## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES** **TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2023** **REGISTERED CHARITY IN ENGLAND AND WALES No 1193970** **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH** |**CONTENTS**|**Page**| |---|---| |Reference and administrative information|2 - 3| |Chairman's statement|4| |Report of the trustees|5 - 16| |Trustee Company's responsibilities statement|17| |Independent auditor's report|18 - 19| |Statement of accounting policies|20 - 25| |Consolidated statement of financial activities|26| |Foundation statement of financial activities|27| |Consolidated statement of financial position|28| |Foundation statement of financial position|29| |Consolidated statement of cash flow|30| |Foundation statement of cash flow|31| |Notes to the financial statements|32 - 65| Page 1 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REFERENCE AND ADMINISTRATIVE INFORMATION** |**CORPORATE TRUSTEE/CUSTODIAN TRUSTEE:**|Albert Gubay Trustee Limited| |---|---| ||3 Denmark Street| ||Goose Green| ||Altrincham| ||United Kingdom| ||WA14 2SS| |**MEMBERS OF THE CORPORATE TRUSTEE:**|Carmel Mary Gubay| ||Finn Jones| ||Joseph Elwyn (Appointed as a member on 12 September 2023)| |**DIRECTORS OF THE CORPORATE TRUSTEE:**|Andrew John Green, Chair (Appointed 1 January 2024)| ||Alan Lloyd Gough (Resigned on 19 September 2023)| ||John Brian Peers, Treasurer| ||Mark Jones| ||Nigel Stuart Machin| ||Carmel Mary Gubay| ||Finn Jones| ||John Henry Nugent (Appointed on 1 January 2023)| |**EXECUTIVE COMMITTEE:**|Jonathan Black| ||Robin Johnson| ||Lukasz Weckwerth| ||Finn Jones| ||Andrew John Green| ||Nigel Stuart Machin| |**SECRETARY:**|Helen Elizabeth Ashley Taylor (Appointed on 5 December 2023)| |**PRINCIPAL ADDRESS:**|3 Denmark Street| ||Goose Green| ||Altrincham| ||United Kingdom| ||WA14 2SS| |**INDEPENDENT AUDITOR:**|Atla Audit and Assurance Limited| ||Burleigh Manor| ||Peel Road| ||Douglas| ||Isle of Man| ||IM1 5EP| |**BANKERS:**|Barclays Bank PLC| ||Barclays House| ||Victoria Street| ||Douglas| ||Isle of Man| ||IM1 2LE| ||Barclays UK| ||9 Highgate, Kendal| ||Cumbria| ||LA9 4DA| ||Bank of Ireland| ||40 Mespil Road| ||Dublin| ||D04 C2N4| Page 2 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REFERENCE AND ADMINISTRATIVE INFORMATION (continued)** |**BANKERS (continued):**|Standard Chartered Bank| |---|---| ||1 Basinghall Avenue| ||London| ||United Kingdom| ||EC2V 5DD| ||Lloyds Bank| ||42-46 Market Street| ||Manchester| ||United Kingdom| ||M1 1PW| ||EFG Private Bank Limited| ||Parkhouse| ||116 Park Street| ||London| ||W1K 6AP| ||HSBC| ||88-90 Strand Street| ||Douglas| ||Isle of Man| ||IM1 2EP| |**INVESTMENT ADVISER:**|RBC Brewin Dolphin| ||1 The Avenue| ||Spinningfields Square| ||Manchester| ||M3 3AP| |**SOLICITORS:**|Withers LLP| ||20 Old Bailey| ||London| ||United Kingdom| ||EC4M 7AN| ||Brabners LLP| ||100 Barbirolli Square| ||Manchester| ||United Kingdom| ||M2 3BD| |**FOUNDATION NAME:**|The Albert Gubay Charitable Foundation| ||The Foundation was created by a Trust Deed ("Foundation's governing| ||document") dated 22 October 2008 as amended by Orders of the Isle of Man| ||Court dated 20 November 2019 and 4 March 2021, a Deed of Change of| ||Proper Law dated 30 March 2021, a Deed of Restriction of Purposes dated 30| ||March 2021, a Charity Commission Scheme dated 30 March 2021 and a| ||Charity Commission Scheme dated 4 January 2022| **REGISTERED CHARITY IN ENGLAND AND WALES No. 1193970** Page 3 -Illi. Al.Ilb.R'f (.'IHAI' (-11.IRI-fAiII.F. TrI)I-.￿DA-1'll}y ANTI IT% %LIII.%IDIARITr. C.HAIRMAfv'5 STA'IEfvILNT F(>R'I'HE I'EAR LNDLD.11 MARCH 2023 STG£50 millian io r¢bTlS¢ei￿ ch#riiie% in En¥lund. Ihe Isle ot Man. Republt¢ ot tr¢lxnd w￿1￿% with iLliiinii11lliillb rénbTring from STth5,VOO tTr 811 11 111 i niillioii. helpinbp kni hencfit tlio%¢ iiia%t m ne¢d Duriiigi I1￿ yeJi' th￿ Fnuiidatifjn I￿5 coniplrtcil 49 proiccLs YTkd upp1￿1￿￿ InlliHlIV￿ IhRI mLlud¢ IILlping f￿[ni1]￿ nu5 nf fixid pTrYcrty. LKtdliiiu hoii%ii4 for prylc dr¢ hLVnd￿s. ftuTiu¥ SHf¢ huU%¢ fori'idims ol.dott￿ik abu¥¢. %UPPOrtin¥ IHTnili¢& of pTI.￿nE[S. buildiiiB ImprthinB eominunity fatililits for& rdn¥trt(If u%e.4. irnproi'ih¥ th¢ buiklin*% Gf uirtiedrdls diid LIIuiehtt. youn¥ ￿￿￿pIC ￿ >wn xiid irnPtDllnb ronllllilnity SPOIL% l#¢iliiies, supportiThE Uii¢mployrd p¢oplc Inl0 wntk. J&well PWlTe%RIii8 n1eJI￿A1 research wojecls ￿ theiiext %IJ¥eofr￿￿Tch. Tf41LIK-.% Ihr pluL¢% ￿l¢r¢ Il nI￿l iV￿k i1￿1r%￿lY t(￿7¥￿[￿ Alhen CJubAy'% le&pacyJiid lili bclld fui ￿ iiiHiiy puip]c Afidrtw JL¥hM Crtt Ch*lrof Albert L￿ba) Trtistto Llmltèd nuir PL¥¢ 4 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023** The Albert Gubay Charitable Foundation (the “Foundation”) is a charitable grant-making foundation entered onto the Register of Charities with the Charity Commission in England and Wales on 30 March 2021 (charity registration number 1193970). The registered office of the Foundation is 3 Denmark Street, Goose Green, Altrincham, United Kingdom, WA14 2SS. ## **THE TRUSTEE COMPANY** The sole corporate trustee of the Foundation is Albert Gubay Trustee Limited (the “Trustee Company”) a company limited by guarantee (company registration number 13289300) incorporated on 24 March 2021 and established for the purpose of being the Foundation’s corporate trustee. The registered office of the Trustee Company is 3 Denmark Street, Goose Green, Altrincham, United Kingdom, WA14 2SS. The Trustee Company is governed by its Memorandum and Articles of Association. Under the Articles of Association of the Trustee Company, the only persons eligible to be members of the Trustee Company (the “Members”) are Carmel Gubay, Albert Gubay’s widow and his lineal descendants. The Directors of the Trustee Company are referred to as the “Trustees” of the Foundation. The Trustee Company presents the Trustees' Annual Report and financial statements for the Foundation for the period ended 31 March 2023. This Trustee Company’s report and its Financial Statements have been prepared in accordance with the Charities Act 2011 as amended by the Charities (Protection and Social) Act 2016, the Charity (Accounts and Reports) Regulations 2008, the Statement of Recommended Practice on Accounting and Reporting for Charities (SORP FRS 102), the Charity Commission’s general guidance, the Foundation Trust Deed, and the applicable United Kingdom accounting standards. ## **PUBLIC BENEFIT** The Foundation operates for the public benefit with the large number of people helped by or otherwise benefitting from the work of the organisations to which it awards grants, being the ultimate beneficiaries of its funds. The Trustee Company confirms that it has referred to the Charity Commission's general guidance on public benefit when reviewing the Foundation's aims and objectives, in planning future activities and in setting grant-making policies. ## **OBJECTIVES AND ACTIVITIES, INCLUDING GRANT-MAKING POLICY** The Foundation is the legacy that has resulted from the drive and passion of Albert Gubay and his vision to ensure that the business empire he created would continue to benefit charitable causes in perpetuity. Sadly, Albert Gubay, passed away on 5 January 2016. The Foundation he created aims to help change the lives of people most in need by funding projects run by registered charities that support people coping with physical and intellectual disability, mental health problems, care needs, terminal illness and life limiting conditions, caring responsibilities and homelessness as well as care leavers, victims of domestic abuse, victims of modern slavery and people recovering from drug and substance misuse. Much of the focus is on how these projects help those people out of poverty and to live as independently as possible. The Foundation also aims to support medical research supported by registered charities that are also Association of Medical Research Council members that could lead to preventing or slowing the onset of a condition or to lessen its symptoms. The other main aim of the Foundation, which constitutes about half of the funding we have to allocate is to support the Roman Catholic Church particularly in areas where the Church and its associated registered charities have a focus on non-conditional outward facing work, often where there is an overlap with some of our other aims. Having seen how a number of the most impactful projects are multifaceted and incorporate co-located and complementary services in one suitable building, there is an ambition to develop appropriate flagship facilities in locations chosen by the charity. This will be piloted over the coming year or two. There is a geographical restriction in that all the charitable projects that the Foundation funds must be based in England, Wales, the Isle of Man or the Republic of Ireland and be for the benefit of people living in one or more of those jurisdictions. There is a slight preference for projects located in and around the areas where the grant making income comes from. Ultimately, the Foundation aims to fund projects that make a difference, have an impact on people’s lives, have a track record of doing so and that can evidence this impact. ## **PROCEDURES AND POLICY FOR GRANT-MAKING** In setting the Foundation’s Grant-making policy, the Trustees have given careful consideration to the Charity Commission’s general guidance and when setting the Foundation's priorities have also taken into consideration: - ⠂ Albert Gubay's wishes; - ⠂ research based on the impact of past grants; and - ⠂ our understanding of the charitable sectors that we operate in and discussions with stakeholders. Page 5 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **PROCEDURES AND POLICY FOR GRANT-MAKING (continued)** The Trust Deed establishes three funds: - ⠂ The British Church Fund; ⠂ The General Fund; and ⠂ The Irish Church Fund. Applications are reviewed or assessed through: - ⠂ a two-stage application process including an eligibility test and an on-line application form; - ⠂ scrutiny and visits, where practicable, by grant-making staff resulting in a report for the Board of Trustees; and ⠂ trustees' meetings where the applications are further scrutinised. For projects where the Trustee Company awarded a grant of over £300,000, the charity/project should be visited by one or more Trustees. Grants are only offered to charities upon agreement by the Trustee Company. The offer is conditional on the completion and signing of a Grant Agreement by a director of the Trustee Company and an authorised officer of the recipient charity. Where grant offers are multi-annual, subsequent years’ payments are conditional on satisfactory progress, the meeting of KPIs and evidence of expenditure on eligible costs. ## **AWARDS** In the 2nd year as a charity registered in England and Wales, the Foundation has awarded a number of grants under each of the three grant funds as follows: ||**GENERAL FUND**|**BRITISH CHURCH**
**FUND**|**IRISH CHURCH**
**FUND**| |---|---|---|---| |Grants awarded (Note 6)
Number ofgrants|£4,523,168
76|£4,247,776
30|£1,357,318
15| The Foundation has committed to make further grant awards (Note 29.2) amounting to STG£17,382,225 should certain conditions be met to its satisfaction. The funding has been split as follows across the various funding priorities: **----- Start of picture text -----**
General Fund
<1%
9% 6%
2% 6%
5% 3%
8%
12%
5%
2%
22%
20%
**----- End of picture text -----**
AMATEUR SPORT CARE LEAVERS ELDERLY PEOPLE EX OFFENDERS AND THEIR FAMILIES HOMELESSNESS MEDICAL RESEARCH MULTIPLE PRIORITIES PEOPLE RECOVERING FROM DRUGS / SUBSTANCE MISUSE PEOPLE WITH TERMINAL ILLNESS/LIFE LIMITING CONDITIONS & THEIR CARERS SUPPORTING PEOPLE WITH INTELLECTUAL DISABILITIES VICTIMS OF DOMESTIC ABUSE VICTIMS OF MODERN SLAVERY WORSHIP AND ASSOCIATED COMMUNITY OUTREACH Page 6 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **AWARDS (continued)** **----- Start of picture text -----**
British Church Fund
<1%
2%
7%
36%
34%
11%
1% 9%
Irish Church Fund
12%
15%
73%
**----- End of picture text -----**
CARE LEAVERS ELDERLY PEOPLE EX OFFENDERS AND THEIR FAMILIES HOMELESSNESS UKRAINE AND THE ROMAN CATHOLIC CHURCH VICTIMS OF DOMESTIC ABUSE VICTIMS OF MODERN SLAVERY WORSHIP AND ASSOCIATED COMMUNITY OUTREACH WORSHIP AND ASSOCIATED COMMUNITY OUTREACH HOMELESSNESS UKRAINE AND THE ROMAN CATHOLIC CHURCH Page 7 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES** **REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **ACHIEVEMENTS AND PERFORMANCE** As a grant-making charity that is still in its infancy in the UK and as a charity that committed to funding many multi-year projects in the first and second years, many of the larger-scale projects funded are still in the early stages of delivery. The success of these will be measured after completion and the metrics for evaluating performance continue to evolve. Each project is set output targets specific to what they intend to deliver based on those that have been outlined in the grant application or discussed during the application process. This ensures that the metrics are relevant and meaningful. The projects that the Foundation supports should achieve one or more of the following: - ⠂ improved facilities that meet modern standards and best practice; - ⠂ improved and more energy-efficient places of worship; - ⠂ improved mental health and wellbeing; - ⠂ improved confidence, self-esteem, ambition and skills; - ⠂ people moving from being homeless to entering supported accommodation and where appropriate moving on to and sustaining independent living; - ⠂ improved chances for people to access training and employment where those people are supported to successfully complete their training and sustain the employment that they access; - ⠂ the development of talent; - ⠂ people able to live their lives or the end stages of their lives with a level of care and security that does not exacerbate their level of poverty or lead them into poverty; and - ⠂ the development of drugs which will prevent, cure or alleviate the symptoms of life threatening or debilitating illnesses and diseases. Given the range of projects that the Foundation's funding have supported over the last year, the Trustees are delighted that all of the points outlined above have been achieved through the work of the charities delivering the projects. The Foundation would also hope that the projects that it supports with grants may have unexpected benefits to the people that those projects support, and the Trustees ask Grantees to let them know if there have been unexpected additional benefits. Also, in supporting some charities to develop their services or undertake more collaborative working, the Foundation would hope that its grants will help to develop a more efficient, effective and impactful charitable sector. Refer to pages 6 to 7 for the total grants awarded during the year along with the funding distribution to the Foundation's different priorities. During this financial year 49 projects have been completed. The following outlines the number, value and achievements of these projects under each of the three funds: General Fund – 20 projects completed at a value of £1,345,921 where: - ⠂ 197 families of prisoners were supported by a family support worker and 1 facility to support families of prisoners improved; - ⠂ 98 volunteer mentors recruited and trained and 76 young people supported with mentoring programme; - ⠂ 16 unemployed people trained in employment skills; - ⠂ 8 students supported into higher education; - ⠂ 2 people with intellectual disabilities supported to secured work, 5 accessed work placements and 11 have received qualifications; - ⠂ 555 homeless people supported with their mental health, 60 supported with work skills and 22 moved on to employment and 1 new residential facility for homeless people improved; - ⠂ Beds and furniture for 64 rooms provided for new hospice and 1 Children’s hospice building improved; - ⠂ 653 young people engaged in all inclusive athletics training; - ⠂ 1 community sports facility improved; - ⠂ 1 new community facility for victims of domestic abuse built; - ⠂ 4 medical research projects supported all of which are progressing to the next stage of research (Macular Disease, Multiple Sclerosis, Parkinson’s Disease and Ovarian Cancer); and - ⠂ 1 guide dog trained and allocated to a person. - ⠂ Conversion of a community building British Church Fund - 10 projects completed at a value of £1,372,937 where: - ⠂ 84 volunteers were recruited and trained to support families of prisoners; - ⠂ 3,195 families of prisoners supported before, during and after sentencing; - ⠂ 20 apartments created for homeless people at the end of their lives and 1 new homeless residential facility created; - ⠂ Beds and furniture for 20 people provided for an extension to a care home; - ⠂ 2 Churches improved and 1 Chapel created; - ⠂ 1 new community building converted and 1 extended; - ⠂ 1 course for practitioners supporting survivors of modern slavery developed and accredited; and - ⠂ 102 students supported with a bursary. Page 8 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **ACHIEVEMENTS AND PERFORMANCE (continued)** Irish Church Fund - 19 projects completed at a value of €1,096,885 (STG£949,387) where: - ⠂ 1 hospice heating system was replaced; - ⠂ 555 families supported out of food poverty; ⠂ 7 new community facilities created and 1 improved; and - ⠂ 2 Cathedrals and 7 Churches improved. ## **STRUCTURE** Following his death on 5 January 2016, the Foundation received the benefit of the business and property portfolio that Mr. Gubay had created in his lifetime. While originally established in his home in the Isle of Man, the Foundation moved to England in 2021 and since then has been registered as a charity by the Charity Commission of England and Wales. On 26 January 2022, following a further restructure of the business, the Trustee Company, as trustee of the Foundation, became a parent entity that prepares consolidated accounts. On 1 February 2022, a substantial part of the property portfolio, valued at STG£404,568,435 and previously held within subsidiary companies, was transferred to the Foundation to be held as permanent endowment funds, with the income used to further the Foundation's charitable purposes. The Foundation does not raise funds from the public. ## **THE TRUSTEE COMPANY GOVERNANCE AND