The Esprit Foundation
(a charitable company limited by guarantee)
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023
Company Number CE029070 Charity Number 1198436
THE ESPRIT FOUNDATION
CONTENTS PAGE
FOR THE PERIOD ENDED 31 MARCH 2023
| Legal and administrative details | 2 |
|---|---|
| Report of the trustees | 3-4 |
| Independent Examination report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Cashflow Statement | 8 |
| Notes to the financial statements | 9-12 |
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THE ESPRIT FOUNDATION
LEGAL AND ADMINISTRATIVE DETAILS
FOR THE PERIOD ENDED 31 MARCH 2023
| Trustees | Stuart Malcolm Chapman |
|---|---|
| Rupinder Kaur Ashworth | |
| Vincent Alfred O�Brien | |
| Registered Office | 20 Garrick Street |
| London | |
| WC2E 9BT | |
| Company number: | CE029070 |
| Charity number: | 1198436 |
| Accountants: | Haysmacintyre LLP |
| 10 Queen Street Place | |
| London | |
| EC4R 1AG | |
| Independent Examiner: | Haysmacintyre LLP |
| 10 Queen Street Place | |
| London | |
| EC4R 1AG | |
| Solicitors | BDB Pitmans LLP, |
| One Bartholomew Close, | |
| London | |
| EC1A 7BL | |
| Bankers | HSBC Innovation Banking, |
| Alphabeta, 14-18 Finsbury Square, | |
| London, | |
| EC2A 1BR |
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THE ESPRIT FOUNDATION
TRUSTEES� REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
The Trustees present their annual report and financial statements of The Esprit Foundation (the Charity ) for the period ended 31 March 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the Charity�s CIO Constitution, the Charities Act 2011 and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Report Standard applicable in the UK and Republic of Ireland (FRS102).
Structure, governance and management
The Charity is a charitable incorporated organisation which was registered with the Charity Commission on 30 March 2022. The Charity�s governing document (i.e. its Constitution) is based on the �association� model with its sole member being Molten Ventures PLC (previously Draper Esprit PLC) with registered company number 09799594.
The Constitution requires there to be at least three Trustees. Trustees are appointed by the member and must retire by rotation; Trustees are eligible for re-appointment and may serve no more than three consecutive terms unless the remaining Trustees unanimously recommend to the member that it would be in the Charity�s best interest for a particular Trustee to serve an additional term. On or before their appointment as a Trustee, the Trustee will be given a copy of the Constitution and the Charity�s lates Trustees� annual report and statement of accounts.
The names of all those who were the Charity�s Trustees on the date the report was approved are listed on page 2.
Objectives and activities
The objects of the Charity as stated in its Constitution are: �for such charitable purposes as the Trustees think fit including but not exclusively, the advancement of education for the public benefit and especially those under the age of 30, in particular but not solely by the promotion and understanding of:
-
(a) the use and application of technology and technological research; and
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(b) business and entrepreneurship.�
The Charity has in place policy guidelines that outline the factors to which the Trustees should have regard when determining whether to make a grant.
Achievements and performance
The income for the year was £250,000 as a result of a donation of £250,000. In the financial year, the Charity did not make any grants.
In the next financial year, the Charity plans to make grants with two initial grants of £25,000 in the pipeline, both of which are focussed upon social mobility and access to entrepreneurship (with an emphasis on young people) in alignment with the Charity�s objects.
Financial review
During the year, the Charity raised donations of £250,000. The Charity did not make any grants. Funds carried forward at the year-end were £239,210.
The Charity maintained ample funds during the year to meet all associated costs, liabilities and grants.
Having regard to the quantum of donations received; level of expenses and liabilities incurred; and volume of grants (nil), the Charity did not operate a formal reserves policy during the period, but is committed to adopting one in the next financial year which will set out the minimum level of free reserves that the Charity will maintain in order to cover all (i) ongoing governance, support and operational costs; (ii) grants that the Charity has committed to award; and (iii) additional grant requests which the Trustees may approve from time to time.
