HODGE FOUNDATION The Jane Hodge Foundatlon Reglstered number 216053 Trustees, Report and Financial Statements 30 September 2023
HODGE RegiSt¢r nwYJb¢r21fJJ53 Fillattcial statements 30 Septemlxr 2023 FOUNDATION Contents Trustees, Report Statement of Trustees, Responslbllltles In Respert of the Trustees, Annual Report and the Financial Statements Independent Audltor's Report to the Trustees of The Jane Hodge Foundatlon Statement of Financial Activities 12 Balance Sheet 13 Statement of Cash Flows 14 Notes to the financial statements 15
HODGE FOUNDATION R¢gister¢d llumbcr 21&I53 FIrL¢la1 Statem18 30 September 2023 Trustees. Report The Trustees present thelr annual report together wlth the audited financial statements of the Charity for the year ended 30 September 2023. The financial statements have been prepared in accordance with the accounting policies set out In note l and comply with the Foundation's trust deed, the Charities Act 2011 and Accounting and Reporting by Charities (second edition October 2019): Statement of Recommended Practice appllcable to charities in accordance wlth the Financial Reporting Standard applicable in the UK (FRS102). The Jane Hodge Foundation is a public beneflt entlty. Administrative information Trustees J Jonathan Hodge" (Family Trustee) lan H Davles Karen L Hodge * Trustees who a or have been directors of The Cartyle Trust Llmlted and/or o.ne or more of its subsidiaries during the year. Audltor Azets Audit Services (appointed 27 July Ernst & Young LLP (Reslgned 20 July 2023) 2023) Lime Tree Court 32 Counterslip Road Cardiff Gate Business Park Bristol Cardiff BSI 6BX CF23 8AB Sollcltors Eversheds Sutherland I Callaghan Square Cardiff CFIO 5BT Bankers Hodge Bank One Central Square Cardiff CFIO IFS Natwest 250 Bishopsgate London EC2M 4AA Investment Advlsors RBC Brewin Dolphin 2 Central Square Cardiff CFIO IFS Deposits Cash Manager Flagstone Group Ltd 1st Floor Clarevllle House 26-27 Oxenden Street London SWIY 4EL Reglstratlon number The Jane Hodge Foundation is a gIStered charity, registration number 216053. Reglstered office One Central Square Cardiff, CFIO IFS
HODGE Re8iYterd nu]llbBr 21fA)53 FinaDcial statements 30 September2023 FOUNDATION Structurer governance and management Constitutlon The Jane Hodge Foundatlon Is an unincorporated trust, govemed by a trust deed dated 15 October 1962. It does not fundraise and seeks to pursue Its obJectlves through careful stewardshlp of Its resources. Trustees The Trustees who served during the year are set out above. The trust deed provides for a maximum of nine trustees. The power of appointing or removing trustees is vested In the Famlly Trustee who takes Into account the background and experlence of trustees during the appointment process. The Trustees meet regularlyt usually quarterly, to agree the broad strategy and areas of activlty for the Foundatlon, Including conslderation of grant maklng, Investment, risk management policies and performance. The Tru5tee5 also undertake the day to day administration of grants and oversee the processing and handling of applications. The Trustees keep their skill quireMents under review and subscribe to charity law and guidan publications. Risk management The Trustees are responsible for the Foundatlon's system of Internal control and for reviewing its effectiveness. This includes consideration of the major risks which the Foundation faces and the implementation of systems to mitigate those risks. The Trustees confirm they have examined during the year the major strategic, business and operational risks and have established systems to enable regular report5 to be produced so that the necessary steps can be taken to lessen these risks. The Trustees consider the variability of investment returns on the Foundation's funds to constitute the most significant risk, which is monitored on a regular basis. The Trustees currently have an Investment strategy, which involves a managed investment portfolio in order to provide a stable level of income and long-term capital growth, with a medium risk profile.
