ALLIANCE HOUSE FOUNDATION Company Numb&r: 372490 Charity Number.. 208564 DIRECTORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Klngston Burrowes Audlt Ltd 308 Ewell Road Surbiton Surrey KT6 7AL
ALLIANCE HOUSE FOUNDATION Company Number.. 372490 Charity NLJmber'. 208554 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 CONTENTS PAGES Directors, Report Independent Auditor's Report 10-12 Slalemenl of Financial Activities Balance Sheet 14 Cash Flow Slalerllenl 15 Notes lo the Financial Statements 16-26
ALLIANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Introduction The Directors of Alliance House Foundation present Ihelr annual report and the audited financial statements for the year ended 31 March 2024 which are also prepared to meet the requirements for a Directors, report and accounts for the purposes of the Companies A¢1 2006. The financi81 slalemants have been prepared in compliance with the Charitie5 Act 2011. Companies Act 2006, UK Generally Accepted Accounting Practice, the Memorandutn and Articles of Association and the accounting 8nd Reporting by Charities." Statement of Recommended Practice applicable to charities preparing their accounts in aGcordance with the Financlal Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (effective October 2019). Our Objectives and Activitles ive The objectives of th2 Charity are-. to spread the princpples of total abstinence from alcoholic drinks to promote the moral snd physical welfere of the comrnunily to promote the SGienlifi¢ study of tho properties of alcohol and the affects of ils use upon the human systenF, the social and moral consequences and the distribution of information on the subject In pursuing these objectives, the Charity is commilled lo promoting education on the subject of alcohol use and making information available to encourage a reduction in alcohol related hartn to individuals, families and in society in general. The Charity pursues activities that aim lo contribute to the improvement in the quality of lrfe for the general public and lo this end the Directors have taken into consideration the Charity Commission's guidance on public benefit, including th& guidance 'Public Benefit.. running a Charity IPB21" The actDlities of the Charity primarily focus on grant making in support of ils charitable aims lo promote the dissemination of inlormalion. education and the offering of advice on alcohol strategies to minimise individual and societal harm arising from alcohol consumption. The Charity seaks to make this information as widely available as possible in ordèr that individuals and decision makers are able to make informed choices. Activities The Charity reviews ils objeclTves and aclivtties on an annual ba51s with reference lo an agreed strategic plan developed by the Directors. The activities undertaken by the Charity are considerad in relation lo the benefit the Charity seeks to bring to the general public. The Charity seeks to influenc& rèlevant bodies al a national. regional and international level identifying where the general public are affected by legislation or transnational health slralegies. In addition, It seeks lo provide information on the ways lo reduce the harmful use of alcohol and lo offer encouragement to those who seek to abstain from the use of alcohol.
ALLIANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Iconld... Sincè 1938, the Charity h8s owned and fTsainlained ils Westminster Office Building - Alliance House, as a base for its own work and as an investment propèrty to generate income lo finance its charitable activities. In December 2022 the Directors agreèd lo begin a process lo evaluate the viability of continued ownership of the property in the face of mounting logistical and economic challenges. During the year under review the directors commissionèd and received reports on the feasibility of retaining Alliance House. On receipt of those reports, directors look the difficult decision lo proceed with a sale of Alliance House and invest the proceeds of the property salg lo ensure the Charity can continue lo generate suffici&nt income to financ& fulure activities. Contracts for the sal& of Alliance House were exchanged in February of 2024 and cornplelion was achieved in April of 2024. The activities of the Alliance House Foundation are conducted through the projects which il finances and supports. During 2023124 this was principally the Institute of Alcohol Studies. Operational activities included maintaining the Allianc8 Hous& Foundation website, together with an aGGounl on the social media platform X (former Twitter) which continued to promotg an alcohol-free lifestyle. DLJring the year investigations were made into identifying a suitable new home lor AHF library and hisloriGal Temperance archive. In Dècember 2023, arrangements were concluded and the collèction was donated to the Livesey Colle¢lion, an internationally significant resource of the study of the Temperance Movement held al the Universlly of Central Lancashire. ecifi¢ Pro ects and Si nificant Activities Grant Makin Alliance House Foundation continues lo pursue UK educational and charitable activitiès primarily through ils grant to the work of the Instllule of Alcohol Studies IIASI. In supporting the charitable activities of IAS, AHF follows ils grant making policy, satisfied that in doing so it is complying with the AHF legal objects with iegard lo education and disserninating information distribution on alcohol namely.. to promote the scientific study of the properties of alcohol and the effects of ils usg upon (he hufft8n system, the social and moral consequences 8nd the distribution of information on the subject. The Institute of Alcohol Studies was founded as a project of AHF in 1983 and in 2006 it was conslituled as a separate charitable company. AHF makes a grant funding commitfflent lo IAS in order for it lo pursue ils aforementioned objectives. Tem erance Webslt&lSocial Media The Alliance House Foundation website www.alliancehousefovndation.o .uk continued lo be rnainlained. The websitè includes pages on all aspects of Temperance activity as an aid to the promotion of an alcohol-free lifestyle. The number of visitors and sub8Gribers to the website continued to increase slowly during the year. The AHF X account @AHFTèmpèrance rÈrnainÈd active, again promoting temperance and total abstinence, by regular tweets and engagement with other users interested in the subject. The numbers of followers also showed a small increase during the year.
ALLIANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Iconld... Achievemènts a ainst ob-acliv The AHF Directors pursue a policy of continually reviewing its activitiès and how these banefit and make a difference to the public. The Directors receive regular and full reports on the work and activities of the Institute of Alcohol Studies and monitor these aclivilies. Diractors are satisfied that the achievements match the aims and objectives of AHF in relation to education. The Dlrectors are actively considering projects and activities. It Is a condition of our grant making policy that inforrnalion produced by those in recèipt of grant funding is freely available lo the general public and widely disseminated. The Directors plan to review the Charity'8 grant making priorities dtjring the forthcoming financial year. The 8Ctivilies described above are undertaken lo seek to meet the Charity's aims and objectives and it is commilled lo further ils charitable purposes for the public benefit. The nature of these activities makes il difficult lo assess the impact of parbcular publications or projects. Specrfic measurements are made by the IAS of on-line activity and AHF are satisfied that wide public use is made of IAS material. Firbancial Review The year under r?view once again proved a financially challenging one as ongoing changes and challenges arising from the COVID-19 pandemic continued lo adversely affect demand for office accommodation in the London property market and the charity continued lo experience difficultiès in achieving propety lett4ngs and consequent increased costs. There was an unrealisèd gain on AHF listed inveslrnenls which was reflected in the financial statements for this financial year, regist8ring a reduction in nel expenditure. Resetw AHF follows a policy of continually reviewing ils reserves policy. Prior lo th8 sale of the investment property, the Directors were conscious that the charity was vulnerable lo sharp falls in incom& resulting from tenants choosing not to renew leases and vacating the property coupled with reduclions in demand in the property market, issues addressed in the AHF Reserves Policy. 11 was clear that a slgnlficanl sum musl be held in reseNe lo ensure that the charity was able lo react to events that may threaten ils main source of in¢ome. To this end the Directors considered that the level of reserves should normally be above £1.5 million. lo see the charity through any period of severely reduced rental income, bul not normally more than £2.5m. Followlng the sale of Alliance House, the directors adopted an updated Reserves Policy. The Charity held one reslricled fund during the year. This fund represents a legacy from Mrs Ross Phillips for chaiilabl& 8clivily in Scotland. The total in this fund at 31 March 2024 was £66,798. Al 31 March 2024 the level of free reserves stood at £2,021,440 which includes listed investments. This is within the target range of £1.5m-£2.5m for the charity's net liquid assets. The Directors have reviewed the level of reserves and are satisfied the target range is appropriate at the present time. The Directors are commilled lo monitoring the reserves figure relative to the largel range throughout th& financial year and lo maintsining the present level of activity and staffing of the Gharily's projects.
ALLIANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Icontd... Concer As stated below, the Directors undertake an annual risk assessment, which gives Careful Consideration lo factors that may impact upon the Gharity's ability lo move forward as a going concern, including business critical risks. The most recent assessment gave Directors confidence that any risks had bean sufficiently mitigated. Prior lo the exchange of contracts for sale, AHF had helcs financial Reserves to safeguard its activities in the faco of reduced rental income. As predicted in last year's report, reduced rental incom8 and increased expenditure on vacant space in the building had resulted in AHF having lo draw on reserves during the financial year. The Trustees have agreed that AHF will ¢onlinue lo honour all financial commitments made for year 8nd8d 31 March 2025 and in particular lo continue the grant funding required to sustain the work of the Institute of Alcohol Studies allhou9h savings by IAS had enabled the level of grant lo be reduced. Post Balance Sheet Events Contracts for sale were exchanged on 141h February 2024 and the sale was completed on 30th April 2024. AHF TruslèÈs will endeavour, where possible, to maintain the current level ol financial support lo IAS aclivilies. Princi al Risks and Un¢ertainli8s The Charity has conducted a reviw of the major risks to which the Charity is exposed using guidance producéd by the Charity Cornmission. This is an ongoing process of assessing thè types of risk facing th& Charity and identifying the means of rnitigaling those risks. The Charity rnainlains a risk register and internal control risks are minimised by the application of agreed inlemal financial procedures for the Charity. The risk register was review2d and updated during the year and the Charity will continue to follow the policy of undertaking regular reviews and assessments of the risks on a periodic basis and when major change requires them lo be conducted. Principal risks that th8 Charity is exposed lo had cenlred on the performance and slate of the central London property market as the Charity had relied on rental incoffle for a significant proportion ol ils income. Thus, falling rental value, empty offices generating no income and the necessity lo cover empty property rates had all had had an adverse effect on the Charity's ability lo maintain levels of activity. The Charity's reserve policy had sought to provide for such an eveniuality, and should such èvènts had tsken place the Charity could continue lo fulfil ils role. The Directors continued lo be aware Ihal there are repulalional risks in their area of aclivily. The Directors operate an Internal Audit Committee wrth responsibility to malntsin 8 continual review of the Charity's financial affairs and Produres. Princi al Fundin Sour¢es The principal source of funding for the Charity was from property incom8 which is Irealed as investment income. Operational expènditurè during the year was planned 8nd although income was insufficient lo cover these commitments, the Charity drew on reserves during the year.
ALLIANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Icontd... Penslon Liabili From 1 April 2010 thè Charity joined a defined colllNbulion scheme, the Flexible Retirement Plan, adminislerad by The Pensions Trust. There is also a discretionary pension arrangement with a number of retired employees. Payments lo these discrètionary pensioners during the year lolaled £18,044, one retired employee died duiing the financial year. Investmant Polic Alliance House Foundation raises funds through ils inveslmant activities and up to the 31st March 2024 held three types of investment. First, th2 Charity held th? property al Alliance House, London SW1 which had been Irealed as a long-lerm investment asset. The last property revaluation at 31 March 2022 had registered a valuation of £15,000,000. The propety continued lo generate an acceptable relum and produced a gross return in the region of 4.53%.12023.. 4.580/01. The investment property had been held lo geneT8le the bulk of the income required lo fund the Charity's activities. To protect this income the Charity had been required lo keep the asset in good repair lo ensure maintenance of occupancy rates and rental income. Secondly, the Charity invests in long lemi investment funds.. the CCLA administered, COIF Charities Ethical Investment Fund, which invests in a diverse portfolio and aims lo providè a long-lerm totsl return comprising capital growth and income. The gross annualised lolal return performance over the year was 13.1'/ts12023.' _20/01. The Epworth Mulli-Assel Fund for Charities. Gross annualised lolal return performance over the year for this fund was 8Q/o12023 . _4.4Dkl- These investments are held with the aim of producing a high average real return over a number of years whilst protecting th& value of the capital. Lastly the Charity holds a number of short-lerm cash investments of working capital which provide easy access lo funds not immediately required with an aim of protecting against the effects of inllalion. The Charity has adopted an ethical inv8slmant policy to ensure that its investments do not conflict wllh ils aims and Iherefore will not knowingly invest in companies or funds that derive revenues from beverage alcohol. structure Governance and Mana ement Governance AHF is a charitable company limited by guarantee, governed by a Memorandum of Association, which sets out the objects and powers of the charitsble company as revised in 2022. The Articles of Association allow for a minimum of three Directors with no upper limit. There are currèntly six Directors. The Dir6Ctors plan lo meet three limes per year. The Directors of the company are also Trustees for the purpose of Charity law. New mernbers of the Board are appointed by the Charity and are confirmecs at the next annual general meeting. They are elected for a period of three years after which they relirg by rotation and may $8èk re-election.
ALLIANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Icontd.. Recruilmenl of Board of Directors New Directors have historically been appointed from contacts made through the Charity's activities or by personal recommendation made by existing Directors. Polènlial Directors with relevant Charilylprofessional skills and an interest in alcohol issues have traditionally been largeled and selected for their knowledge and interest in the work of the Charity. The board of Directors remains kean to strengthen the diversity of th? Truslee body and conlinues to address this aim through the Nominations Committee which soeks lo identify and recruit new members. The Charity periodically conducts a Iruslees skill audit with an aim lo ensure there is an appropriatè mix of skills amongst the Board members. The findings of the audit are taken into account in future Director retirement and recruilmenl. During the year the Directors continued lo make effort5 to recruit at least two new additional Trustee5. Director Induction and Trainln All Directors are conversant with the day-to-day practical work of the Charity and Directors are kept up lo dale with developments in thè charitable sector. Upon appoinlmenl all Directors attend an induction meeting where their obligations under charity and cornpany law are explained. Directors are supplied with the Charity Commission "Welcome Pack., the guide 'The Essential Trustee" and details of the Charity Commission guidance on public benefit. Directors also receive a copy of the Memorandum and Articles of Association and the latest copy of the annual report and financial statements. Trustees arè invited lo allend a periodic strategic planning event, the most recént Df which look place in London in December 2022. The next event is planned for December 2025. All Directors give their lime voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity are sel out in note 12 to the accounts. The Directors have continued to hold a Charity Trustee Indemnity Insurance policy during the year. anisalional Structure The Financè Dirèctor is accountable lo th8 Diraetors for the efficient day-lo-day running of Alli8nce House Foundation and is responsible for the implemenlalion of poliGièS and strategie5 that have been agreed by the DireGlors. When urgent decisions are neGessary, these are made by the Finance Director i consultation wilh the Chair and other senior Officers. The next meeting of the Board is then asked lo ratify any decisions that have been taken. Managèment accounts are received al the Directors, meetings and the Officers are regularly updated with financial infomialion between rneelings. The Charity operates three sub-committees, namely 8 Nominations Committee. a Rernuneralion Committee and an Internal Audit Committee. Alliance House Foundation has an agreed range of organisalional policies 8nd procedures which reflect ils size and the range of activities il pursues. The policies may be consulted al th& AHF administrative office. Remuneration Three members the Board undertake the duties and responsibilities of a remuneration committee and are not themselves remunerated.
ALLtANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Icontd... The Board has adopted a pay scale and benchmarks ils pay and perfomiance structure against the nationally agreed academic single pay spine. Within this framework AHF mirrors London inslilulions 'professional services, scales, such as thosè adopted by Imperial College London. This ¢urrently comprises a scale of 52 spine points encompassed within 6 levels. Employees may be considered for progress lo the next salary point in their level by receiving a satisfactory annual appraisal. Every twelve months the Directors will determine whether the salary points should be adjusted lo reflect changes in the cost of living with reference lo the published CPI rale of inflation for month of January. The Remuneration Policy establishes a series of criteria that should be used in reaching a decision. With effect frorn 151 April 2023, a Cost of living incre8sÈ of 4Yts was awarded. Ernployees also received pension contributions equivalent lo 14.5VD of gross salary with employ88s conlribuling 7.5°/o. There were no stsff sicknèss or absence issues to report. Plans for the future The Directors will continue lo promote the aims and objects of Alliance Hous& Foundation through ils grant funding of the Institute of Alcohol Studies and developing the Charity's Social media strategy lo promote ils aiFns and objectives. The Charity will review ils grant making F)olicy during the year.
ALLIANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Iconld... Administration Information Alliance House Foundation is a Gharitable company, number 372490, limited by guarantee, incorporated on 23 February 1942 and registered with the Charity Cornmission for England and Wales under number 208554 in 1962. Dlrectors Who served during the period 1 April 2023 to datè.. Reverend Dr Stephen F. Skuce John G. Ellis Michael D. Cafr Dr Jon P. Curtis Reverend Professor Sleph&n C. Orchard Reverend Dr Janel E. Tollinglon Chair, NC Vice Chair, IAC & RC IAC. RC & NC. IAC, RC & NC IAC - Internal Audit Commillee, RC = Remuneration Committee & NC Nominations Committee Re istered Offi¢e Canopi Building, 82 Tanner Slreèl, London, SEI 3GN Senior Mana ement Paul R. Whitaker- Finance Director Auditors Kingston Burrowes Audit Ltd, 308 Ewell Road, Surbiton, Surrey, KT6 7AL Bankers National Westminster Bank PLC, 57 Victoria Slr8el, London, SW1 H 9NH Soli¢Ftors Farrer LLP, 66 Lincoln's Inn Fields. London, WC2R OQS Gordons LLP, Edgeborough House, Upper Edgeborough Road. Guildford. Surrey. GU12BJ Pro ert Advisers Fisher German LLP. 21 Ironmonger Lane, London EC2V 8EY Knight Frank, 55 Baker Street. London, W1 U 8AN Board of D1ctOrS The following Director retires by rolalion and offers himself for re-election at the Annual General Meeting Rev8rend Dr Stephen F. Skuce
ALLIANCE HOUSE FOUNDATION DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Iconld... Directors, Rès onsibilitses The Directors (who are also Trustees of Alliance House Foundation for the purposes of Charity Lawl are responsible for Preparing the Directors. Annual Report and financial statements in 8ccordanc& with applicable law and United Kingdom Accounting standards (United Kingdom Generally Accepted Accounting Praclicel. Gompany law requires the DireGlors lo prepare Financial Slalenients for each financlal year. Under company law the Iruslees musl not approve the financial statemènts unless they are satisfied that they give a true and fair view of the affairs of the charitable company and ol the incomin9 resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing those Financlal Slalemenls, the Oirectors are required to-. Select suitable accounting policies and apply them consistently Observe the methods and principles irk the Chari118s SORP 2019 IFRS 1021 Make judgements and eslimales that are reasonable and prudent Prepare the Financial Statements on the going concern basis unless it is inappropriate lo presume that the charitable Company will continue in operation. The Directors are responsible for keeping adequate accounting records, which disclose with reasonable accuracy at any lime the financial position of the Charitable Company. and lo enable them to ensure that the Financial Statements Comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection ol fraud and other irregularities. In so far as the Directors are awarè.. There is no relevant audit information of which the charitable company's auditor is unaware.. and The Directors have taken all steps that thèy ought to have to make Ihemselv8s aware of any relevant audit information and to establish that the auditor is aware of that information. Auditors A resolution lo re4ppoinl King81on Burrowes Ltd 8s Auditors of the Company will be put lo the Annual General Meeting. Exemption Statemènt The Directors, Report has been pr8p8r8d in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to sfflall companies. Approved and Signed on beham of the Board.. Reverend Dr Stephen F. Skuce Chair 15 November 2024
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF.. ALLIANCE HOUSE FOUNDATION Opinlon We have audited the financial statements of Alliance House Foundation (the 'charilable company.) for the year ended 31 March 2024 which comprise the Statement ol Financial Activities, the Balance Sheet, the Cash Flow Statement, and notes to the financial slalemenls, including a summary of significant aGcounling policiès. The finatFcial reporting framework that has been applied in their pFepaialion is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion th6 financial statements.. give a true and fair view of the slate of the charitable company's affairs as al 31 March 2024 and of its incoming resources and application of resources, including its incorne and expenditure, for the year then ended-, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been pr&pared in accordance with the requirements of the Companies Act 2006. Basis for oplnlon We conduct8d our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalements section of our report. We are independetTrl of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial slalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordanGe with these requirements. We believe that the audit evidence we havè obtained is suffficienl and 8ppropriale lo provide a basis lor our opinion. Conclusions relating to going concern In auditing the financial staternenls, we have concluded that the trustees, use of the goirkg conrn basis of accounting in the preparallon of the financial slalemenls is appropriate. Based on the work we have performed, we havè not identified any material uncertainties relating lo events or conditions that, individually or coll6cb'vely, may ca51 significant doubt on the charitabl8 company's ability lo continue as a going concern for a period of at least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the trustees with r8specl lo going concern are described in the relevant sections of this report. Other information The other information comprises the infomialion included in the Directors, report. other than thè financial slalements and our auditorfs report Ihereon. The Directors are responsible for the other information. Our opinion on th8 financial statements does not cover the other information and, exc6pt lo th& exlent otherwise explicitly slated our report, we do not express any form of assurance conclusion Ihereon.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF.. ALLIANCE HOUSE FOUNDATION Iconld... In connection with our audit of the financial statements. 