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2022-03-31-accounts

THE ALLEN LANE FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Charity Number: 248031

HPH Chartered Accountants 54 Bootham YORK YO30 7XZ

THE ALLEN LANE FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Contents Page
Reference and administrative details 1
Trustees' Annual Report 2‐10
Independent Auditor's Report 11‐14
Statement of Financial Activities 15
Balance Sheet 16
Statement of Cash Flows 17
Notes to the Financial Statements 18‐33

THE ALLEN LANE FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2022

Trustees: Zoe Teale, Chair Justine Cadbury Michael Firth (appointed 11 July 2022) Maurice Frankel Claire Hitchcock (appointed 11 July 2022) Margaret Hyde (resigned 11 July 2022) Fredrica Teale Juliet Walker (resigned 11 July 2022) Philip Walsh Chairty registered number: 248031 Principal Address: 90 The Mount YORK YO24 1AR Staff: Tim Cutts, Executive Secretary Gill Aconley, Grants Officer Bank: Co‐operative Bank PLC 62‐64 Southampton Row LONDON WC18 4ND Investment Managers: Canaccord Genuity Group Inc 11 The Strand LONDON WC2N 5HR Auditor: HPH, Chartered Accountants 54 Bootham YORK YO30 7XZ

1

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the audited financial statements of The Allen Lane Foundation (the charity) for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic or Ireland (FRS 102) (effective 1 January 2019) - (Charites SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

Objectives and Activities

Objectives and Public Benefit Statement

The Trust Deed states that the Foundation may make grants for 'general charitable purposes'. This gives the Trustees considerable latitude to decide on priorities. The Trustees currently choose to fund work which:

The Foundation has identified specific groups of people it believes are vulnerable, isolated and unpopular within the communities through which support can meet those objectives. The Foundation is interested in funding work which benefits people in the following groups, or generalist work which includes significant numbers from more than one such group:

2

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Foundation invests capital from which revenues are generated each year to support smaller organisations with annual income of up to £250,000, as Trustees believe the level of grants awarded, up to £15,000, can have a greater impact. Grants are awarded to registered charities and organisations with automatic charitable status. Grants are also awarded to constituted groups with charitable purposes and newer forms of organisations such as Community Interest Companies (CIC). It currently makes grants in the UK, but does not make grants for work in London as it feels there are other significant grant-makers covering the capital. While recognising (and being willing to support) on-going, tried and tested projects, the Foundation is particularly interested in unusual, imaginative or pioneering projects which have not yet caught the public imagination.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Foundation’s aims and objectives and in planning future activities and setting grant-making policies.

The Foundation provides funding to organisations which demonstrate charitable purpose. Funding provided enables the causes supported to provide benefits to the public within those organisation’s specific aims and objectives. This is consistent within the aims of the Foundation. Where the grant is made to a registered charity, the Trustees are confident that the grant has been made to further a charitable purpose to the public benefit. Where grants are made to other organisations, the Trustees consider carefully how the funds will be used and make those grants with conditions to ensure that they are spent appropriately and for charitable purposes. In all cases the Trustees seek feedback on the actual use of the grants given, and the achievements made, so that they know how funds were used in practice.

The explanations and feedback on the grants made are believed to be sufficient for monitoring the quality of those grants and appropriateness of the size of the grant made. In grant making there is always a necessary degree of trust that the applicant is honest and will use the funds wisely.

Achievements and Performance

Key financial performance indicators

In the year to 31 March 2022, the Foundation's income increased to £637,135 from £634,721. Expenditure during the year increased to £990,035 from £932,184. This resulted in net expenditure being £352,900 a rise from £296,463 in the previous year. Once net gains on investments of £883,040 (2021: £4,159,737) are taken into account the overall net movement in funds was a surplus of £530,140 (2021: £3,863,274). The total funds available at the end of the year were £21,709,559 (2021: 21,179,419).