MANAGEMENT** The Directors of the Trustee Company are shown on page 2. The Members of the Trustee Company are shown on page 2. These Members have certain powers reserved to them as Members, in accordance with the Trustee Company’s Articles of Association including the power to appoint and remove Directors of the Trustee Company, appoint the Chair of the Trustee Company, establish committees, appoint new Members, amend the Articles of Association and exercise rights in relation to subsidiary companies of the Foundation. ## **TRUSTEE RECRUITMENT, INDUCTION AND TRAINING** The first directors of the Trustee Company were appointed on 24 March 2021 prior to its appointment by the Charity Commission as the sole corporate trustee of the Foundation on 30 March 2021. A skills audit had been carried out and it was agreed that, given the migration from the Isle of Man and the subsequent and ongoing reorganisation of its subsidiary companies, it was important to retain the continuity, skills and expertise of individuals who had been directors of the Foundation's former trustee in the Isle of Man. Many of these individuals had a close knowledge of Mr Gubay and the property investment business which is now owned by the Foundation. The skills audit also identified gaps in investment property expertise and finance expertise. As a result, the Trustees recruited externally, Mark Jones with investment property expertise and John Peers with finance expertise were welcomed to the Board when the charity migrated to the UK. Further Trustees are appointed by the Members of the Trustee Company in accordance with its Articles of Association and are issued with letters of appointment which are reviewed annually; any renewal of term of office is contingent on satisfactory performance. A skills audit is carried out regularly to ensure the right mix of skills and experience and to ensure continued alignment with the ongoing and evolving requirements of the Foundation and its revised organisational structure. During the financial year, an additional Trustee, John Nugent, was appointed by the Members on 1 January 2023. John Nugent had been a Director of the former Trustee Company in the Isle of Man and had served as an adviser to Albert Gubay for over 25 years. Page 9 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **TRUSTEE RECRUITMENT, INDUCTION AND TRAINING (continued)** Since becoming sole corporate trustee of the Foundation on 30 March 2021, the Trustees have approved a Trustee Code of Conduct based upon the Charity Commission guidance CC3 – The Essential Trustee and the Charity Governance Code. The Code of Conduct outlines the orientation and induction process for any new future member of the Trustees and the Code also requires such new members to participate in the induction programme as well as requiring the Trustees to confirm they will strive to attend further training and development activities as necessary. Ongoing sector updates relevant to the Foundation are built into the annual schedule of Trustees’ business and are included within Trustees’ meeting agendas. In particular, Trustees have received regular briefings on the Charities Act 2022 and the future impact of this on the Charities Act property regime. A presentation on investment duties and opportunities, particularly in relation to investment risk, was also attended by both Trustees and members of the Executive Committee during the period. Executive Committee members (including 2 Trustees) also attended a Health & Safety presentation during the year. The Trustee Company is a member of the Charity Law Association to enable the Foundation to benefit from charity law sector updates and attend training events. A compliance and operations handbook was approved by the Trustees following the migration of the Foundation from the Isle of Man on 30 March 2021. During the first year of operation as a charity in England and Wales, a Trustee handbook was also compiled containing the key governance documentation, policies and procedures and relevant Charity Commission guidance for ongoing use by the existing Trustees and for use in the induction of any future new Trustees. During the second year of operation this has been updated further. A dedicated board governance portal is to be put in place during the next financial year, to ensure that Trustees have access at all times to all historic and current board meeting information as well as all governance policies and handbooks. ## **TRUSTEES’ RESPONSIBILITIES** The Trustees are responsible for ensuring that the Foundation and its subsidiary companies, achieve the philanthropic aims of its founder, Albert Gubay, of managing the endowment and maximising revenues for the parent charity to enable grant-making in accordance with the charitable objects. The Trustees deliver this by: - ⠂ agreeing the Foundation’s overall strategic direction; - ⠂ approving the Foundation’s investment strategy; - ⠂ retaining overall responsibility for the integrity of the financial controls and systems of risk management; - ⠂ establishing a framework for establishing high standards of integrity and probity and maintaining the appropriate culture, values and behaviours for the organisation; - ⠂ approving budgets; - ⠂ approving property investments; - ⠂ approving the scheme of delegation; - ⠂ approving grant-funding decisions; - ⠂ monitoring progress and the reporting of performance; - ⠂ approving remuneration decisions; and - ⠂ ensuring views of the Members and other stakeholders are taken into account where appropriate. Page 10 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **GROUP STRUCTURE AND RELATIONSHIPS WITH SUBSIDIARY UNDERTAKINGS** The Trustee Company and its Director Trustees are responsible for the Albert Gubay Trustee Limited group of companies which comprises of the Foundation and its subsidiary undertakings. The subsidiary companies either support the Foundation to deliver its charitable objectives or as investment subsidiaries. Albert Gubay created the Foundation to use its business profits to maximise good through charitable giving. The Trustees have delegated management of the Foundation’s subsidiary companies to the Board of Directors of each subsidiary company with oversight through an Executive Committee of the Trustee or through direct representation on Boards or Committees. The consolidated results for the Foundation and its subsidiaries (together the "Group") are shown in these accounts. At the financial year-end, Albert Gubay Trustee Limited on behalf of the Foundation wholly owned the following companies: - ⠂ Derwent Estates Limited – an operational subsidiary and group service company incorporated in England, registered company number 03410326. - ⠂ Derwent Management Limited – an operational subsidiary and group service company incorporated in the Isle of Man, registered company number 018015V. - ⠂ Derwent Development Management Limited – an operational property development company incorporated in England, registered company number 12791411. - ⠂ AGF Brandon Limited – an investment subsidiary incorporated in the Isle of Man company number 002944V. AGF Brandon Limited owns further investment subsidiaries and details of these are shown in the table on Note 13. Derwent Estates Limited and Derwent Management Limited provide services to the Foundation in relation to property management, and back-office services (including finance, compliance, IT and HR) to enable the Group to function. The Trustee Company approved Group Services Agreements with each of these subsidiary companies which are currently in place and reviewed regularly. The Trustee Company is also sole shareholder of Derwent Development Management Limited, a subsidiary company which provides services to the Trustee Company in relation to property developments. The Trustee Company approved a Development Management Agreement with Derwent Development Management Limited which is in place for an initial term of 5 years from December 2021. ## **TRUSTEE DECISION-MAKING AND DELEGATIONS** The Trustees met 8 times during the year to oversee the operations of the Foundation and to consider grant applications. The Trustees also held an in-person strategy day in the first quarter of 2023 to consider the Foundation’s overall strategic direction, investment strategy and grant making strategy. The Scheme of Delegation was reviewed and updated during the year. As well as setting out those matters that are delegated to Committees, the Scheme of Delegation lists matters that are reserved exclusively for decision by the Trustee Company and those which are reserved exclusively for the decision of Members. Trustees are also able to take decisions by unanimous written resolutions, in accordance with the Articles of Association for the Trustee Company. The Trustee Company and its committees receive dedicated governance and compliance support from a Group Head of Company Secretariat. Page 11 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **TRUSTEE COMMITTEES** The Trustees are supported by Committees established in the Scheme of Delegation in accordance with the Articles of Association of the Trustee Company. Each Committee is governed by terms of reference approved by the Trustees. The main committees of the Trustee Company are chaired by and have at least one Trustee as a Committee member. Each Committee will undergo an annual review of effectiveness, in accordance with the Committee terms of reference. ## Executive Committee During the financial year, the Executive Committee comprised two of the Trustees (one of whom chairs the Executive Committee), the Managing Director, the Group Head of Finance, the Property Director as well as an independent non-executive Committee member. The Executive Committee meets at least monthly in accordance with its terms of reference. Membership of the Executive Committee is shown on page 2. The Trustees have delegated the management of the Foundation’s day-to-day operations to the Executive Committee; the Executive Committee reports directly to the Trustees. ## Additional Committees The Trustees have established additional committees which include the following: - ⠂ Audit and Risk Committee; ⠂ Investment Committee; ⠂ Trustee Remuneration Committee; ⠂ Carmel Gubay Fund Committee; ⠂ Finance and Treasury Committee; and ⠂ Property Committee. A separate grants advisory group also reviews grant applications in order to provide advice and guidance to the Trustees to assist in funding decisions and also to assist in establishing the strategic priorities for grant making. Further information about the work of the Trustee Remuneration Committee is provided in the remuneration section below. Further information about the work of the Investment Committee is provided in the investment policy section on page 13. Further information about the work of the Audit and Risk Committee is provided in the section on principal risks faced by the Foundation on pages 13-14. ## **REMUNERATION OF KEY MANAGEMENT PERSONNEL** Key management personnel are the Trustees and the Managing Director. The Foundation's staff (including the Managing Director) are employed within two service companies, Derwent Estates Limited and Derwent Management Limited, each of which has its own Board of Directors and separate Remuneration Committee. Two of the Trustees serve on each of the Remuneration Committees of each of these subsidiary companies. Staff remuneration is reviewed and approved annually by the Remuneration Committees in full cognisance of the annual budget. Group Service Agreements are in place for the purchase of services from Derwent Estates Limited and Derwent Management Limited for the proper administration of the Foundation, as permitted by the Foundation's Trust Deed. Part V of the Foundation's Trust Deed contains the power to pay the Trustees (being the Directors of the Trustee Company) for acting in such role, with the Fifth Schedule to the Trust Deed setting out the maximum levels of permitted remuneration. Three Directors of the Trustee Company were remunerated for acting as Directors and details of the remuneration paid are shown in note 9 to the accounts. The Foundation has procedures in place for the assessment and review of the amounts payable to Trustees and for the monitoring of their performance as Trustees. The Trustee Remuneration Committee monitors the performance of those Directors in receipt of remuneration and ensures that appointment letters are reviewed regularly. The Trustee Remuneration Committee also ensures that the level of remuneration is no greater than is specified in the Foundation's Trust Deed and ensures annually that the level of remuneration is assessed to be reasonable for the responsibilities associated with the role, taking into account all relevant factors (including the value and nature of the property constituting the Foundation's assets from time to time). The Trustee Remuneration Committee has access to such advice as is needed for its decision-making, including support from HR Inspire and the Group Head of Company Secretariat. Page 12 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **REMUNERATION OF KEY MANAGEMENT PERSONNEL (continued)** Part V of the Foundation's Trust Deed also contains the power for a Trustee (being a Director of the Trustee Company) to be employed by the Foundation or a subsidiary company, provided certain conditions are satisfied. These include that the Trustee concerned does not receive any remuneration for acting as a Trustee, fewer than half of the Trustees are employed in any financial year and the Trustees are satisfied that it is in the best interests of the Foundation. Two Trustees were employed by Derwent Estates Limited, a subsidiary of the Foundation, during the financial year. Details of the remuneration paid to two Trustees by Derwent Estates Limited for services provided as employees are shown in notes 9 and 10 to the accounts. ## **FINANCIAL REVIEW** The Foundation-only statement of financial activities is set on page 27 and shows that income from investments amounted to STG£83,616,587 (2022: STG£454,294,766) for the period ended 31 March 2023. Refer further to note 1 of the accounts. The Foundation’s total expenditure amounted to STG£23,743,011 (2022: STG£6,662,590). The largest area of spend was on charitable activities in the form of grants and support costs amounting to STG£14,646,704 (2022: STG£5,202,783). At the balance sheet date, the Foundation held a level of cash at STG£102,308,073 (2022: STG£59,993,156) and net assets of the Foundation stood at STG£513,266,136 (2022: STG£491,560,694). The consolidated statement of financial activities is set on page 26 and shows a net loss before tax of STG£22,717,136 (2022: net surplus before tax of STG£93,432,832) for the period. Total consolidated incoming resources for the period amounted to STG£45,555,506 (2022: STG£40,793,850). The consolidated statement of financial position is set on page 28 and shows total charity funds of STG£606,007,683 (2022: STG£630,977,623). ## **INVESTMENT POLICY** The Foundation’s investments comprise of treasury investments and investment properties. The investment activities are supervised by the Treasury Management Committee, the Investment Committee and the Property Committee. Gifted and donated to it by charitable funds are invested by the Trustee Company while the various committees formulate proposals to utilise and expend these funds. Some of the total funds are reserved as working capital and the rest make up the investment portfolio covered by the investment policy. The policy is available from the Trustee Company’s board on request. The individual charitable funds are ‘pooled’ so that each fund is not separately invested, and no specific policy is applied to each fund. The rate of return allocated to each fund is a proportion of the total return achieved on the investments, based on the total value of the funds. The Trustee Company’s overall investment objective is to produce the best financial return within an acceptable level of risk. The investments are generally for the long term and the Trustee Company will ensure that their ability to meet future planned expenditure is not compromised by over-investment. ## **RISK MANAGEMENT** The Trustee Company as corporate trustee is responsible for the Foundation’s risk management and the effectiveness of internal control structure. Risk management is overseen by the Executive Committee and the Audit and Risk Committee, to whom monitoring of the identification, review, and assessment of key risks to the Foundation has been delegated. The updated Risk Register is also tabled at meetings of the Executive Committee where the Chair of the Audit and Risk Committee provides a report following each meeting of the Committee. The risks are evaluated according to their impact and likelihood and the Register describes the current mitigations and controls and plans for future development. The Trustee Company considers liquidity risk, risk in the performance of investments and operational risk from ineffective grant awards to be its key risks. Page 13 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **RISK MANAGEMENT (continued)** The Foundation’s financial activities are governed by policies approved by the Trustee Company and these activities are directly supervised by the Treasurer and the Group Finance Director. The principal financial assets are cash amounts held at bank and treasury investments. Liquidity risk is mainly attributed to cash at bank, and formal monitoring, control and reporting are in place. The Trustee Company adopts a well-defined investment policy which establishes an appropriately diversified investment portfolio and treasury investment activities are supervised by the Treasury Management Committee. The Trustee Company considers diversifying investment assets and retaining expert investment advisors to mitigate the major financial risk. In addition, the Trustee Company diversifies the range of grant recipients and uses personal knowledge to manage the operational risk from ineffective grant awards. Systems have been developed to monitor and control these risks to mitigate any impact that they may have on the organisation in the future. The Audit and Risk Committee also reviews reports from the internal controls audit undertaken across