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2023-03-31-accounts

THE ALLEN LANE FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

Contents Page
Reference and administrative details 1
Trustees' Annual Report 2‐9
Independent Auditor's Report 10‐13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17‐32

THE ALLEN LANE FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2023

Trustees: Fredrica Teale, Chair
Justine Cadbury
Maurice Frankel
Michael Firth
Claire Hitchcock
Zoe Teale
Philip Walsh
Margaret Hyde (resigned 11 July 2022)
Juliet Walker (resigned 11 July 2022)
Charity registered number: 248031
Principal Address: 90 The Mount
YORK
YO24 1AR
E‐mail address: info@allenlane.org.uk
Website: www.allenlane.org.uk
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
88 Wood Street
LONDON
EC2V 7QR
Auditor: HPH, Chartered Accountants
54 Bootham
YORK
YO30 7XZ

1

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

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 2023.

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 (FRS 102).

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:

As the Foundation's resources are modest, it generally funds smaller organisations where small grants can have more 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.

2

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

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 2023, the Foundation's income increased to £676,726 from £637,135. Expenditure during the year increased to £993,129 from £990,035. This resulted in net expenditure being £316,403, a fall from £352,900 in the previous year. Once net losses on investments of £937,837 are taken into account, the overall net movement in funds was a deficit of £1,254,240. The total funds available at the end of the year were £20,455,319.

Overall, the Foundation’s portfolio performed reasonably well over the year, although it was affected during the year by a combination of the on‐going 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 2023/24 will remain steady.

The Trustees continued to have consideration on the wider concerns around Socially Responsible investing. The Foundation's investment managers provide regular updates on the position of the portfolio as it measures against Economic. Social and Governance (ESG) and Sustainability ratings.

The Foundation has historically used 90% of the FTSE All Share returns as the reference point for performance of the portfolio. However, with the portfolio evolving over the years to include more international equities and incorporate certain ethical considerations (the exclusion of mining, tobacco, and defence related companies, for example), the relevance of the 90% of the FTSE All Share benchmark has decreased over time. Trustees, in conjunction with its investment managers, will review and agree a more appropriate benchmark to use going forward.

3

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

In the year to 31st March 2023, the portfolio declined 1.73% versus a 4.73% fall in the peer group (and 2.63% rise in the 90% FTSE All Share Benchmark). The portfolio’s overweight position in the UK equity market (relative to the peer group) proved beneficial during the period as global equities lagged, while the positioning in shorter‐dated fixed interest securities provided some mitigation against the falls seen across the broader bond market. The Trustees continue to believe the portfolio is balanced, diversified, and well positioned to deliver long term capital and income growth.

The Trustees would like to thank their investment management team at Canaccord Genuity UK for their hard work and diligence during the year. The full transfer of the investment team from Punter Southall was completed during the year.

Grants

In 2022/23, the Foundation committed to 142 new grants (2021/22 131 grants). The total value of grants committed was £767,231, which was higher than last year’s figure of £738,169. This was in recognition of more stable investment returns and the substantial need of communities across the UK post‐pandemic and the cost‐of‐living crisis. 42 grants (30%) were offered to organisations previously funded by the Foundation, which was a modest rise on the previous year (33 grants, 25%). 81 grants (57%) were offered to organisations who had not previously applied to the Foundation, and 19 grants were made to organisations who had previously been refused. Most of the grants offered (104) were single grants, with 31 grants over two years and six grants over three years. From a total of 482 (427 last year) applications made to the Foundation during the year, (337) were refused, resulting in an overall success rate of 29%, which was lower than in the year before (31%). For most applications that were eligible, and focused on just one beneficiary group, the success rate increased to between 31% and 44%. There was one notable exception to this, the success rate under Mental Health was only 14% against the highest number of applications (160) across all the priorities. Many of the applications were focused on wellbeing support around low level mental health issues, whereas the Foundation has a focus on supporting applications for moderate to high level mental health conditions. Grants under the older people priority received the most grants (47), and the highest amount funded £232,885, although the average grant size was below £5,000.