3

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Overall, the Foundation’s portfolio performed reasonably well over the year although it was affected in the last quarter of the year due to the effect of the invasion of Ukraine by Russia, higher inflation and the cost-of-living crisis which have all had an impact on the global markets. The income from the portfolio continued to improve as companies reinstated dividend payments, but below that achieved before the pandemic. It is expected that the income due in 2022/23 will remain steady.

The Trustees have continued to consider the wider concerns around Socially Responsible Investing. During the year Trustees took the decision to sell its holding in tobacco stocks and this was completed by the end of December 2021. This has had a small impact in the returns for the portfolio. Trustees also held several discussions on the issue of Climate Change and linked to this the holding of oil and gas stocks within the portfolio. The Trustees have not yet reached a conclusion on this matter and will continue to consider the issues involved. Through the course of the year the Foundation’s investment managers provided a constant update on the position of the portfolio as it measures against Environmental, Social and Governance (ESG) and Sustainability ratings. At the end of the financial year more than half of the Foundation’s portfolio was rated Socially Responsible Investment (SRI) Approved or above-average ESG score. Over 30% of the portfolio was rated average with only 13% below average. This predominantly relates to part of the Foundation’s investment which is held in Trust Funds covering developing countries and a small number of holdings in oil and gas and industrial/construction sectors.

The Trustees have an agreed benchmarking for the investment portfolio against 90% of the FTSE All Share index. This reflects that a proportion of the portfolio is not invested in equities. Against this benchmark, the portfolio has under-performed over the last twelve months and outperformed over a 3 and 5 year period.

The Trustees were informed during the year that its investment management team, Punter Southall Wealth, had been acquired by Canaccord Genuity UK. The transfer was still going through the regulatory process at the year-end but this should be concluded by late-Spring/early Summer 2022.

4

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Grants

In 2021/22, the Foundation committed to 131 new grants (2020/21 131 grants). The total value of grants committed was £738,169, which was higher than last year’s figure of £726,132. This was in light of a reasonable recovery in the dividend income over the year. 33 grants (25%) were offered to organisations previously funded by the Foundation which was a significant fall rise on the previous year (55 grants, 42%). 80 grants (61%) were offered to organisations who had not previously applied to the Foundation and 18 grants were made to organisations who had previously been refused. Most of the grants offered (92) were single grants, with 30 grants over two-years and eight grants over three years. From a total of 427 (466 last year) applications made to the Foundation during the year, 296 were refused (335 last year) resulting in an overall success rate of 31% which was higher than in the year before (28%). For most applications that were eligible and focused on just one beneficiary group the success rate increased to between 33% and 45%. There were two notable exceptions to this, the success rate for Offenders and ex-offenders was 61% but the success rate under Mental Health was only 16% but this reflected a very high number of applications.

There was a mixed geographical spread across the UK with 98 grants awarded in England, 6 in Scotland, 2 in Wales, with 3 in Northern Ireland. 22 of the grants offered were for organisations working nationally. The most grants made (38) and the highest total funded (£188,007) went to groups and organisations supporting Older People. The next highest total of grants awarded (25) were to organisations supporting Offenders and ex-offenders with Mental Health and Asylum Seekers and Refugees also receiving 22 and 20 awards respectively. Gypsy and Traveller and migrant communities received only eight grants between them in the year but this is reflective of the low number of applications received from groups supporting these communities. There were only three grants to the Foundation’s social cohesion programme which was closed after the first decision-making round in the year. The average size of grant was £5,635, slightly higher than the previous year (£5,543).

In the last meeting of the year and aligned to the one of the Foundation's current priorities, Trustees agreed two one-off donations totalling £25,000 to support organisations working to support refugees affected by the impact of the appalling situations in Ukraine and Afghanistan.

Allen Lane Lecture

The Foundation has not any current plans for a Lecture in the near future, which were paused due to the pandemic. Trustees will regularly consider when any Lecture could take place. The text of some of the previous Lecture’s remain available on the Foundation’s website (www.allenlane.org.uk).