key operations of the Foundation. This information and recommended actions are presented to the Board of the Trustee Company. These processes are intended to provide the Board of the Trustee Company with the assurance that internal controls and risks are monitored by management, but risk management is itself currently subject to a review intended to further improve the comfort available to the Board of the Trustee Company. ## **RESERVES** The Trustee Company considers an appropriate level of reserves should be held to ensure that the Foundation has sufficient resources to meet its ongoing expenditures. All funds are restricted and ongoing expenditures are funded by restricted income. The Trustee Company has established a reserves policy which is reviewed on an ongoing basis. Our policy is, therefore to maintain funds at a level that will provide means of annual operating surpluses and judicious management of expenses and of our foreign exchange risk. ## **FUNDS OF THE FOUNDATION** The following funds are held by the Foundation: - ⠂ **Permanent endowment funds** represent the endowment which is held as capital in perpetuity so that only the income is available for distribution. - ⠂ **Restricted income grant funds** represent money which is intended to enable the Foundation to maintain the capacity for making grants whilst balancing the needs of present and future beneficiaries. A portion of the fund has been designated by the Board of the Trustee Company in accordance with its powers to establish funds for future grants. The Foundation’s governing document goes on to provide that these funds be further apportioned to the following funds: 1. The Irish Church Fund (for charitable causes connected to the Roman Catholic Church in the Republic of Ireland); 2. The British Church Fund (for charitable causes connected to the Roman Catholic Church in England, Isle of Man and Wales); and 3. The General Fund (for charitable purposes in England, Isle of Man, Republic of Ireland and Wales). The grant-making policies set out the following proportions: 1. The Irish Church Fund – 18.56% 2. The British Church Fund – 37.12% 3. The General Fund – 44.32% Page 14 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **FUNDS OF THE FOUNDATION (continued)** At 31 March 2023, the Foundation had restricted income funds of STG£53,960,327 (2022: STG£50,165,694) and permanent endowment funds of STG£459,305,808 (2022: STG£441,395,000). The total funds of the Foundation is STG£513,266,136 (2022: STG£491,560,694). At 31 March 2023, the Group had restricted income funds of STG£146,701,875 (2022: STG£156,838,511) and permanent endowment funds of STG£459,305,808 (2022: STG£474,139,112). The total funds of the Group is STG£606,007,683 (2022: STG£630,977,623). This level of funds at 31 March 2023 is considered to be sufficient to support the ongoing activities and development of the Foundation. ## **PLANS FOR FUTURE PERIODS** The Trustee Company, acting in its capacity as Trustee of the Foundation, revisited its funding priorities in February 2023 and reverted back to the original set of priorities, removing the two temporary priorities that were set for the 2022/23 financial year. e.g. Ukrainian refugees and other refugees, and food poverty. The funding priorities for the foreseeable future are: a) Amateur sport. To improve physical and mental health with a focus on sport provision for people with disabilities. b) Elderly people. To allow quality care for those who cannot afford private care or continue living at home. c) People with terminal illnesses / life limiting conditions and their carers. To provide hospice care to support individuals and give respite to their carers to assist them with their mental health and other ambitions. d) Care leavers. To give them a chance to succeed on a par with other young people. e) Victims of domestic abuse. To provide emergency safety and to support victims through associated poverty and mental health issues. f) Drug and substance misuse. To support rehabilitation and the journey back to independent living and work. g) Ex-offenders and their families. To support the ex-offenders back to work and contributing positively to society and to support their families whose lives can be severely impacted. h) Homelessness. To provide facilities for and support people, especially young people, on their journey back to independent living, better mental health and employment. i) People with intellectual disability. To provide support with personal care, job skills and supported living. j) Medical research. To support research that could lead to preventing or slowing the onset of a condition or to lessen the symptoms. k) Worship and associated community outreach. To ensure places of worship are energy efficient and watertight with an emphasis on wider community use of church halls or Church buildings where those buildings are redundant or too large and where the parish has a focus on non-conditional outward facing work. l) Victims of modern slavery. To provide facilities for and support to victims on their journey back to independent living, better mental health and employment. Refer to Notes 21 and 29.2 for a list of grant liabilities and commitments. In addition, over the last year, the Trustees have been dedicating time towards the development of larger scale new building projects in areas such as Salford, Liverpool and North Wales. These buildings will provide the base for the charities operating in them once they are built, to turn around the prospects for people in living in those areas. The intention is that the implementation of these capital projects will take place in the coming few years. In 2022 the Trustee Company agreed that support to charities can take forms other than grants. One of these types of support is the provision of appropriate space for charities to operate from. Two projects will be progressed along these lines following decisions in 2022/23 in Little Hulton, Salford and Kensington, Liverpool. Further, qualifying charitable donations of STG£261,494, STG£313,522 and STG£108,024 were received post year end by the Albert Gubay Trustee Limited as Trustee of the Foundation from Cashtal Properties Limited, Derwent Development Management Limited and Derwent Estates Limited, respectively. Page 15 THF. .11.RF.RT f.LR.IV C'HARIT,*BI.F. FI)LNT)ATI(>Y ANI) IT% SE1￿￿7[&1ARJF. RFPORT (JF THF. TRI'STF.ES FOR THF PF.RIOD F.YDF.T).11 MARCH 2n2.1 1(thrttinued DISCI.VSLRF OF IYFORIMATIOI TV THE.IL'DITUR Thc T￿￿et5. being Ihe direcstsTS ol. the Tn15tee Compaiiy. i￿lf￿7￿. in fulfilliiig Ilieir duiies as direc￿)r￿. Ihey ha%e iJkern lh¢ -4grecd by th¢ Trii%tee Compaijy %igned on *helr bvh4ifby.' Dire TS of tkn¢ Trn5t¢¢ Com N1gel.StuaN Machin Iidtew John G￿£￿ Dale Page 10 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES TRUSTEE COMPANY'S RESPONSIBILITIES STATEMENT** The Trustee Company is responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law applicable to charities in England and Wales requires the trustee to prepare financial statements for each financial year. Under Charity law, the trustee must not approve financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustee Company is required to: - select suitable accounting policies and then applying them consistently; - observe the methods and principles in the Charities SORP; - make judgements and accounting estimates that are reasonable and prudent; - state whether applicable United Kingdom Accounting Standards, comprising Financial Reporting Standard 102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland” (“FRS 102”), 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 group and the charity will continue its activities. The Trustee Company is responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 17 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ALBERT GUBAY CHARITABLE FOUNDATION** ## **Opinion** We have audited the financial statements of The Albert Gubay Charitable Foundation (the "Parent Charitable Foundation") and its subsidiaries (the “Group”) for the year ended 31 March 2023 which comprise the Consolidated and Foundation Statement of Financial Activities, the Consolidated and Foundation Statement of Financial Position, the Consolidated and Foundation Statement of Cash Flow and the related notes 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 FRS 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 Group's and of the Parent Charitable Foundation's affairs as at 31 March 2023 and of the Group's and the Parent Charitable Foundation’s incoming resources and application of resources for the year 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 Group and the Parent Charitable Foundation in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charitable Foundation’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. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Group and the Parent Charitable Foundation’s ability to continue as a going concern. 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 other information comprises the information included in the Trustees' Annual Report and financial statements, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the Trustees' Annual Report and financial statements. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 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' annual report; or - sufficient accounting records have not been kept by the parent charity; or - the parent charity financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of the Trustees** As explained more fully in the Trustees' responsibilities statement set out on page 17, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 Group and the Parent Charitable Foundation'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 Trustee either intends to liquidate the Group or the Parent Charitable Foundation or to cease operations, or have no realistic alternative but to do so. Page 18 THEALBERT cu￿}.CFIARlT.k8LE FOLThDATION rrs SUBSIDIARIES IYDEPENDENT AUDITITrR'S REPORT TQTHETRLISTEES OF THE AL8KRTGUMY CHARITABLK FOU￿pATION We h&vc bLYn ¥poithl gs &uditor uDdLY Sr￿￿)￿ 151 th Cb&r1￿% Act 2011 ￿ rcport ￿ ￿rdance with & Act ￿ rclcv8Tht re￿￿tio]]S hav￿8 C￿E 0wobjwtiy￿Ar¢ to ryxwbl¢Ass￿rtX W￿th¢￿￿ sts*M¢nL% frOMM&ten￿ rni5$Lfjtywnt. wh¢th¢r to frA￿j or¢rtor. and to an i￿1￿￿T'S reF￿ that TfLcludo5 Our0p￿u0￿. Ro￿￿￿&b[C a55UTanco 15 a hi8h Icvol of Wur1￿C. bth is nol H 8LK[a￿ thai a￿￿[ colldwk￿ in accord&nce with ISAS (UK) wll Always deieci a mbien81 rnSsiiien*ni whth il exisls. miss￿emem￿S can anse from fra￿1 Or ettoi and are CorL%U1e￿d miierial If. indiv￿￿lly or iti the Ag8tEyate. re450n&bly bEg￿t￿ ￿UthuE￿elhP econDnJIcthc￿￿lls ofu5e[stpknonthEhsLsoItE￿￿fi￿￿l&h 5tstefftEnl5. Irwlgnt￿% ￿¢ of no¢-¢￿vI￿r￿¢ with tsw4 ar￿ r¢suts11•ns. Tre obJ¢K¢lV¢4 of a￿lit are ¢0 s￿￿1¢Ien1 dwjii ewié¢rK¢ Yewding ((ryI￿nc¢ with law5 and rcgutsiiorks that ha￿ a dwcl ctTLYl on thc dctCr￿u￿MTrn of ￿￿tC11a1 a￿llTrts ￿ dwlosutrs in Ihc financial 5L4tcmcnw to pcrfonn a￿ll p￿5 to hE￿ thtify uf ntm.ctrybanre othEr re￿￿atIOnS that ￿￿Y hve a effecl on thE Slate￿￿ and to tE5￿￿d tyto KientiEod orlu5￿tCd ￿D￿c0￿￿8nrO￿ryth re￿￿￿tionS ￿￿tifiCd dunnBthll athit. 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AtL9 A￿ltand As&ur*nce Limlted Chirter¥d A¢¢ou*tsnt$*nd Slaiutory Audltots BwEigh MAnor I&leofMaTh IMI 5F_P Pagv 19 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES** ## **STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2023** The Albert Gubay Charitable Foundation (the "Foundation") is an unincorporated charity, established by a Trust Deed dated 22 October 2008 as amended by Orders of the Isle of Man Court dated 20 November 2019 and 4 March 2021, a Deed of Change of Proper Law dated 30 March 2021, a Deed of Restriction of Purposes dated 30 March 2021, a Charity Commission Scheme dated 30 March 2021 and a Charity Commission Scheme dated 4 January 2022 and registered with the Charity Commission for England and Wales, number 1193970. The principal office of the Foundation is 3 Denmark Street, Altrincham, United Kingdom, WA14 2SS. The Foundation is a Public Benefit Entity. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. ## **BASIS OF PREPARATION AND ACCOUNTING** The consolidated financial statements have been prepared in accordance with applicable United Kingdom Accounting Standards, including Financial Reporting Standard 102. 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') including the Charities SORP (FRS 102) 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 effective 1 January 2019 and the Charities Act 2011. The consolidated financial statements have been prepared on a going concern basis. The Group meets its day to day working capital requirements from its cash reserves. After making enquiries, the corporate trustee has a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future and have identified no material uncertainties in respect of going concern. There is no material uncertainties about the Group's ability to continue as a going concern. The consolidated financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Charities SORP (FRS 102) 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 effective 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The consolidated financial statements are presented in Sterling (STG£), which is considered to be the presentation and functional currency. The consolidated financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments, freehold properties and investment properties. The principal accounting policies adopted are set out below. ## **BASIS OF CONSOLIDATION** ## **Group reconstructions** Group reconstructions may be accounted for by using the merger accounting method provided: (a) the use of the merger accounting method is not prohibited by company law or other relevant legislation; (b) the ultimate equity holders remain the same, and the rights of each equity holder, relative to the others, are unchanged; and (c) no non-controlling interest in the net assets of the group is altered by the transfer. With the merger accounting method the carrying values of the assets and liabilities of the parties to the combination are not required to be adjusted to fair value, although appropriate adjustments shall be made to achieve uniformity of accounting policies in the combining entities. The results and cash flows of all the combining entities shall be brought into the financial statements of the combined entity from the beginning of the financial year in which the combination occurred, adjusted so as to achieve uniformity of accounting policies. The comparative information shall be restated by including the total comprehensive income for all the combining entities for the previous reporting period and their statement of financial position for the previous reporting date, adjusted as necessary to achieve uniformity of accounting policies. Merger expenses are not to be included as part of this adjustment, but shall be charged to the statement of comprehensive income as part of profit or loss of the combined entity at the effective date of the group reconstruction. On 20 July 2021, the Foundation acquired control of the entities listed in Note 13. The combination has been accounted for as a merger. ## **Consolidation** The Group consolidated financial statements include the financial statements of the Foundation and all of its subsidiary undertakings made up to 31 March. A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation. In respect of the subsidiary whose presentation currency differs from the Group, its financial statements are translated using the average rate for the statement of comprehensive income whilst the rate of exchange at year end for the assets and liabilities. Exchange differences arising from the retranslation are accounted for in the consolidated statement of comprehensive income. Page 20 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **CHARITABLE FUNDS** Unrestricted funds are available for use at the discretion of the Trustee Company in furtherance of the Foundation's 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 Foundation. Endowment may be permanent or expendable. Permanent endowment must be held permanently to produce an income for the Foundation. Expendable endowment, by contrast, can be spent in accordance with the Trustee Company's investment strategy. ## **TURNOVER** Turnover in the financial statements consists of rental income, service charges and insurance income from properties owned. ## **a) RENTAL INCOME** Rental income is measured at the fair value of consideration received or receivable and represents the amount receivable under rental contracts, net of value added tax. Rental incentives are accounted for over the term of the lease. ## **b) SERVICE CHARGE INCOME AND EXPENDITURE** Service charge income and expenditure are reflected gross in the financial statements and are recognised on an accruals basis. Service charge income is included within turnover and service charge expense is included within cost of sales. ## **c) FEES AND COMMISSIONS** Fees and commissions are recognised on an accruals basis and exclude value added tax. ## **d) INTEREST RECEIVABLE** Interest receivable is recognised using the effective interest rate method. ## **EXPENDITURE** Expenditure is accounted for on an accruals basis. Expenditure on charitable activities comprises all the costs incurred by the Foundation in undertaking its work to meet its charitable objectives as opposed to the cost of generating the funds to finance these activities. Charitable activities comprise all the expenditure by the Foundation in the delivery of goods and services, including its programme and project work that are directed at the achievement of its charitable aims and objectives. Such costs include the direct costs of the charitable activities together with those support costs incurred that enable these activities to be undertaken. Expenditure is allocated to activities based on its primary activity. Where expenditure does not directly relate to a specific activity, it will be apportioned to the activities to which it relates, where this is possible, or is classified as a support cost. Support costs are defined as those costs that are incurred indirectly that cannot be allocated to specific activities, and relate to both