4

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

There was a mixed geographical spread across the UK with 107 grants awarded in England, 11 in Scotland, seven in Wales, and five in Northern Ireland. 12 of the grants offered were for organisations working nationally. The highest number of applications and awards were from the South West and South East regions of England. The most grants made (47) and the highest total funded (£232,885) went to groups and organisations supporting Older People, although the average grant size in this priority was below £5,000. The next highest total of grants awarded (28) were to organisations supporting Asylum Seekers and Refugees with Mental health receiving 22 awards. The migrant communities priority closed in June 2022, so the five awards reflects this action. Only one application was received, and grant awarded, in Gypsy and Traveller. Applications in this priority are generally low, which reflects the small number of organisations working directly with these communities. The Foundation would be keen to see a more applications in the coming year. There were 11 grants awarded under the Foundation’s new young people’s programme which commenced from the October round, and it is expected that this will be a competitive programme during the next year based on level of interest and applications towards the end of the year. The average size of grant was £5,403, slightly lower than the previous year (£5,635).

Allen Lane Lectures

The Foundation will be looking to recommence the Lectures in the near future, which were paused due to the pandemic. The text of some of the previous Lectures remain available on the Foundation’s website (www.allenlane.org.uk).

Investment policy and performance

The Trust Deed authorises the Trustees to invest the Foundation's funds in the same unrestricted manner as if they were the beneficial owners of the funds. Trustees have a clear and agreed investment policy and objectives based on the advice of its investment managers, Canaccord Genuity UK, who implement that strategy and report at every meeting to the Trustees on performance and market conditions. The Trustees regularly review the investment policy and objectives to ensure that it takes account of the overall objectives of the Foundation and identifies any long‐term risks to the portfolio.

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.

5

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

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 £20,454,316 (2021: £21,708,221), being the total of unrestricted reserves less those amounts representing tangible fixed assets. This was down from the previous year, due to the performance of the Foundation’s investments rather than due to any change 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. Trustees firmly believe that the modest fall in the portfolio value this year, is within normal limits and doesn’t affect 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.

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 for 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).

6

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Board appointed two new Trustees, Claire Hitchcock, and Michael Firth, in July 2022 and extended the term of one Trustee for an extra year, who had been due to step down during this financial year. Two Trustees stood down following the July meeting. Margaret Hyde had been with the Foundation since 2012 and made many valued contributions to the governance of the Foundation and provided a deep understanding across the Foundation’s priorities. Juliet Walker was a long‐standing Trustee, having come on to the Board in 1999. Juliet, who had been Chair during her time, took strong interest in the Foundation’s investments and Lectures, and was a passionate advocate across a range of the Foundation’s priorities, including the criminal justice. The Board of Trustees wish to express their sincere thanks and gratitude for the contribution they made to the Foundation.

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. Reports by the office are made to the Trustees at every meeting with regular communication with the Chair between meetings.

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% of grants committed.

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

7

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

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 post‐pandemic and from the cost‐of‐living crisis, whilst recognising the long‐ term impacts these have generally. Part of this is support to organisations covers more core and unrestricted funding, rather than new projects or work.

Trustees had taken the decision to close the Migrant Communities priority, with the last decision meeting for this priority being July 2022. A new Young People’s programme was successfully launched ahead of the October 2022 meeting.

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 the on‐line application process also assists prospective applicants determine whether they are eligible, without having to go on to complete an application.

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 of the Foundation’s work during the coming year and continue to reserve the right to offer larger grants at their discretion.

8

THE ALLEN LANE FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

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:

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, on and signed on their behalf by:

Fredrica Teale, Chair of Trustees 28 June 2023

9

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 2023 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.

10

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF

THE ALLEN LANE FOUNDATION

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 page 9, 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.

11

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF

THE ALLEN LANE FOUNDATION

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.