5

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Investment policy and performance

Financial review

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Reserves policy

The Trustees are not required to make any distinction between capital and income, and aim to maintain the real value of the legacy, while ensuring that the level of grant-making is not subject to large fluctuations. Grant-making in any one year is not strictly related to the amount of investment income received, but rather to an estimate of the amount which can be spent each year without impairing the ability of the capital to sustain the same real level of spending indefinitely into the future. Trustees consider that a large proportion of its capital is used to invest to help generate the necessary funds for its grant-making objectives.

At the end of the accounting period, the total amount of free reserves the Foundation held was £21,708,221 (2021: £21,177,635), being the total of unrestricted reserves less those amounts representing tangible fixed assets. This was up from the previous year, due to the performance of the Foundation’s investments rather than due to any reduction in the levels of expenditure including the commitment to grants made. The Trustees accept that there can be fluctuations, both up and down, in the value of its investments, and monitor these carefully throughout the year. The Trustees are pleased to report a modest increase in the portfolio value this year, adding to the overall strength of the Foundation’s financial position.

The Trustees estimate that a minimum reserve of one year’s operational expenditure of £980,000 is required. However, the total reserves need to be considerably higher than this to generate the investment income needed to continue the Foundation’s grant making activities.

Structure, governance, and management

The Foundation

The Allen Lane Foundation was set up in 1966 by the late Sir Allen Lane, founder of Penguin Books, to support general charitable causes. Although the Foundation has no connection with the publishing company, it has throughout its existence had a strong family connection with several family members having served as Trustees including two of Sir Allen Lane’s daughters. Currently, the Foundation has seven Trustees of whom two are members of the founder’s family.

6

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Appointment of Trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust Deed. Trustee induction and training is informal, but appropriate to a Foundation of this size. New Trustees are provided with copies of the governing documents, latest set of accounts and taken through the processes employed by the Foundation. Trustees can also attend specific training or networking opportunities provided for by the Foundation’s membership of the Association of Charitable Foundations (ACF).

The Board took the decision to extend again, the terms of two Trustees who had been due to step down during this financial year. Their final meeting will now be in July 2022. The process of appointing new Trustees reached a successful conclusion as invitations were made and accepted to two excellent candidates after both had attended the March 2022 board meeting as observers. Their three-year terms will commence from the first Board meeting of the new financial year. The Board also agreed to extended the service of a valued Board member until the end of the March 2023, to provide continuity over this change-over period.

Pay policy for senior staff

The level of pay for staff is set by the Trustees after consideration of the size of the organisation, the levels of responsibility and the appropriate rates within the charitable sector.

Administration

The Trustees are responsible for setting the overall strategies, policies and funding criteria of the Foundation including investments, making the final decisions on any grant awarded and for agreeing an annual budget. Delegated responsibility is given to the Executive Secretary to implement these and together with the Grants Officer they provide all appropriate advice and guidance.

The Foundation’s staff, Tim Cutts (the full-time Executive Secretary) and Gill Aconley (the part-time Grants Officer) administer the Foundation’s business on a day-to-day basis from the office in York, and the Trustees meet three times a year. The Trustees’ meetings during the year have been conducted on-line through Zoom to comply with Government guidelines on travel and to ensure the safety of staff and Trustees. Reports by the office are made to the Trustees at every meeting with regular communication with the Chair between meetings.

The work of the Foundation has continued through the pandemic with working practices following the Government’s Coronavirus guidelines. This has meant staff have continued to worked from home whilst gradually increasing time spent in the office. Contact with applicants and possible applicants has been maintained at all times, with on-line facilities being used to replace face-to-face meetings.

7

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Trustees can report that the cost of running the Foundation has remained steady with continued steps to keep operating costs at an appropriate level compared to the level of grants that could be awarded. Administrative costs represent about 12.1% (2021: 12%) of grants committed.

The Trustees are grateful to Tim and Gill for their diligence in the administration of the Foundation.

Risk analysis and management

The Trustees have considered the risks faced by the Foundation. They are satisfied that appropriate measures have been taken and systems put in place to mitigate these risks and minimise the impact on the Foundation, should difficulties materialise. Major risks that the Trustees have considered and have taken steps to mitigate include having robust assessment and monitoring processes to ensure grants made are for work which is considered charitable; having a clear investment policy which takes into account appropriate professional advice; and ensuring that the Foundation is compliant with legislation and regulations through taking any necessary professional advice and employing experienced and knowledgeable staff.