grant making and direct activities that then give the Foundation the capability to carry out its charitable activities. They are allocated to the SORP expenditure headings on the basis of underlying expenditure which reflects the level of activity performed. Support costs are allocated to activities based on a fair and reasonable basis according to the nature of the costs. Grants are payments made to third parties in the furtherance of the charitable objectives of the Foundation. Grants are recognised in the financial statements as liabilities after they have been approved by Trustees or by delegation, the recipients have been notified of the award (formally or informally). In these circumstances there is a valid expectation by the recipients that they will receive the grant. Once recognised in the financial statements, grants are only written back if the related project is cancelled or if there is a material change in the scope of the project, meaning that it no longer meets the terms of the grant agreement. If the scope or timing of a project significantly changes but the Trustees intend to fund the project, the related grant is written back and disclosed instead as a contingent liability to reflect the uncertainty around the value and timing of any payment. Page 21 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **LEASE SURRENDER PREMIUMS** Income from lease surrender premiums and dilapidations is recognised on an accruals basis. ## **TANGIBLE FIXED ASSETS AND DEPRECIATION** On initial recognition tangible fixed assets are accounted for at cost. Cost includes the original purchase price and costs directly attributable to bringing an asset to its working condition for its intended use. Land is not depreciated. Tangible fixed assets are then stated at the revaluation amount less accumulated depreciation and accumulated impairment losses. Depreciation is provided on all tangible assets, so as to write off the cost less estimated residual value of each asset over its expected useful economic life on a straight line basis at the following annual rates: |Plant & machinery|-|4% - 20%| |---|---|---| |Office equipment|-|10% - 20%| |Fixtures & fittings|-|10% - 20%| |Motor vehicles|-|20%| |Buildings|-|2%| The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. Investment properties in the course of construction that can not be readily fair valued, are included within tangible fixed assets and are not subject to depreciation, but are reviewed for impairment. Repairs and maintenance are expensed as incurred. Tangible assets are derecognised on disposal or when no future economic benefits are expected. In disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the statement of comprehensive income. ## **INVESTMENTS IN SUBSIDIARIES** The Foundation's investments in subsidiary undertakings are stated at cost less accumulated impairment losses. ## **INVESTMENT PROPERTIES** Property that is held for long-term rental yields or for capital appreciation or both, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. After initial recognition, investment property is carried at fair value. Fair value of each property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions and is based on one of the following valuation techniques; _Comparative method_ : collation and analysis of appropriate comparable transactions, together with evidence of demand within the vicinity of the properties and applying this information taking into account size, location, aspect and other material factors. _Investment method:_ collation and analysis of appropriate comparable investment and rental transactions, where available, together with evidence of demand within the vicinity of the properties and applying this information taking into account size, location, terms, covenant and other material factors. _Residual method:_ using the comparative method as detailed above, deducting from it the total expected costs of development and an allowance for the developer’s profit. Valuations are performed as at the financial position date by independent professional valuers who hold recognised and relevant professional qualifications and have recent experience in the location and category of the investment property being valued. These valuations form the basis for the carrying amounts in the financial statements. Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. Changes in fair values are recognised in the statement of financial activities and accumulated in the revaluation reserve. Profits and losses on the sale of investment properties are included in the statement of financial activities and are calculated as the difference between the net sales proceeds and the carrying value. Investment properties are derecognised when they have been disposed of. ## **FINANCIAL INSTRUMENTS** Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. The Investment Portfolio is held as a trading portfolio and measured at fair value. Page 22 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **FINANCIAL ASSETS AND LIABILITIES** The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. All financial assets and liabilities are initially measured at transaction price, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value, unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar instrument. Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet certain conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. ## **Derecognition of financial assets** Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the Foundation and its subsidiaries transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the Foundation and its subsidiaries, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. ## **Derecognition of financial liabilities** Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. ## **Impairment of financial assets** Investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. Impairment is assessed as the difference between the asset’s carrying amount and the best estimate of the amount the entity would receive for the asset if it were to be sold at the reporting date. Impairment testing of investments in subsidiaries is performed if there is a possible indicator of impairment. Judgement is used to determine if there is objective evidence of impairment. Objective evidence may be observable data such as losses incurred on the investments, decrease in estimated future cashflows or if investments are experiencing financial difficulties. ## **FOREIGN CURRENCY** Foreign currency transactions denominated in foreign currencies are translated to Sterling at actual exchange rates as of the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange prevailing at the year end. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is reported as an exchange gain or loss in the statement of comprehensive income. Non monetary items denominated in foreign currencies and that are measured in terms of historical cost, are translated at the rate as of the date of the transaction. ## **PROVISIONS** Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. Provisions are measured as the best estimate of the expenditure required to settle the obligation at the year end date. ## **DIVIDENDS** Dividend income is recognised when the right to receive payment is established. ## **PENSIONS** The Group operates a number of defined contribution pension schemes. All of the Group's pension costs relate to the Group's contributions to the respective schemes and are recognised in the statement of comprehensive income as when they are due. Amounts not paid are shown in creditors (amounts falling due within one year). ## **DEBTORS** Debtors are initially recognised at transaction price, less any impairment and subsequently measured at amortised cost using the effective interest rate method. ## **CREDITORS** Creditors are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest rate method. Page 23 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **INTANGIBLE ASSETS** Intangible assets are stated at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method. The intangible assets are amortised over the following useful economic lives: Software development costs - 20% per annum Amortisation is included in 'cost of generating funds' in the statement of financial activities. ## **CONTINGENT LIABILITIES** Contingent liabilities are not recognised, but are disclosed unless the possibility of an outflow of economic resources is remote. ## **CASH** Cash and cash equivalents includes cash in hand and fixed deposits with financial institutions repayable without penalty on notice of not more than 3 months from inception. ## **DEFERRED INCOME** Income received in the year relating to subsequent periods is deferred until the periods to which it relates. ## **LEASES** Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Rentals under operating leases are charged to the statement of comprehensive income in equal annual instalments over the period of the lease. Lease incentives are recognised in the statement of comprehensive income on a straight-line basis over the period of the lease. ## **TAXATION** As a charitable trust, the Foundation benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. The Foundation is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the Foundation is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Group companies make qualifying donations of taxable profit to the Foundation to the full extent allowable. Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current or deferred taxation assets and liabilities are not discounted. ## **Current tax** Current tax is the amount of income tax payable (including UK, Isle of Man and Irish corporation tax) in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Certain entities within the group make charitable donations. These donations, referred to as gift aid payments, qualify as a deduction in the calculation of UK corporation taxation payable. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Page 24 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **Deferred tax** Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computations, except for those timing differences in respect of which the standard specifies that deferred tax should not be recognised. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. ## **RECLASSIFICATIONS** Certain items have been reclassified in the prior year consolidated balances to conform with the Foundation-only statements presentation. This included reclassifying the historic investment property revaluations from restricted funds to permanent endowment funds. Refer to note 22 for further details. ## **CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY** In the application of the Group’s accounting policies, the directors are required to make judgements, accounting estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The accounting estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these accounting estimates. The accounting estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are addressed below. ## **Valuation of investment properties** The Group uses independent professional valuers to determine the fair value of investment properties and land as at the financial position date. The professional valuers use recognised valuation models and techniques being the comparative method, the investment method and the residual method. The primary source of evidence for property valuations is recent, comparable market transactions on an arms-length basis. However, the valuation of the Group’s property is inherently subjective, as it is based upon assumptions that may prove to be inaccurate. See the statement of accounting policies on page 22 for further information on the valuation models and techniques. ## **Deferred tax assets** Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Director's have applied their judgement in estimating these assets. ## **Taxation** Certain entities within the group make charitable donations to The Albert Gubay Charitable Foundation, a charity registered in England and Wales. These donations, referred to as gift aid payments, qualify as a deduction in the calculation of taxation payable. In some cases, the corporate gift aid payment may not have been made by the year end date however it is probable that such a payment will be made. In these situations, the group recognises the income tax effect of the future payment at the reporting date and does not recognise a deferred tax liability in respect of the corporate gift aid payment. The accounting estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the accounting estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Page 25 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 MARCH 2023** |**Notes**
**Income and endowments from:**
Income from investments
1
Other trading activities
1
Service charge income
1
Insurance income
1
**Total incoming resources**
**Expenditure on:**
Cost of generating funds
2
Charitable activities
4
Service charge costs
Insurance void costs
Foreign exchange gains
3
Loss on sale of assets
**Total costs**
Net (loss)/gain on investments
15
**Net (loss)/income before taxation**
Taxation
11
**Net (loss)/income**
**Other comprehensive income:**
Exchange differences on translation of a foreign subsidiary
Fair value movement of tangible fixed assets
12
Net movement in funds for the year
**Reconciliation of funds:**
Total funds brought forward (restated*)
23
Transfers between funds
23
Total funds carried forward
23|**Restricted**
**Income**
**Permanent**
**Endowment**
**Total**
**STG£**
**STG£**
**STG£**
37,769,661
-
37,769,661
3,005,962
-
3,005,962
4,022,927
-
4,022,927
756,956
-
756,956
**45,555,506**
**- 45,555,506**
10,427,694
-
10,427,694
10,817,978
-
10,817,978
4,663,196
-
4,663,196
933,491
-
933,491
(488,737)
-
(488,737)
52,461
-
52,461
**26,406,083**
**- 26,406,083**
158,554
(42,025,113)
(41,866,559)
**19,307,977**
**(42,025,113)**
**(22,717,136)**
(76,485)
-
(76,485)
**19,231,492**
**(42,025,113)**
**(22,793,621)**
(356,319)
-
(356,319)
-
(1,820,000)
(1,820,000)
**18,875,173**
**(43,845,113)**
**(24,969,940)**
189,582,623
441,395,000
630,977,623
(61,755,921) 61,755,921
-
**146,701,875**
**459,305,808**
**606,007,683**
**For the year ended 31 March 2023**|**31 March 2022**
**Total**
**STG£**
34,978,503
1,732,802
3,310,610
771,935| |---|---|---| |||**40,793,850**
7,701,663
4,469,596
4,806,678
810,760
(357,002)
-| |||**17,431,695**
70,070,677| |||**93,432,832**
5,148,371| |||**98,581,203**
(47,517)
(500,000)| |||**98,033,686**
532,943,937
**-**| |||**630,977,623**| The statement of accounting policies on pages 20 to 25 and the notes on pages 32 to 65 form part of the financial statements. All the above results relate to continuing operations. - See Note 22 for details of the prior year adjustment. Page 26 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES FOUNDATION-ONLY STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 MARCH 2023** |**Notes**
**Income and endowments from:**
Other trading activities
1
Income from investments
1
Service charge income
1
Insurance income
1
**Total incoming resources**
**Expenditure on:**
Cost of generating funds
2
Charitable activities
4
Service charge costs
Insurance costs
**Total costs**
Net (loss)/gains on investments
15
**Net income before taxation**
Taxation
11
**Net incoming resources before transfers**
**Other comprehensive income:**
Fair value movement of tangible fixed assets
12
Net movement in funds for the year
**Reconciliation of funds:**
Total funds brought forward
23
Transfers between funds
23
Total funds carried forward
23|**Restricted**
**Income**
**Permanent**
**Endowment**
**Total**
**STG£**
**STG£**
**STG£**
1,017,351
- 1,017,351
48,597,491 35,019,096 83,616,587
3,903,214
- 3,903,214
756,415
- 756,415
**54,274,471 35,019,096 89,293,567**
3,773,807
- 3,773,807
14,646,704
- 14,646,704
4,479,780
- 4,479,780
842,720
- 842,720
**23,743,011**
**- 23,743,011**
-
(42,025,114)
(42,025,114)
**30,531,460**
**(7,006,018)**
**23,525,442**
-
-
-
**30,531,460**
**(7,006,018)**
**23,525,442**
-
(1,820,000)
(1,820,000)
**30,531,460**
**(8,826,018)**
**21,705,442**
50,165,694 441,395,000 491,560,694
(26,736,826)
26,736,826
-
**53,960,328**
**459,305,808**
**513,266,136**
**For the year ended 31 March 2023**|**31 March 2022**
**Total**
**STG£**
223,465
454,294,766
502,565
28,644
**455,049,440**
916,502
5,202,783
543,305
-
**6,662,590**
31,526,565
**479,913,415**
-
**479,913,415**
(500,000)
**479,413,415**
12,147,279
-
**491,560,694**| |---|---|---| The statement of accounting policies on pages 20 to 25 and the notes on pages 32 to 65 form part of the financial statements. All the above results relate to continuing operations. Page 27 ## ||||||||2023|2022| |---|---|---|---|---|---|---|---|---| ||||||||STG£|STG£| |||||||Notes||Restated*| |FIXED
ASSETS||||||||| |Intangible
fixed
assets||||||16|52,766|87,911| |Tangible
fixed
assets||||||12|3, 803, 423|5, 635, 138| |Investment
properties||||||15|455, 653, 246|468, 699, 882| ||||||||459, 509,435|474, 422, 931| |CURRENT
ASSETS||||||||| |Investments||||||14|10,055, 369 -|| |Debtors||||||17|13, 279, 852|5, 518, 789| |Fixed
deposits >
3 months||-||||||7, 145, 235| |Cash
at bank
and in hand||||||18|136, 112, 031|148, 587, 141| ||||||||159,447, 252|161, 251, 165| |CREDITORS ( Amounts||falling due within one year)||||||| |Creditors falling due
within||one|year|||19 (|12,688,291) (|4, 515, 040)| |NET CURRENT ASSETS|||||||146, 758, 961|156, 736, 125| |TOTAL
ASSETS
LESS|CURRENT|||LIABILITIES|||606, 268, 396|631, 159, 056| |CREDITORS ( Amounts||falling due after more than one year)||||||| |Creditors
falling due
after||more|than one||year|20 (|260, 713) (|181, 433)| |TOTAL
NET ASSETS|||||||606,007,683|630, 977,623| |THE FUNDS
OF THE FOUNDATION||||||||| |Restricted income funds||||||23|146, 701,875|156, 838, 511| |Permanent endowment funds||||||23|459, 305, 808|474, 139, 112| |TOTAL
FOUNDATION||FUNDS|||||606, 007, 683|630, 977, 623| |See Note 22 for details of|the prioryear||||adjustment.|||| ## |||||||||||||2023|||2022| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |||||||||||Notes||STG£|||STG£| |FIXED ASSETS|||||||||||||||| |Tangible fixed
assets||||||||||12||3, 780.000|||5,600.000| |Investment properties||||||||||15||417, 607, 356||430,082,356|| |Investment in subsidiaries||||||||||13||105|||105| |||||||||||||421, 387,461||435,682,461|| |CURRENT ASSETS|||||||||||||||| |Debtors||||||||||17||8, 773.523|||529.982| |Cash