12

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF

THE ALLEN LANE FOUNDATION

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

6 October 2023

13

THE ALLEN LANE FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes
Income from:
Investments
2
Total income
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net expenditure before net gains
on investments
Net (losses)/gains on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
fund
£
676,726
676,726
123,721
869,408
993,129
(316,403)
(937,837)
(1,254,240)
21,709,559
(1,254,240)
£ 20,455,319		 Total
2023
£
676,726
676,726
123,721
869,408
993,129
(316,403)
(937,837)
(1,254,240)
21,709,559
(1,254,240)
£ 20,455,319		 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

The notes on pages 17 to 32 form part of these accounts.

14

THE ALLEN LANE FOUNDATION

BALANCE SHEET AS AT 31 MARCH 2023

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 year
Creditors: amounts falling due
within one year		 4,565
363,414		 2023
£
1,003
20,322,512
20,323,515
142,804
20,466,319
(11,000)
£ 20,455,319
20,455,319
£ 20,455,319		 2,113
246,210		 2022
£
1,338
21,680,565
21,681,903
51,656
367,979
(225,175)		 248,323
(196,667)
21,733,559
(24,000)
£ 21,709,559
21,709,559
£ 21,709,559

The notes on pages 17 to 32 form part of these accounts.

Approved by the Trustees on 28 June 2023 and signed on their behalf by:

Fredrica Teale, Chair of Trustees

15

THE ALLEN LANE FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

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		 2023
£
(979,738)
676,726
2,669,178
(2,248,962)
1,096,942
117,204
246,210
£ 363,414		 2022
£
(1,043,361)
637,135
1,741,522
(1,407,973)
970,684
(72,677)
318,887
£ 246,210

The notes on pages 17 to 32 form part of these accounts.

16

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2023

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 2015 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 2024. 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.

17

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2023

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.

18

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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.

19

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2023

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.

20

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

2.
INVESTMENT INCOME
Income from UK listed investments
Bank interest receivable
3.
COSTS OF RAISING FUNDS
Investment management fees
4.
ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
Summary by fund type
Grants Committed (note 5)
Charitable donations
Support costs (note 6)
Governance costs (note 7)
Summary by expenditure type
Staff
costs
Depreciation
2023
2023
£
£
Grants Committed (note 5)
‐
‐
Charitable donations
‐
‐
Support costs (note 6)
67,111
268
Governance costs (note 7)
16,778
67
83,889
335		 Unrestricted
Funds
£
673,687
3,039
676,726
Unrestricted
Funds
£
123,721
123,721
Unrestriced
Funds
2023
£
759,231
‐
82,642
27,535
869,408
Other
Costs
2023
£
759,231
‐
15,262
10,691
785,184		 Total
2023
£
673,687
3,039
676,726
Total
2023
£
123,721
123,721
Total
Funds
2023
£
759,231
‐
82,642
27,535
869,408
Total
Funds
2023
£
759,231
‐
82,642
27,535
869,408		 Total
2022
£
637,135
‐
637,135
Total
2022
£
134,150
134,150
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

21

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

5.
ANALYSIS OF GRANTS
Grants to institutions
Grants committed (note 22)
Grants withdrawn or released		 2023
£
767,231
(8,000)
759,231		 2022
£
738,169
(6,000)
732,169

For further details of grants committed during the year see note 22. A reconciliation of grant commitments is as follows:

Commitments brought forward
Grants committed (note 22)
Grants withdrawn or released
Grants paid
Grants carried forward
Grant commitments
of which payable within one year
of which payable after one year
Grants commited ‐ by beneficiary
People experiencing mental health issues
Offenders and ex‐offenders
People experiencing violence or abuse
Older people
Migrant communities
Refugees and asylum‐seekers
Gypsies and travellers
Social cohesion
Young people		 2023
£
203,706
767,231
(8,000)
(743,072)
219,865
2023
£
208,865
11,000
219,865
2023
£
112,840
81,276
84,834
232,885
40,500
140,732
10,000
‐
64,164
£ 767,231		 2022
£
256,124
738,169
(6,000)
(784,587)
203,706
2022
£
179,706
24,000
203,706
2022
£
99,590
173,842
94,560
188,007
27,600
118,950
12,000
23,620
‐
£ 738,169

