Charity registratlon number 1193336 Company reglstratlon number CE024765 (England and Wales) THE LHR CHARITABLE FOUNDATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
THE LHR CHARITABLE FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Truste&s HRRoss LARoss E M Gaudern Charlty number 1193336 Company number CE024765 Registerad offlce Browne Jacobson LLP Mowbray House Castle Meadow RoBd Nollingham NG2 1BJ Indepondent examiner Afford Bond Holdings Limited 31 Wellinglon Road Nantwch Cheshire CW5 7ED
THE LHR CHARITABLE FOUNDATION CONTENTS Page Trustees, report Independent examinerfs report Stslemenl ol fir¢ancial aclivllies Balance sheet Slalemenl of cash flows Notes to the financlal stalemenls 6-13
THE LHR CHARITABLE FOUNDATION TRUSTEES, REPORT {INCLUDING DIRECTORS. REPORTI FOR THE YEAR ENDED 31 JANUAR Y 2023 The trustees present their annual report and financial statèments for thè yèar 8nded 31 January 2023. The financial slalernenls have been Prepared in accordance wilh Ihe accounting poliae5 sel out in note 1 to the financial slalemenls and comply wlh Ihe charity's governing document, the Companies Act 2006 and Accounting and Reporting by Charilies.. Statement of Recommended Practice applicable lo eharitles preparing Ihair 8ccoun18 In accordance with the Financial Reporting Standard applicabl6 in the UK and Republic of ITeland IFRS 1021" (effective 1 January 20191. Oblèctives and activities Thè tsblécls of the charity are such purposes a8 shall be exclusively charitable as the charity trustees in their absolulo discrellon from Ilrne lo lime think fil. The trustees have paid due regard lo guidancè issued by tho Charity Commission in deciding what activrties the charity should undertake. Achievements and pertorniance Flnancial review It is the policy of Ihe charily that unrestr¢cled funds which have ntsl been designated for a specific use should be maintained 8t 8 levèl equivalènt lo between IhrÈe and six month's expenditure. The Iruslees consider that reserves al this lavèl wlll ensure that, in the event of a significant drop in funding. they will be able to continue Ihe Gharily's curfenl actiwlies while consideration is given to ways in which additional funds may be raised. This16vel cf rèsèrves has been maintained Ihroughoul the year. Structur•. yovèmane• #nd managèmènt The charity is a company limited by guaranléa, con81ru¢led under a trust deed dated 25 January 2021 and is a registered charity, number 1193336. The Iruslees, who are also the directors for the purpose of company law, and who seNed during the y6ar 8nd up lo the dale of signature of the financlal siatemenls were.. HRRosS LARoss E M Gaudern Apart from the first charity Iruslees, every trustee musl be appointed for a term of three years by a rèsolullon passed al a properfy convened meeting of the charity truste&s. In sslèding Individuals lor appointment a8 chaiity trustees, the charity trustees musl have regard lo the skills, knowledge and experi$n¢e needed for the effective administration ol the ¢harily. There musl be al least three charity Iruslees. If the number falls below this minimum, the remaining trLJsl8e or Iruslees may only lo call a meeting ol the charity Iruslee5 or appoint a new charity Iruslèe. There Is no maximum number of charity trustees that may be appointed. Thetr lee ' report was approved by the Bo8rd ol Trustees. HRRoss Trusteo Dal&.. 11 Jto
THE LHR CHARITABLE FOUNDATION INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE LHR CHARITABLE FOUNDATION I report lo Ihe Iruslees on my examination of the financial slalemenls of The LHR Charitable Foundation (the charllyl for the year ended 31 January 2023. R•sponslbllltl•s and basls of rèport As the truslees of the charity land also ils directors for Ihe purposes of company law) you are responsible ft>r the preparalion of the finaneAal slalemenls in accordance with the requirements of th¢ Companies Acl 2006 Ilho 2006 Acll. Having salisfted 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 respeel of my examination of the ¢harily's financial statements eariied out under section 145 tsf the Charilles Act 2011 Ilhè 2011 Act). In carrying out my axaminalion I hav8 followed all thè applic8bl8 Dlre¢tions given by the Charity Commisslon under sectlon 145{5llbl of the 2011 Act. Independent examlnerfs ststemant Since the charity's gross income exceeded £250,OOa your examiner musl be a member of a body listed in seclion 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a membar of Associatson of Chartered Certified Accountants {ACCAI. which is one of the listed bodies. I have completed my examination. I confirm that no rnallers have come to my attention in connection with the