Policy

The Trustees continued through the year to show flexibility to existing grantees and applicants that have been affected by the pandemic, whilst recognising the long-term impacts it has had generally. Part of this is support to organisations covers more core and unrestricted funding rather than new projects or work.

During the year Trustees had a broad review of possible new areas of focus for the Foundation. Some of the issues discussed were the environment and digital inclusion, and it was decided to continue to support applications within existing priorities, which incorporated these elements. A new funding programme aimed at benefitting young people is to be launched, ahead of the October 2022 meeting. Trustees also took the decision to close the Migrant Communities priority with the last decision meeting for this priority being July 2022. Over the last six years, the Foundation made 30 awards under this comparatively small programme totalling £145,545. Trustees also agreed to consider developing a small pro-active initiative in Northern Ireland, a nation from which the Foundation has received low numbers of applications from recent years.

The Trustees are always keen to make the Foundation’s criteria as clear as possible to save applicants from wasted effort and disappointment, although this means that the Guidelines list a significant number of “exclusions”. The eligibility quiz before on-line application process also assists prospective applicants determine whether they are eligible without having to go on to complete an application.

8

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Foundation’s website gives better guidance to those groups and organisations looking towards the Foundation for support and provides case studies of grants awarded. These case studies not only provide examples of the types of grants the Foundation makes, but highlights the excellent work that is done by many of the organisations supported. The Foundation, through its staff, are always available to provide advice and guidance prior to any application submitted.

Future plans

The Trustees continue to maintain the amount of funds it has available annually for grant distribution. To assist Trustees, they receive regular policy statements and updates from the staff team during the year to help refine or make changes to its grant-making policy. The Trustees will continue to review the Foundation’s work during the coming year and continue to reserve the right to offer larger grants at their discretion.

Thanks

Most importantly, the Trustees also wish to express their appreciation of those who have applied for grants this year. We regret that there are many we are unable to help, but without their work, a grant-making foundation like this would have no purpose. The Trustees and staff feel privileged to be able to help with their work.

Trustees' responsibilities statement

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

9

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the

Charities Act 2011, 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 for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustees, and signed on their behalf by:

Zoe Teale, Chair of Trustees

19 August 2022

10

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ALLEN LANE FOUNDATION

Opinion

We have audited the financial statements of The Allen Lane Foundation for the year ended 31 March 2022 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation 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 Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

11

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 9 to 10, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

12

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 misstatement when 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 decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 and the Statement of Recommended Practice.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included enquiries of trustees and management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

13

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

HPH, Chartered Accountants

Statutory Auditor

54 Bootham

YORK

YO30 7XZ

19 August 2022

14

THE ALLEN LANE FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Notes
Income from:
Donations and legacies
Investments
2
Total income
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net expenditure before net gains
on investments
Net gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
fund
£
‐
637,135
637,135
134,150
855,885
990,035
(352,900)
883,040
530,140
21,179,419
530,140
£ 21,709,559		 Total
2022
£
‐
637,135
637,135
134,150
855,885
990,035
(352,900)
883,040
530,140
21,179,419
530,140
£ 21,709,559		 Total
2021
£
1,208
634,513
635,721
121,103
811,081
932,184
(296,463)
4,159,737
3,863,274
17,316,145
3,863,274
£ 21,179,419

The notes on pages 18 to 33 form part of these accounts.

15

THE ALLEN LANE FOUNDATION

BALANCE SHEET AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
19
14
Net current assets
Total assets less current liabilities
15
Total net assets
The funds of the charity:
Unrestriced funds
16
Total funds
Creditors: amounts falling
due after more than one
Creditors: amounts falling
due within one year		 2,113
246,210		 2022
£
1,338
21,680,565
21,681,903
51,656
21,733,559
(24,000)
£ 21,709,559
21,709,559
£ 21,709,559		 2,241
318,887		 2021
£
1,784
21,131,074
21,132,858
62,061
248,323
(196,667)		 321,128
(259,067)
21,194,919
(15,500)
£ 21,179,419
21,179,419
£ 21,179,419

The notes on pages 18 to 33 form part of these accounts.