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THE ESPRIT FOUNDATION
TRUSTEES� REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
Risk management
The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonably assurance against fraud and error. The Trustees will continue to develop appropriate methodologies to manage major risks as the operations of the Charity are developed.
Going concern
The Trustees are satisfied that there will be no long term impact on the going concern of the Charity.
Public benefit statement
The Trustees, having regard to the public benefit guidance published by the Charity Commission in accordance with
section 17 of the Charities Act 2011, consider that the purposes and activities of the Charity satisfy the requirements of the public benefit test set out in section 4 of the same Act. The Charity carries out these objects by providing grants to individuals and organisations whose objects comply with the Charity�s criteria.
The Accounts
The accounts comply with statutory requirements.
Trustees� responsibilities in relation to the financial statements
The Trustees are responsible for preparing the Trustees� report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards. The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently; observe the methods and principles of the Charities SORP;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustees on 2023 and signed on their behalf by:
Stuart Chapman
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INDEPENDENT EXAMINER�S REPORT TO THE TRUSTEES OF THE ESPRIT FOUNDATION
FOR THE PERIOD ENDED 31 MARCH 2023
I report to the Trustees on my examination of the accounts The Esprit Foundation for the year ended 31 March 2023 which are set out on pages 6 to 12.
Respective responsibilities of trustees and examiner
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (�the 2006 Act�). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.
Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company�s accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the applicable directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner�s statement
Since the charity�s income is in excess of £250,000, your examiner must be a member of a body listed in the 2011 Act. I can confirm that I am qualified to undertake the examination because I am a registered member of the Institute of Chartered Accountants in England and Wales which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a �true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Siobhan Holmes Haysmacintyre LLP, 10 Queen Street Place London EC4R 1AG Date: 5 December 2023 11 December 2023
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THE ESPRIT FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (Incorporating income and expenditure account)
FOR THE PERIOD ENDED 31 MARCH 2023
| Note | Total | |
|---|---|---|
| 2023 | ||
| £ | ||
| Income from: | ||
| Donations and legacies | 3 | 250,000 |
| Interest | 10 | |
| ----------------- | ||
| Total income | 250,010 | |
| ----------------- | ||
| Expenditure on: | ||
| Charitable activities | ||
| Other expenditure | 5 | 10,800 |
| ---------------- | ||
| Total expenditure | 10,800 | |
| ----------------- | ||
| 10,800 | ||
| ----------------- | ||
| Net movement in funds | 239,210 | |
| Reconciliation of funds: | ========== | |
| Reconciliation of funds: | ||
| Total funds brought forward | ||
| 239,210 | ||
| Net movement in funds | ||
| ----------------- | ||
| Total funds carried forward | 239,210 | |
| ========== |
All of the Charity�s funds in the current year were unrestricted.
The Statement of Financial Activities includes all gains and losses recognised in the period. The notes set out on pages 9 to 12 form an integral part of these financial statements.
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THE ESPRIT FOUNDATION
BALANCE SHEET
FOR THE PERIOD ENDED 31 MARCH 2023
Company number: CE029070
| 2023 | |||
|---|---|---|---|
| Note | £ | ||
| Current assets | |||
| Cash at bank and in hand | 250,010 | ||
| --------------- | |||
| 250,010 | |||
| Creditors: amounts falling due | |||
| within one year | 8 | (10,800) | |
| --------------- | |||
| Net current assets | 239,210 | ||
| --------------- | |||
| Total assets less current | 239,210 | ||
| liabilities | |||
| --------------- | |||
| Total net assets | 239,210 | ||
| ======== | |||
| Charity funds | |||
| Unrestricted funds | 9 | 239,410 | |
| --------------- | |||
| Total funds | 239,410 | ||
| ======== |
The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of the financial statements.