22

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

6. SUPPORT COSTS
Premises
Office costs
Sundry expenses
Wages and salaries
National insurance
Pension cost
Depreciation
Total 2022		 Charitable
activities
2023
£
7,330
5,237
2,696
58,611
2,400
6,100
268
82,642
72,882		 Governance
costs
2023
£
1,832
1,309
674
14,653
600
1,525
67
20,660
18,220		 Total
funds
2023
£
9,162
6,546
3,370
73,264
3,000
7,625
335
103,302
91,102		 Total
funds
2022
£
8,830
5,977
918
65,954
2,660
6,317
446
91,102

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.

VERNANCE COSTS
Accountancy fees
Audit fee
Trustees' travel and accommodation expenses
Support costs (note 6)
Total 2022		 Unrestriced
funds
2023
£
2,420
3,874
581
20,660
27,535
25,834		 Total
funds
2023
£
2,420
3,874
581
20,660
27,535
25,834		 Total
funds
2022
£
2,200
4,950
464
18,220
25,834

7. GOVERNANCE COSTS

8. AUDITORS' REMUNERATION

The auditors' remuneration amounts to an audit fee of £3,874 (2022 ‐ £4,950), and accountancy fees of £2,420 (2022 ‐ £2,200).

23

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

9. STAFF COSTS

AFF COSTS
Staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs		 2023
£
73,264
3,000
7,625
83,889		 2022
£
65,954
2,660
6,317
74,931

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

2023 2022
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 £83,889 (2022 ‐ £74,931).

10. TRUSTEES' REMUNERATION AND EXPENSES

During the year, Trustees received gifts worth £300. They did not receive any remuneration or other benefits (2022 ‐ £NIL).

During the year ended 31 March 2023, a total of £581 of expenses were reimbursed or paid directly to 5 Trustees (2022 ‐ £464 to 4 Trustees).

11. TANGIBLE FIXED ASSETS

Cost or valuation
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 £
6,278
‐
Office
equipment
6,278
4,940
335
5,275
1,003
1,338

24

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

12. FIXED ASSET INVESTMENTS

**12. ** FIXED ASSET INVESTMENTS
Listed
investments
£
Valuation
At 1 April 2022 21,680,565
Additions 2,248,962
Disposals (3,098,737)
Revaluations (508,278)
At March 2023 20,322,512
Investments at market value comprise:
2023 2022
£ £
Listed investments 20,322,512 21,680,565
The historical cost of listed securities as at 31 March 2023 was £14,885,456 (2022 ‐ £14,914,497).
All the fixed asset investments are held in the UK.
**13. ** DEBTORS
2023 2022
£ £
Prepayments and accrued income 4,565 2,113
4,565 2,113
**14. ** CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Accruals and deferred income 16,310 16,961
Grant commitments 208,865 179,706
225,175 196,667
**15. ** CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£ £
Grant commitments 11,000 24,000

25

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

16. STATEMENT OF FUNDS

Statement of funds ‐ current year
Balance at 1
April 2022
£
Unrestriced funds
General Funds
14,943,491
Revaluation reserve
6,766,068
21,709,559
Statement of funds ‐ prior year
Balance at 1
April 2021
£
Unrestriced funds
General Funds
14,742,733
Revaluation reserve
6,436,686
21,179,419		 Income
£
676,726
‐
676,726
Income
£
637,135
‐
637,135		 Expenditure
£
(993,129)
‐
(993,129)
Expenditure
£
(990,035)
‐
(990,035)		 Gains/
(Losses)
£
391,175
(1,329,012)
(937,837)
Gains/
(Losses)
£
553,658
329,382
883,040		 Balance at 31
March 2023
£
15,018,263
5,437,056
20,455,319
Balance at 31
March 2022
£
14,943,491
6,766,068
21,709,559