HODGE Regi81 nUb¢r21)S3 FiJw¢io1 stat¢mAts 30 September 2023 FOUNDATION Objertives and artivltles The objectives of the Foundation are to allocate income for general charitable purposes, wlth speclal regard to the followlng areas.. l. The encouragement of medical and surgical studies and research, and in partlcular the study of and research in connection with the causes, diagnosis, treatment and cure of cancer* poliomyelitis and tuberculosis and diseases affecting children. li. The general advancement of medical and surgical science. iii.The advancement of education; Iv.The advancement of religion. Each application for a grant received in the year was considered agalnst these objectives and appllcatlons were only consldered from exempt or registered charities. The Trustees confirm that they have referred to the guidance contained in the Charity Commlsslon's general gUIdan on publlc benefit when reviewing the Foundation's aims and objectives and In plannlng future actlvltles and settlng the grant making policy for the year. Policies Reserves pollcy The Trustees alm: to distribute the net annual income to exempt charities and other charities reglstered with the Charlty Commlssloners malnly under the headings of medical care, medical research, educatyon and religion. to ensure that adequate reserve5 are retained in order to maintain the level of core stable revenue resources needed to support the ongoing programme of annual donations, taking into account the inherent volatility in the various income sources, and to provide funds for any future capital expenditure which may be required in support of projects such as hospices, education facilities, medical centres and day- care facilities. The Trustees, current assessment of the target range of free reserves Is £3m-£4m, based on resources expended during past years and that expected for future years. The current free reserves are significantly in excess of this target as they are used to generate future Investment Income. Free reserves, being unrestricted reserves less charitable commitments, are £23,280,471 (2022.. £18,538,296) which includes £1,883,499 {2022.' £1,371,203) relatlng to unreallsed revaluatlons of Investments. The Trustees conslder that this level of free reserves Is currently approprlate to generate the annual total incoming resources to meet its strategic objettives. This view has been reinforced by the economlc effect of the coronavlrus pandemlc, where many charltles suffered severe financlal stress.
HODGE R¢¥i$terd ]Jumber 216053 FOUNDATION 30 W¢mtrKT 21)23 Investment policy With the assistance of its investment advisors, the Trustees have adopted a Statement of Investment Policyi which is reviewed annually. The objectlve of the pollcy Is to achieve a balanced return from a diversified portfollo, adoptlng a medium risk approach. The Trustees have adopted an ethical policyi which seeks to avold Investment in companles that have any materlal activity connected with tobacco, alcohol, armaments, slave labour or discrimination. They also review and monitor regularly the actions taken by their investment advisors in the application of socially sponsible Investment pollcles and principles. Grants policy The Trustees have adopted a grants policy whlch sets out the general principles under which applications for grants are considered and, where appropriate, approved. The Trustees Invlte appllcatlons for grants from charitable institutions who submit a summary of their proposals. Grants a made only to registered and exempt charities. Flnanclal revlew As in previous years, this report is intended to provide some addltlonal Informatlon to accompany the financial statements In order to explaln the progress of current and futu projects. Detalls of incomlng resources and resources expended are set out in the Statement of Flnancial Activities on page 12. The net unrestricted Incomlng sOurceS before donations for the year to 30 September 2023 was £3,559,270 (2022.. £3,254,132), wlth grants payable for the year amounting to £1,754,695 (2022.. £5,974,588). From the appllcatlons for grants received in the year, applications in respect of £1,754,695 (2022.. £5,974,588) met the criteria required and amounts were granted to the charities concerned. The level of grants made each year can vary since there is a process of assessment and approval before grants can be made and grants may cover a period of more than one year. Consequentlyi the grants reported In the Statement of Financial Activlties can dlffer from the amount of grants paid in the year. Actual donations paid in the year, including amounts committed in prior years, totalled £3,367,219 (2022.. £1,700,725). Achievements and perfornlance The objectives for the year We to contlnue to support medical care and research, to fund educational posts, mainly related to business and economlcs studies, and religious and other charities. The support of medical care and research has continued with £353,362 (2022." £259,591) of new grants being made to various medical related charities. The main focus has been on local hospices and research in the fields of cancer and mental health. The Foundation has contlnued its sponsorship of education posts in business and economics related studies through its liaison wlth higher education establishments and has also supported other educational projerts. Grants made to educational charities totalled £231,858 (2022.. £5,082,700). Amounts granted for specific care and welfare projerts within the aims and objectives of the Foundation totalled £1,158,992 (2022.. £614,209).