Approved by the Trustees on 19 August 2022 and signed on their behalf by:

Zoe Teale, Chair of Trustees

16

THE ALLEN LANE FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Net cash used in operating activities
18
Cash flows from investing activities:
Dividends, interests and rents from investments
Proceeds from sale of investments
Purchase of investments
12
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
19		 2022
£
(1,043,361)
637,135
1,741,522
(1,407,973)
970,684
(72,677)
318,887
£ 246,210		 2021
£
(845,392)
634,513
2,094,508
(2,287,188)
441,833
(403,559)
722,446
£ 318,887

The notes on pages 18 to 33 form part of these accounts.

17

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

a) Statutory information

The Allen Lane Foundation is an unincorporated charity in England. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are the making of grants for general charitable purposes.

b) Basis of preparation

The Accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic or Ireland (FRS 102) (effective 1 January 2019) ‐ (Charites SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Allen Lane Foundation meets the definition of a public benefit entity under FRS 102.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

c) Going concern

As part of their assessment of the going concern basis of preparation, the trustees have considered the forecasted income for the year to 31 March 2023. They have also informally considered the period up to 12 months from the signing of the accounts. The majority of the expenditure, being grants payable, is at the discretion of the trustees and can be reduced if income falls. The charity also has sufficient reserves to cover the current level of expenditure for several years ahead.

18

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES (continued)

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis in preparing the financial statements.

d) Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and divided income is recognised as the charity's right to receive payment is established.

e) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

g) Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

19

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES (continued)

h) Taxation

The charity is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charity for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Income Tax Act 2007, Part 10 s521 ‐ s537 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

i) Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives.

Depreciation is provided on the following basis:

Office equipment ‐ 25% reducing balance

j) Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.

k) Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

Cash at bank and in hand includes cash and short‐term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m) Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

20

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES (continued)

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre‐tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

n) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

o) Employee benefits

The costs of short‐term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

p) Pensions

Pension contributions paid by the charity into defined contribution pension schemes on behalf of its employees are charged to the statement of financial activities.

q) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Investment income, gains and losses are allocated to the appropriate fund.

21

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

2.
INVESTMENT INCOME
Unrestricted
Funds
£
Income from UK listed investments
637,135
Bank interest receivable
‐
637,135
3.
COSTS OF RAISING FUNDS
Unrestricted
Funds
£
Investment management fees
134,150
134,150
4.
ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
Summary by fund type		 Total
2022
£
637,135
‐
637,135
Total
2022
£
134,150
134,150		 Total
2021
£
634,172
341
634,513
Total
2021
£
121,103
121,103
Unrestriced
Funds
2022
£
Grants Committed (note 5)
732,169
Charitable donations
25,000
Support costs (note 6)
72,882
Governance costs (note 7)
25,834
855,885
Summary by expenditure type
Staff
Other
costs
Depreciation
Costs
2022
2022
2022
£
£
£
Grants Committed (note 5)
‐
‐
732,169
Charitable donations
‐
‐
25,000
Support costs (note 6)
59,945
357
12,580
Governance costs (note 7)
14,986
89
10,759
74,931
446
780,508		 Total
Funds
2022
£
732,169
25,000
72,882
25,834
855,885
Total
Funds
2022
£
732,169
25,000
72,882
25,834
855,885		 Total
Funds
2021
£
712,372
‐
72,163
26,546
811,081
Total
Funds
2021
£
712,372
‐
72,163
26,546
811,081

