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2022-04-05-accounts

Registered Charity No: 255650

The Eranda Rothschild Foundation

Report and financial statements For the year ended 5 April 2022

The Eranda Rothschild Foundation

Contents

Pages
Charity details 1
Trustees’ report 2 – 6
Independent auditors’ report 7 – 10
Statement of financial activities 11 - 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 – 26

The Eranda Rothschild Foundation

Charity details

Trustees Sir Evelyn de Rothschild (deceased 7 November 2022)
Mr Anthony de Rothschild
Ms Jessica de Rothschild
Lady Lynn de Rothschild
Sir John Peace
Mr Benjamin Elliot
Principal/registered office PO Box 6226
Leighton Buzzard
LU7 0XF
Auditors Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
Bankers HSBC
8 Canada Square
London
E14 5HQ
Investment managers Sarasin & Partners LLP
Juxon House
100 St Paul’s Churchyard
London
EC4M 8BU

Status The Eranda Rothschild Foundation was established by trust deed dated 10 February 1967 and is registered in the United Kingdom as a charity, number 255650.

Page 1

The Eranda Rothschild Foundation

Trustees’ report For the year ended 5 April 2022

The Trustees of The Eranda Rothschild Foundation (“The Foundation”) present their report and audited financial statements for the year ended 5 April 2022, which have been prepared in accordance with the Charities Act 2011 Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK.

Reference and administrative information

This information is shown on page 1.

Structure, Governance and Management

The Foundation is an unincorporated trust, constituted under a trust deed dated 10 February 1967, and is a registered charity, number 255650.

The Trustees of the Foundation, as listed on page 1, have held office and served throughout the year unless otherwise indicated. The Trust Deed provides for a minimum of three trustees to a maximum of seven trustees. The statutory power of appointing new trustees vests with the Settlor, Sir Evelyn de Rothschild. Following Sir Evelyn’s passing on 7 November 2022, the Trustees will be considering the constitution regarding the power to appoint trustees at their next meeting in February 2023. Trustees are aware of the aims and objectives of the Foundation and the manner in which the trustees carry out their responsibilities. In addition, each new trustee receives a copy of the Trust Deeds, Minutes of Meetings, Annual Reports and Accounts and a copy of the Charity Commission guidance leaflet, “The Essential Trustee: What you need to Know”.

The Trustees are directly responsible for the management of the Foundation and aim to meet at least three times a year to consider grant applications, review investment performance and other matters of an administrative and strategic nature. The Chairman supervises the processing of grant applications and all decisions are ratified at Trustees’ meetings. All Trustees give their time freely and no Trustee received remuneration in the year.

Risk Management

The Trustees have considered the major risks to which the Foundation is exposed and believe that there are two significant risks for the Foundation.

The first significant risk is fraud in relation to grants not being used for their intended purpose. The Foundation also awards grants to overseas charities whereby checks cannot always be made in the same way as a UK charity. The Foundation mitigates this risk by using eligibility criteria, assessing the applications raised and monitoring reports from the grant receiver. Reliance is also placed on the Trustees’ knowledge of these charities and reports are often presented at Trustees’ meetings.

The second significant risk is investment risk. As markets are volatile this can lead to fluctuations in income and valuation. This is mitigated by appointing well respected fund managers, setting and monitoring investment benchmarks and presentations from them at Trustee meetings. More information about investments can be found on page 4.

Risks are reviewed by the Trustees on an on-going basis.

Fund Raising

The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on their activities. The Charity does not actively fundraise from the general public and therefore the Trustees do not consider it necessary to have a formal fundraising policy in place.

Page 2

The Eranda Rothschild Foundation

Trustees’ report

For the year ended 5 April 2022

Objectives and activities for public benefit

The Foundation furthers its charitable purposes for the public benefit through its grant making policy which aims to support charitable work in the advancement of:

The Foundation aims to award grants equal to the amount of income it receives during the year and to try and spread this evenly across the three activities noted above. This aim is dependent upon the applications that are submitted during the year.

In order to measure the success the Trustees will review the number and value of grants awarded year on year. This is then compared against the amount of income received to ensure that grants are being awarded in line with the Foundation’s objectives.

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 setting the grant making policy for the year.

The Foundation’s strategy for achieving these objectives is to consider applications from appropriate registered charities to whom funds can be distributed in accordance with the above objectives and to monitor and review the work of the beneficiary charities on a regular basis.

Grant making policy

The Foundation accepts applications from registered charities only and no applications from individuals are considered. The Trustees meet regularly to review and approve grants and regular contact is maintained with recipients of grants for monitoring purposes. The Trustees aim to achieve an appropriate balance between medical, education and arts causes.