HODGE Rw'sle]td number216053 FiJwi¢iaJ *ts¢nts 30 Septemter2023 FOUNDATION Oryanisation The admlnlstration of the Foundation contlnues to be based at the offices of Hodge Bank, One Central Square In Cardlfffs clty centre. The Foundatlon stlll benefits slgnificantty from the skills and expertise of the Bank's senior management, for which the Trustees are very grateful and this has allowed the Foundation to maintain its own admlnlstratlon costs at thelr very low level for another year. Future The Trustees will continue to encourage applications for grants from charities whose objectives are in accordance with the aims and objectives of the Foundation. Particular emphasis will continue to be given to supporting medical research, especlally in the field5 of cancer and mental health, and to funding educational initiatives, projects relating to business and economics and religiou5 and other charities. There will also be a focus on improving outcomes for those living in less affluent areas of Wales. Disclosure of informatlon to audltor The Trustees who held office at the date of approval of this Trustees, Report confirm that, so far as they are each aware, there is no relevant audit information of which the Charity's auditor is unaware; and each Trustee has taken all the steps that he or she ought to have taken as a Trustee to make himself or herself aware of any levant audit Informatlon and to establish that the Trustee's auditor is aware of that information. By order of the Board of Trustees J Jonathan Hodge Trustee Date: 26 February 2024
HODGE Regi5tcraJ 21fA153 Finonci8] st2temerJts 30 S¢p¢ber 2023 FOUNDATION Statement of Trustees. Responsibilitles In Respert of the Trustees. Annual Report and the Financial Statements Under charity law, the Trustees are sponsible for pparIng the Trustees, Annual Report and Financial Statements for each financial year which show a true and fair view of the state of affairs of the Charlty and of the excess of Income over expenditure, belng net incoming resources, for that year. In preparing these financial statements, generally accepted accountlng practlce entalls that the Trustees.. select suitable accountlng pollcles and then apply them consistently; make Judgements and estlmates that are reasonable and prudent; state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any materlal departures dlsclosed and explalned In the flnanclal statements; state whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the flnanclal statements; prepare the flnancial statements on the golng concern basls unless it is inappropriate to presume that the Charity will contlnue Its actlvities. The Trustees are required to act in accordance with the trust deed of the Charlty and within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial Position of the Charity at that time, and to enable the Trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply wlth the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the a55ets of the Charity and to prevent and detect fraud and other irregularities.
HODGE Rwst¢Ted tsumber2153 FiD8JLcia] Stat1$ 30 September 2023 FOUNDATION INDEPENDEKf AUDrroR'S REPORT TO THE TRusfEES OF THE JANE HODGE FOUNDATION Oplnlon We have audited the financial statements of The Jane Hodge Foundation for the year ended 30 September 2023 which comprise the Statement of Flnanclal Actlvltles, the Balance Sheet, the Statement of Cash Flows and notes to the financlal statements, Includlng slgnlflcant accountlng pollcles. The flnanclal reportlng framework that has been applied In thelr preparatlon Is appllcable law and Unlted Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financlal Reportlng Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accountlng Practlce). In our oplnlon the financlal statements: glve a true and falr vlew of the state of the charlty's affairs as at 30 September 2023, and of Its Incomlng resources and appllcatlon of resources, including its income and expenditure, 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 Charlties Att 2011 Basls for oplnlon We condutted our audit in accordance with International Standards on Audlting (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further descrlbed In the Audltorfs responslbllltles forthe audlt of the flnanclal statements sectlon of our report. We are independent of the charity in accordance wlth the ethlcal reqU1ments that are relevant to our audit of the financial statements in the UK, Includlng the FRC'S Ethlcal Standard, and we have fulfllled our other ethical responsibilities in accordance with these requirements. We belleve that the audlt evldence we have obtalned Is sufflclent and appropriate to provide a basis for our oplnlon. Conclusions relating to going concern In auéltlng the financlal 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 Identlfled any materlal uncertalntles relatlng to events or condltlons that, Indlvldually or collectlvely, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the flnanclal statements are authorlsed for Issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are descrlbed In the relevant sectlons of thls report.
