THE CADOGAN CHARITY Registered Charity No. 247773 ANNUAL REPORT AND ACCOUNTS YEAR ENDED 5 APRIL 2022 THE CADOGAN CHARITY- A Registered Charity {Number 2477731 TRUSTEES, ANNUAL REPORT The trustees present their report, the auditors, report and the accounts of The Cadogan Charity for the year ended 5 April 2022. REFERENCE AND ADMINISTRATIVE INFORMATION Trustees The Rt Hon The Elehth Earl Cadoean KBE DL Countess Cadogan Viscount Clielsea DL Lady Anna Thomson The Hon. William Cadogan Administrative office 10 Lluke of York Square London SW3 4LY Secretary to trustees P M Loutit Bankers Coutts & Co 440 Strand London WC2R OQS Investment Managers Schroder & Co. 1 ? Mnnrgmtp. London EC2R 6DA Auditors Dixon Wilson Audlt SerNices LLP 22 Chancery Lane London WC2A ILS Charity reglstration number 247773 STRUCTURE, GOVERNANCE AND MANAGEMENT Govemlng document Thc General Permancnt Endowmcnt Fund of thc charity was created by the Seventh Earl Cado8an under a deed of trust dated 31 March 1966. Subsequently the Seventh Earl Cadogan made further gifts to the charity by way of investments. In 1985 the charity received a gift from Cadogan Holdings Company (now Cadogan Holdings Limltedl. In accordance with the direction recelved from the Seventh Earl Cadogan this gift was used to create the Rectors, Permanent Endowment Fund as described in note 5 to the accounts. In 1996 the trustees of Vlscount Chelsea's Charity re501ved to transfer the whole trust fund to the tru5tee5 of The Cadogan Charity. In 2010 the trustees of the 1986 Cado8an Jersey Trust resolved to transfer the whole trust fund to the trustees of The Cadogan Charity. Trustees The current trustees are as listed above and, unless otherwise stated, held office throughout the year under review. Only the present trustees of the charity have the power to appoint new trustees. The appointment and training of new trustee5, which involves awareness of the history and approach of the charity and their responsibilities, is performed by present trustees of the charity as they see fit on a case by case basis. THE CADOGAN CHARITY- A Reglstered Charity INumber 2477731 TRUSTEE5' ANNUAL REPORT (CONTINUED) STRucfuRE, GOVERNANCE AND MANAGEMENT Icontinuedl Organisatlon The board of trustees meets formally once a year to conduct the business of the charity. The secretary to the trustee515 ￿SPonSible for managing the day to day operations of the charitv. Risk mana8ement The trustees have examined the major strategic busine55 and operational risks which the charity faces and conflrm that system5 have been established to mana8e those risks. These Include the inherent risks of investlng on the stock market, valuations of investments held and the availability of dividends and distributions. These risks are managed through ongoin8 monitoring and through d15CUS51on at the trustees, meetings and the use of professional Investment managers. The trustees, Investment powers and pollcles are outllned on page 3. OBJECTS AND AcfiviTIES FOR ThE PUBLIC BENEFIT The general objects of the charity are to make such subscriptions to charltable organisations and bodies and such other applications for charitable purpose5 as the trustees, usinB their absolute dlscretion, may declde upon. The charity makes a large number of Sndivldual donatlons to reglstered charltles wlth partlcular reference to those based, or operating, In London or Scotland. Publlc benefit The trustees, havlng regard to the Public Benefit Buidance published by the Charity Commission In accordance with section 17 of the Charltle5 Act 2011, consSder that the purpose and activitles of the charity satlsfy the requlrements of the publlc benefit test set out in sectlon 4 of the same act. ACHIEVEMENTS & PERFORMANCE AND FINANCIAL REVIEW During the year the charity recelved £2,093,38712021 £2,591,695) In total incomln8 resources. The prlncipal source of Income Is the annual dividend received from Cadogan Group Holdin8s Limlted. The trustees applied these resources to its charitable actlvltles as follows: Generol Fund The trustees authorised donations to distribute the majorlty of the current yeaf s income. A full list of benefficiaries of these charltable donations is Shown in note 5 to the account5. bl Rectors, Fund During the year donatlons of £ll,()JO were pald to the rectors of three local churches. The trustees meet to conslder what grants they wlll make durin8 the year and to plan