at bank||||||||||18||102,308,073|||59, 993, 156| |||||||||||||111, 081. 596|||60,523. 138| |CURRENT LIABILITIES|||||||||||||||| |Creditors falling
due within||one|year|||||||19|(|19, 202. 921) (|||4,644. 905)| |||||||||||||19.202,921) (|||4,644, 905)| |NET CURRENT ASSETS||||||||||||91. 878. 675|||55. 878. 233| |TOTAL
ASSETS
LESS|CURRENT
LIABILITIES|||||||||||513.266. 136||491, 560.694|| |CREDITORS (
Amounts|falling|||due more|||than one year)||||||||| |Creditors
falling
due after|more||than||one|year||||20|||||| |NET ASSETS||||||||||||513, 266. 136||491, 560,694|| |THE
FUNDS
OF THE FOUNDATION|||||||||||||||| |Restricted
income
funds||||||||||23||53, 960. 328|||50, 165. 694| |Permanent
endowment
funds||||||||||23||459,305,808||441, 395,000|| |TOTAL
FOUNDATION|FUNDS|||||||||||513.266. 136||491, 560,694|| |The statement of accounting||policies|||on|pages||20 to 25 and the notes on||pages 32 to|65|firm part of the financial|statements.||| |The
financial
statements|were||approved|||and||authorised|for issue by|the Trustee|on|the|and|signed
on
their|| |behalf by:|||||||||||||||| |Director of the "Trustee Company|||||||||||||25/||2| ||||||Nuel Stuart Machin||||||||||| |Director of the Trustee Company|||||||||||||||| ||||||Andrew|||John
Green|||||||| ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 2023** |**Notes**
**CASH FLOWS FROM OPERATING ACTIVITIES**
Net (expenditure)/surplus for the period before taxation
Depreciation & amortisation
12, 16
Movement in fair value of investment properties
15
Movement in fair value of the tangible fixed assets
12
Gain on the sale of fixed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Movement of foreign exchange
Debt write-off
Interest income
**NET CASH INFLOWS FROM OPERATING ACTIVITIES**
**CASH FLOWS FROM INVESTING ACTIVITIES**
Payments to acquire investment property
15
Payments to acquire short-term investments
Interest received
Maturity of fixed deposit accounts with original maturity greater than 3 months
**NET CASH (OUTFLOWS)/INFLOWS FROM INVESTING ACTIVITIES**
**CHANGE IN CASH AT BANK AND IN HAND IN THE PERIOD**
**RECONCILIATION TO CASH AND CASH EQUIVALENTS**
**CHANGE IN CASH AT BANK AND IN HAND IN THE PERIOD**
**CASH AT BANK AND IN HAND AT THE BEGINNING OF THE PERIOD**
**CHANGE IN CASH AT BANK AND IN HAND DUE TO EXCHANGE RATE MOVEMENTS**
**CASH AT BANK AND IN HAND AT THE END OF THE PERIOD**
18
**ANALYSIS OF CASH AT BANK AND IN HAND**
Current accounts
18
Fixed deposit accounts with original maturity less than 3 months
18
**TOTAL CASH AT BANK AND IN HAND**
18|**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
(22,717,136)
93,432,832
37,113
79,265
41,866,559
(70,082,240)
-
-
(52,461)
(11,563)
(7,761,063)
5,437,309
8,173,251
(1,574,760)
(147,859)
(356,411)
663,427
-
(1,952,163)
(255,385)
18,109,668
26,669,047
(29,682,176)
(4,224,637)
(10,000,000)
-
1,952,163
255,385
7,145,235
17,421,846
(30,584,778)
13,452,594
(12,475,110)
40,121,641
**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
(12,475,110)
40,121,641
148,587,141
108,417,985
-
47,515
136,112,031
148,587,141
**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
136,112,031
46,024,565
-
102,562,576
136,112,031
148,587,141|**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
(22,717,136)
93,432,832
37,113
79,265
41,866,559
(70,082,240)
-
-
(52,461)
(11,563)
(7,761,063)
5,437,309
8,173,251
(1,574,760)
(147,859)
(356,411)
663,427
-
(1,952,163)
(255,385)
18,109,668
26,669,047
(29,682,176)
(4,224,637)
(10,000,000)
-
1,952,163
255,385
7,145,235
17,421,846
(30,584,778)
13,452,594
(12,475,110)
40,121,641
**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
(12,475,110)
40,121,641
148,587,141
108,417,985
-
47,515
136,112,031
148,587,141
**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
136,112,031
46,024,565
-
102,562,576
136,112,031
148,587,141| |---|---|---| |||148,587,141| The statement of accounting policies on pages 20 to 25 and the notes on pages 32 to 65 form part of the financial statements. The total fixed deposit balance of STG£nil (2022: STG£7,145,235) has a maturity date greater than 3 months and therefore cannot be presented as cash and cash equivalents. The movement has been included under investing activities in the consolidated statement of cash flows above. Page 30 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES FOUNDATION-ONLY STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 2023** |**Notes**
**CASH FLOWS FROM OPERATING ACTIVITIES**
Net surplus for the period before taxation
Movement in fair value of investment properties
15
Increase in debtors
Increase in creditors
Investment income - Qualifying charitable donations
Interest income
**NET CASH INFLOWS FROM OPERATING ACTIVITIES**
**CASH FLOWS FROM INVESTING ACTIVITIES**
Payments to acquire investment property
15
Investment income - Qualifying charitable donations in cash
Development costs/work in progress
15
Interest received
**NET CASH INFLOWS FROM INVESTING ACTIVITIES**
**CHANGE IN CASH AT BANK AND IN HAND IN THE PERIOD**
**RECONCILIATION TO CASH AND CASH EQUIVALENTS**
**CHANGE IN CASH AT BANK AND IN HAND IN THE PERIOD**
**CASH AT BANK AND IN HAND AT THE BEGINNING OF THE PERIOD**
**CASH AT BANK AND IN HAND AT THE END OF THE PERIOD**
18
**ANALYSIS OF CASH AT BANK AND IN HAND**
Current accounts
18
Fixed deposit accounts with original maturity less than 3 months
18
**TOTAL CASH AT BANK AND IN HAND**
18|**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
23,525,442
479,913,415
42,025,114
(31,526,565)
(8,243,541)
(397,572)
14,558,016
4,476,878
(46,522,919)
(448,458,444)
(1,388,521)
(12,469)
23,953,591
3,995,243
(29,531,017)
-
46,503,822
43,810,719
-
(87,356)
1,388,521
12,469
18,361,326
43,735,832
42,314,917
47,731,075
**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
42,314,917
47,731,075
59,993,156
12,262,081
102,308,073
59,993,156
**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
51,016,059
36,965,482
51,292,014
23,027,674
102,308,073
59,993,156|**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
23,525,442
479,913,415
42,025,114
(31,526,565)
(8,243,541)
(397,572)
14,558,016
4,476,878
(46,522,919)
(448,458,444)
(1,388,521)
(12,469)
23,953,591
3,995,243
(29,531,017)
-
46,503,822
43,810,719
-
(87,356)
1,388,521
12,469
18,361,326
43,735,832
42,314,917
47,731,075
**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
42,314,917
47,731,075
59,993,156
12,262,081
102,308,073
59,993,156
**For the year ended**
**For the period ended**
**31 March 2023**
**31 March 2022**
**STG£**
**STG£**
51,016,059
36,965,482
51,292,014
23,027,674
102,308,073
59,993,156| |---|---|---| |||59,993,156| The statement of accounting policies on pages 20 to 25 and the notes on pages 32 to 65 form part of the financial statements. ## **Non-cash investing activities** During the year, the Foundation received a qualifying charitable donation in the form of properties from its subsidiaries amounting to STG£19,096 (2022: STG£404,568,435). Page 31 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** ## **1 ANALYSIS OF INCOME** |**Group**
**Restricted**
**Income**
**Permanent**
**Endowment**
**Total**
**STG£**
**STG£**
**STG£**
Income from investments
Rental income from investment property
37,769,661
-
37,769,661
Interest income from short-term deposits
1,952,163
-
1,952,163
Other trading activities
Market hall, car park and other income
304,945
-
304,945
Licence fees
18,640
-
18,640
Dilapidations
- -
-
Miscellaneous income
730,214
-
730,214
Service charge income
4,022,927
-
4,022,927
Insurance income
756,956
-
756,956
45,555,506
-
45,555,506
**Foundation**
**Restricted**
**Income**
**Permanent**
**Endowment**
**Total**
**STG£**
**STG£**
**STG£**
Income from investments
Rental income from investment property
35,724,244
-
35,724,244
Interest income from short-term deposits
1,388,521
-
1,388,521
Dividend income
11,484,726 35,019,096
46,503,822
Other trading activities
Market hall, car park and other income
340,156
-
340,156
Licence fees
11,861
-
11,861
Related party recharges
- -
-
Miscellaneous income
665,334
-
665,334
Service charge income
3,903,214
-
3,903,214
Insurance income
756,415
-
756,415
54,274,471
35,019,096
89,293,567
Turnover, analysed geographically between markets, was as follows:
**2023**
**STG£**
**Group**
United Kingdom
43,852,832
Isle of Man
259,135
Republic of Ireland
1,443,539
45,555,506
**Foundation**
**2023**
**STG£**
United Kingdom
89,293,567
89,293,567
**For the year ended 31 March 2023**
**For the year ended 31 March 2023**|**31 March 2022**
**Total**
**STG£**
34,692,098
286,405
1,505,478
25,072
41,048
161,204
3,310,610
771,935| |---|---| ||40,793,850| ||**31 March 2022**
**Total**
**STG£**
5,805,301
31,022
448,458,443
12,067
23,348
181,238
6,812
502,565
28,644| ||455,049,440| ||**2022**
**STG£**
39,299,436
137,714
1,356,700| ||40,793,850| ||**2022**
**STG£**
455,049,440| ||455,049,440| Page 32 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **2 COST OF GENERATING FUNDS** |**Group**
Expenditure on maintaining investment properties
Landlord costs
Letting costs
Rates
Legal costs
Expenditure running investment properties
Payroll costs
Staff costs
Travel costs
Legal and professional fees
Other overheads
Exceptional costs
Depreciation and amortisation
Other cost of generating funds
Exceptional costs
**Foundation**
Expenditure on maintaining investment properties
Landlord costs
Letting costs
Rates
Legal costs
Other cost of generating funds
Exceptional costs
Legal and professional fees|**Restricted**
**Income**
**Total**
**STG£**
**STG£**
4,785,433
4,785,433
1,885,547
1,885,547
1,985,185
1,985,185
875,349
875,349
39,352
39,352
5,372,084
5,372,084
2,746,291
2,746,291
223,009
223,009
13,049
13,049
1,171,556
1,171,556
1,181,067
1,181,067
-
-
37,112
37,112
270,177
270,177
270,177
270,177
10,427,694
10,427,694
**Restricted**
**Income**
**Total**
**STG£**
**STG£**
3,692,439
3,692,439
931,534
931,534
1,944,568
1,944,568
801,370
801,370
14,967
14,967
81,368
81,368
-
-
81,368
81,368
3,773,807
3,773,807
**For the year ended 31**
**March 2023**
**For the year ended 31**
**March 2023**|**31 March 2022**
**Total**
**STG£**
3,020,612| |---|---|---| |||1,648,311
781,237
557,554
33,510
4,681,051| |||2,525,704
350,290
16,247
1,180,069
480,602
48,875
79,264
-| |||-| |||7,701,663| |||**31 March 2022**
**Total**
**STG£**
294,620| |||227,739
49,726
14,449
2,706
621,882| |||-
621,882| |||916,502| Page 33 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** |**3**
**FOREIGN EXCHANGE GAINS**
**31 March 2023**
**Group**
**STG£**
Foreign exchange (loss)/gain
(488,737)
**4**
**EXPENDITURE ON CHARITABLE ACTIVITIES**
**Group**
**Grant funding**
**of activities**
**Support**
**costs**
**Total**
**STG£**
**STG£**
**STG£**
British Church Grants (Note 5, 6)
4,247,776
256,022
4,503,798
Irish Church Grants (Note 5, 6)
1,357,318
128,011
1,485,329
General Fund Grants (Note 5, 6)
4,523,168
305,683
4,828,851
10,128,262
689,716
10,817,978
**Foundation**
**Grant funding**
**of activities**
**Support**
**costs**
**Total**
**STG£**
**STG£**
**STG£**
British Church Grants (Note 5, 6)
4,247,776
125,707
4,373,483
Irish Church Grants (Note 5, 6)
1,357,318
236,027
1,593,345
General Fund Grants (Note 5, 6)
4,523,168
4,156,708
8,679,876
10,128,262
4,518,442
14,646,704
**31 March 2023**
**31 March 2023**|**31 March 2022**
**STG£**
357,002| |---|---| ||**31 March 2022**
**Total**
**STG£**
1,130,514
846,915
2,492,167| ||4,469,596| ||**31 March 2022**
**Total**
**STG£**
1,402,673
982,994
2,817,116| ||5,202,783| Support costs are allocated to the different grant funds in relation to the proportion approved by the corporate trustee and then equally to individual activities. ## **5 SUPPORT COSTS** |**Group**
Payroll costs
Legal and professional fees
Other support costs
**Foundation**
Payroll costs
Legal and professional fees
Other support costs|**British**
**Church**
**Irish**
**Church**
**General**
**Fund**
**Total**
**STG£**
**STG£**
**STG£**
**STG£**
46,662
23,331
55,714
125,707
87,613
43,807
104,607
236,027
121,747
60,873
145,362
327,982
256,022
128,011
305,683
689,716
**British**
**Church**
**Irish**
**Church**
**General**
**Fund**
**Total**
**STG£**
**STG£**
**STG£**
**STG£**
46,662
23,331
55,714
125,707
87,613
43,807
104,607
236,027
1,542,970
771,485
1,842,253
4,156,708
1,677,245
838,623
2,002,574
4,518,442
**31 March 2023**
**31 March 2023**|**31 March 2022**
**Total**
**STG£**
213,500
192,154
29,317| |---|---|---| |||434,971| |||**31 March 2022**
**Total**
**STG£**
213,500
203,929
750,729| |||1,168,158| Support costs are allocated equally to individual activities after considering the fund percentages. Page 34 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **6 CHARITABLE ACTIVITIES** Charitable activities expense relates to grants. Grant expenditure during the period can be analysed as follows: ||**31**|**March 2023**|**31 March 2022**| |---|---|---|---| |||**STG£**|**STG£**| |Grants awarded||10,128,262|4,034,625| There were no grants written back during the period. All grants are awarded to institutions, there are no grants awarded to individuals. An analysis of grants made by type of group funded is described below: ||**31 March 2023**|**31 March 2022**| |---|---|---| ||**Grants to**|**Grants to**| ||**institutions**|**institutions**| ||**STG£**|**STG£**| |Irish Church Fund|1,357,318|766,184| |British Church Fund|4,247,776|969,053| |General Fund|4,523,168|2,299,388| ||10,128,262|4,034,625| |Grants were made to the following institutions:||**For the year ended**| |||**31 March 2023**| |||**STG£**| |Irish Church||| |AD of Armagh - Our Lady of Lourdes||64,971| |Archdiocese of Cashel & Emly||71,393| |Archdiocese of Dublin||154,044| |Ballina Churches Together CLG||21,943| |Diocese of Achonry||146,236| |Diocese of Ardagh & Clonmacnois||52,695| |Diocese of Elphin||26,363| |Diocese of Killaloe||26,332| |Diocese of Kilmore R.C.||57,664| |Diocese of Tuam||21,943| |Hierarchy General Purposes Trust||164,808| |Parishes in the Diocese of Derry||35,658| |St Muredach's Trust||86,871| |St. Laurence O' Toole Catholic Social Care T/A Crosscare||206,706| |The Archdiocese of Armagh||219,691| |||1,357,318| |British Church||| |Archdiocese of Cardiff||25,800| |Borderlands (South West) Limited||40,844| |Brentwood Roman Catholic Diocese||200,000| |Caritas Diocese of Salford||165,140| |Catholic Care (Diocese of Leeds)||25,000| |D of Arundel & Brighton - St Thomas||100,000| |DePaul UK||97,923| |Diocese of Hallam||6,000| |Diocese of Leeds||180,000| |Heart of Tamworth Community Project||35,000| |_Sub-total_||875,707| Page 35 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **6 GRANT EXPENDITURE (continued)** Grants were made to the following institutions: ||**For the period ended**| |---|---| ||**31 March 2023**| |British Church|**STG£**| |_Brought forward sub-total_|875,707| |Lancaster Roman Catholic Diocesan Trust|10,000| |Little Sisters of The Poor|283,189| |Medaille Trust|100,000| |Nugent Care 2019|9,654| |Out There Supporting Families of Prisoners|103,917| |Plymouth Diocesan Trust|30,785| |Portsmouth Roman Catholic Diocese|67,500| |Roman Catholic Diocese of Southwark|50,000| |Saint John of God Hospitaller Services|120,000| |Santa Marta Group|375,000| |Shrewsbury Roman Catholic Diocesan Trust|200,000| |St Catherine's Hub|125,000| |St John of God Hospitaller Services|46,640| |St John the Evangelist, Bath|26,284| |The Passage|1,000,000| |The Roman Catholic Diocese of Arundel and Brighton|326,000| |The Salford Diocesan Trust|25,100| |Ukrainian Catholic Eparchy|120,000| |Ukrainian Welcome Centre|120,000| |Westminster Roman Catholic Diocese Trust|233,000| ||4,247,776| |General Fund|| |Aber Morfa Mission Area - St Thomas, Rhyl|50,000| |Access Sport CIO|21,175| |Action Medical Research|51,406| |AF&V Launchpad|57,163| |Ashar Bringing Hope|25,000| |Aspire|9,500| |Avery Fields Community Trust|16,000| |Azad Kashmir Welfare Association|25,000| |Bendrigg Trust|14,187| |Betania CLG|219,434| |Blood Cancer UK|99,287| |Bolton Lads and Girls Club|29,640| |Broughton House|41,488| |Chapter (West Cheshire) Ltd|25,215| |Church Urban Fund|50,000| |Clapton Common Boys Club|7,676| |Crossgate Church|350,000| |Epilepsy Research UK|35,000| |Families United Network|15,000| |Family Care Trust|187,000| |FareShare|59,963| |Fareshare UK (Merseyside)|66,000| |Fortalice Limited|29,182| |Gilgal Birmingham|20,000| |_Sub-total_|1,504,316| Page 36 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** |**6**|**GRANT EXPENDITURE (continued)**|**For the period ended**| |---|---|---| |||**31 March 2023**| ||General Fund|**STG£**| ||_Brought forward sub-total_|1,504,316| ||Groundwork Greater Manchester|117,000| ||Halow Birmingham|11,414| ||Hope at Home|35,000| ||Hope for Justice|25,000| ||Hospice Care|133,334| ||Irish Girl Guides|17,575| ||KFCA|10,000| ||Macular Society|20,000| ||Mary Stevens Hospice|4,000| ||Mersey Counselling & Therapy Service|33,320| ||Multiple Sclerosis Society|78,757| ||Muscular Dystrophy UK|60,519| ||New Horizon Youth Centre|50,000| ||One Small Thing|100,000| ||Parents Against Child Exploitation|45,590| ||Parkinson's UK|150,000| ||Recycling Lives Charity|30,000| ||Salford Community and Voluntary Services|375,000| ||Salford Loaves and Fishes|70,530| ||Sanctuary Trust|64,048| ||Sandwell Citizens Advocacy|27,000| ||Sefton Women's & Children's Aid|33,106| ||SOFEA|100,000| ||Somerset & Avon Rape & Sexual Abuse Support|20,435| ||Spinal Research|66,790| ||Sport 4 Life UK|100,000| ||St Christopher's IOM|52,175| ||Stonebridge City Farm|46,910| ||Target Ovarian Cancer|105,642| ||The Brain Tumour Charity|83,333| ||The British Diabetic Association|100,000| ||The Cathedral Archer Project|22,400| ||The Fylde Rugby Community Foundation|20,000| ||The Harbour|25,000| ||The Light Church Bradford|22,516| ||The Living Room|60,000| ||The Macular Disease Society|33,912| ||The Matthew Project|31,150| ||The Meath Epilepsy Charity|26,322| ||The Oasis Centre|19,234| ||The PCC of St John and St Paul, Widnes|11,000| ||The Whitechapel Centre|95,830| ||Timperley Amateur Boxing Club|60,000| ||Together Dementia Support|13,946| ||Tommy's|80,167| ||Versus Arthritis|86,397| ||Warwickshire Wheelchair Basketb. Academy|20,000| ||Waters Edge Arts Ltd|42,000| ||We Mind The Gap|75,000| ||West London Mission|25,000| ||Women Centre Limited|60,000| ||Women's Health Matters|22,500| |||4,523,168| Page 37 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **6 GRANT EXPENDITURE (continued)** |Grants were made to the following institutions:|**For the period ended**| |---|---| ||**31 March 2022**| |Irish Church|**STG£**| |Diocese of Galway Kilmacduagh & Kilfenora (R.C.)