22

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

**5. ** ANALYSIS OF GRANTS 2022 2021
£ £
Grants to institutions
Grants committed (note 22) 738,169 726,132
Grants withdrawn or released (6,000) (13,760)
732,169 712,372
For further details of grants committed during the year see note 22. A reconciliation of grant
commitments is as follows:
2022 2021
£ £
Commitments brought forward 256,124 171,645
Grants committed (note 22) 738,169 726,132
Grants withdrawn or released (6,000) (13,760)
Grants paid (784,587) (634,653)
Grants refunded ‐ 6,760
Grants carried forward 203,706 256,124
Grant commitments 2022 2021
£ £
of which payable within one year 179,706 240,624
of which payable after one year 24,000 15,500
203,706 256,124
Grants commited ‐ by beneficiary 2022 2021
£ £
People experiencing mental health issues 99,590 132,912
Offenders and ex‐offenders 173,842 126,852
People experiencing violence or abuse 94,560 100,989
Older people 188,007 180,646
Migrant communities 27,600 44,500
Refugees and asylum‐seekers 118,950 121,653
Gypsies and travellers 12,000 6,000
Social cohesion 23,620 12,580
£ 738,169 £ 726,132

23

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

6. SUPPORT COSTS
Premises
Office costs
Sundry expenses
Wages and salaries
National insurance
Pension cost
Depreciation
Total 2021		 Charitable
activities
2022
£
7,064
4,782
734
52,763
2,128
5,054
357
72,882
72,163		 Governance
costs
2022
£
1,766
1,195
184
13,191
532
1,263
89
18,220
18,041		 Total
funds
2022
£
8,830
5,977
918
65,954
2,660
6,317
446
91,102
90,204		 Total
funds
2021
£
9,205
3,634
2,351
65,301
2,585
6,533
595
90,204

The support costs as listed above are allocated to charitable activities and governance costs using a ratio of 80:20. This ratio has been agreed by the Trustees and shows a reasonable split between time and resources spent on each area.

7. GOVERNANCE COSTS
Accountancy fees
Audit fee
Trustees' travel and accommodation expenses
Support costs (note 6)
Total 2021		 Unrestriced
funds
2022
£
2,200
4,950
464
18,220
25,834
26,546		 Total
funds
2022
£
2,200
4,950
464
18,220
25,834
26,546		 Total
funds
2021
£
2,405
6,100
‐
18,041
26,546

8. AUDITORS' REMUNERATION

The auditors' remuneration amounts to an audit fee of £4,950 (2021 ‐ £6,100), and accountancy fees of £2,200 (2021 ‐ £2,405).

24

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

9. STAFF COSTS

Staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs		 2022
£
65,954
2,660
6,317
74,931		 2021
£
65,301
2,585
6,533
74,419

The average number of persons employed by the charity during the year was as follows:

2022 2021
No. No.
2 2

No employee received remuneration amounting to more than £60,000 in either year.

The key management personnel of The Allen Lane Foundation include both the Executive Secretary and the and the Grants Manager. The total employee benefits of the key management personnel were £74,931 (2021 ‐ £74,419).

10. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2021 ‐ £NIL).

During the year ended 31 March 2022, a total of £464 of expenses were reimbursed or paid directly to 4 Trustees (2021 ‐ £NIL ).

11. TANGIBLE FIXED ASSETS

Cost or valuation
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 £
6,278
‐
Office
equipment
6,278
4,494
446
4,940
1,338
1,784

25

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

12. FIXED ASSET INVESTMENTS

Valuation
At 1 April 2021
Additions
Disposals
Revaluations
At March 2022
Investments at market value comprise:
2022
£
Listed investments
21,680,565		 £
21,131,074
1,407,973
(1,725,363)
866,881
Listed
investments
21,680,565
2021
£
21,131,074

The historical cost of listed securities as at 31 March 2022 was £14,914,497 (2021 ‐ £14,694,388).

All the fixed asset investments are held in the UK.