26

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Analysis of net assets between funds ‐ current year Unrestriced Total
funds funds
2023 2023
£ £
Tangible fixed assets 1,003 1,003
Fixed asset investments 20,322,512 20,322,512
Current assets 367,979 367,979
Creditors due within one year (225,175) (225,175)
Creditors due in more than one year (11,000) (11,000)
20,455,319 20,455,319
Analysis of net assets between funds ‐ prior year Unrestriced Total
funds funds
2022 2022
£ £
Tangible fixed assets 1,338 1,338
Fixed asset investments 21,680,565 21,680,565
Current assets 248,323 248,323
Creditors due within one year (196,667) (196,667)
Creditors due in more than one year (24,000) (24,000)
21,709,559 21,709,559
18.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITES
2023 2022
Net (expenditure)/income for the year (as per Statement £ £
of Financial Activities) (1,254,240) 530,140
Adjustments for:
Depreciation charges 335 446
Losses/(gains) on investments 937,837 (883,040)
Dividends and interest from investments (676,726) (637,135)
(Increase)/decrease in debtors (2,452) 128
Increase/(decrease) in creditors 15,508 (53,900)
Net cash used in operating activities (979,738) (1,043,361)

27

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

19. ANALYSIS OF CASH AND CASH EQUIVALENTS AND CHANGES IN NET DEBT

Cash at bank in hand
Total cash and cash equivalents		 At 1 April
2022
£
246,210
246,210		 Cash
flows
£
117,204
117,204		 At 31 March
2023
£
363,414
363,414

20. 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.

28

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

21. GRANTS COMMITTED

Grants committed in the year were as follows:
Access ‐ Supporting Migrants in East Anglia Ltd
Active and In Touch Frome
Advice Mid Wales
Age Concern Windsor
All Saints Luton Asylum Seeker and Refugee Support Project
Alumah CIO
Beeston Women's Group
Breakthru' Support Services CIC
CHARIS Refugees
Charles Young Centre
Chat Café Local
City of Scantuary Bristol
Community Regeneration Outreach Projects Ltd
Connectforce Community CIC
Conversation over Borders
Dementia Support ‐ Hampshire & IOW
Desborough Library and Community Hub
Emmanuel Coffee Shop
Empowered Lives
Fair Shares Gloucestershire
Fermanagh Rural Community Iniative
Gifted Women
Give a Book
GlobalARRK
Greenmount Village Community
Here for Good Law
High Hopes for Halliwell‐Being
Horticultural Therapy Trust
Hub of Wishes
Inside Out Derby
Jobsearch‐Employment‐Mentoring (JEM)
NEPHRA Good Neighbours
New Life Wood
Norfolk Clubhouse
Operation Emotion
Positive Community Action CIC
Prisoner Support Services
REFEO (Refugee Education for Equal Employment opportunities
Seed of Hope
Settled
Sub total		 2023
£
6,500
5,000
6,000
5,000
4,680
6,000
1,784
3,000
3,500
5,000
2,500
7,500
5,000
4,000
6,000
2,000
4,000
4,000
3,729
9,000
5,965
5,000
8,000
4,000
1,420
10,000
5,000
4,000
3,000
3,000
4,000
6,864
5,000
3,000
8,000
4,500
4,200
3,000
6,000
15,000
203,142