large future donations. Although the trustees make some 8rants with no formal applications, they normally require organisations to submit a request saying how the funds could be used, what would be achieved, and how this would add to public benefit. Grant5 are only given to recognised national charities. Wlth particular reference to rharities based in London and Scotland. THE CADOGAN CHARITY- A Re8lStered Charlty (Number 2477731 TRusfEES' ANNUAL REPORT (CONTINUED) ACHIEVEMENTS & PERFORMANCE AND FINANCIAL REVIEW (continued) Investment powers and pollcy Under the trust deed the tnjstees have wide powers of investment and are not subject to the imposltion of any restrictions. The trustees have the power to retain shares in Cadogan Group Holdings Limited and are not under any duty to dlversify to the extent that the trust fund comprlses those shares. However, the trustees have also noted the statutory duty of care required by tl)e Trustees Act 2000, in relation to their holding sultable Investments and the need for dlversification of Investments so far as It is appropriate to the circumstances of the trust. The trustees receive the benefit of investment advice from S¢hroder & Co. Investment performance was satisfactory for the current year, although the current market value of Investments reflected an unrealised loss of £896k In the year prlmarlly from the Charlty's Investment In Cado8an Group Holdin8s Limited, A detalled schedule of the Investment portfollo at S Aprll 2022 and detalls of the movement In revaluatlon during the year are given in note 6 to the accounts, Reserves pollcy 11 15 Ilie yuliLV uf Ili¥ Lli¥rily lu riidiiildlii uiire5triLted liicome funds sufflclent to cover management and administration expenses and to respond to emer8ency request5 for donations for the relief of distre55 and sufferln8. PLANS FOR FUTURE PERIODS It is the intention of the trustees to continue making subscriptlons to charltable organlsatSons for the foreseeable future. The trustees have already agreed to make donations out of future income to certain named charltles on the basls ot tunds belng avallable, although these tuture payments remaln at the absolute discretion of the trustees. Detalls of the quantum of these potentlal donatlons have been set out In note 11 to the accounts. Impart of COVID-19 The trustees have consldered the continued Impact that COVID-19 has had on the operations of the charity and its ablllty to meet its objective5 over the foreseeable future. The trustees have concluded that the impact to the charity Is minlmal and they expect that the charlty wlll continue to recclve investment Sncome to enable the contlnued making of 8rant5 to charitable organisations. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparlng the Trustees, annual ￿pOrt and the accounts in accordance wlth applicable law and United Kingdom Accounting Standards. The law applicable to charities Sn England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charSty for that period. In preparlng these accounts, the trustees are required to.. select suitable accountlng policies and then apply them consistently,. ObSe￿e the methods and principles of the Charities SORP. make judgements and accoursting estirnate5 that are reasonable and prudent- state whether applicable accountin8 Standards have been followed, subject to any departures disclosed arbd explained in the account5,' and prepare the accounts on the goin8 concern basls unless It is Inapproprlate to presume that the charity will continue in busines5. THE CADOGAN CHARITY- A Registered Charity (Number 247773) TRUSTEES, ANNUAL REPORT {CONTINUED) STATEMENT OF TRUSTEES, RESPONSIBILITIES Icontinuedl The trustees are responsible for keeping accountin8 records which disclose with reasonable accurary the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence foi taking reasonable steps for the prevention and detection of fraud and other irregularitles. ACCOUNTS The accounts have been drawn up In compliance with relevant provlsions of The Charities Act 2011, the trust deed and the 'Accountlng and Reportin8 by Charities,: Statement of Recommended Practlce applicable to charities preparin8 their account5 in accordance wlth the Financlal Reporting Standard applicable in the UK and Republic of Ireland IFR51021. STATEMENT AS TO DISCLOSURE TO OUR AUDITORS In so far as the trustees are aware at the tlme of approving our