13. DEBTORS

2022
£
Prepayments and accrued income
2,113
2,113
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Other creditors
‐
Accruals and deferred income
16,961
Grant commitments
179,706
196,667
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022
£
Grant commitments
24,000		 2021
£
2,241
2,241
2021
£
280
18,163
240,624
259,067
2021
£
15,500

26

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

16. STATEMENT OF FUNDS

Statement of funds ‐ current year
Balance at 1
April 2021
£
Unrestriced funds
General Funds
14,742,733
Revaluation reserve
6,436,686
21,179,419
Statement of funds ‐ prior year
Balance at 1
April 2020
£
Unrestriced funds
General Funds
14,205,092
Revaluation reserve
3,111,053
17,316,145		 Income
£
637,135
‐
637,135
Income
£
635,721
‐
635,721		 Expenditure
£
(990,035)
‐
(990,035)
Expenditure
£
(932,184)
‐
(932,184)		 Gains/
(Losses)
£
553,658
329,382
883,040
Gains/
(Losses)
£
834,104
3,325,633
4,159,737		 Balance at 31
March 2022
£
14,943,491
6,766,068
21,709,559
Balance at 31
March 2021
£
14,742,733
6,436,686
21,179,419

27

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Analysis of net assets between funds ‐ current year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Analysis of net assets between funds ‐ prior year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year		 Unrestriced
funds
2022
£
1,338
21,680,565
248,323
(196,667)
(24,000)
21,709,559
Unrestriced
funds
2021
£
1,784
21,131,074
321,128
(259,067)
(15,500)
21,179,419		 Total
funds
2022
£
1,338
21,680,565
248,323
(196,667)
(24,000)
21,709,559
Total
funds
2021
£
1,784
21,131,074
321,128
(259,067)
(15,500)
21,179,419
18. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING
ACTIVITES
2022 2021
Net income for the year (as per Statement of £ £
Financial Activities) 530,140 3,863,274
Adjustments for:
Depreciation charges 446 595
(Gains)/losses on investments (883,040) (4,159,737)
Dividends and interest from investments (637,135) (634,513)
(Increase)/decrease in debtors 128 (950)
Increase/(decrease) in creditors (53,900) 85,939
Net cash used in operating activities (1,043,361) (845,392)

28

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

19. ANALYSIS OF CASH AND CASH EQUIVALENTS

ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Total cash and cash equivalents		 2022
£
246,210
246,210		 2021
£
318,887
318,887

20 ANALYSIS OF CHANGES IN NET DEBT

ANALYSIS OF CHANGES IN NET DEBT
Cash at bank in hand At 1 April
2021
£
318,887
318,887		 Cash
flows
£
(72,677)
(72,677)		 At 31 March
2022
£
246,210
246,210

21. RELATED PARTY TRANSACTIONS

There were no related party transactions as required to be disclosed other than the reimbursement of Trustees' expenses shown in note 10.

29

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

22. GRANTS COMMITTED

Grants committed in the year were as follows:
Timebanking UK
National Appropriate Adult Network
Think Through Nutrition
UK Aquired Brain Injury Forum
Prison Fellowship Scotland
The Recruitment Junction
Futures Unlocked
The Welcome Directory
Project 67
Morton Hall Visitors' Group
Portico North
Blast Foundation
Lifesize CIC
Stepping Out Theatre
Larne Wellbeing Hub
Equilibrium North West CIC
The Club
GetYourLifeBack!
African Women Impact UK
Earth23
The Ashdown Hub
Emerge Hub
Beauty for Ashes Refuges
Rotary Club of Chichester Habour
Break the Silence
Soul Sister: Empowering People
N1M Trust
Welcome to the UK
A Living Tradition CIC
Student Action for Refugees
Welcome House
Association of Visitors to Immigration Detainees
Doulas Without Borders
Community Church Blackburn
LEDAS
Trauma Foundation South West
Lancaster & Morcombe City of Sanctuary
Who is Your Neighbour?
Oasis Community Church (Retford)
Warwickshire Social Inclusion Partnership
Sub total		 2022
£
9,300
9,000
11,000
8,000
5,000
8,000
7,500
6,645
6,000
5,000
3,000
3,000
6,000
6,000
3,000
4,992
3,000
3,000
2,000
1,500
1,500
9,621
6,000
2,000
3,394
2,000
1,000
4,000
2,000
9,000
8,000
7,500
6,800
5,000
6,000
3,500
2,000
8,000
8,000
7,620
213,872