HODGE FOUNDATION Re8iStcrtd numbu 21(th3 Fingocial statttnent8 30 Septemb# 2023 INDEPENDENT AUDrroR'S REPORT TO THE TRusfEES OF THE JANE HODGE FOUNDATION Other Inforniatlon The other information comprises the infomiation included in the trustees annual report, other than the financlal statements and our audltor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infomlation and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance concluslon thereon. Our responsibility 15 to ad the other information and, in doing so, consider whether the other information is materially inconsistent with the flnanclal statements or our knowledge obtained in the course of the audit or otherwlse appears to be materlally misstated. If we Identlfy such materlal Inconsistencies or apparent material mlsstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselve5. If, based on the work we have performed, we conclude that there is a material misstatement of thls other Infomatlon, we a qUId to report that fact. We have nothlng to report in thi5 regard. Matters on which we are required to report by exceptlon We have nothing to report in SpeCt of the followlng matters where the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our oplnlon,. the information given in the trustees, annual report is inconsistent in any material respect with the financial statements; or sufficient accounting records have not been kept. or the financial statements are not In agreement with the accounting records and returns. or we have not received all the inforniation and explanations we requlre for our audlt.
HODGE FOUNDATION Registerw] numter 216A)53 Financial stat*nts 30 September2023 INDEPENDENT AUDrroR'S REPORT TO THE TRusfEES OF THE JANE HODGE FOUNDATION Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees are responsible for the preparation of the flnancial 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 mi55tatement, whether due to fraud or error. In preparing the financial statements, the trustees are responslble for assesslng the charity's ability to continue as a going concem, disclosing, as applicable, matters lated to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no reallstlc alternative but to do so. Auditorfs rPonsIbl11t1¢$ for the audit of the flnanclal statements We have been appointed auditor under section 144 of the Charities Act 2011 and rpport in accordance with this Act and relevant regulations made or having effect thereunder. Our objertives are to obtain reasonable assurance about whether the financial statements as a whole are fe from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance Is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material mi55tatement vihen it exists. Misstatements can arise from fraud or error and are considered material if, individually or In the aggregate, they could reasonably be expected to influence the economic declslons of users taken on the basis of these financial statements. A further description of our responsibilities is available on the Financlal Reportlng Councll's website at: htt www.frc.or .uk Our-work Audi Audit-and-assuiance Stand3rds-ènd- uidance Standards-and- uidance-for-audltors Auditors-res nslblllties-for-audi Descri tion-of-auditors- nsibilities-for-audit.as x.This descrlptlon foms part of our auditor's report. res
HODGE Registettyj number 216053 Fi]l¢la1 statemwts 30 SLVtembcr2023 FOUNDATION INDEPENDENT AUDrroR'S REPORT TO THE TRusfEES OF THE JANE HODGE FOUNDATION Extent to which the audit wa$ considered capable of detectlng Irregularltles, Including fraud [rgularitIes, including fraud, are instances of non-compliance with laws and regulations. We deslgn procedures In Ilne wlth our responslbllltles, outllned above, to detect material misstatements in respect of irgUIaritle$, Includlng fraud. We obtain and update our understanding of the entity, its activities, Its control environment, and likely future developments, including in relatlon to the legal and regulatory framework applicable and how the entlty Is complying with that framework. Based on thls understandlng, we Identify and assess the risks of material mlsstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to appllcable laws and regulatlons, including fraud. In response to the risk of irregularities and non-compliance with laws and gUlatiOns, including fraud, we designed procedures which included., Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; Revlewlng mlnutes of meetlngs of those charged with governance; Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operatlons of the entity through enqulry and Inspectlon; Reviewing financial statement dlsclosures and testing to supporting documentation to assess compliance wlth appllcable laws and regulations: Performing audit work over the risk of management bias and override of control5, including testing of joumal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and revlewlng accountlng estimates for indicators of potential blas. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a materlal mlsstatement in the financial statements or non-compllance wlth regulation. This risk increases the more that compllance with a law or regulation is removed from the events and transaction5 reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement sulting from fraud is hlgher than for one resultlng from error, as fraud may involve collusion, forgeryt intentional omissions, misrepresentations, or the override of internal control. 10
HODGE FOUNDATION Kcgistued numbu21(A153 FInala7 statettltS 30 Septfflb¢r2023 INDEPENDENT AUDrroR'S REPORT TO THE TRusfEES OF THE JANE HODGE FOUNDATION Use of our report This report is made solely to the Trustees, a5 a bodyi in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audlt work has been undertaken so that we might state to the charity's trustees those matters we a required to state to them In an audltor's report and for no other purpose. To the fullest extent permltted by law, we do not accept or assume responslblllty to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Azets Audlt Servlces Senlor Statutory Audltor Chartered Accountants and Statutory Auditors Ty Derw Lime Tree Court Cardiff Gate Business Park Cardiff CF23 8AB Date . 2014 Azets Audit Services Is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. li
HODGE FOUNDATION Rcgi8¢¢rcd numbcl 2153 Financial statemejjts 30 Swemb¢r 2023 statement of Flnanclal Activities ft)r the year ended 30 September 2023 Note Unrestrtcted funds Expendable Endowment fvnds Totsl Total 2023 2023 2023 2022 Incoming resources Incoming resour5 from generated funds Investment Income,. Llstéd Snvestment Income Unllsted Investment Income Inte$t recetvable 936,822 2,607,873 123,454 936.822 2,607,873 123,454 775,831 2,607,873 Tot•1 In¢•mlng r••ourc•s 3.668,149 3,668.149 3,383,704 Resources expended Charitable actlvltles Cost of generating fvnds Governantr costs 1,754,695 97,179 11,700 1.754.695 97,179 11,700 5,974,588 121,832 7,740 Total Teouree expended 1.863,574 1.863.574 6.104,160 N•t incoming/{outgoing) resources 1,804,575 1,804,575 (2,720,456) Oth•r rtcogni**d gain# and losses Gain / (lossl on Investments 1,314,595 868,266 2,182,861 {4,027,914) Net movement In lunds 3.119,170 868,266 3,987,436 {6,748,370) Reconciliation of funds Tot•1 fund$ brought lorwjrd 24,371,452 20,942,223 45,313,675 52,062,045 Tot•1 lunds orrl•d forward 27rt9Q,622 21,810,489 49,301,111 45,313,675 The financial activities set out above are all in respect of the continuing activities of the Charity. The notes on pages 15 to 23 form part of these flnanclal statements. 12
HODGE Rewstered nutnber 216053 Fill3n¢ial ststoments 30 Septekn 2023 FOUNDATION Balance Sheet at 30 September 2023 Note un$tCted fvnds Expen(Jable Endowment funds 2023 Tot•1 2022 Total Non-current assets Investments Cash held by Investment manager for investment purposes io 27,696.663 21,810,489 49.507.352 41,746,931 648,836 648,836 2,349,549 28,345.699 21,810,489 50,156,188 44,096,480 CurreDt •••ets Debtor5 Cash at bank and In hand Cash held by cash inve51rnent manager li 206.419 1.276,385 206,419 1,276,385 143,628 1,954,943 1,885,848 1.885W8 4,998,490 3,368,652 3,368.652 7.097,061 Credltorn: amounts falllng due wlthln one year 12 (1,783,781) (1.783.781) (1,788,066) Net curnnt assets 1,584,871 1,584,871 5,308,995 Cr•dltors: amounts falllng due after more than one year 13 (2,439,948) (2rt39,948) (4.091,800) 27.490,6Z2 21,810.489 49.301.111 45,313,675 The Funds off the Chanty Expendable endowment funds 14 21,810,489 21,810,489 20,942,223 Unrestricted income fund• 15 27.490.622 27,490,622 24,371,452 Fundg 27.490,622 21.810.489 49.301.111 45.313,675 The notes on pages 15 to 23 form part of these flnanclal statements, These financial statements were approved by the Trustees on 26th February 2024 and were slgned on their behalf by: J J Hodge Trustee Reglstered number: 216053 13