trustees, annual report.. there is no relevant informatlon, being Informatlon needed by the auditor in connection with preparing their report, of which the auditorls unaware,. the trustee5 have each taken all steps that he/she is obliBed to take as a trustee in order to make themselves aware of any relevant audit information and to e5tab115h that the auditor Is aware of that Informatlon. On beh If of the trustee The Earl Cadogan KBE DL 26 January 2023 THE CADOGAN CHARITY- A Re815tered Charity (Number 247773) INDEPENDENT AUDITORS, RFPORT Tn THF TRI)gTFFS nF THE CADOGAN CHARITY Oplnlon We have audited the financial statements of The Cadogan Charity (the 'ch3rily'l for the year ended 5 April 2022 whlch comprise the statement of flnanclal actlvlties, bTiliincp %hopt, slalement of cashflows and notes to the financlal statement5, including a summary of significant accounting pollcles. The financial reporting framework that has been applied in their prop3cation is applicable law and United Kingdom Accountlng Standards, including Financial Reporting Standard 102 The Flnanclal Reportin8 Slandard appllcable in the UK and Republic of Ireland Iuniled Klngdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. 8ive a true and falr vlew of the state of the charlty's affairs as at S Aprll 2022 and of its incomin8 resources and application of resources for the year then ended,. l)ave bv¥i) piupei IV Pl¥Vdivd lil dcrurd(Ince wlth Unlted Klngdom Generally Accepted Accounting Practice,. and have been prepared In accordanee with the requirements of the Charlties Act 2011. Basls for oplnlon We conducted our audit In accoidance with International Standards on Audltlng IUKI IISAS IUKII and appllcable law. nilr rp8pnnsibilitie5 Linder those standards are furthor descrlbod In the Auditorfs re.ponrlbillller for the Judlt ol thc Iinancial Statements sectlon ot oui. repoi't. We are S1)deyviideii( ul Ilie rhdrily In accvrdance wlth the ethlcal requlrements that are relevant to our audlt of the financial statements In the UK, includln8 the FRC'S Ethical Standard, and wg havp fijlflllpd our other ethlcal responslbllltlp% In accordance wlth these reqiilremenls. We belleve that the audit evldeiice we l)ave obidliivd 55 suifiLi¥ril (Ind (Ipproprlate to provlde a basls for our oplnlon. Concluslons relatlng to goSng ￿nCer In auditlng the flnanclal slatemenls, we have concluded that the trustees, use of the goln8 concern basls of accounting In the preparation of rhe financial statements Is approprlate. Based on the work we have performed, we have not Identified any materlal uncertalnties relatlng to events or condition5 that, Indlvldually or collectlvely, may cast slgnlflc8nt doubt on the charlty's abS1ity to contlnue as a going concern for il perlod of ai least twelve months from when the financlol slalements are authori5ed for Issue. Our responsibi15tles and the re5ponslbllities of the trustees wlth respect lo golng concern are descrlbed In the relevant sections of thSs report. Other Inlormatlon The other information comprlse5 the Informatlon Inclu¢Jed In the annual report, other than the flnanclal stateFnent5 and our audltor's report thereon. The trustees are responsible for the other Information. Our opinlon on the financlal statements doe5 not cover the other Informatlon and we do not express any form of assurance concluslon thereon. In connection with our audll of the financlal Statements, our responsibility 15 to lead the other Informatlon and, in dolng so. consider whether the other Informatlon Is materially inconslstent with the financial Statements or our knowledge obtained in the audit or otherwise appears to be materially rnisstated. If we identify such material inconsistencles or apparent material misstatements, we are required to determlne whether ihere is a material m155tatement in ihe financial statemenis or a material misstatement of the oiher information. If, based on the work we have performed, we conclude that there Is a materlal misstaternent of this other informatlon, wè are required to report that fact. We have nothlnB to report in thi5 re8ard. THE CADOGAN CHARITY- A Reglstered Charlty (Number 247773) INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE CADOGAN CHARITY (contlnuedl Matters on whSch we are requirèd to report by ex¢eptlon We have nothing to report In respect of the followlng matters in relatlon to which the Charities (Aecounts and Reports) ReBulatlon$ 