30

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

22. GRANTS COMMITTED ‐ CONTINUED

Sub total brought forward
NHS Continuing Healthcare (CHC) Scandal Campaign Team
Linking Lives UK
New Brighton Community Centre
Pershore & District Voluntary Help Centre
Without Walls Christian Fellowship
Reach Family Project
Elder Voice
Pathways Through Dementia
Independent Children & Family Service
MHA Communities Wakefield & District
Deysbrook Village Centre
Musical Memories CIC
Vida Active Club CIC
Tangerine Radio and Studios CIC
Musica Music and Wellbeing CIC
Inside Justice
Not Beyond Redemption
Himaya Haven CIC
Northern Roots
bthechange
Bournemouth Above and Beyond Trust
The Hull & Eat Yorkshire Community Counselling Service CIC
Risings Minds CIC
NIWE Eating Distress Service
Rekindle Home
Creative Options
TLC St Luke's
Arts and Minds
Vee's Place
Garage Art Group
Lisburn Downtown Centre
West Midlands Anti‐Slavery Network
Home‐Start North Dorset
The Maggie Oliver Foundation
Trauma Breakthrough
Migrant Action
Always Community
West Yorkshire Destitute Asylum Network
Rainbow Home North East England
Survivors of Torture Activity Fund
Sub total		 2022
£
213,872
10,000
9,000
6,000
2,000
5,000
5,000
5,000
4,984
4,923
4,849
3,600
3,500
2,000
2,000
2,825
12,000
10,000
9,000
7,500
7,400
5,000
4,997
4,000
10,000
9,000
6,890
5,000
4,000
4,000
3,000
3,000
10,000
10,000
7,800
7,500
6,000
4,600
10,000
6,500
5,000
456,740

31

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

22. GRANTS COMMITTED ‐ CONTINUED

Sub total brought forward
Friends of Shamwari
Sanctuary in Chichester
Dover Asylum Seekers Help
Faversham Assistance Centre
Age Concern Swaffham & District
The Fair Play Foundation
Our Place
Pimms and Needles CIC
St George's Community Trust
Kincardine & Deeside Befriending
The Gift of Years
East Lincolnshire Methodist Circuit
Hemingford Hub Good Neighbour Scheme
Margaret Clitherow Trust
Fair Futures
Prisoners' Penfriends
Sleepsafe Selby
Community Chapliancy Association
100 & First Foundation
Daniel Liberty Chapliancy Trust
Achieving Results in Communities (ARC)
Soundwell Music Therapy Trust
Shared Parenting Scotland
ArtatWork CIC
Heart Wood
First Step
YADA
Physical Empowerment CIC
The Together Free Foundation
Press Red
Humber Community Advice Services Limited
Polish Integration Support Services
Burslem Jubliee Project
Together Now
Sewing2gether All Nations
Refugee Futures Ltd
Ice and Fire Theatre Company
Growing Together Levenshulme
Age Concern Vol Association Merstham, Redhill & Reigate
Embracing Age
Sub total		 2022
£
456,740
4,000
3,900
3,000
6,000
6,000
5,000
5,000
5,000
4,500
4,000
4,000
3,000
1,000
10,000
2,000
9,000
7,500
6,000
5,000
5,000
6,208
6,000
4,500
4,000
3,000
9,245
7,500
7,500
6,000
5,000
7,000
4,000
8,000
8,000
7,500
5,000
3,250
7,000
8,000
7,500
679,843

32

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

22. GRANTS COMMITTED ‐ CONTINUED

GRANTS COMMITTED ‐ CONTINUED
Sub total brought forward
Befriended
Stocksbridge Community Care Group
Deepness Ltd
Ederney Community Development Trust
Looking Back CIC
Inner Trust Community Interest Company
Music4Wellbeing Kent CIC
The Great Bridge Community Forum
The Widows Empowerment Trust
Active East Herts
Skerton Community Association		 2022
£
679,843
7,000
7,000
6,250
6,000
5,616
5,460
5,000
5,000
5,000
4,000
2,000
738,169

33