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 course audit or otheTwise appears lo bg materially misstated. If we id&nlify such material inconsistencies or apparent mal8rial misslalemenls, we are required lo determine whether this gives rise lo a matérial misstatement in the financial statements themselves. If, based on the work we have performèd, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing lo report in this regard. Opinions on other matters presGribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit-. the information given in the trustees, report, which includes the Directors, report prepared for the purposes of company law, for the financial year for whi¢h the financial slal8ments are prapared is COnS151ent with the financial slalemenls.. and tho Directors, report included within the trustees, report has bean prepared In accordance with applicable legal requirements. Matters on which we arg required to report by exception In the light of OUT knowledge and understanding of the charitable company arid its environment obtsined in the course of the audil. we have not identified material misslalemenls in the Directors, report included within the Iruslees. report. We have nothing lo report in respect ot the following mallers in relalKJn lo which the Companies Act 2006 requires us lo report to you if. in our opinion.. ad&quate accounting records have not been kept, or returns adequate for our audit havè not been received from branches not visited by us,. or th8 financial slalemen15 are not in agreement with the accounting records and relums- or certain di5closuies of Directors, remuner81ion specified by law are not made," or we have not received all the information and explanations we require for our aLJdil', or the trustees were not entitled lo prepare the financial statements in accordance with the small companies, regime and lake advantsge of the small companies, exemptions in preparing the Directors, report and from the fequiremenl lo prepare a strategic report. Responsibilities of Diractors As explained More fully in the Directors, responsibilities statement sel out on pagé 9, the trustees (who are also the Directors of the charitable company for the purpos8s of company law} are responsible for the preparation of the financial sialemenls and for being satisfied that they give a true and fair view, and for such internal control 8S the Directors determine is necessary lo enable the preparation of financial slalements that are free from matèrial misslalemenl, whether due to Iraud or error. In preparing the (inancial slalements, the Directors are responsible for a5ses5ing the charitable company's ability lo continue as a going concern, disclosin9, as appSicable, matters related lo going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the charitable company or lo cease operations, or havé no raalislic alternative but lo do so. Audltor's responsibilltie8 for th8 audit of the financlal statements Our objèctives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstaternenl, whethèr dua to fraud or error, and lo issue an auditor's report that includes our opinion. Reasonabl8 assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslalemenl when il exists.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF: ALLIANCE HOUSE FOUNDATION Iconld... Misslatemenis can arise from fraud or error and ar8 considered material if, individually or in the aggregate, they could reasonably b8 8xp8cled lo influence the economic decisions of users taken on the basis of thesè financial slalemenls. Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilitias, outlined above, to detect material misstalem&nls in respect of Srregularilies, including fraud. The specific procedures for this engagement and the extent lo which our procedures are capable of delecling irregular¢(ies. including fraud is detailed below.. Enquiry of management and those charged with governance about actual and potential litigation or claims and the idontificalion of nonoompliance with laws and regulations. Reviewing minutes of meetings of those charged with governance. Reviewing financial slalemenl disclosures and lesling lo supporting doGumenl?lion lo assess compliance with applicable laws and regulations. Auditing the risk of management override of controls, Including testing journal entries and other adjustments for appropriateness,. assessing whelher the judgements rnade in making accounting eslimales are indicative of a potential bias,. and evaluating the business rationale of any significant transactions that are unusual or outsid8 the normal course of business. Performing analytical procedures lo identify any unusual or unexpected relationships that may indicate risks of rllaterial mi5s1alemenl due lo fraud. Professional scepliGism in course of the audit and with audit sampling in material audit areas. Because of the inherent limitations of an audit, therè is a risk that we will not delecl all irregularities, including those leading to a material misslalemenl in the financial slalemenls or nun-compliance with regulation. This risk increas68 the more that Compliance with a law or regulation is removed from the events and transactions reflected in the financial statèments, as we will be less likely lo bocome aware of instances of non-compliancè. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional CDncealmenl, forgery, collusion, omission. or misrepresentation. A further description of our responsibilitiès for the audit of the linancial slaletnents is located on the Financial Reporting Council's website al". vvww.frG.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. U59 of our report This report is made solely lo the charitable comp8ny's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate lo the ch8rilable company's members those rnatters we are required to slate to them in an audilorfs report ?nd for no other purpose. To the fullest exlenl permilled by law, we do nol accept or assume responsibility lo anyone other than the charitable company and the ch8rilable company's members as a body. for our audit work. for this report, or for thè opinions we have formed. Kevin Fisher BA FCA CTA (Senior Slalulory Auditor) For and on beha of Kingston Burrowes Audit Ltd Slalulory Auditors 308 Ewell Road Surbiton Surrey KT6 7AL 15 November2024 12
ALLIANCE HOUSE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES IlnGorpoiating Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2024 Unreslricled Funds Reslri¢led Total Funds Funds 2024 Total Funds 2Q23 Notes Income Inveslrnenls Other income 759,934 70 759,934 70 755.747 281 Total 760.004 760,004 756,028 Expendlture Raising funds Charitable activities 531,498 596.352 531,498 596,352 228,678 649,253 Total 1,127,850 1,127,850 877,931 Net incomellexpenditure} before Investment gainslllosses) Net gainslllossesl on investrnent assgts 1367,8461 1367,8461 1121,9031 15 192,441 192,441 1237.7581 Net incomèlloxpenditure) Transfers between funds 1175,4051 1175,4051 1359,6611 18 Net movement in funds 1175.4051 1175,4051 1359,661 I Reconclliation of funds Total funds brought forward 18 17,649,943 66,798 17,716,741 18,076,402 Total funds carried forward 18 £17,474,538 £66.798 £17,541,336 £17,716,741 All ol the above results are derived from continuing aclivilies. All gains and losses rècognised during the year are included above. The notes on pages 16 10 26 fom parl of these Financial Slalemenls. 13