2CN)8 require us to report to you If, In our oplnion.. the information given in the flnancial statements Is Incon515tent in any mate¥S3l respect wSth the trustee5 report,. or sufficient accountlng records have not been kept; or the financial statements are not in agreement with the accountlng records., or • we have not recelved all the information and explanations we require for our audit. Responslbllltles of tTU5tees As explained more fully in the trustees, responslbilities statemenl Set out on page 3, the trustees are responsible for the preparation of the flnancial statement5 and for bèlng satisfied that they glve a true and falr vlew, and for such internal control as the trustees determlne Is necessary to enable the preparatlon of flnancial statements that are free from materlal m15Statement, whether due to fraud or error. In preparlng the financlal statements, the trustees are responslble for a55e551n8 the charity's ablllty lo contlnue as a golng concern, d15cIosin8, as appllcable, matters related to golng concern and uslng the goin8 concern basls of ac¢ountlng unless the trustees eblher Intend to Ilquldate the charlty or to cease operatlons, or have no realisti¢ alternative but to do sc*. Audltorfs respon51bllltl05 for the •udlt of the flnanclal statements We have been appolnted as audltor under section 144 of the Charltles Act 2011 and report In accordance wlth the Act and relevant re8ulations made or havln8 elfect thereunder. Our oblectlves are to obtaln reasonable assurance about whether the financlal statements 35 a whole are free from materlal mlsstalement, whether due to fraud or error, and to Issue an audltor'5 report that Includes our oplnion. Rea5tsnable assurance is a hlgh level of assurance, but Is not a guarantee that an audit conducted In accordance wlth ISAS IUKI will alway5 detect a material mlsstaternent when It exists. Mlsstatement5 can arise from fraud or error and are consldered material If, indlvidually or in a68re6ate, they could reasonably be expected to Influence the economlc declsSons of users taken on the basls of these flnanclal statements. Irregularitles, includlng fraud, are Instance5 of non 4,593 110,362,928> Fund balaTh￿s br¢uiht lorwaid 619,062 1.767 64,562,511 60,202 65.243,542 Fund b•lances urrled lorward £718,S35 £1,109 £S4,096,075 £64,895 £54,880,614 THE CADOGAN CHARITY- A Registered Charity (Number 247773} 20 NOTES TO THE ACCOUNTS for the year ended 5 April 2022 ANALYSIS OF NET AssEfs BETWEEN FUNOS At 5 Apr112022 Investment5 Bank balances Credltors Total Unrestrlcted General Fund Restrlcted Rector5' Fund 60,519 1.109 16,0001 54,519 1.109 Endowrnent Funds.. General Permanenl Fund Reclors, Permanent Fund 52,224,046 64,895 1,045 52,225,091 64,895 £52,288,941 £62,673 £16,000) £52,345,614 At S Aprll 2021 Investments Bank balances Credltors Total Unrestrlcted General Fund Restrlcted Reclor5' Fund 724,S35 1,109 16,0001 718,535 1,109 Endowment Funds.. General Permanent Fund Rectors, Permanent Fund 53,842,005 64,895 254,070 54,096,075 64,895 £53,906,900 £979,714 £16,000) £54,880,614 10 TAXATION Tlie charity is exempt from tax on Income and galns falling withln seaion 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charltable objecrs. THE CADOGAN CHARITY- A Reglstered Charlty {Number 247773) NOTES TO THE ACCOUNTS for the year ended 5 April 2022 li FUTURE DONAnONS The trustees have resolved that slgnlfbcant donatlons to eertain charltles will be paid out of future income. The posilion relating lo these intentions Is as follows.. Payable in the year tts S April 2023 Payable In the year to S Aprll 2024 Payable In the perlods post S Aprll 2024 1,400,000 1,250,000 1,000,000 £3,650,000 No provlslon has been made Sn the accounts for Intendeil donations, as these are subject to future funds belng avallable and payment5 are at the dlscretlon of the trustee.4. 12 FINANCIAL ASSETS ANO LIABILITIES The followlng are flnanclal Ilabllltles that qualSfy as ba51c flnancial instruments and are InS1Sally recc8nlsed at transactlon value and subsequently measured at thelr amortlsed cost.. 2022 2021 CreditOfS £6,000 £6,000 The followlng are flnanclal assets that quallfy as baslc flnanclal Instruments and are InStlally recognlsed at transactlon value and subsequently measured at thelr falr value5 at the balance Sheet date uslng the closlng quoted na-l ket prlce.. 2022 2021 Flxed asset investmènts £52,288,941 £53,906,900