exarnlnalion g6ving me cause lo belleve that in any material respect.. accounting records wèrè not kept in rèspeet of thè charity a8 requbred by $8cllon 386 of the 2006 Act., or the financial statemènts do not accord with thosè records; or the financial slalements do not comply with the accounting requirements of s6Ction 396 of the 2006 Act other than any requirement that the accounts give a tnje and fair view which is not a matter considered as part of an independenl examination., or the financAal stalemenls have nol been prepared in 8ceordanc8 wilh thè melhods and prinelpl88 of the Slatemanl of Rècomm6ndÉd Praelic6 for accounting and reporting by charities applicable lo chariti85 preparing their 8¢counls in accordan¢e with the Financial Reportlng Standard applicable In the UK and Republ1¢ of lieland IFRS 1021. I have no concerns and have come across no other matters in eonneetion wlth the examlnalion to whl¢h allonon should be drawn in this report In order lo gnable a propgr underslandlng of the finandal sl8lem8nls lo be reache¢J. Pau dwards FCCA CTA Afford Bond Holdlngs LSmited 31 Welllnglon Road Naniwich Cheshire CW5 7ED
THE LHR CHARITABLE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JANUARY2023 Unreslrlcted Unrestrlcted funds funds 2023 2022 Notes Donations and legacies Income from Investments 587.689 31.392 1,856,209 5,206 Total Income 619,081 1,861,415 Ex Charitable aclivilie5 70,930 19,209 Net gainslllossesl on investments 10 {69,6551 149,046) Net movement In funds 478,496 1.793.160 Fund balances al 1 February 2022 1,793,160 Fund balances at 31 January 2023 2,271,656 1.793,160 The slalemenl of financial activities includes all gains and losses recognised the year. All Income and expendllure derive from continulng aclivilies. The slalement of financial adivilies also complies with the requirements for an income and expendllure account under the Companie5Acl 2006.
THE LHR CHARITABLE FOUNDATION BALANCE SHEET ASAT31 JANUARY2023 2023 2022 Notes Flxed a$$•t8 Invèslmanl propeity Investments 12 13 145.836 1.955.566 140,118 1,550,301 2,101,402 1,690.419 Current assets Debtors Cash al bank and In hand 14 173,254 105.396 173,254 105,741 Cr*dltors: amounts falling due within one year 15 (3,000) 13,0001 Nel current assets 170,254 102,741 Total assets less current liabilities 2,271,656 1,793,160 Income funds Unr8stri¢t&d funds 2,271.656 1,793,160 2.271.656 1,793,160 The company is enlllled lo the exemption from the audit requirement coniained in section 477 of the Companles Act 2006, for the year ended 31 January 2023. The directors acknowledge their responsibilities for Complying with the raqulremenls of the Companies Act 20C with respect to accounting records and the preparallon of financial slalemenls. The members have not required the company lo obtain an audit of its financlal statements for the year In question In a¢eoidan¢e wlh section 476. These financial stalèmènis have b8en prepared in accordance with the provisions applicable lo companles sublecl lo the small Companies reglme. The fin slalements were approved by the Trustees on HRRoss TrLFSt•è Company registration number CE024765
THE LHR CHARITABLE FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY2023 2023 2022 Notss Cash flows from operatlng activltles Cash generalgd Iiom operations 17 532,452 1,843,936 Investlng actlvltles Pur¢hase of investmgnl property Realised loss on investments Purchase of other investments Proceeds from disposal of other Investments Investment income received {5,7181 44,969 1877.848} 342,611 31.392 {140,118} 11,600,000) 13,628) 5,206 Net cash used In Invèstlng activltlès 1464,5941 (1,738.5401 Net cash used In flnanclng actlvltles Net Increase In cash and cash equlvalents 67,858 105.396 Cash and cash equivalents al beginning of year 105,396 Cash and cash equlvalents at end of year 173.254 105,396
THE LHR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY2023 Accounting pollcles Charlty Infomiatlon The LHR Charllable Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Browne Ja¢obson LLP, Mowbray House, Castle Meadow Road, Nottingham, NG2 1BJ. 1.1 Accountlng conventlon The financial slalemenls have been prepared In accordancè with the charity's governlng document, the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK anLI Republic ol Ireland. l FRS 102.1 and the Charities SORP Accounting and Reporting by Charities.. Statement DI Recomrnended Pradice applicable lo charities preparing their accounts in accordance wlh the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" leffeclive l January 20191. The charity is a Public Benefit Enlily as defined by FRS 102. The financial slalemenls are prepared in sterling. which is the functional currency of the ¢harily. Monetary amounts in these fi'nancial statements are rounded lo the nearest £. The finandal slalements have been Prepared under the historical cost convention. modlfied lo Include the revaluallon of freehold properties and lo include inveslrnenl propertles and certain financial instruments al falr value. The principal accounting policies adopted are sel out below. 