ALLIANCE HOUSE FOUNDATION BALANCE SHEET AS AT 31 MARCH 2024 Notes 2024 2023 FIXED ASSETS Tangible fixed assets Investments 14 3,098 17,493,854 15,787 17,376,413 17.496,952 17,392,200 CURRENT ASSETS Debtors Cash al bank and in hand 16 70,915 269,846 104,084 389,413 340.761 493,497 CREDITORS.. AoUnts falling due within one year 17 296,377 168,956 NET CURRENT ASSETS 44,384 324,541 NET ASSETS 19 £17,541,336 £17,716,741 FUNDS Reslricled funds Unreslricled funds General fund Designated funds 18 66,798 66,798 18 18 2.021,440 15,453,098 2,184,156 15,465.787 £17.541,336 £17.716,741 The Financial Slalemenls have been preparecl in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by the Board of Directors on 15 November 2024 Reverend Dr Stephen F. Skuce Chair Signed on behalf of the Board The notes on pages 16 to 26 form part of these Financial Slatemenls. 14
ALLIANCE HOUSE FOUNDATION CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Nel movement in funds per statement of financial activities Adjuslmenls for,. Dividends, interest and. rent and management fee receivable Nel Igainslllosses Dn investment assets Depreciation charges Ilncrèasel I decrease in debtors Increase I Idecreasel in creditors {175,405} 1359,661 } 1759,934) (192,4411 13,040 33,169 127,421 1755,747} 237,758 13.427 167.9181 140,178 15 14 Net cash provided by / (used in) operaling activltles 1954.1501 1791,9631 Cash flows from investlng activities Dividends, interest and, rent and management fee recelved Purch8se of investment assets Sale of investment assets Sale of fixed assets Purchase of tangibl& fixed assets 759,934 755,747 1735,6211 815,594 75,000 2,873 13,2241 13,3191 Net cash provided by / (used in) investing activities 834,583 832,401 Change in cash and cash equlvalents In the reporting period 1119,5671 40,438 Cash and cash equivalents brought forward al the beginning of the reporting period 389,413 348.975 Cash and cash equivalents carried forward at the ènd of thè reporting perlod £269,846 £389,413 Analysis of cash and cash equivalgnts 2024 2023 Cash and cash &quival&nls £269,846 £389.413 The notes on pages 16 to 26 form part of these Financial Slaternenls.
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1. ACCOUNTING POLICIES Basi5 of accounting and assessment of Going Concern Alliance House Foundation is a registered charity {no. 20855418nd private company Ino. 003724901. limited by guarantee, incorporated in Great Britain, and regislered in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member. The regisl&rod offi¢e is givan in the Reference and Administrative Details in the Directors, Report. The charity constitutes a public benefit enlily as defined by FRS 102. The financial statements have been prepared in accordance with AcGours1ing and Reporting by Chariliès.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019. the Financial Reporting Standard applicable in thè United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The finallcial statements are prepared on a going concern basis under the historical cost convention, modrfied to includ8 certain items al fair value. The sIgnficant accounting polici8s applied in Ihe preparation of thesè financial stslemenls ar8 set out below. Thesè policies have been consislenl applied lo all years pr&sent@d unless otherwise ststed. Income recognltion Items of income are recognised in the financial stat8m8nls when all of the followin9 criteria are mel.. the charity has entitlement to the funds., any performance conditions have been met or are fully within the control of the charity., there is sufficient certainty that r&ceipl of the income is considered probable., and the amount can be measured reliably. For legacies, enlitlemenl is the earlier of the charity being notifled of an impending distribution or the legacy being received lif no prior nolilicalion was receivedl. Investment income is earned through holding assets for investment purposes such as listed investments and property. 11 includes dividends, bank interest and rent. Income is recognised as charity's right to receive payment is estsblished which in case of rent is based on the terms of the lease. Expendlture recognltion Expenditure is recognised once ther8 is a legal or conslruGlive obligation lo make payment lo a third party, il is probable that selllemenl will be required, and the amount can be measured reliably. Expenditure is Glassified under the following activity headings.. Costs of raising funds comprise those costs associat8d with managing the charity's investment assets. Expenditure on charitsble activities which comprises mainly of the costs associated with supporting th8 work of the Institute of Alcohol Studies and other alGohol research bodies. Expenditure includ6S those costs of a direct nature which Can be allocated to a specific activity. It also includes indireGI Gosts, including govemance costs that do not relate lo a specific activity but are necessary to support those aclivilies. Support costs are apportioned lo each activity on the basis of staff lime. 16
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... ACCOUNTING POLICIES Icontdl Fund accounting Unrestricted general funds are freely available for use in furtherance of the objects of the charity and which have not been designated for specific purposes. Designated funds are unreslrtcled funds set aside by the Directors for particular purposes. Reslricled funds are funds which can only be used in accordance with specific restrictions imposed by the donor, or which have b88n raised for a particular prpose. Tangibla fixed assets and dppreciation Tangible assets costing more than £500 are capilalised. DepreGiation is provided so as lo write off the cost of each asset over ils estimated useful life at the following annual rates.. Fixture and fillings Computer equipment 200/D slraighl line 330/0 straight line Investment property Investment propety is inilia11y recognised al cost and subsequently rest8ted al falr value based on mark8t value at the end of each accounting period. RevalLJalion gains and losses are reCLnISed in the Statement of Financial Activities. Given the cost and tirne involved in obtaining a fijll formal valuation. this process is done approximately every five years. Valuations in the interim are based on the Directors, opinion. The charity occupias several offices for ils own use al its investment property, Alliance House. The DireclDrs are of the view that this represents an insignificant portion of the building and the whole property is therefore accounted for as an investment property. Invastments List8d investments are initially recognised al cost and subsequently restated al market value based on published sloGk exchange valuations al the and of each accounting period. Revaluaii'on gains and losses are recognised in the Slalemenl of Financial Activities. Debtors and ¢redltor$ Debtors and Gredilors with no ststed interest rale and receivable or payable within one year are recorded al transaction price. Any losses arising from impairment are recognised in èxpenditure. Lease5 Operating lease renlals are charged lo the Slalemenl of Financi81 Activities Dn a straight-line basis over the period of thè lease. Ponsions The charity operates a defined contribution pension scham8. ConlribL¢lions payable under the scheme are charged to the Stslement of Financial Activities in the year lo which they relate.