HODGE Registetvj ttumber21(A)53 Fitttncial 8tatementg FOUNDATION 30 2023 Statement of Cash Flows for the year ended 30 September 2023 2023 2022 C•&h flo from opernting •¢tivitiés: Net cash used In operating attlvltle5 {Table l) (3,582.502) (1.859.431) Cash Ilows from Investlng actlvltle•: Dividend5, interest, and nts from Investsments Proceeds from sale of investmerrts Purchase of Investments 3,668,149 3,383,704 10,235.830 7,304.653 (15,813.390) (6,118.390) Net u•h (u•ed by)Igenerat from by Investlng actlvltle• {1,909,411) 4,569,967 Ch)ng• in u$h and ¢4sh equSval¢nts In the ye•r (5.491,913) 2,710,536 Cash and cuh •qulvpl•nts at the beglnnlThg of the year, belThg c••h at b•nK In hand and held by thlrd partles 9,302,982 6,592,446 C•sh and cash equlvalents at the end of the year. belng cash at b•nk, In hand and held by thlrd partle 3,811.069 9,302,9B2 Table I: Reconclllatlon of net Income to net cash flow from operatlng actlvltles 2023 2022 Net incoming / (outgoin9) r•sourc•g (ag per Statement of Flnanclal Activities) Adjustments for.. Amortiation ¢harge5 Dlvldends. Interest and rents from Investments (Increase) / Decrease In debtors {DeCaSe) / In¢)$e In ¢dItOrS 1,804.575 {2,720.456) (3.668,149) (3,383.704) (62,791) 1,471 (1,656,137) 4,243,25B Net $h used in operating a¢tiVTties (3.582.502) {1,859,431) Analys1• of cash 2023 2022 Cash held by Investment manager for Investment purposes Cash at bank and in hand Cash held by cash Investment manager 648,836 1,276,385 1.885,848 2,349,549 1.954,943 4.998,490 Total ca*h at in hand and héld by third partles 3.811,069 9,302,982 14
HODGE Registcred numl*r216053 FinaJh¢ial ststements 30 SepteaLber 21)23 FOUNDATION Notes to the flnanclal statements Accounting policies The followlng accounting policies have been applied consistently in dealing wlth Items whlch are considered material in relation to the Foundation's financial statements. Basis of preparation The flnancial statements have been ppared in accordance wlth the Foundation's trust deed, the Charities Act 2011 and Accounting and Reporting by Charltles (second edition October 2019): Statement of Recommended prattl applicable to charities In accordance with the Financlal Reportlng Standard applicable In the UK (FRS102). Going Concern The financial statements are prepared on a going concem basis. The Foundation has net current assets of £5,580,468. The Trustees have considered the level of assets held together wlth the future grant expenditure plan, and the plausible effects of the hlgh Inflatlonary and higher interest rate environment on its financial sltuation and future cashflows. The Trustees are satisfied that the Charity wlll be able to meet any liabilities as and when they fall due for a period of at least 12 months from the date on whlch the flnanclal statements were approved. Zncoming resources All incoming resources are recognlsed once the Foundatlon has entitlement to the resources, it is trrtain that the resources will be received, and the monetary value of Incoming resources can be rneasured wlth sufflclent reliability. Investments and Investment Income Listed investments are shown at their market value, with all gains or losses taken to the Statement of Financial Activities. Unlisted investment5 are initially recorded at cost and revalued annually to reflect their market value unless a rellable estimate of their market value is not available. Any gain or loss in relation to investments held in the expendable endowment fund is retained in the expendable endowment fund, with the income generated by the fund freely available to fund the activities of the Charity and consequently is allocated to the unrestrlcted fund. Dividend income is accounted for when received. 15
HODGE R¢gisteI nllrnb2r 21&)53 FiThan¢ial st8t¢rnts 30 Stptcmbw 2023 FOUNDATION Accountlng policies (continued) Resources expended All expenditure is accounted for on an accrua15 basis and has been classified under headings that aggregate all costs related to the category. whe costs cannot be d1CtlY attributed to particular headings they have been allocated to activities on a basis consistent wlth the use of the resources. Overhead and support costs have been allocated between charitable activity and governance and apportloned between charltable activities based on the number of individual grant awards made. Governance costs relate to those costs involving the public accountability of the Charity and its compliance with regulation and good practlce. These costs include costs relating to the statutory audit and legal fees. Gifted assets