Achievements and Performance

The Trustees are pleased with the achievements and performance of the Foundation as set out below.

The number of grants distributed to institutions during the year amounted to 12 (2021: 27). A summary of the grants awarded can be found in note 5 of the accounts.

Financial Review

During the year income of £5,130,934 (2021: £4,084,544) was received from investments held by the Foundation. This income was applied in part to furthering the objectives of the Foundation, and as such the Trustees approved and paid grants totalling £737,915 (2021: £838,197) during the year.

The net movement in funds for the year, as shown in the statement of financial activities, amounted to an increase in funds of £9,611,456 (2021: £19,584,309).

The volume of grant applications received during the year was more than the previous year but not quite back to pre-covid levels, particularly from the smaller organisations. The trustees are pleased the number of applications for grants has started to increase again and will hopefully get stronger in the coming year to continue to be in line with the Foundation’s objectives.

Page 3

The Eranda Rothschild Foundation

Trustees’ report For the year ended 5 April 2022

Investment policy and performance

Investment assets are held with the intention of retaining them on a long-term basis for the continuing benefit of the Foundation in the form of both income generation and capital appreciation. There are no specific investment policies concerning social, environmental or ethical considerations other than investments must not be made in institutions that would be adverse to the objectives of the Foundation.

During the year the investment portfolio increased by £6,941,232 to £144,224,838 (2021: £137,283,606). The portfolio includes investments held directly by the Foundation amounting to £55,824,709 (2021: £53,660,226). A list of material investments held is included in Note 7 to these accounts.

In July 2016 Sarasin & Partners were appointed as investment managers for the Foundation’s portfolio that was previously run by Partners Capital. The aim of the investments is to generate a total return that can support ongoing spending requirements whilst also growing the capital over the long term. As at 5 April 2022 the value of the portfolio was £88,400,128 (2021: £83,623,379).

The vast majority of the monies are invested in the Sarasin Endowments Fund. The fund aims to provide an income that can be spent today and to protect both the capital and income from inflation over the long term. This is achieved by investing in a diversified portfolio of equities, bonds, property, alternative assets and cash. In addition to the main portfolio there remains one other specific portfolio:

As at 5 April 2022 the split across the various portfolios was as follows:

Asset Value(£)
Sarasin Endowments Fund 88,219,831
Illiquid Assets 180,297
Total 88,400,128

This resulted in the following overall asset allocation:

Asset Allocation Capital(%)
Fixed Income 7.0
Global Equities 69.9
Property 5.6
Alternative Investments 12.7
Liquid Assets 4.9
Total 100.0

From 5 April 2021 to 5 April 2022, the above investments delivered a total return of 5.8% net of fees. This strong return was supported by the swift monetary and fiscal policies enacted to combat the economic risks posed by the pandemic, with the global economy now experiencing a robust recovery.

The remaining illiquid assets (inherited from the Partners Capital Portfolio) now represent 0.2% of the total portfolio. The Foundation’s portfolio with Sarasin & Partners now has a more liquid investment profile with over 99% of the assets invested in a fund that can be sold on a daily basis.

Page 4

The Eranda Rothschild Foundation

Trustees’ report For the year ended 5 April 2022

The Foundation holds a number of investments directly with the aim of generating a total return that can support the ongoing spending requirements whilst also growing the capital over the long term. As at 5 April 2022 the total valuation of these investments was £55,824,709 (2021: £53,660,226). The Economist has provided the Foundation with substantial returns over time. The 2022 results confirmed that the full year dividend was being increased to 120p a share (100p in 2021) the minority share price valuation increased from £25 per share to £30 per share. IHS Towers used its growth trajectory and in October 2021, conducted an initial public offering in the United States, listing their shares on the New York Stock Exchange (NYSE:IHS). The investment in IHS is through ECP partners who will provide liquidity to the foundation according to the agreed sell down arrangements that were entered into by the IHS shareholders upon listing. Gwynnie Bee has also shown strong company growth but its capital valuation has stayed flat year on year. The Radcliff Holdings investments had a year end valuation of just under £10.3m and made net distributions of over £2.3m through the year. The Covid-19 pandemic had little impact on the Radcliff Holdings investments, with increased valuations and distributions across the period.

Note that over the period of 5 April 2021 to 5 April 2022 USD relative to GBP increased by 6.0% (2021: decrease of 13.7%) which has had an impact on those investments (IHS Towers, Gwynnie Bee and Radcliff Holdings) that are held in USD.