|85,456| |Diocese of Kilmore R.C.|64,092| |Franciscan Missionary Sisters for Africa|81,385| |St. Laurence O' Toole Catholic Social Care T/A Crosscare|258,616| |Archdiocese of Dublin|118,437| |Roman Catholic Diocese of Clogher|132,819| |The Archdiocese of Armagh|25,379| ||766,184| |British Church|| |AD of Westminster-Our Lady St Joseph Hall|56,400| |Borderlands (South West) Limited|39,729| |Caritas Diocese of Salford|32,876| |Diocese of Salford - St Edmund's|19,000| |Diocese of Wrexham|12,000| |Out There Supporting Families of Prisoners|35,500| |Roman Catholic Diocese of Southwark|50,000| |Santa Marta Group|125,000| |St Mary's University|19,350| |The Congregation of the Little Sisters|48,000| |Westminster Roman Catholic Diocese Trust|100,000| |The Medaille Trust|281,198| |Diocese of Shrewsbury - St Albans|100,000| |Diocese of Arundel & Brighton|50,000| ||969,053| |General Fund|| |Aber Morfa Mission Area|50,000| |Access Sport CIO|21,175| |Action Medical Research|82,560| |Ashar Bringing Hope|37,200| |Bone Cancer Research Trust|29,193| |Bury Voluntary Community|40,000| |Chapter (West Cheshire) Ltd|24,720| |Church Urban Fund|172,000| |Crossgate Church|21,000| |Families United Network|15,000| |Family Care Trust|93,500| |Fareshare UK (North Wales)|84,215| |Fareshare Yorkshire|80,000| |Fortalice (Family Support)|30,000| |Fortalice Limited|38,244| |Gilgal Birmingham|20,000| |Groundwork Greater Manchester|75,000| |Hope for Justice|25,000| |Hope House Children's Hospice|77,000| |Kensington Fields Community Association|12,000| |Mersey Counselling and Therapy Centre|32,350| |Multiple Sclerosis Society|78,757| |Recycling Lives|8,000| |Yad Veachisomoch L'Chaim - Foodbank|100,000| |_Sub-total_|1,246,914| Page 38 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **6 GRANT EXPENDITURE (continued)** |Grants were made to the following institutions:|**For the period ended**| |---|---| ||**31 March 2022**| |General Fund|**STG£**| |_Brought forward sub-total_|1,246,914| |Salford Loaves and Fishes|69,358| |Sanctuary Trust Limited|35,000| |Sanctuary Trust Limited - Oldham|31,000| |Sefton Women's & Children's Aid|33,306| |Shoreline Church|10,000| |St Christopher's IOM|47,728| |St Mary of the Isle|15,000| |Stonebridge City Farm|30,675| |The Brain Tumour Charity|141,356| |The Bridge Mentoring Scheme|6,000| |The Edge Theatre|13,000| |The Hope Centre|67,530| |The Living Room|60,000| |The Macular Disease Society|100,188| |The Mustard Tree|65,000| |The Oasis Centre|18,886| |The Philadelphia Network|15,000| |The River Manchester|10,000| |The Stroke Association|50,000| |Tommy's|19,833| |Versus Arthritis|85,729| |Yad Veachisomoch L'Chaim|12,000| |SNAPS Yorkshire CIO|12,885| |Epilepsy Research UK|80,000| |Abergele Community Action|23,000| ||2,299,388| Page 39 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **7 NET INCOME/EXPENDITURE** Net incoming resources is stated after charging: |Net incoming resources is stated after charging:||| |---|---|---| ||**31 March 2023**|**31 March 2022**| |**Group**|**STG£**|**STG£**| |Auditor's remuneration|121,325|115,624| |Depreciation and amortisation|37,113|79,265| ## **Foundation** The audit fee is borne by Derwent Management Limited, a related group company. ## **8 PENSION COSTS** All of the pension costs relate to the group's contributions to defined contribution schemes and individual pension plans and are charged to the statement of comprehensive income as they accrue. The pension cost represents contributions payable by the group to the pension plans and amounted to STG£201,637 (2022: STG£180,907). Included within this pension cost are pension contributions paid on behalf of the two trustees for STG£20,267 (2022: STG£19,051). ## **9 TRUSTEE REMUNERATION AND EXPENSES** The Foundation has a corporate trustee. In accordance with the power included in the Foundation Trust Deed (originally authorised by the Isle of Man Court) and believed to be in accordance with the wishes of the Foundation’s Founder, Albert Gubay, three Directors of the Trustee Company were remunerated for their services as Directors and two Directors were remunerated as employees in Derwent Estates Limited, a subsidiary. The total amount received as remuneration by three Directors of the Trustee Company for their services as Directors amounted to STG£124,907 (2022:STG£121,155). The Directors who received remuneration for their services as Directors during the period were Alan Gough STG£55,943 (2022:STG£55,481), John Peers STG£35,117 (2022:STG£38,610) and Mark Jones STG£33,037 (2022:STG£27,064). The total amount received as remuneration by two Directors of the Trustee Company as employees in Derwent Estates Limited amounted to STG£275,997 (2022: STG£252,353). The Directors who were remunerated as employees in a Group company during the year were Nigel Machin STG£125,986 (2022:STG£104,497) and Finn Jones STG£150,011 (2022:STG£127,246). A consultation fee was paid to Nugent Consulting Limited, of which John Henry Nugent is a controlling party, amounting to STG£6,136 (2022: STG£Nil) from the time of his appointment as a member of the Board of Trustees. Expenses of STG£2,222 (2022:STG£79) were reimbursed or paid by the Foundation to five (2022: one) Directors during the year. ## **10 STAFF COSTS** |**Group**
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Other pension costs|**31 March 2023**
**STG£**
2,374,447
266,652
230,900
2,871,999|**31 March 2022**
**STG£**
2,301,305
252,974
187,618| |---|---|---| |||2,741,897| The average number of employees during the year was 37 (2022: 42) and 3 for the Foundation (2022: 3). The number of staff receiving employee benefits, excluding pension costs, over STG£60,000 was as follows: ||**31 March 2023**|**31 March 2022**| |---|---|---| ||**Number**|**Number**| |£60,000 - £69,999|2|5| |£70,000 - £79,999|3|2| |£80,000 - £89,999|4|2| |£90,000 - £99,999|1|4| |£100,000 - £ 109,000|2|-| |£110,000 - £119,999|1|1| |£120,000 - £129,999|1|1| |£130,000 - £139,999|1|-| |£150,000 - £159,999|-|2| |£170,000 - £179,999|1|2| |£180,000 - £189,999|1|-| The key management personnel of the group comprise the directors of the corporate trustee and the managing director. The total remuneration paid to key management personnel was STG693,559 (2022: STG£564,320). Page 40 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **11 TAXATION ON PROFIT ON ORDINARY ACTIVITIES** |**Group**
**Analysis of income tax charge in the period**
Current year provision
Adjustment re prior years
**Deferred tax charge**
Movement in current year provision
Current tax charge/(credit)
The following are the factors affecting the current year tax charge.|**31 March 2023**
**STG£**
145,834
(69,349)
76,485
-
76,485|**31 March 2022**
**STG£**
7,955
(4,484)| |---|---|---| |||3,471
(5,151,842)| |||(5,148,371)| |||| A reconciliation of the tax expense and the loss before taxation multiplied by the standard rate of income tax throughout the group is explained below: |Net (loss)/income before taxation
Taxation as follows:
(Loss)/profit on ordinary activities before taxation multiplied by the basic
rate of corporation tax in the UK of 19% (2022: UK corporation tax at a rate
Effects of:-
Non taxable income
Expenses not deductible for tax purposes
Trading stock - profit on disposal adjustment
Losses carried/(utilised) forward
Chargeable losses
Origination/(reversal) of timing differences
Under provision of tax in prior years
Change in deferred tax rates
Movement in unrecognised deferred tax
Movement in fair value of investment properties
Qualifying charitable donation unutilised
Qualifying charitable donation
Deferred tax asset
Loans written off
Current year tax charge/(credit)|**31 March 2023**
**STG£**
(22,717,136)
(4,316,256)
of 19%)
(6,481,473)
10,615,825
6,650
2,518,644
115,968
99,079
(69,349)
799,672
(3,131,821)
5,000
-
(121,659)
36,205
-
76,485|**31 March 2022**
**STG£**
93,432,832| |---|---|---| |||17,752,238
(7,989,839)
2,274,177
11,144
(7,429)
-
(7,996,382)
(4,484)
(636,408)
6,206,712
(7,008,731)
908,132
(8,354,167)
(303,370)
36| |||(5,148,371)| Where capital allowances and losses are not expected to be utilised in the foreseeable future, a deferred tax asset is not recognised. As a charitable trust, the Foundation benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. The Foundation is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the Foundation is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. From 6 April 2020, non-UK resident companies which were subject to income tax on UK source rental income moved into the UK domestic corporation tax regime. Page 41 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** |**12**
**TANGIBLE FIXED ASSETS**
**Group**
**COST**
At 31 March 2022/1 April 2022
Transfer to investment properties
Revaluation
Disposals during the year
At 31 March 2023
**DEPRECIATION**
At 31 March 2022/1 April 2022
Charge for the year
Transfer to investment properties
Disposals in year
At 31 March 2023
**NET BOOK VALUE**
At 31 March 2023
At 31 March 2022
**Foundation**
**COST**
At 31 March 2022/1 April 2022
Revaluation
At 31 March 2023
**DEPRECIATION**
At 31 March 2022/1 April 2022
Charge for the year
At 31 March 2023
At 31 March 2022|**Land &**
**Buildings**
**STG£**
5,600,000
-
(1,820,000)
-
3,780,000
-
-
-
-
-
3,780,000
5,600,000
5,600,000
(1,820,000)
3,780,000
-
-
3,780,000
5,600,000|**Fixtures &**
**Fittings**
**STG£**
184,547
-
-
-
184,547
184,547
-
-
-
184,547
-
-
-
-
-
-
-
-
-|**Motor**
**Vehicles**
**STG£**
45,794
-
-
(16,650)
29,144
39,131
839
-
(10,826)
29,144
-
6,663
-
-
-
-
-
-
-|**Office**
**Equipment**
**STG£**
240,199
-
-
(7,777)
232,422
235,147
1,295
-
(4,020)
232,422
-
5,052
-
-
-
-
-
-
-|**Plant &**
**Machinery**
**STG£**
161,213
-
-
-
161,213
161,213
-
-
-
161,213
-
-
-
-
-
-
-
-
-|**Antiques &**
**Paintings**
**STG£**
23,423
-
-
-
23,423
-
-
-
-
-
23,423
23,423
-
-
-
-
-
-
-|**Total**
**STG£**
6,255,176
-
(1,820,000)
(24,427)| |---|---|---|---|---|---|---|---| ||||||||4,410,749| ||||||||620,038
2,134
-
(14,846)| ||||||||607,326| ||||||||3,803,423| ||||||||5,635,138| ||||||||5,600,000
(1,820,000)| ||||||||3,780,000| ||||||||-
-| ||||||||3,780,000| ||||||||5,600,000| The land is carried at market value. This is subject to a professional valuation on an annual basis by Knight Frank Chartered Surveyors. The recent appraisal report was issued on 19 May 2023 and the revaluation has been reflected in the financial statements for the period. The land is not subject to depreciation. The carrying amount of land is STG£4,562,874 had it been carried under the cost model. Page 42 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **13 INVESTMENT IN SUBSIDIARIES** |**Foundation**
At the start of the year
Additions in year
At 31 March|**2023**
**STG£**
105
-
105|**2022**
**STG£**
50
55| |---|---|---| |||105| Page 43 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **13 INVESTMENT IN SUBSIDIARIES (continued)** In the opinion of the directors the investments in group undertakings are worth at least that of their carrying value in the financial statements. |**Subsidiary**|**Nature of**|**Registered**|**Description**|**Country of**|**Proportion**|||**Profit / (Loss)**|||**Capital and**| |---|---|---|---|---|---|---|---|---|---|---|---| |**Company Name**|**Business**|**Office**|**of Holding**|**Incorporation**|**of Beneficial**|**Turnover**|**Expenditure**|**after tax for**|**Total assets**|**Total liabilities**|**Reserves at**| ||||||**Holding**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**| |||||||**STG£**|**STG£**|**STG£**|**STG£**|**STG£**|**STG£**| |AGF Brandon Limited|Holding|c/o Equiom (Isle of Man) L|100 Ordinary|Isle of Man|100%|-|1,008,187|(1,008,187)|42,183,938|(1,327,978)|40,855,960| |(002944V)|Company|Jubilee Buildings|shares of STG£1||||||||| |||Victoria Street|**(Directly held)**||||||||| |||Douglas, Isle of Man|||||||||| |Derwent Group Holdings|Holding|c/o Equiom (Isle of Man) L|50,000 Ordinary|Isle of Man|100%|-|16,304|(10,087,212)|44,388,082|(47,923,252)|(3,535,170)| |Ltd|Company|Jubilee Buildings|shares of USD$1||||||||| |(020587V)||Victoria Street|**(Indirectly held)**||||||||| |||Douglas, Isle of Man|||||||||| |Bartone Limited|Management|c/o Equiom (Isle of Man) L|2 Ordinary|Isle of Man|100%|-|(9,347)|9,347|377,833|-|377,833| |(101448C)|Company|Jubilee Buildings|Shares of STG£1 each||||||||| |||Victoria Street|**(Indirectly held)**||||||||| |||Douglas, Isle of Man|||||||||| |Derwent Holdings|Property|c/o Equiom (Isle of Man) L|200,000,000 Ordinary|Isle of Man|100%|547,818|(958,668)|(410,850)|80,649,636|(40,241,068)|40,408,568| |Limited|Investment|Jubilee Buildings|shares of USD$1||||||||| |(020641V)|Company|Victoria Street|**(Indirectly held)**||||||||| |||Douglas, Isle of Man|||||||||| |Derwent Management|Trading|c/o Equiom (Isle of Man) L|2 Ordinary|Isle of Man|100%|2,362,903|2,282,578|80,325|5,564,908|(315,859)|5,249,049| |Limited|Company|Jubilee Buildings|Shares of STG£1 each||||||||| |(018015V)||Victoria Street|**(Directly held)**||||||||| |||Douglas, Isle of Man|||||||||| |Fairways Property|Trading|c/o Equiom (Isle of Man) L|2,000 Ordinary|Isle of Man|100%|-|2,457,156|(2,457,156)|-|-|-| |Holdings Limited|Company|Jubilee Buildings|Shares of STG£1 each||||||||| |(017929V)|(Dissolved 6|Victoria Street|**(Indirectly held)**||||||||| ||August 2023)|Douglas, Isle of Man|||||||||| |Langstone|Non Trading|Kroll Advisory Ltd|34,500,000 Ordinary|United|100%|-|-|-|-|-|-| |Leisure|Company|The Shard|Shares of STG£.10 each|Kingdom|||||||| |Limited|(In liquidation)|32 London Bridge St.|**(Indirectly held)**||||||||| |(03037436)||London, SE1 9SG|||||||||| Page 44 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **13 INVESTMENT IN SUBSIDIARIES (continued)** |||||||1.1525|||1.156||| |---|---|---|---|---|---|---|---|---|---|---|---| |**Subsidiary**|**Nature of**|**Registered**|**Description**|**Country of**|**Proportion**|||**(Loss)/ Profit**|||**Capital and**| |**Company Name**|**Business**|**Office**|**of Holding**|**Incorporation**|**of Beneficial**|**Turnover**|**Expenditure**|**after tax for**|**Total assets**|**Total liabilities**|**Reserves at**| ||||||**Holding**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**| |||||||**STG£**|**STG£**|**STG£**|**STG£**|**STG£**|**STG£**| |Mardown|Property|c/o Equiom (Isle of Man|2 Ordinary|Isle of|100%|1,443,539|2,137,181|(693,642)|22,265,558|(21,463,889)|801,669| |Limited|Investment|Jubilee Buildings|Shares of £1 each|Man|||||||| |(017933V)|Company|Victoria Street|**(Indirectly held)**||||||||| |||Douglas, Isle of Man|||||||||| |Moyer|Property|c/o Equiom (Isle of Man|2 Ordinary|Isle of|100%|150,586|33,541|117,045|3,401,137|(12,900)|3,388,237| |Limited|Investment|Jubilee Buildings|Shares of £1 each|Man|||||||| |(017934V)|Company|Victoria Street|**(Indirectly held)**||||||||| |||Douglas, Isle of Man|||||||||| |Derwent Estates|Property|3 Denmark Street|2 Ordinary|United|100%|2,216,212|2,107,023|109,189|1,027,398|(110,021)|917,377| |Limited|Management|Altrincham|Shares of STG£1 each|Kingdom|||||||| |(03410326)||England|**(Directly held)**||||||||| |||WA14 2SS|||||||||| |Starlit Futures Limited|Property|Kroll Advisory Ltd|30,000 Ordinary|United|100%|-|-|-|-|-|-| |(03311290)|Investment|The Shard|Shares of STG£1 each|Kingdom|||||||| ||Company|32 London Bridge St.|**(Indirectly held)**||||||||| ||(In liquidation)|London, SE1 9SG|||||||||| |Derwent Capital|Finance|c/o Equiom (Isle of Man|2 Ordinary|Isle of|100%|1,885,221|(5,044,847)|6,930,068|80,649,817|(58,858,777)|21,791,040| |Limited|Company|Jubilee Buildings|Shares of STG£1 each|Man|||||||| |(005216V)||Victoria Street|**(Indirectly held)**||||||||| |||Douglas, Isle of Man|||||||||| |Anglo International|Property Rental &|c/o Equiom (Isle of Man|100 Ordinary|Isle of|100%|108,549|277,914|(169,365)|1,397,652|(2,984,330)|(1,586,678)| |Properties|Investment|Jubilee Buildings|Shares of STG£1 each|Man|||||||| |Limited|Company|Victoria Street|**(Indirectly held)**||||||||| |(017932V)||Douglas, Isle of Man|||||||||| |Anglo International|Property|c/o Equiom (Isle of Man|2 Ordinary|Isle of|100%|268,600|1,028,091|(759,491)|7,633,028|(11,155,590)|(3,522,562)| |Upholland|Investment|Jubilee Buildings|Shares of STG£1 each|Man|||||||| |Limited|Company|Victoria Street|**(Indirectly held)**||||||||| |(017925V)||Douglas, Isle of Man|||||||||| |Derwent Construction|Construction|c/o Equiom (Isle of Man|2 Ordinary|Isle of|100%|-|7,001,407|(7,001,407)|-|-|-| |Limited|Company|Jubilee Buildings|Shares of STG£1 each|Man|||||||| |(017928V)|(Dissolved 6|Victoria Street|**(Indirectly held)**||||||||| ||August 2023)|Douglas, Isle of Man|||||||||| Page 45 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **13 INVESTMENT IN SUBSIDIARIES (continued)** |**Subsidiary**|**Nature of**|**Registered**|**Description**|**Country of**|**Proportion**|||**Profit**|||**Capital and**| |---|---|---|---|---|---|---|---|---|---|---|---| |**Company Name**|**Business**|**Office**|**of Holding**|**Incorporation**|**of Beneficial**|**Turnover**|**Expenditure**|**after tax for**|**Total assets**|**Total liabilities**|**Reserves at**| ||||||**Holding**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**| |||||||**STG£**|**STG£**|**STG£**|**STG£**|**STG£**|**STG£**| |Anglo International|Property|c/o Equiom (Isle of Man|500,000 Ordinary|Isle of|100%|363,986|(34,269)|398,255|6,982,029|(5,114,822)|1,867,207| |Holdings|Investment|Jubilee Buildings|Shares of STG£1 each|Man|||||||| |Limited|Company|Victoria Street|**(Indirectly held)**||||||||| |(017930V)||Douglas, Isle of Man|||||||||| |Anglo International|Non Trading|Kroll Advisory Ltd|100 Ordinary|United|100%|-|(492,884)|492,884|-|-|-| |(First U.K.)|Company|The Shard|Shares of STG£1 each|Kingdom|||||||| |Limited|(In liquidation)|32 London Bridge St.|**(Indirectly held)**||||||||| |(02830325)||London, SE1 9SG|||||||||| |Cashtal|Property|c/o Equiom (Isle of Man|1,500,000 Ordinary|Isle of|100%|192,879|52,571|140,308|40,972,961|(6,033,936)|34,939,025| |Properties|Investment|Jubilee Buildings|Shares of STG£1 each|Man|||||||| |Limited|Company|Victoria Street|**(Indirectly held)**||||||||| |(017926V)||Douglas, Isle of Man|||||||||| |Cross Atlantic|Non Trading|Nunnery Mills 1|2,000 Ordinary|Isle of|100%|-|(4,605,371)|4,605,371|-|-|-| |Ventures|Company|Old Castletown Road|Shares of STG£1 each|Man|||||||| |Limited|(Dissolved 6|Douglas|**(Indirectly held)**||||||||| |(017927V)|August 2023)|IM99 1PL|||||||||| |Derwent Development|Property|3 Denmark Street|1 Ordinary|United|100%|7,719,811|7,356,864|362,947|1,153,466|(839,943)|313,523| |Management|Development|Altrincham|Shares of STG£1 each|Kingdom|||||||| |Limited|Company|England|**(Directly held)**||||||||| |(12791411)||WA14 2SS|||||||||| ## **SUBSIDIARIES EXCLUDED FROM CONSOLIDATION** |**SUBSIDIARIES EXCLUDED FROM CONSOLIDATION**|||||||| |---|---|---|---|---|---|---|---| |||||**Profit**|||**Capital and**| |**Continuing Operations**||**Turnover**|**Expenditure**|**after tax for**|**Total assets**|**Total liabilities**|**Reserves at**| |**Subsidiary and associate interests**|**Reason for**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**|**31 March 2023**| |**Company Name (all indirectly held)**|**exclusion**|**STG£**|**STG£**|**STG£**|**STG£**|**STG£**|**STG£**| |The Old Foundry Management Services Company Limited|Non core entity and immaterial|19,471|15,380|4,091|6,335|(9,879)|(3,544)| |Hafod Management Services Company Limited|Non core entity and immaterial|12,298|9,917|2,381|4,888|(9,765)|(4,877)| |College Farm Management Limited|Non core entity and immaterial|-|-|-|1|-|1| |Alvanley Limited|Non core entity and immaterial|-|(1,805)|1,805|-|-|-| |The Mallards Management Company Limited (Dissolved 19 July 2023)|Non core entity and immaterial|-|-|-|-|(2,069)|(2,069)| |Mount Murray Homes Limited|Non core entity and immaterial|1,687|-|1,687|3,437|(33,708)|(30,271)| Subsequent to year-end, Fairways Property Limited, Derwent Construction Limited, and Cross Atlantic Ventures Limited were dissolved on 6 August 2023 while The Mallards Company Limited was dissolved on 19 July 2023. ## **14 INVESTMENTS** |At 1 April 2022