Non-current assets gifted to the Foundation are included in the financial statements at valuation when gifted. Expendable endowment funds Expendable endowment funds comprise funds relating to assets gifted to the Foundation together with any gains or losses arising from the disposal of such assets and subject to the conditions of the donor. The income generated by the fund is freely available to fund the activities of the Charity and consequently is allocated to the unrestrlcted fund. Unrestricted general funds These are fund5, which can be used in accordance with the charitable objects at the discretion of the Trustees. Deslgnated ftinds These are funds set aside by the Trustees Out of un$trItted general funds for speclflc future purposes or projects. Grants payable Grants payable are made to third parties in the furtherance of the charitable objectives of the Trust. Grants payable are charged in the year when the offer 15 conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfllled. Grants offered subject to conditions which have not been met at the year end are noted as a commltment, but not accrued as expenditure. Taxation The Jane Hodge Foundation is conSided to pass the tests set out In Paragraph I Schedule 6 Finance Act 2011 and therefore it meets the definition of a charitable trust for UK Income tax purposes. Accordlngly, the Charity is exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation and Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 16
HODGE FOUNDATION Regt%tEted nwnbtr216053 Fin8nciaJ s¢at¢ro¢Trts 3Q Septembe*2021 Net Incomlng resources for year 2023 2022 Net incoming resources for the year are stated after charging.. Audltor's remuneratlon - audlt of flnancial statsments 9,750 5,610 Trustees. remuneratlon and expenses The Trustees did not receive any remuneration from the Foundat5on durlng the year (2022.. £nil). No amounts were paid to Trustees durlng the year in respect of professional services independent of their role as Trustees, (2022.. £nil). No expenses We received by Trustees in either year. As indicated in the Trustees, Report, one of the Trustees is a non-executive director of The Carlyle Trust Llmlted and one or more of Its subsldlary companies. Staff numbers and costs The average number of persons employed by the Foundation (excluding those trustees who ceiVed no remuneration) during the year was 0.25 (2022: 1). The aggregate payroll costs of those persons were as follows: 2023 2022 Wages and salaries Soclal security costs other pensions costs 4,328 267 444 13,733 1,097 1,544 5,039 16,374 17
HODGE Resistered nu0th21[A)S3 Fiti8rt¢ial ststemthts 30 September 2023 FOUNDATION Allocation of support costs The breakdown of support costs and their allocation to charitable activities is as follows.. 2023 2022 Administrative costs recharged Offlce costs 7,644 2,840 16,374 114 10.484 16,488 The total support costs allocated to charltable actlvltles are then apportloned pro-rdta to the number of grant5 awarded. Charitable activltles The Foundation undertakes it5 charitable activitie5 through grant making and awards grants to a number of institutions in furtherance of its charitable activities. Number Grant funded activity Support costs Total Number 2023 of grant5 Total 2022 grants Care & Welfare Education Medlcal Research Other 21 li io 1,158,992 231,858 353,362 5,241 1,164,233 2,746 234.604 2,496 355,858 38 622,242 20 5,086,928 17 263,185 2,233 42 1,744,212 10,483 1,754,695 78 5,974,588 Cost of generating funds 2023 2022 Investment management cost 97,179 121,832 18
HODGE Registerwj llumber 21fQ53 WLmanciai Statements 30 September2023 FOUNDATION Governance costs 2023 2022 Audltor's remuneratlon Irrecoverable VAT on above 9,750 5,610 Unrestricted fitnds Expendable Endowment funds Total Comparatives for the statement of flnanclal activitles 2022 2022 2022 Incomlng r•8ourc•8 Incomlng resoUrS fmm generated fvnds Investment income- Llsted investment Income Unllsted Snvestment Income 775,B31 2.607.873 775,831 2,607,873 Tot•1 Incomlng resources 3.383,704 3.383.704 Resourcw exwnd Charltable a¢tlvltles Cost of generatlng fvnds Governance costs 5,974,588 121,832 7,740 5.974.588 121,832 7,740 Tot•1 pended 6,104,160 6,104,160 Net outgoln9 resources (2,720,456) (2,720,456) Other recognised galn• and los• Loss on Investments (2.435.278) (1,592,636) (4,027.914) Net movement In fundg 15,155.734) (1,592,636) (6,748,370) Reconclllatlon of funds Total ftinds brought forward 29.527,186 22,534,859 52,062,045 Total fynd• cjrried forward 24,371,452 20,942,223 45.313,675 19