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
These financial statements were approved and authorised for issue by the Trustees on 5 December 202 and signed on its behalf by:
Stuart Chapman
Trustee
The notes set out on pages 9 to 12 form an integral part of these financial statements.
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THE ESPRIT FOUNDATION
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
| Note | 2023 | |
|---|---|---|
| £ | ||
| Cash flows from operating activities | ||
| Net cash used in operating activities | 11 | 250,010 |
| ------------------ | ||
| Change in cash and cash equivalents in the reporting | ||
| period | 250,010 | |
| ------------------ | ||
| Cash and cash equivalents at the end of the | ||
| period | 250,010 | |
| ========== |
The notes set out on pages 9 to 12 form an integral part of these financial statements.
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THE ESPRIT FOUNDATION
FOR THE PERIOD ENDED 31 MARCH 2023
NOTES TO THE FINANCIAL STATEMENTS
1. General information
The Esprit Foundation, the 'Charity' is a company limited by guarantee, charity number 1198436 and company number CE029070 registered in England and Wales. Its registered office is 20 Garrick Street, London, WC2E 9BT.
2. ACCOUNTING POLICIES
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance of with the Charities SORP (FRS 102) � Accounting and Reporting by Charities: Statement of Recommended Practise applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Esprit Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going Concern
After making appropriate enquiries, the Trustees have a responsible expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
2.3 Fund Accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for the other purposes.
2.4 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
2.5 Expenditure
Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of resources.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company�s objectives, as well as any associated support costs.
Grants payable are charged in the period when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the period end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
THE ESPRIT FOUNDATION
2 Accounting policies (continued)
2.6 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.7 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.8 Creditors and provisions
Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle that obligation can be measured or estimated reliably. Creditors and provisions are initially recognised at transaction value as none represent a financing transaction. They are only derecognised when they are extinguished.
2.9 Critical accounting judgements or estimation
The trustees do not consider there to be any significant judgements or sources of estimation uncertainty in relation to the preparation of the financial statements.
2.10 Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 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.
3. Income from donations and legacies
Total Funds 2023 £
Donations
250,000 -------------250,000 ========
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THE ESPRIT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
4. Analysis of Grants
During the year the Foundation made no grants.
5. Other expenditure
Total Funds 2023 £
| Audit and accountancy fees | 10,800 |
|---|---|
| ------------ | |
| 10,800 | |
| ======= |
6. Staff costs
During the period, there were no staff costs.
7. Trustees renumeration and expenses
During the period, no Trustees received any remuneration or other benefits.
8. Creditors: Amounts falling due within one year
| Creditors: Amounts falling due within one year | |
|---|---|
| 2023 | |
| £ | |
| Trade creditors | 3,600 |
| Accruals and deferred income | 7,200 |
| ----------------- | |
| 10,800 | |
| ========= |
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THE ESPRIT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
9. Statement of Funds
| Balance at | |||
|---|---|---|---|
| 31 March | |||
| Income | Expenditure | 2023 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General Funds � all funds | 250,010 | (10,800) | 239,210 |
| -------------------- | ------------------ |
--------------- | |
| 250,000 | 10,8000 | 239,210 | |
| ========== | ========== | ========= |
10. Analysis of net assets between funds
| Analysis of net assets between funds | |
|---|---|
| Total | |
| Funds | |
| 2023 | |
| £ | |
| Current assets | 250,010 |
| Creditors due within one year | (10,800) |
| --------------- | |
| Total | 239,210 |
| ======== |
11. Analysis of cash and cash equivalents
| Analysis of cash and cash equivalents | |
|---|---|
| 2023 | |
| £ | |
| Cash at bank | 250,010 |
| --------------- | |
| Total cash and cash equivalents | 250,010 |
| ======== |
12. Related party transactions
During the period, donations of £250,000 were received from the chair of The Esprit Foundation. The chair is a irector of Molten Ventures PLC a connected company.
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