Balance brought forward
Additions - listed investments
Changes in fair value
Balance carried forward|**2023**
**STG£**
**-**
10,000,000
55,369
10,055,369|**2022**
**STG£**
**-**
-
-| |---|---|---| |||-| The investment portfolio is measured at fair value, this reflects the portfolio's market price at 31 March 2023. Page 46 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** |**15**
**INVESTMENT PROPERTIES**
**Group**
At beginning of the period
Additions during the period
Transfer from tangible fixed assets
Revaluation of investment properties
Disposal of properties
Development costs - work in progress
Foreign exchange movement
As at 31 March|**2023**
**STG£**
468,699,882
29,682,176
-
(41,866,559)
(445,000)
-
(417,253)
455,653,246|**2022**
**STG£**
394,087,628
4,137,281
635,969
70,082,240
-
87,356
(330,592)| |---|---|---| |||468,699,882| All investments are carried at their market value. Investment properties are subject to a professional valuation on an annual basis by Knight Frank Chartered Surveyors. The recent appraisal report was issued on 19 May 2023 and the revaluation has been reflected in the financial statements for the period. |**Foundation**
At beginning of the period
Transfer from subsidiaries
Additions
Development costs - work in progress
Revaluation of investment properties
As at 31 March
**16**
**INTANGIBLE FIXED ASSETS**
**Group**
**COST**
As at 1 April 2022
Disposals during the year
As at 31 March 2023
**AMORTISATION**
As at 1 April 2022
Disposals during the year
Charge for year
As at 31 March 2023
**NET BOOK VALUE 31 MARCH 2023**
**NET BOOK VALUE 31 MARCH 2022**|**2023**
**2022**
**STG£**
**STG£**
430,082,356
-
-
398,468,435
29,550,114
-
-
87,356
(42,025,114)
31,526,565
417,607,356
430,082,356
**Software development**
**costs**
**STG£**
222,015
(55,376)
166,639
134,104
(55,210)
34,979
113,873
52,766
87,911|**2022**
**STG£**
-
398,468,435
-
87,356
31,526,565| |---|---|---| |||430,082,356| |||166,639| |||134,104
(55,210)
34,979| |||113,873| |||52,766| |||87,911| Page 47 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued)** ## **17 DEBTORS** |**Group**
Trade debtors
Prepayments and accrued income
Other debtors
Amounts owed by group and associated undertakings (See note 28.2)
Workman/Savills income float
Taxation receivable|**2023**
**STG£**
147,489
2,352,694
2,097,598
52,463
8,617,043
12,565
13,279,852|**2022**
**STG£**
23,899
547,209
1,276,673
404,490
3,266,518
-| |---|---|---| |||5,518,789| Other debtors include of STG£880,000 (2022: STG£881,439) receivable as a result of a loan advance and STG£NIL (2022: STG£103,140) escrow account. Prepayments and accrued income includes lease incentives of STG£2,059,812 (2022: STG£487,900). Amounts owed by group and associated undertakings are interest free, unsecured and repayable on demand. |**Foundation**
Amounts owed by group and associated undertakings (See note 28.2)
Prepayments and accrued income
Workman/Savills income float
Other debtors|**2023**
**STG£**
12,154
2,059,812
6,078,680
622,877
8,773,523|**2022**
**STG£**
163,472
277,255
-
89,255| |---|---|---| |||529,982| Prepayments and accrued income consists of all lease incentives (2022: STG£Nil). Amounts owed by group and associated undertakings are interest free, unsecured and repayable on demand. ## **18 CASH AT BANK AND IN HAND** |**Group**
Current accounts
Fixed deposit accounts with original maturity less than 3 months
**Foundation**
Current accounts
Fixed deposit accounts with original maturity less than 3 months|**2023**
**STG£**
63,120,362
72,991,669
136,112,031
**2023**
**STG£**
51,016,059
51,292,014
102,308,073|**2022**
**STG£**
46,024,565
102,562,576| |---|---|---| |||148,587,141| |||**2022**
**STG£**
36,965,482
23,027,674| |||59,993,156| Page 48 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **19 CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR** |**CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR**||| |---|---|---| |**Group**
Accruals for grants payable (See Note 21)
Trade creditors
Amounts owed to group and associated undertakings (See Note 28.3)
Accruals and deferred income
Taxation and social security
Specific provisions (See Note 25)
Other creditors|**2023**
**STG£**
2,389,232
996,393
364,741
7,277,274
1,158,203
21,514
480,934
12,688,291|**2022**
**STG£**
824,761
317,140
367,437
2,065,875
488,416
300,628
150,783| |||4,515,040| Amounts owed to group and associated undertakings are interest free, unsecured and repayable on demand. Deferred income relates to income received in advance for rent. |The movement on deferred income is as follows:
Balance at the start of the period
Deferred income released to income during the period
Income deferred at the end of the period
Balance at the end of the period
**Foundation**
Accruals for grants payable (See Note 21)
Trade creditors
Accruals and deferred income
VAT payable
Other creditors
Savills income float
Amounts owed to group and associated undertakings (See Note 28.3)|**2023**
**STG£**
1,499,943
(1,499,943)
6,174,430
6,174,430
**2023**
**STG£**
2,389,232
183,051
6,180,582
1,190,353
297,196
-
8,962,507
19,202,921|**2022**
**STG£**
2,192,031
(2,192,031)
1,499,943| |---|---|---| |||1,499,943| |||**2022**
**STG£**
824,761
81,495
1,639,507
2,574
-
476,888
1,619,680| |||4,644,905| Amounts owed to group and associated undertakings are interest free, unsecured and repayable on demand. Deferred income relates to income received in advance for rent. |The movement on deferred income is as follows:
Balance at the start of the period
Deferred income released to income during the period
Income deferred at the end of the period
Balance at the end of the period|**2023**
**STG£**
1,425,192
(1,425,192)
6,023,189
6,023,189|**2022**
**STG£**
-
-
1,425,192| |---|---|---| |||1,425,192| Page 49 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **20 CREDITORS AMOUNTS FALLING DUE AFTER ONE YEAR** |**20 CREDITORS AMOUNTS FALLING DUE AFTER ONE YEAR**||| |---|---|---| |**Group**
Deferred taxation
**Foundation**
Accruals for grants payable (See Note 21)
**21 GRANT LIABILITIES**
**Group and Foundation**
Grant liabilities at 31 March
New grants awarded
Grant payments made
Grant liabilities at 31 March
Grant liabilities falling due within one year
Grant liabilities at 31 March|**2023**
**STG£**
260,713
**2023**
**STG£**
-
**2023**
**STG£**
824,761
10,128,263
(8,563,792)
2,389,232
**2023**
**STG£**
2,389,232
2,389,232|**2022**
**STG£**
181,433| |||**2022**
**STG£**
-| |||**2022**
**STG£**
53,120
4,034,625
(3,262,984)| |||824,761| |||**2022**
**STG£**
824,761| |||824,761| Many of the grants awarded consist of staged payments which are individual to each project. Some of these staged payments are quarterly, whereas others are dependent on project progress in the case of larger capital projects or are multi-annual in the case of some revenue grants. For this reason only some of the total grants may have been paid in the financial year. Where a grant award consists of multiple payments, each subsequent payment is dependent on an interim report which will include evidence of expenditure of the previous payment and evidence of progress against individually agreed key performance indicators, outputs and outcomes. If this evidence is not produced the subsequent payment may be postponed where it is related to a minor delay or in more serious circumstances where it is evident that the project is not performing or progressing the grant could be withdrawn. This could result in no future payments being made and in most serious circumstances a request for funding to be returned, neither of these circumstances have occurred in the current financial period. The time between the Trustee agreeing the award and the time the Grant Agreement is signed and a payment made can mean that the payments are not made until the following financial year. Page 50 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **22 PRIOR YEAR ADJUSTMENT** It was identified during the year that the Permanent Endowment Funds for the Group were understated due to the inclusion of the historic investment property revaluations losses upon the acquisition of AGF Brandon on 20 July 2021. To correct this error and conform with the Foundation-only statements presentation, the 2022 consolidated brought forwards have been adjusted. The impact of this is shown below: |**Group**
Balance brought forward
Revaluation adjustment
Investment gains
Adjusted balance brought forward|**Restricted**
**Reserves**
**Permanent**
**Endowment**
**Funds**
**2022**
**Total**
**STG£**
**STG£**
**STG£**
884,589,746
(351,645,809)
532,943,937
(351,645,809)
351,645,809
-
32,744,112
(32,744,112)
-| |---|---| ||565,688,049
(32,744,112)
532,943,937| Further, for clarity, the cash and property gifts of STG£410,368,435, received by the Foundation during the year ended 31 March 2022 has been reclassified in note 23 from "income" to "capital" in order to better reflect the nature of the introduction of the funds to the Permanent Endowment Fund. The impact of this is shown below: |**Foundation**
**Income**
British Church Grants
Irish Church Grants
General Fund Grants
**Capital**
British Church Grants
Irish Church Grants
General Fund Grants|**31 March 2021**
**Reclassification**
**31 March 2022**
**STG£**
**STG£**
**STG£**
152,328,763
(152,328,763)
-
76,164,382
(76,164,382)
-
181,875,290
(181,875,290)
-
**Permanent Endowment Funds**| |---|---| ||410,368,435
(410,368,435)
-| ||-
152,328,763
152,328,763
-
76,164,382
76,164,382
-
181,875,290
181,875,290| ||-
410,368,435
410,368,435| Page 51 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **23 ANALYSIS OF THE MOVEMENT IN CHARITABLE FUNDS** |**Group**
**Permanent endowment funds**
British Church Grants
Irish Church Grants
General Fund Grants
**Restricted funds**
British Church Grants
Irish Church Grants
General Fund Grants
**Totals**
**Group**
**Permanent endowment funds**
British Church Grants
Irish Church Grants
General Fund Grants
**Restricted funds**
British Church Grants
Irish Church Grants
General Fund Grants
**Totals**|**Restated***
**Restated***
**Fund balance at**
**21 July 2021**
**Income**
**Expenditure**
**Investment gains**
**Transfers**
**Other recognised**
**losses**
**Fund balance at**
**31 March 2022**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
-
- -
13,855,621
150,175,803
(185,600)
163,845,824
-
- -
6,927,810
75,087,902
(92,800)
81,922,912
-
- -
16,543,134
179,304,730
(221,600)
195,626,264| |---|---| ||-
- -
37,326,565
404,568,435
(500,000)
441,395,000
197,828,790
15,142,677
(4,559,570)
12,154,614
(150,175,803)
(17,638)
70,373,070
98,914,395
7,571,339
(2,279,785)
6,077,307
(75,087,902)
(8,819)
35,186,535
236,200,752
18,079,834
(5,443,969)
14,512,191
(179,304,730)
(21,060)
84,023,018| ||532,943,937
40,793,850
(12,283,324)
32,744,112
(404,568,435)
(47,517)
189,582,623| ||**532,943,937**
**40,793,850**
**(12,283,324)**
**70,070,677**
**-**
**(547,517)**
**630,977,623**| ||**Restated***
**Fund balance at**
**31 March 2022**
**Income**
**Expenditure**
**Investment losses**
**Transfers**
**Other recognised**
**losses**
**Fund balance at**
**31 March 2023**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
163,845,824
- -
(15,599,722)
22,923,798
(675,584)
170,494,316
81,922,912
- -
(7,799,861)
11,461,899
(337,792)
85,247,158
195,626,264
-
-
(18,625,530)
27,370,224
(806,624)
203,564,334| ||441,395,000
-
-
(42,025,113)
61,755,921
(1,820,000)
459,305,808
70,373,071
16,910,204
(9,830,329)
58,855
(22,923,798)
(132,266)
54,455,737
35,186,535
8,455,102
(4,915,165)
29,428
(11,461,899)
(66,133)
27,227,868
84,023,017
20,190,200
(11,737,074)
70,271
(27,370,224)
(157,920)
65,018,270| ||189,582,623
45,555,506
(26,482,568)
158,554
(61,755,921)
(356,319)
146,701,875| ||**630,977,623**
**45,555,506**
**(26,482,568)**
**(41,866,559)**
**-**
**(2,176,319)**
**606,007,683**| - See Note 22 for details of the prior year adjustment. Page 52 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **23 ANALYSIS OF THE MOVEMENT IN CHARITABLE FUNDS (continued)** |**Foundation**
**Permanent endowment funds**
British Church Grants
Irish Church Grants
General Fund Grants
**Restricted funds**
British Church Grants
Irish Church Grants
General Fund Grants
**Totals**
**Foundation**
**Permanent endowment funds**
British Church Grants
Irish Church Grants
General Fund Grants
**Restricted funds**
British Church Grants
Irish Church Grants
General Fund Grants
**Totals**|**Fund balance at**
**31 March 2021**
**Income**
**Capital**
**Expenditure**
**Investment gains**
**Transfers**
**Other recognised**
**losses**
**Fund balance at**
**31 March 2022**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
- - 152,328,763
- 11,702,661
-
(185,600)
163,845,824
- - 76,164,382
- 5,851,330
-
(92,800)
81,922,912
- - 181,875,290
- 13,972,574
-
(221,600)
195,626,264| |---|---| ||- - 410,368,435
- 31,526,565
-
(500,000)
441,395,000
4,509,070 16,585,589
-
(2,473,153)
-
-
-
18,621,506
2,254,535 8,292,795
-
(1,236,577)
-
-
-
9,310,753
5,383,674 19,802,621
-
(2,952,860)
-
-
-
22,233,435| ||12,147,279
44,681,005
-
(6,662,590)
-
-
-
50,165,694| ||**12,147,279**
**44,681,005**
**410,368,435**
**(6,662,590)**
**31,526,565**
**-**
**(500,000)**
**491,560,694**| ||**Fund balance at**
**31 March 2022**
**Income**
**Capital**
**Expenditure**
**Investment losses**
**Transfers**
**Other recognised**
**losses**
**Fund balance at**
**31 March 2023**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
**STG£**
163,845,824
- 12,999,089
-
(15,599,723)
9,924,710
(675,584)
170,494,316
81,922,912
- 6,499,544
-
(7,799,861)
4,962,355
(337,792)
85,247,158
195,626,264
-15,520,463
-
(18,625,530)
11,849,761
(806,624)
203,564,334| ||441,395,000
- 35,019,096
-
(42,025,114)
26,736,826
(1,820,000)
459,305,808
18,621,506 20,146,684
-
(8,813,406)
-
(9,924,710)
- 20,030,074
9,310,753 10,073,342
-
(4,406,703)
-
(4,962,355)
- 10,015,037
22,233,43524,054,445
-
(10,522,902)
-
(11,849,761)
- 23,915,217| ||50,165,694
54,274,471
-
(23,743,011)
-
(26,736,826)
-
53,960,328| ||**491,560,694**
**54,274,471**
**35,019,096**
**(23,743,011)**
**(42,025,114)**
**-**
**(1,820,000)**
**513,266,136**| Page 53 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **23 ANALYSIS OF THE MOVEMENT IN CHARITABLE FUNDS (continued)** The Foundation holds the following funds: **Permanent endowment fund** - represents the endowment which is held as capital in perpetuity so that only the income is available for distribution. **Restricted income fund** - represents money which is intended to enable the Foundation to maintain the capacity for making grants whilst balancing the needs of present and future beneficiaries. The Foundation’s governing document goes on to provide that these reserves be further apportioned to the following funds: 1. The Irish Church Fund (for charitable causes connected to the Roman Catholic Church in the Republic of Ireland); 2. The British Church Fund (for charitable causes connected to the Roman Catholic Church in England, Isle of Man and Wales); and 3. The General Fund (for charitable purposes in England, Isle of Man, Republic of Ireland and Wales) The grant-making policies set out the following proportions: 1. The Irish Church Fund – 18.56% 2. The British Church Fund – 37.12% 3. The General Fund – 44.32% Page 54 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **24 ALLOCATION OF ASSETS AND LIABILITIES BY FUND** |**Group**
**Notes**
**Fixed assets**
Intangible fixed assets
16
Tangible fixed assets
12
Investment properties
15
**Current assets**
Listed investments
14
Debtors
17
Cash at bank and in hand
18
**CREDITORS (Amounts falling due within one**
**year)**
19
**CREDITORS (Amounts falling due in more than**
**one year)**
20
**TOTAL NET ASSETS**|**Restricted**
**funds**
**Permanent**
**Endowment**
**Funds**
**2023**
**Total**
**STG£**
**STG£**
**STG£**
52,766
-
52,766
23,423
3,780,000
3,803,423
38,133,247
417,519,999
455,653,246
38,209,436
421,299,999
459,509,435
10,055,369
-
10,055,369
13,279,852
-
13,279,852
98,106,222
38,005,809
136,112,031
121,441,443
38,005,809
159,447,252
(12,688,291)
-
(12,688,291)
(260,713)
-
(260,713)
**146,701,875**
**459,305,808**
**606,007,683**
**31 March 2023**|**Restricted**
**funds**
**Permanent**
**Endowment**
**Funds**
**2022**
**Total**
**STG£**
**STG£**
**STG£**
87,911
-
87,911
35,138
5,600,000
5,635,138
38,704,882
429,995,000
468,699,882
**31 March 2022**| |---|---|---| |||38,827,931
435,595,000
474,422,931
5,518,789
-
5,518,789