HODGE Regist¢rtyJ nuLnb¢r 2153 FiDattciai stateMts 30 September 2023 FOUNDATION io Non current asset Investments Llsted Unlisted investn)ents Invertments Total Cost At beglnnlng of year Purchase5 Dlsposals 33,917,830 15,813,390 (8.895,070) 5,555,422 39,473,252 15,813,390 (8,895,070) At end of year 40,836,150 5.555,422 46,391,572 Revaluatlon reserve At beglnnlng of year Movement In year - reallsed on dlsposal revaluatlon In year 2,273,679 (1,340,760) 2,182,861 2,273,679 (1,340,760) 2,182,861 At end of year 3,115,780 3,115,780 Market value At 30 September 2023 43,951,930 5.555.422 49,507,352 At 30 September 2022 36,191,509 5,555,422 41,746,931 Listed investments held by the Foundatlon are shown at market value at the Balance Sheet date. The unlisted investment in The Carlyle Trust Limited was acquired as a series of gifts and purchases. The latest was a transfer from The Sir Julian Hodge Charitable Trust, now wound up. The carrying value is based on the aggregate of the valuatlons at the date of each glft, the carrylng value of the shares transferred, and the consideration for those shares purchased. 20
HODGE R¢Stered number21K153 Finatt¢iAI statellxtrlts 30 swtb¢r2023 FOUNDATION io Non current asset investments (continued) Investments In individual entities at 30 September 2023, which are 5% or more of the portfolio by value, a. Unlisted investments The Cadyle Trust Limited £5,555,422 Unllsted Investment Country of Princlpal Class and registration activity percentage or incorporation of shares held The Carlyle Trust Limited UK Finance 79% ordSnary The Carlyle Trust Llmlted Is not considered to be a subsidiary undertaking as the Foundation only owns 39.5% of the voting shares. The following summarlses the consolldated Balance Sheet of The Carlyle Trust Limited at 30 September: 2023 2022 Share capital Reserves I,ioo,000 I,ioo,000 328,900.000 329,800,000 Total equity 330,000,000 330,900,000 Profit for the year 3.400,000 7,300,000 Income from the investment in The Carlyle Trust Limited amounted to £2,607,873 belng dividend income received (2022." £2,607,873). Investment dlsposals The total realised revaluation gain for all investments sold during the year is shown on the table below: 2023 2022 Sale proceeds on dlsposal Cost of investments sold 10,235,830 7,304,653 (8,895,070) (6,058,701) 1,340.760 1,245,952 21
HODGE RegJ'sier*J numlxr21éA)53 Finoticiai stAtemuts 30 Swernber 2023 FOUNDATION Debtors 2023 2022 Prepayments and accrued income 206.419 143,628 12 Credltors: amounts falllng due within one year 2023 2022 Grants payable other credltors 1,770,203 1,741,356 13,578 46,710 1,783.781 1,788,066 13 Creditors: amounts falling due after more than one year 2023 2022 Grants payable 2.439.948 4,091,800 14 Expendable endowment funds The expendable endowment funds, establlshed In accordance wlth the wlshes of the donor, include: Fixed assets Profit on and dlsposal of investrnent$ investments and property Unrealised Investment revaluation reserve Total At beglnnlng of year Unreallsed galns In the year 15,227,510 4,812,145 902,568 20,942,223 868,266 868,266 (538,461) Realised gains in the year 538,461 At end of year 15.227.510 5,350.606 1,232.373 21.810.489 22
HODGE RexisttnuTb¢r2I6053 FinCla] statanents 30 September2023 FOUNDATION 15 Unrestricted income funds These comprise those funds, which the Trustees are free to use in accordance wlth the charitable objectives. Net Incomlng resour$ excluding g4ln$/{lo$se$) on Investments and property Proflt on l$posal of investments and property Unrealised Investment revaluatlon Trtal At beglnnlng of year Net incoming resources for year Unreallsed galns in year 12,229,669 1,804,575 10,770,580 1,371,203 24.371,452 1,804,575 1.314,595 1,314,595 Reallsed gains In year 802,299 (802,299) At end of year 14,034.244 11,571879 1,883,499 27.490,622 Unrestricted funds comprise: 2023 2022 General funds 27,490,622 24,371,452 16 Related party transactions Related party transactions in the year were as follows: Dividend income recelved In the year from The Carlyle Trust Limited amounted to £2,607,873 (2022.. £2,607,873). Bank deposits held with Julian Hodge Bank, a subsidlary of The Carlyle Trust Limited, at 30 September 2023 amounted to £2,107 (2022: £1,954,943). Amounts owed to Jullan Hodge Bank, a Subsidiary of The Carlyle Trust Llmlted, at 30 September 2023 amounted to £1,421 (2022.. £10,588). There were no other related party transactlons. 23