29

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

21. GRANTS COMMITTED ‐ CONTINUED

Sub total brought forward
Severn Angels Housing & Support
Sunderland North Family Zone
Sussex Pathways
Talk ED
The Art Ministry
The Croft (Visitors Support & Advice Centre Barlinnie)
The Survivors Lighthouse CIC
Toxteth Women's Centre
Tulia Group CIC
UareUK (United to Assist Refugees UK)
Vanclaron CIC
All About Us ‐ ASD Teens
Angels of Hope for Women
Art Therapy Yorkshire
Battle Scars
Brighton Yoga Foundation
Cascade Theatre Co
Dementia ‐Friendly Alton
Dementia Friendly Parishes around the Yealm
Disabled Travel Service
DORCAS
Eighteen and Under
Engage Wealden
English for All
Families in Care
Farnham Assist
Felixstowe Area Community Transport
FFOPS Families and Friends of Prisoners
Friends for Life Bedfordshire
Harmony Youth Project
Hartlepool People Ltd
Heart 4 Refugees
Keep Talking Services
Living Vital
Melksham Free Dining
New Neighbours Together
Newhall Kidz Limited
Reasonate Creative
Safeempowerment
St James Trust Seaford
Sub total		 2023
£
203,142
4,000
6,000
4,500
12,000
2,000
10,000
2,500
6,000
5,000
4,500
6,000
4,000
5,000
5,000
7,228
4,020
10,000
2,015
5,000
5,590
6,998
7,500
2,000
3,000
8,640
4,000
5,000
9,000
6,000
2,000
4,000
4,000
1,969
5,000
4,000
3,000
8,000
4,876
3,000
2,500
407,978

30

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

21. GRANTS COMMITTED ‐ CONTINUED

Sub total brought forward
Stoke on Trent Mothers Support
Supporting Older People
Swansea City of Sanctuary
Tastelife UK
The Bipolar Lift CIC
The Golden Oldies Charity
The London Bus Theatre Company
The Memory Box Foundation
The Reign Foundation
Transforming Notts Together
Trauma Treatment International
UTurn4Support
Watford & Three Rivers Refugee
WeareHopeSt CIC
West Lothian 50+ Network
Women & Families Resource Centre
You My Sister
Lincolnshire Traveller Initaitive
Assist Vine Community Church
Beloved
Both Parents Matter
Changes Tamworth
Christchurch Community Partnership
City of Sanctuary Manchester
Commedia of Errors
Conversation Club Leeds
Dementia Friendly West Berkshire
East Fife Mental Health Befriending Project
Emotion Dysregulation
Empower Inspire CIC
Fleet Phoenix
Foundations2Change
Friends of Scottish Settlers (FOSS)
Growing Me CIC
Inside Out RJ CIC
Inspiring Yarns CIC
Just‐Ice Poynton
Kingstrust Network CIC
Kintyre Link Club
Magheralin Parish Caring Association
Sub total		 2023
£
407,978
4,000
8,000
6,000
5,000
7,000
6,200
5,870
4,000
4,500
6,000
6,350
4,700
9,000
5,000
5,000
6,912
6,000
10,000
5,500
10,000
7,400
5,000
3,000
6,000
10,000
5,000
2,488
7,000
5,688
5,000
7,386
6,000
8,000
7,500
5,700
3,023
2,000
6,000
7,000
4,320
646,515

31

THE ALLEN LANE FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

21. GRANTS COMMITTED ‐ CONTINUED

GRANTS COMMITTED ‐ CONTINUED
2023
£
Sub total brought forward 646,515
Mearns Kirk Helping Hands 8,000
Mycarematters 2020 CIC 7,500
Nurture Families CIC 3,207
Our Way Our Say 6,500
Parental Education Growth Support 8,000
Portsmouth City of Sanctuary 4,050
Refugee, Advocacy, Information and Support Lancaster 6,240
SAGE Support Arts Gardening Education 5,856
She for Her CIC 2,000
SHE UK 10,500
Solidaritech CIC 4,000
Southbourne & District Age Concern 3,000
Space4U Cardiff 6,000
St Rollox Community Outreach Project 5,000
Stirling4Community 7,098
SURT NE CIC 6,520
Sussex Nightstop 10,000
Swanmore Care Group 2,000
Teeside Vineyard Church 4,000
The Howard League for Penal Reform Scotland 4,000
Together Kent 4,000
West Wight Men in Sheds 3,245
767,231

32