Reserves policy

As a general rule, the Trustees apply the income derived from the Foundation’s endowment in furtherance of the Foundation’s main objects as it arises on an annual basis. The endowment, albeit expendable, is normally retained in order to provide income to fund the main objects in view of the fact that the Foundation does not have any other sources of funding and does not undertake any fundraising activities.

At 5 April 2022 the free reserves of the Foundation had increased £4,478,913 to £21,435,125. The Trustees endeavour to retain reserves for one year’s charitable activity and are working to bring funds within these guidelines over a reasonable timescale.

Plans for the future

The Foundation intends to continue to make grants to appropriate registered charities.

Trustees’ responsibilities in relation to the financial statements

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 and 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:

Page 5

The Eranda Rothschild Foundation

Independent auditors’ report to the trustees

Opinion

We have audited the financial statements of The Eranda Rothschild Foundation for the year ended 5 April 2022 which comprise a 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditors’ report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 7

The Eranda Rothschild Foundation

Independent auditors’ report to the trustees

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 5, 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.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

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 auditors’ 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Page 8

The Eranda Rothschild Foundation

Independent auditors’ report to the trustees

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with trustees and updating our understanding of the sector in which the charity operates.

Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Page 9

The Eranda Rothschild Foundation

Independent auditors’ report to the trustees

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 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery Champness LLP Chartered Accountants 71 Queen Victoria Street London EC4 4BE

Statutory Auditors

Date: 03.02.2023

Saffery Champness LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.

Page 10

The Eranda Rothschild Foundation

Statement of financial activities For the year ended 5 April 2022

Notes
Income
Investment income
2
Total income
Expenditure
Costs of raising funds
Investment management costs
3
Expenditure of charitable activities:
Grant-making
Grant related support costs
4
Grant expenditure
5
Total expenditure
Net income/(expenditure) before other recognised
gains and losses
Net gains/(losses) on investments
7
(Losses)/gains on foreign currency translation
Net movement in funds
Reconciliation of funds
Balance at 5 April 2021
Balance at 5 April 2022
12		 General
Funds
£
5,130,934
5,130,934
-
91,756
737,915
829,671
4,301,263
-
177,650
4,478,913
16,956,212
21,435,125		 Expendable
Endowment
Funds
£
-
-
344,988
-
-
344,988
(344,988)
4,088,920
1,388,611
5,132,543
120,869,919
126,002,462		 2022
Total
Funds
£
5,130,934
5,130,934
344,988
91,756
737,915
1,174,659
3,956,275
4,088,920
1,566,261
9,611,456
137,826,131
147,437,587		 General
Funds
£
4,084,544
4,084,544
-
136,472
838,197
974,669
3,109,875
-
(137,791)
2,972,084
13,984,128
16,956,212		 Expendable
Endowment
Funds
£
-
-
318,927
-
-
318,927
(318,927)
19,684,581
(2,753,429)
16,612,225
104,257,694
120,869,919		 2021
Total
Funds
£
4,084,544
4,084,544
318,927
136,472
838,197
1,293,596
2,790,948
19,684,581
(2,891,220)
19,584,309
118,241,822
137,826,131

Page 11

The Eranda Rothschild Foundation

Statement of financial activities (continued) For the year ended 5 April 2022

The statement of financial activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing operations.

The notes on pages 15 to 26 form part of these financial statements.

Page 12

The Eranda Rothschlld Foundatkjn Balan¢e sheet At 5 April 2022 2022 2021 ￿￿ed assets Investments 144.224,838 137.283.606 Current assets Debtors Cash at bank and in hand 161,023 5.058577 153,093 1.975.952 5.219.E4)) 2.129.045 Current Uabllltles Credttors: amounts tslling due within one year 1966.8511 1466,5201 Net current assets 4.252.749 1,662.525 Totsl assets less current Ilabllltles 148,477587 138.946.131 Creditors: amounts falling due after more than one ￿aT {1.040,O))) 11,120.(NXII 147,437.587 137.826,131 The fvnds ofthe tharity Expendable endowment Unrestricted general funds 126.IX12N62 2L435.125 120,869.919 16,956,212 Total charlty funds 147,437,587 137,826.131 The notes at pages 15 to 26 form part ofthe5e account& Approved bythe trustees 0adRbY*￿nd signed on their behalf by: Lady Lynn de Rothschlld Trustee Page 13