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Iconld... INVESTMENT INCOME Unrestricted Funds RèslriGled Funds Totsl 2024 Total 2023 Rent receivable Bank interest and dividends 679,039 80,895 679,039 80,895 886.826 68.921 £759,934 £Nil £759,934 £755,747 All of the £755,747 recognised in 2023 related to unrestricted funds. OTHER INCOME UnreStrted Funds Reslricled Funds Total 2024 Total 2023 Sundry income £70 £Nil £70 £281 All of the £281 recognised in 2023 related lo unrestricted funds. COST OF RAISING FUNDS Direct costs Support costs Total 2024 Total 2023 Investment managamènt costs £483,144 £48,354 £531,498 £228,678 £243,545 01 these costs related lo the sale of the investment propety- All of the £228.678 expenditure recognised in 2Q23 was charged to unreslrlcled funds. EXPENDITURE ON CHARtTABLE ACTIVITIES Grant funding Direct costs Support costs Total 2024 Total 2023 Research and dissemination £468.101 £66,710 £61,541 £596,352 £649,253 All of the £649,253 expenditure recognised in 2023, was charged lo unrestricted funds. 18
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd. 6. ANALYSIS OF GRANTS PAYABLE 2024 2023 Grants to institutions Institute of A]cohol Studigs £468,101 £539,364 7. ANALYSIS OF DIRECT COSTS Raising funds Charitable activities Total 2024 Total 2023 Staff costs Inole 111 Building and service charge Legal and professional fees Other direct costs 52,305 174,308 256,533 66,570 118,875 174,306 256,533 140 112,040 142,694 1,750 456 140 £483,144 £66,710 £549,854 £256,940 ANALYSIS OF SUPPORT COSTS Raising funds Charitable activities Total 2D24 Total 2023 Offic8 expenses Premises expenses Governance costs Inole 91 Oeprecialion 34,469 5.527 2,621 5,737 43,868 7,034 3,336 7,303 78,337 12.561 5,957 13,040 50,913 10,967 6,320 13.427 £48,354 £61,541 £109,895 £81,627 GOVERNANCE COSTS 2024 2023 Audit fee Directors, meetings Insurance 3,960 1,685 312 4,320 1,170 830 £5,957 £6,320 19
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Iconld... 10. NET INCOME 2024 2023 This is staled after charging.. Auditors, remuneration audit seNices DepreGiation Foreign exchange lossllgainl Operating 18ase rentals £3,960 £13,040 £196 £Nil £4,320 £13,427 £196 £Nil STAFF COSTS AND NUMBERS 2024 2023 Salaries Social security costs Pensions lo former employees (see note 221 Pension costs Other staff costs 79,049 1,136 16,044 15,611 7,035 69,135 3,697 16,433 12,907 9,868 £118.875 £112,040 During 2024, one employee received employee benèfits (excluding employer's national insurance and pension costs) falling in the £70,000 - £80,000 band. In 2023, one employee fell within the £70,QOO - £80,000 band. The average numbèr of employees based on full-tlme equivalents was 212023 = 21. The average monlhW number of employees was 312023 .. 31. Total ernployee benefits received by key management personnel amounted lo £88,549 12023 £88.6881. Employee benefits includes salary, employer's national insurance, employer's pension, and benefits in kind. 12. DIRECTORS, REMUNERATION AND EXPENSES The Directors re¢eiv&d no remuneration during either y&ar. Expenses of £1,685 12023.. £1.1701 wer& reimbursed lolpaid on behaW of the 6 Dire¢lors12023 .' 51. 13. TAXATION The Company has charitable status and is therefore exempl from Corporation Tax on its charitable aclivilies. 20
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Iconld... 14. TANGIBLE FIXED ASSETS Fixtures and fittings Computer equipment Total Cosvvalualion.. Al l April 2023 Additions Disposals 101,786 638 197,4421 22.934 2.586 116,1421 124,720 3.224 1113,5841 Al 31 March 2024 4,982 9,378 14,360 Depreci81ion'. Al 1 April 2023 Charge for year E11tninaled on disposal 88,342 11,112 194,9841 2Q,591 1,928 115,7271 1 J8,933 13,040 1110,7111 Al 31 March 2D24 4.470 6,792 11,262 Nel Book Valu&-. Al 31 March 2D24 £512 £2,586 £3.098 Al 31 March 2023 £13,444 £2,343 £15,787 FIXED ASSET INVESTMENTS Investment Property Inote 231 Listed inveslmenis Total Market value al l April 2023 Disposals in year Acquisitions in year Nel unrealised gainlllossl on revaluation 15,000,000 2,376,413 {75,0001 17,376,413 175,0001 192,441 192,441 Market value al 31 March 2024 £15,000,000 £2,493,854 £17,493,854 Histori¢ cost al 31 March 2024 £2,063,216 £1,786,389 £3,849,605 The investment property was forrnally valued on 3151 March 2022 by Mr Tom Norfolk Meng PGDip MRICS Registered Valuer of Mallhews & Goodman. 2024 2023 Analysis of investment gains Unrealised gainslllossesl on revaluation Realised gainslllossesl on disposal 192,441 178,8901 1158,8681 £192,441 £1237,7581 21
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 lcontd... 16. DEBTORS 2024 2023 Trade debtors Prepayments AGcru8d income Amounts owed from related undertakings Other debtors 699 6,563 1,340 40,996 21,317 8,796 9,061 1,118 28.290 56,819 £70,915 £104,084 17. CREDITORS: Amounts falling due withln one year 2024 2023 Trade creditors Deférrèd income Accrued expenses Other Gredilors 134,923 126.752 30,687 4,015 147,386 11,054 10,516 £296,377 £168,956 Analysls of deferred Income Balance brought forward Additions Released to Income Balance carried forward year Rents received in advance £147,386 £126.752 £1147,3861 £126,752 Rents invoiced and received in advance for the following accounting period are recognised as deferred income.