7,145,235
-
7,145,235
142,787,141
5,800,000
148,587,141| |||155,451,165
5,800,000
161,251,165
(4,515,040)
-
(4,515,040)
(181,433)
-
(181,433)| |||**189,582,623**
**441,395,000**
**630,977,623**| Page 55 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **24 ALLOCATION OF ASSETS AND LIABILITIES BY FUND** |**Foundation**
**Notes**
**Fixed assets**
Tangible fixed assets
12
Investments
Investment properties
15
**Current assets**
Debtors
17
Cash at bank and in hand
18
**CREDITORS (Amounts falling due within one**
**year)**
19
**TOTAL NET ASSETS**|**Restricted**
**funds**
**Permanent**
**Endowment**
**Funds**
**2023**
**Total**
**STG£**
**STG£**
**STG£**
-
3,780,000
3,780,000
105
-
105
87,357
417,519,999
417,607,356
87,462
421,299,999
421,387,461
8,773,523
-
8,773,523
64,302,264
38,005,809
102,308,073
73,075,787
38,005,809
111,081,596
(19,202,921)
-
(19,202,921)
**53,960,328**
**459,305,808**
**513,266,136**
**31 March 2023**|**Restricted**
**funds**
**Permanent**
**Endowment**
**Funds**
**2022**
**Total**
**STG£**
**STG£**
**STG£**
-
5,600,000
5,600,000
105
-
105
87,356
429,995,000
430,082,356
**31 March 2022**| |---|---|---| |||87,461
435,595,000
435,682,461
529,982
-
529,982
54,193,156
5,800,000
59,993,156| |||54,723,138
5,800,000
60,523,138
(4,644,905)
-
(4,644,905)| |||**50,165,694**
**441,395,000**
**491,560,694**| Page 56 ## **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** |**25 PROVISIONS**
**Group**
Provisions introduced at the start of the period
Movement in provisions
As at 31 March|**2023**
**STG£**
300,628
(279,114)
21,514|**2022**
**STG£**
96,848
203,780| |---|---|---| |||300,628| The Directors of Derwent Management Limited resolved to approve a termination payment to a former employee. This was paid in April 2023. ## **26 CONTINGENT LIABILITIES** The Group held the contingent liabilities as follows: |**Group**
Undertakings under S106 and S278 Town and Country Planning Act 1990|**2023**
**STG£**
81,550
81,550|**2022**
**STG£**
151,550| |---|---|---| |||151,550| Contingent liabilities are not recognised in the accounts. There is a risk that wholly owned subsidiary Anglo International Upholland Limited will be issued an urgent works notice by the Local Authority for works and repairs to be carried out on the Seminary, being a grade listed building. The risk, whilst not presently being considered either probable or remote requires disclosure, with the possible works being estimated at STG£15m (2022: STG£10.4m). ## **27 OPERATING LEASES** As at 31 March 2023, the Group is contracted to receive the following annual receipts in respect of operating leases; |**Group**
Within 1 year
After 1 year & not later than 5 years
Above 5 years
**Foundation**
Within 1 year
After 1 year & not later than 5 years
Above 5 years|**2023**
**STG£**
34,797,222
117,208,205
128,842,798
280,848,225
**2023**
**STG£**
33,095,282
111,927,522
118,910,176
263,932,980|**2022**
**STG£**
2,842,907
4,916,698
9,095,888| |---|---|---| |||16,855,493| |||**2022**
**STG£**
1,426,102
-
-| |||1,426,102| Page 57 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **28 RELATED PARTY TRANSACTIONS AND BALANCES** ## **28.1 Transactions and balances with related parties** During the period the group had dealings with related party undertakings as follows: |**Group**
Opening balance
Movement in the year
Closing balance (Note 28.2 & 28.3)
**Foundation**
Opening balance
Movement in the year
Closing balance (Note 28.2 & 28.3)|**Total**
**STG£**
**Creditors**
(367,437)
2,696
(364,741)
(1,619,680)
(7,342,827)
(8,962,507)|**Total**
**STG£**
**Debtors**
404,490
(456,953)
(52,463)
163,472
(163,472)
-|**Total**
**STG£**
**Combined**
37,053
(454,257)| |---|---|---|---| ||||(417,204)| ||||(1,456,208)
(7,506,299)| ||||(8,962,507)| Included within the movement in the year are the following material transactions: - Rent and service charge expense of STG£50,484 (2022: STG£Nil) paid to Derwent Estates Limited - Group service recharge of STG£1,558,890 (2022: STG£339,468) paid to Derwent Estates Limited - Group service recharge of £1,848,058 (2022: STG £179,212) paid to Derwent Management Limited ## **28.2 Balances with related parties** **Debtors - amounts falling due within one year:** |**Group**
Alvanley Limited
Hafod Management Services Company Limited
Mount Murray Homes Limited
College Farm Management Company Limited
The Mallards Management Company Limited
The Santon Private Trust Company Limited
The Old Foundry Management Services Company Limited|**2023**
**STG£**
-
11,160
30,056
-
-
-
11,247
52,463|**2022**
**STG£**
1,805
10,624
29,328
13
2,069
355,638
5,013| |---|---|---| |||404,490| The above balances are interest free, unsecured and repayable on demand. These balances relate to group companies which have been excluded from the consolidation on the basis that they are a non core entity and are immaterial to the group, refer to note 13 for further details. |**Foundation**
Derwent Management Limited
AGF Brandon Limited
Anglo International Upholland Limited|**2023**
**STG£**
-
12,154
-
12,154|**2022**
**STG£**
147,332
380
15,760| |---|---|---| |||163,472| The above balances are interest free, unsecured and repayable on demand. Page 58 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **28 RELATED PARTY TRANSACTIONS AND BALANCES (continued)** ## **28.3 Creditors - amounts falling due within one year:** |**Group**
Deposit liabilities for estate of Albert Gubay (the Foundation's founder)|**2023**
**STG£**
364,741
364,741|**2022**
**STG£**
367,437| |---|---|---| |||367,437| Deposit liabilities held on behalf of the estate of Mr Gubay (the Foundation's founder) were repayable on demand, interest free and unsecured. These were held within a subsidiary company, Derwent Capital Limited. |**Foundation**
Derwent Capital Limited
Mardown Limited
Derwent Development Management Limited
Derwent Estates Limited
Derwent Holdings Limited
Albert Gubay Charitable Foundation No. 2
Cashtal Properties Limited
Derwent Group Holdings Limited|**2023**
**STG£**
8,563,325
399,182
-
-
-
-
-
-
8,962,507|**2022**
**STG£**
-
-
44,225
25,546
1,485,092
50
32,500
32,267| |---|---|---| |||1,619,680| The above balances are interest free, unsecured and repayable on demand. **28.4** The transactions and balances within the year relate to group undertakings apart from the transactions with the Santon Private Trust Company ("SPTC") which is a company outside of the group, however, a related party due to the significant influence that the group has over SPTC. Included within the movement for the year were payment of legal and professional expenses on behalf of Santon Trust Private Company amounting to STG£248,546 (2022: STG£Nil), funded by Derwent Capital Limited for professional fees paid in relation to a Deed of Indemnity between AGF Brandon Limited and the Santon Private Trust Company Limited. The following donations were received by the Foundation from related parties without condition: - Qualifying charitable donation of STG£170,118 from Derwent Estates Limited - Qualifying charitable donation of STG£11,314,608 from Derwent Holdings Limited - Cash gift of STG£12,000,000 from Derwent Capital Limited - Cash gift of STG£23,000,000 from Derwent Holdings Limited - Gift of investment properties amounting to STG£19,096 from Derwent Holdings Limited ## **29 COMMITMENTS** ## **29.1 CAPITAL COMMITMENTS** There were capital commitments of STG£73.7m as at 31 March 2023 (2022: STG£67.8m). These commitments have arisen from the development costs contractually agreed and authorised by the Directors of Derwent Development Management Limited on behalf of the Albert Gubay Charitable Foundation, a related party, that own the properties and ultimately bear the costs. Page 59 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **29 COMMITMENTS (continued)** ## **29.2 GRANT COMMITMENTS** The Foundation has the following commitments to make further grant awards should certain conditions be met to the satisfaction of the Foundation: |British Church Fund
#########
Irish Church Fund
##########
General Fund
##########
Total further grants subject to certain conditions
British Church Fund
Due during the remaining period to 31 December 2023:
Archdiocese of Westminster - Caritas Bakhita House
Archdiocese of Birmingham - St Elizabeth's Community Hall
Archdiocese of Cardiff - St Illtyd's
Archdiocese of Westminster
Caritas Salford - Bury Red Door
Caritas Salford - Cornerstones
Catholic Care (D of Leeds)
D of Arundel & Brighton - St Thomas
D of Hallam - Carmel Care Centre
D of Leeds - Holy Rosary Church
D of Portsmouth - Hubs
DePaul
Diocese of Leeds - St Augustine's
Leeds Diocesan Trust - St Wilfred's
Little Sisters of the Poor - Leeds
Little Sisters of the Poor - Leeds & Newcastle
Out There Supporting Families of Prisoners
Portsmouth Diocesan Trust
Roman Catholic Diocese of Hallam
Santa Marta Group
Shrewsbury RC Diocesan Trust - St Joseph's
St John of God Hospitaller Services
St Mary's Catholic University
St Mary's University
The Kenelm Youth Trust
The Nehemiah Project
The Salford Diocesan Trust - St Edmund's Church
Ukrainian Catholic Eparchy
Your Place (London) Ltd
Archdiocese of Westminster - SEIDS|**2023**
**STG£**
4,335,428
##########
1,069,357
##########
11,852,440
##########
17,257,225|**2022**
**STG£**
2,324,820
273,929
3,980,523| |---|---|---| |||6,579,272| |||**STG£**
100,000
300,000
268,000
300,000
59,102
100,000
22,120
32,968
6,050
6,423
30,000
93,821
25,000
50,000
200,000
200,000
35,500
300,000
21,000
250,000
310,184
46,640
10,000
19,350
20,000
50,000
100,000
45,000
100,000
45,000| |||3,146,158| Page 60 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **29.2 GRANT COMMITMENTS (continued)** ## British Church Fund |Due during the year to 31 December 2024:
Archdiocese of Cardiff - St Illtyd's
Borderlands
Caritas Salford - Bury Red Door
Caritas Salford - Cornerstones
Catholic Care (D of Leeds)
D of Hallam - Carmel Care Centre
D of Portsmouth - Hubs
DePaul
Nugent Care
Santa Marta Group
Due during the year to 31 December 2025:
AD of Westminster - SEIDS
Caritas Salford - Cornerstones
Nugent Care
Santa Marta Group
Due during the year to 31 December 2026:
Santa Marta Group
Irish Church Fund
Due during the remaining period to 31 December 2023:
Archdiocese of Dublin - Holy Redeemer
Archdiocese of Dublin - Our Lady of Victories
Archdiocese of Dublin - St Andrew's
Archdiocese of Dublin - St Brigid's
Crosscare - Migrants
Crosscare - Portland Row Centre
D of Armagh - Redemptorist Mater
D of Cork & Ross - Gurranabraher Youth
Diocese of Ardagh & Clonmacnoise - St Patrick's
Diocese of Clogher - St Patrick's Basilica
Diocese of Cork and Ross - Farranferris
Diocese of Elphin
Diocese of Kildare and Leighlin - St Brigid's
Due during the year to 31 December 2024:
Ballina Churches Together
Crosscare - Mental Health Support
Crosscare - Migrants
D of Armagh - Redemptorist Mater|**STG£**
60,000
41,981
121,753
100,000
22,370
6,100
30,000
98,758
9,654
500,000| |---|---| ||990,616| ||14,000
50,000
9,654
125,000| ||198,654| ||| ||125,000| ||130,000
160,000
8,400
75,000
42,833
20,000
172,900
71,451
50,000
75,000
50,000
25,000
5,000| ||885,584| ||25,000
72,715
42,833
43,225| ||183,773| Page 61 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **29.2 GRANT COMMITMENTS (continued)** ## General Fund |Due during the remaining period to 31 December 2023:
A Band of Brothers
Abergele Community Action
Access Sport
Action Medical Research - PRIOR AI
AF & V Launchpad
AF & V Launchpad - Liverpool
Age UK - West Sussex
Age UK - Wakefield District
Albert's of Salford CIO
ASPIRE
Asthma & Lung UK
Ategi Limited
Avery Fields Community Sports Trust - Wheelchair Rugby
Back on Track
Bendrigg Trust - Someone Like Me
Blood Cancer Research (Bloodwise)
Bolton Lads & Girls Club
Carlisle Youth Zone
Church Urban Fund - Wayfinder
Coffee 4 Craig
Community Initiatives South West
Community Little Hulton
Contact a Family
Crohn's & Colitis UK
Emmaus Merseyside
Families United Network
Family Care Trust
FareShare UK (North Wales)
Fight for Sight
Fylde Community Association - Wheelchair Rugby
Gilgal Birmingham
Greater Manchester Youth Network
Groundwork Greater Manchester - Carers
Grow UK
Halow Birmingham
Home Start Cymru for Families
Homeless Support Project
Hope at Home
Hospice Care (IoM)
Just Ice
Kennedy Street Foundation
Kensington Fields Community Association
Macular Society
Macular Society - AMD & CFI
Making It Out
Meath Epilepsy Charity
Multiple Sclerosis Society
Muscular Dystrophy UK - Charcot Marie
North West Cancer Research
Oasis Domestic Abuse Service Ltd
Pan Intercultural Arts
_Sub-total_|**STG£**
90,000
63,000
21,175
83,352
30,026
29,813
40,000
80,000
50,000
18,000
84,593
45,029
16,000
105,000
33,364
54,080
30,233
30,000
50,000
30,000
20,000
1,037,900
25,000
44,361
50,000
15,000
93,500
88,822
181,081
20,000
20,000
56,195
73,724
50,000
22,500
90,000
47,365
35,000
133,333
25,000
45,000
31,805
390,000
20,000
56,935
76,848
157,514
74,853
100,000
45,846
100,000| |---|---| ||4,211,247| Page 62 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **29.2 GRANT COMMITMENTS (continued)** |General Fund
Due during the remaining period to 31 December 2023:
_Brought forward sub-total_
Parents Against Child Exploitation (PACE)
Phoenix Charity
Project Turn-Over
Prostate Cancer UK
Pure Insight
Re:Source Blackburn
Reach Learning Disability
Recycling Lives
Rhyl Little Theatre
Rotunda
Salford CVS
Salford Loaves & Fishes
Sanctuary Trust - N Wales Homeless
Sanctuary Trust - Oldham & Rochdale
Sandwell Citizens Advocacy
Sawyers Church
Somerset & Avon Sexual Abuse Support
South Essex Community Hub
SPOONS
Sport4Life UK
Sporting Challenge
St Christopher's Fellowship IOM
Stanley Grange Community Association
Stonebridge City Farm
Stroke Association
Style Acre
SWACA
The Burrough Harmony Centre
The Cathedral Quarter Trust - Cathedral
The Cure Parkinson's Trust
The Garwood Foundation
The Harbour
The Mary Steven's Hospice
The Matthew Project
The Mortimer Society
The Mustard Tree
The National Youth Advocacy Service
The Stroke Association
THOMAS
Together Dementia Support - At Home
Venus
Waltham Forest Churches Homeless Project
Warwickshire Wheelchair Basketball Academy
Waters Edge Arts Ltd
We Mind The Gap
Wellbeing of Women
West London Mission Methodist Circuit
Whitechapel Centre
Yad Veachisomoch L'Chaim - Foodbank
Yeldall Christian Centres|**STG£**
4,211,247| |---|---| ||47,660
6,750
50,000
200,000
105,000
20,800
66,465
210,600
105,000
89,847
375,000
71,940
41,459
23,400
27,500
10,000
21,233
24,470
46,100
100,000
28,500
78,932
65,000
67,490
31,177
100,000
22,964
60,000
250,000
150,000
9,000
25,000
4,000
32,140
160,867
72,500
37,764
133,666
100,000
39,946
7,000
100,000
20,000
44,100
50,000
9,600
25,000
97,075
50,000
30,000| 7,756,192 Page 63 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **29.2 GRANT COMMITMENTS (continued)** ## General Fund |Due during the year to 31 December 2024:|**STG£**| |---|---| |Abergele Community Action|39,000| |Action Medical Research - PRIOR AI|43,482| |AF & V Launchpad|31,227| |AF & V Launchpad - Liverpool|31,303| |ASHAR|15,600| |Azad Kashmir Welfare Association|25,000| |Back on Track|35,000| |Bendrigg Trust - Someone Like Me|37,449| |Bolton Lads & Girls Club|30,837| |Broughton House - Admiral Nurse|43,148| |Chapter West Cheshire|25,715| |Church Urban Fund - Wayfinder|50,000| |Clapton Common Boys Club|4,974| |Contact a Family|25,000| |Epilepsy Research UK|35,000| |Fortalice - Family Worker No 2|20,818| |Fylde Community Association - Wheelchair Rugby|20,000| |Greater Manchester Youth Network|54,279| |Groundwork Greater Manchester - Carers|75,802| |Grow UK|60,000| |Halow Birmingham - Prisoner's Children|23,250| |Hope at Home|35,000| |Hope for Justice|25,000| |Hospice Care (IoM)|133,333| |Macular Society - AMD & CFI|10,000| |Mersey Counselling & Therapy Service|34,330| |Multiple Sclerosis Society|236,486| |New Horizon Youth Centre|50,000| |Parents Against Child Exploitation (PACE)|49,740| |Recycling Lives|31,212| |Salford CVS|750,000| |Sandwell Citizens Advocacy|28,000| |Sefton Women's & Children's Aid|32,906| |SNAPS|13,542| |Somerset & Avon Sexual Abuse Support|21,657| |Sport4Life UK|100,000| |The Brain Tumour Charity (SRC)|83,334| |The Harbour|25,000| |The Living Room|60,000| |The Matthew Project|33,150| |The Meath Epilepsy Charity|27,384| |The Sanctuary Trust - N Wales Homeless|42,288| |The Stroke Association|34,131| |Together Dementia Support - At Home|39,946| |Warwickshire Wheelchair Basketball Academy|20,000| |Waters Edge Arts Ltd|45,425| |We Mind The Gap|25,000| |West London Mission|25,000| |Whitechapel Centre|98,345| |Women's Health Matters|22,500| 2,859,593 Page 64 **THE ALBERT GUBAY CHARITABLE FOUNDATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023 (continued)** ## **29.2 GRANT COMMITMENTS (continued)** |General Fund
Due during the year to 31 December 2025:
Azad Kashmir Welfare Association
Back on Track
Broughton House - Admiral Nurse
Contact a Family
Greater Manchester Youth Network
Grow UK
Multiple Sclerosis Society
Salford CVS
Due during the year to 31 December 2026:
Multiple Sclerosis Society|**STG£**
25,000
35,000
44,873
20,217
55,079
70,000
157,729
750,000| |---|---| ||1,157,898| ||78,757| ||78,757| Grants are only awarded based on the funds available for distribution, whether these are one-off grant payments or multi-annual payments. No commitments are made where the funds are not available. Therefore, no grants are awarded where they are dependent on future income. The longest commitment undertaken is 5 years, though in general, commitments are usually no longer than 3 years. ## **30 PARENT UNDERTAKING AND ULTIMATE CONTROLLING PARTY** As at 31 March 2023, the immediate and ultimate controlling party of the Albert Gubay Charitable Foundation is Albert Gubay Trustee Limited, a company incorporated in England and Wales, in its capacity as the Foundation's Trustee. ## **31 EVENTS SINCE THE STATEMENT OF FINANCIAL POSITION DATE** Qualifying charitable donations of STG£261,494 from Cashtal Properties Limited, STG£313,522 from Derwent Development Management Limited and STG£108,024 from Derwent Estates Limited were received on 6 December 2023 by Albert Gubay Trustee Limited in its capacity as the Trustee of the Albert Gubay Charitable Foundation. On 28 July 2023, Albert Gubay Trustee Limited in its capacity as the Trustee of the Albert Gubay Charitable Foundation disposed of Cardinal House for STG£11,000,000. Page 65