1.2 Golng concern Al the lime of approving the financial slalernenls, the Iruslees have a reasonable exp8Gtalion Ihal the charity has adequate resources to continue in operational exisl@n¢e for the foreseeable future. Thus the trustees contbnue lo adopt the going concern basis of aOuntIng in preparing the financial slalemenls. 1.3 Charltable funds Unreslricled funds are avallable for use al the dlscrelion of the Iruslees in furtherance of their charilablg objeclivos. Reslricled funds are subject to spacific condlllons by donors as lo how they may be used. The purposes and Uses of the restricted funds are sel out in the notes lo the financiaj slatemenls. Endowment funds are subject lo specific ¢ondihons by donors that the capital musl be mainlained by the charity. 1.4 Income Income Is recognised when the charity is legally enlilled lo il after any performan¢e conditrons have been met, the amounts can be measured reliably, and il is probable that income will be recoived. Cash donallons are recognised on rèceipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income lax COVerable in relation to donations received under Gift Aid OT deeds of covenant is recognised al Ih@ limè of the donation. Legacies are recognlsed on receipt or otherwise if the charity has been notified of an impanding dk%lribulion, the amount Is known. and receipt is expected. If the amount is not known. the legacy is treated as a contlngent asset.
THE LHR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY2023 Accountlng pollcle5 Icontlnuedl 1.5 Expenditure Expenditure is reco9nised once there is a legal or constructive obligation lo transfer economic benefit lo a Ihlrd party. 11 is probable that a transfer of economic benefits will be required in setllemenl, and the amount of the obligation can be measured ieliably. Expenditure is classiffed by activity. The costs of each activity are madg up of Ihe total of dir1 costs and shared costs, including support costs involved in undertaking each aclivily. Direct costs attributable lo a single activity are allocated directly lo that acllvily. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned beeen those activitS on a basis consislenl 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. 1.6 Investment property Investment property, which is property held lo eam rentals andlor for capllal appreciation, is inltlally recognised at cost, which includes the pufchase c051 and any directly allributable expenditure. Subsequently il is m08Sur al fair value al the reporting end dale. The surplu8 or deficit on revaluation is recognised in profil or loss. 1.7 Flxed assat Invostments Fixed asset investments are initially measured al transaction price excluding transaction costs, and are subsequently measured al lair value al each reporting dale. Changes in falr value are recognised in nel incomellexpendilure} for the year. Transaction costs are expensed as incurred. 1.8 Cash and cash equivalents C88h and cash equivalents include cash In hand, deposlls held at call wllh bank8. Other short-term liquid Inveslmenls with orlglnal maturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabililles. 1.9 FSnanclal Instruments The ¢harily has elected lo apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Olher Financial Insliumenls Issues, of FRS 102 10 all of ils fbnanclal Inslrumenls. Flnancial Instruments are recognlse(l in the charity's balance sheet when the charity becomes party lo the conlra¢lu81 provisions of the Instrument. Financial assets and liabllilies a offset. whh the nel amounts presented In the flnanclal slalemenls, when ther& 18 a legally &nforceable right lo sel off the recognlsed amounts and therè Is an Inlèntlon lo sellle on a net basls or lo realise the asset and selue the Ilabillly slmullaneously. Basic financial assets Basic financlal assets, which Include debtors and cash and bank balances. are InlIallY measured at transaction price including transaction costs and are subsequently carried al amortlsed cost using the effeclive interest method unless the arrangement conslilules a financing Iransaclion, where the transaction is measured al the present value of the future receipts discounted al a market rate of interest. Financial a55els dasskfied 88 recelvable wllhln one year are not amortised.