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2D24 lconld... MOVEMENT IN FUNDS Balance 1 April 2023 Balance 31 March 2024 Gainsl Ilossesl Income Expènditure Transfèrs 2024 UnreslriGted funds General funds 2,184,156 760,004 {1, 114,8091 1352} 192,441 2,021,440 Designated funds Future refurbishment Property and other fixed assets Revaluation reserve 450,000 450,000 2,079.003 12,936,784 113,0471 352 2,066,314 12,936,784 15,465,787 113,0411 352 15,453,098 Rastricted funds Mrs Janel (Jessie) Ross Phillips, Trust 66,798 66,798 Total funds £17,716,741 £760.004 £{1,127,8501 £Nil £192,441 £17,541,336 Purpose of funds Reslricled Funds Mrs. Janel lJessiel Ross Phillips, Trust is a legacy to be used to fund the Charity's activities in Scotland. D&si aled Funds The future refurbishment fund rèpresgnts funds set aside towards the cost of maintenance and repairs al Alliance House. The property and other fixed assets lund represents the level of unreslricled funds which 8rè relalad to the cost of investment property and fixed assets, and which are not therefore freely available to Spend, The revaluation reserve represents the amount by which the market value of Ihe investment property {Alliance Flousel exceeds cost. 23
ALLIANCE HOUSE FOUNDATION (Limilecl by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... 18. MOVEMENT IN FUNDSlcont'd Comparative information for the previous financial year is as follows: Balance 1 April 2022 Balance 31 March 2023 Gainsl Ilossesl Income Expenditure Transfers 2023 Unrestricted funds General funds 2.533,709 756,028 1864,5041 {3,3191 1237,7581 2,184,156 Deslgnaled funds Futurè refurbishment Properly and other fixed asse15 Revaluation reservè 450,000 450,000 2,089,111 12.936,784 113,4271 3,319 2,079,003 12,936,784 15,475,895 113,4271 3,319 15,465,787 Restricted tunds Mrs Janel (Jessie) Ross Phillips, Trust 66,798 66,798 Total funds £18.076,402 £756,028 £1877,9311 £Nil £1237,7581 £17,716,741 24
ALLIANCE HOUSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible fixed assets Fixed ass8t investments Olhei nel asselsl Total 2024 2024 Llnreslricled general funds Unrestricted designated funds Reslricled funds 2,493,854 15,000.000 1472,4141 450,000 66,798 2,021,440 15.453,098 66,798 3,098 As of 31 March 2024 £3,098 £17,493,854 £44,384 £17,541,336 Comparative iriformation for the previous financial year is as follows Tangible fixed assets Fixed asset investments Other nel 8S5elsl Total 2023 2023 Unrestricted general fL(nds Unrestricted designated funds Reslricled funds 2,376,413 15,000,000 1192,2571 450.000 66,798 2.184,15fj 15,465,787 66,798 15.787 As of 31 March 2023 £15.787 £17,376,413 £324.541 £17,716,741 20. RELATED PARTY TRANSACTIONS Details of related paty transactions during the year are as follows.. Name of related Paty Nature of relationship Transaction details Amount Balancè 2024 The Institute of Alcohol Studies Trustees in common Grant funding 468.102 40,996 The Institute of Alcohol Studies Trustees in common Rent receivable 63,500 2023 The Institute of Alcohol Studies Trusteès in Common Granl fundin9 539,364 28,290 The Institute of Alcohol Studies Trustees in commo Rent receivabla 63,500 The Inslilule of Alcohol Studies started operating on 1 April 2006 8nd Alliance House Found8tSon had initially agreed lo fund the charity for 3 years. Funding is now r?viewed on an annual basis. 25
ALLIANCE HOUSE FOUNDATION (Limited by Guarant881 NOTES TO THE FSNANCIAL STATEMENTS FOR TAE YEAR ENDED 31 MARCH 2024 Icontd... 21. OPERATING LEASE COMMITMENTS The lo181 future minimum lease payments falling due under non-cancellable operating 18ase agreements are as follows.. 2024 2023 Within one year Between one and five years More than five years 5.206 22,579 90,317 30.105 £5,206 £143,001 22. CONT5NGENT LIABILITIES Pensions to fomier omployogs The Charity has commilled lo make annuity payments lo fomier members of staff. These payments are reported as Pensions lo fomer employees" in the accounts (see note 11 l. The Directors hav& not been able lo obtain a reliable estimate of the Charity's liability in respect of these annuities and therefore no provision has been made in the accounts. 23. POST BALANCE SHEET EVENT On 301h April 2024, Ihe charitable company disposed of ils investment property, Alliance House, for a consideration of £12.6m with a realised loss of £2.4m on the value. Ther8 was a termination fee on thè boiler Contract of £154,504 which was due on 30 April 2024 as the buyer of the investment property had refused the contract. 26