,554 Travel and subsistence 854 56,310 Share of support costs (see note 8) 6,230 62,540 Analysis by fund Unrestricted funds 62,540 Restricted funds - |
Total 2021 £ - |
|---|---|---|
| - | ||
| 2021 £ 7,991 - - - |
||
| 7,991 11,881 |
||
| 19,872 | ||
| 14,872 5,000 |
- 10 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
8 Support costs
| Support costs Governance costs £ £ Computer running costs 480 - Professional subscriptions - - Advertising 211 - Accountancy 2,340 - Bookkeeping 151 - Bank charges 96 - Insurance 294 - Printing and stationery 1,271 - Rates 1,129 - Sundry expenses 258 - Legal and professional fees 6,230 - Analysed between Charitable activities 6,230 - |
2022 Support costs Governance costs £ £ £ 480 269 - - 82 - 211 983 - 2,340 1,800 - 151 120 - 96 298 - 294 284 - 1,271 835 - 1,129 - - 258 110 - 7,100 - 6,230 11,881 - 6,230 11,881 - |
2021 £ 269 82 983 1,800 120 298 284 835 - 110 7,100 |
|---|---|---|
| 11,881 | ||
| 11,881 |
9 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
10 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| 2 | 2 | |
| Employment costs | 2022 | 2021 |
| £ | £ | |
| Wages and salaries | 49,022 | 7,991 |
| Other pension costs | 1,470 | - |
| 50,492 | 7,991 |
There were no employees whose annual remuneration was more than £60,000.
- 11 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
11 Heritage assets
| At 1 July 2021 Purchases At 30 June 2022 12 Debtors Amounts falling due within one year: Other debtors 13 Creditors: amounts falling due within one year Other taxation and social security Accruals and deferred income |
2022 £ 3,027 2022 £ 1,148 4,738 5,886 |
£ 25,974 83,290 |
|---|---|---|
| 109,264 | ||
| 2021 £ 3,128 |
||
| 2021 £ 739 1,933 |
||
| 2,672 |
14 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement in funds | Movement in funds | Movement | |||
|---|---|---|---|---|---|
| in funds | |||||
| Incoming | Resources | Balance at | Incoming | Balance at | |
| resources | expended 1 July 2021 |
resources | 30 June | ||
| £ | £ | £ | £ | 2022 £ |
|
| KGB equipment fund | 12,000 | - | 12,000 | - | 12,000 |
| Donation towards legal fees | 5,000 | (5,000) | - | - | - |
| Tank fund | - | - | - | 61,100 | 61,100 |
| 17,000 | (5,000) | 12,000 | 61,100 | 73,100 |
The KGB equipment fund represents income received from donors specifically to purchase KGB equipment.
The donation in respect of legal fees was received to cover the costs of registering the Charity.
The tank fund represents income received from donors specifically to purchase a T-55 tank.
- 12 -
FOUNDATION FOR THE HISTORY OF TOTALITARIANISM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
| 15 Analysis of net assets between funds Unrestricted funds Restricted funds 2022 2022 £ £ Fund balances at 30 June 2022 are represented by: Heritage assets 36,164 73,100 Current assets/(liabilities) 115,326 - 151,490 73,100 |
Total Unrestricted funds Restricted funds 2022 2021 2021 £ £ £ 109,264 13,974 12,000 115,326 88,610 - 224,590 102,584 12,000 |
Total 2021 £ 25,974 88,610 |
|---|---|---|
| 114,584 |
16 Related party transactions
Transactions with related parties
During the year the Charity entered into the following transactions with related parties:
Employees of the Charity provided services to the Museum of Communist Terror (a company which shares a Director/Trustee with the Charity). An invoice has been raised to the Museum of Communist Terror for services rendered for £2,790 (2021 - nil).
The following amounts were outstanding at the reporting end date:
| Amounts owed by | related | Amounts owed by | related | |
|---|---|---|---|---|
| parties | parties | |||
| 2022 | 2021 | |||
| Balance | Net | Balance | Net | |
| £ | £ | £ | £ | |
| Museum of Communist Terror | 2,790 | 2,790 | - | - |
| 2,790 | 2,790 | - | - |
- 13 -