THE LHR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEIVIENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY2023 Accounting policies Icontlnuedl Bas1¢ financial liabilitles Basic financial liabilities, including CTedilors and bank 102ns are initially recognised al transaction price unless the arrangement conslilules a financing IransacliDn, where the debt inslrumenl is measured al the present value of the future payments discounted al a market rale ol interest. Financial liabilities classified as payable within one year are not amorlised. Debt instruments are subsequently carrled al amortised cost, using the effective interest rale method. Trade edItorS are obligations lo pay lor goods or services that have been acquirgd in the ordinary COUTse of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within on¢ year Dr less. If not, they are presented as non-currenl liabilities. Trade creditors are recognised initially at transaction pri and subsequently measured al amortised cost using the effectlve interest method. Dere¢ognltlon of financlal Ilabllltles Financial liabilities are derecognised when the charfly's coTrtraclua1 obligallons explre or are discharged or cancelled. Crltl¢al accountlng e$tlmate$ and Judgements In the appllcallon of the charty's accounting pollcies, the trustees are requlred to make judgements, esllmates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from olheT souices. The eslimales and associated assumptions are based on historical experience and olh&r factors that are considered lo be relevant. Actual results may differ frorn these eslimates. The estimates and underlylng a8sumptlons are revlewed on an ongolng basis. Revislons lo accounting eslimales are recognised in the period In whlch the estimate Is revlsed wh&rts the revlslon affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Donatlong and legaclès Unrostrlcted Unrestrlcted funds funds 2023 2022 Donations and gifts 587.689 1,856,209
THE LHR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY2023 Income from Investments Unrestrlctod Unrestrlcted funds fund$ 2023 2022 Rental income Income from listed investments 11,124 20,268 662 31,392 5,208 Charltable actlvitie5 Charitable Charltabl& Expenditure Expenditurè 2023 2022 Admin expenses 1,122 1,592 Grant funding of adivilies (see note 6} Share of governance costs (see note 71 49,280 20,528 7.500 10,117 70,930 19.209
THE LHR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 JANUARY2023 Grants payable Charitable Charitable Expenditure Expenditure 2023 2022 Grants lo inslilulions.. BIDod Cancer UK Chelhams School of Music Prince's Trust Our Kids Eyes MounlviewAcademy Grace McLoughlin Unicef Magic Breakfast Suslenlalion Fund Youth Space L81 Us Play The Hive Youlh Zone Humans Manchester Pure Insight Cancer Research 1,500 5,000 1,000 20,180 1,500 15,000 4,250 1,400 1,250 1,000 1,000 1,000 1,000 1,000 500 100 100 49,280 7,500 Govemanc8 costs allocatod to charltablo actlvltles.. 2023 2022 Governance Governance costs costs Audit fee8 Accountancy Legal and professional Investment management fees Property management fees 2.400 600 660 15,347 1,521 3,000 1,620 300 5,197 20,528 10,117 Trnste&s None of the trustees lor any persons connected with them) received any remuneialion or benefits from the charity during the year. 10-
THE LHR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY2023 Employees The average monthly number of employees during the yeai was.. 2023 Numbgr 2022 Number Total There were no employees whose annual remunelalion was more than £60,000. 10 Net galnslllosses) on Investments Unrestrlcted Unrestrlcted fund5 funds 2023 2022 Revaluation of investments Gainl(lossl on sale of Investments 124,6861 144,9691 (45,418) {3,628) 169,6551 (49,046) 11 Taxatlon The charity is exempt from lax on income and gains falling within section 505 01 the TaxesAct 1988 or se¢lion 252 of the Taxallon of Chargeable Gains Act 1992 to the extent that these are applied lo its charitable objeds. 12 Investment property 2023 Falr value Al 1 Feb¥uary 2022 Additions through exlarnal acquisition 140,118 5,718 Al 31 January 2023 145.836 Investment property comprises two residential properties. The Iruslees believe Ihal the valuation as al the balance sheet dale Is not materially different lo the purchase costs incurred in Augu512021.
THE LHR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY2023 13 Flxed asset Investments Listed Investments Cost or valuation At 1 February 2022 Additions Valuation changes Managem8nl charges paid DIspo8als 1,550.3Q1 877.848 169.656) 115,347) {387,5801 Al 31 January 2023 1,955,566 Carrylng amount Al 31 January 2023 1,955,566 Al 31 January 2022 1,550.301 14 Debtors 2023 2022 Amounts falllng due wlthln ong year: Prepayments and accrued income 345 IS Creditors: amounts falllng due wlthin one year 2023 2022 Accruals and deferred income 3.000 3,000 12-
THE LHR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023 16 Related party transactlons TransaGtlons with related partles During the year the charlty received £470,00012022'. £1,002.3261 in donations from HR Ross and £nil (2022.. £458,791) in donations from LA Ross. 17 Cash generated from operations 2023 2022 Surplus for the year 478,496 1,793,160 Adjuslmenls for. Inveslmenl in¢ome recognised in slalemenl of financial acllvilies Loss on disposal of investments Fair value gains and losses on investments Fund management fees {31,3921 44,989 24,686 15,347 15,2061 3,628 45,418 Movements in working capital., Decreasellincreasel in debtors Increase in credllors 345 1345} 7,281 Cash generated from operatlons 532.452 1,843,936 18 Analy515 of chang9$ In not funds The charity had no debt during the yèar. 13-