The Eranda Rothschild Foundation

Statement of cash flows For the year ended 5 April 2022

Notes
Cash flows from operating activities:
Net cash used in operating activities
13
Cash flows from investing activities
Interest received
Dividends received
Purchase of fixed asset investments
Proceeds from sale of fixed asset investments
Net cash provided by investing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
13
Total cash and cash equivalents at the end of the year
13		 2022
£
(234,767)
218
5,130,716
(3,044,611)
1,231,069
3,317,392
3,082,625
1,975,952
5,058,577		 2021
£
(1,145,384)
2,626
4,080,984
(2,450,555)
25,297
1,658,352
512,968
1,462,984
1,975,952

Page 14

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

1. Accounting policies

Charity information

The Eranda Rothschild Foundation (“The Foundation”) is a charity registered in England and Wales under the number 255650. The principal place of business of the Foundation is at PO Box 6226, Leighton Buzzard, LU7 0XF.

1.1 Accounting convention

These accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The accounts (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 Accounting and Reporting by 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 financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £.

The foundation constitutes a public benefit entity as defined by FRS 102.

1.2 Going concern

The trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern. The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with estimating the liability of multi-year grant commitments (see note 1.4 for more information). With respect to the next reporting period, 2022-23, the most significant areas of uncertainty that affect the carrying value of assets held by the Foundation are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management sections of the trustees’ annual report for more information).

1.3 Income recognition

Income is credited to the statement of financial activities on a receivable basis. Investment income is stated inclusive of recoverable taxation. Donated services and facilities are included in the financial statements in the year in which they are receivable, where they are quantified, material and where a third party is bearing a cost.

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.

Page 15

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

1.3 Income recognition (continued)

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. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

1.4 Expenditure recognition

Grants are included in the statement of financial activities in the year when the offer is conveyed to the recipient except when the offer is conditional. Grants offered subject to conditions which have not been met at the year-end are included in the Statement of Financial Activities where the condition is not within the control of the Trustees or disclosed as a financial commitment where the Trustees retain that control. The Foundation has only one charitable activity, therefore support costs have been allocated in full to the “cost of grant making” in the statement of financial activities.

Governance costs include expenditure on compliance with constitutional and statutory requirements.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 or apportioned to the applicable expenditure headings. For the information on this attribution refer to note 1.5.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the Foundation. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Foundation.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

Page 16

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

1.4 Expenditure recognition (continued)

The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Foundation that would permit the Foundation to avoid making the future payment(s), settlement is probable and the effect of discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant award is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the Foundation.

1.5 Allocation of support and governance costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

Governance costs and support costs relating to charitable activities have been apportioned based on the value of grants awarded made in recognition that the administrative costs of awarding, monitoring and assessing education grants, the arts grants and health, welfare and medical research grants are broadly equivalent. The allocation of support and governance costs is analysed in note 4.

1.6 Cost of raising funds

The costs of generating funds consist of investment management costs and certain legal fees.

1.7 Charitable activities

Costs of charitable activities include grants made, governance costs and an apportionment of support costs as shown in note 4.

1.8 Investments

Investments are included in the financial statements at market value, as determined by the trustees based on professional advice, at the balance sheet date. Realised and unrealised gains and losses are credited or debited to the statement of financial activities in the year in which they arise.

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Foundation does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Page 17

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

1.9 Fund accounting

The Funds comprises the expendable endowment, retained to provide income to fund the main objectives of the Foundation, and unrestricted funds, which may be used towards meeting the charitable objectives of the Foundation at the discretion of the trustees.

1.10 Taxation

The Foundation is a registered charity, and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

1.11 Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movements in funds.

2. Investment income

2.
Investment income
Bank interest
Other income
Net investment income receivable
Investment income is analysed as follows:
Quoted investments in the UK
Quoted investments outside the UK
Unquoted investments in the UK
Unquoted investments outside the UK
3.
Investment management costs
Investment management fees		 2022
£
218
-
5,130,716
5,130,934
2022
£
2,318,398
-
1,735,783
1,076,753
5,130,934
2022
£
344,988
344,988		 2021
£
2,626
934
4,080,984
4,084,544
2021
£
2,425,258
-
3,382
1,655,904
4,084,544
2021
£
318,927
318,927

Page 18

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

4. Allocation of governance and support costs

Breakdown of support costs and how these were allocated between governance and other support costs:

Governance
Other
related support costs
£
£
Cost type
Admin costs
-
46,645
Office rent
-
1,500
Other costs
33,778
9,833
Total
33,778
57,978
Governance
Other
related support costs
£
£
Cost type
Admin costs
-
92,408
Office rent
-
1,500
Other costs
33,914
8,650
Total
33,914
102,558		 Total
2022
Basis of apportionment
£
46,645
Direct cost
1,500
Direct cost
43,611
Direct cost
91,756
Total
2021
Basis of apportionment
£
92,408
Direct cost
1,500
Direct cost
42,564
Direct cost
136,472
Governance costs:
Auditors’ remuneration
Accountancy fees
Payroll administration fees
General advice and charity matters
Support costs (see above)		 2022
£
16,005
9,965
3,925
3,883
57,978
91,756		 2021
£
13,500
14,930
1,428
4,056
102,558
136,472

The total support costs attributable to charitable activities is then apportioned pro rata to the value of grants awarded as shown in note 5. The trustees have decided to meet all governance costs from unrestricted funds and so no allocation or charge is made to restricted funds for any governance related costs.

Page 19

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

5. Analysis of charitable expenditure

The number of grants distributed to institutions during the year was as follows:

The arts
Health, welfare and medical research
Education		 2022
Number
of grants
3
3
6
12		 2021
Number
of grants
6
7
14
27

See page 25 for details of the grants paid.

The Foundation undertakes its charitable activities through grant making and awarded grants to institutions in furtherance of its charitable activities:

The arts

Health, welfare and medical research

Education

 Support
Grant
and
funded
governance
activity
costs
£
£
170,000
21,140
250,000
31,086
317,915
39,530
737,915
91,756		 Total
2022
£
191,140
281,086
357,445
829,671

The Foundation undertakes its charitable activities through grant making and awarded grants to institutions in furtherance of its charitable activities:

The arts

Health, welfare and medical research

Education

 Support
Grant
and
funded
governance
activity
costs
£
£
154,790
25,202
300,167
48,872
383,240
62,398
838,197
136,472		 Total
2021
£
179,992
349,039
445,638
974,669

Page 20

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

6 Staff costs and remuneration of key personnel

Aggregate remuneration comprised:

Wages and salaries
Social security costs
Pension costs
Other employee benefits		 2022
£

40,000
3,079
3,566
-
46,645		 2021
£
78,638
7,576
6,194
-
92,408

The average number of employees during the year is 2 (2021: 2).

The trustees received no remuneration in respect of their services to the Foundation during the year (2021: Nil). No trustee received any reimbursement of expenses during the year (2021: Nil).

No employees received remuneration in excess of £60,000 (2021: Nil).

7. Investments

Movement in fixed asset investments
Market value at 6 April 2021
Additions at Cost
Disposal proceeds
Net realised gains
Net unrealised gains/(losses) on revaluation
Management fees
Gains/(losses) on foreign currency translation
Market value at 5 April 2022		 2022
£

137,283,606
3,044,699
(1,231,069)
310,300
3,778,620
(349,929)
1,388,611
144,224,838		 2021
£
118,184,610
2,450,555
(25,297)
4,297
19,680,284
(257,414)
(2,753,429)
137,283,606

Net cash released from investments in the year was £7,394 (2021: £25,297)

Investments at fair value compromised:

Quoted investments in the UK
Quoted investments outside the UK
Unquoted investments in the UK
Unquoted investments outside the UK
Cash held in the investment portfolio		 2022
£
88,400,071
4,076,114
39,150,060
12,598,535
58
144,224,838		 2021
£
83,525,471
-
32,625,050
21,035,176
97,909
137,283,606

Page 21

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

7 Investments (continued)

The trustees consider that four (2021: four) individually material investments were held at the yearend:

The Economist Newspaper Limited
ECP IHS (Mauritius) Limited
Gywnnie Bee Inc
The Radcliff Companies
8.
Debtors
Prepayments and accrued income
9.
Creditors
Amounts falling due within one year
Grants payable
Accruals
10.
Creditors
Amounts falling due after more than one year
Grants payable		 2022
£
39,150,060
4,076,114
2,251,981
10,346,554
55,824,709
2022
£
161,023
161,023
2022
£
873,916
92,935
966,851
2022
£
1,040,000
1,040,000		 2021
£
32,625,050
9,920,252
2,116,836
8,998,088
53,660,226
2021
£
153,093
153,093
2021
£
356,000
110,520
466,520
2021
£
1,120,000
1,120,000

Page 22

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

10. Creditors (continued)

Movement in recognised funding commitments during the year:

Grant commitments recognised at the start of the year
New grant commitments charged to the SoFA (see note 5)
Grants paid during the year
Amount of grant commitment recognised at 5 April 2022
Movement in recognised funding commitments during the year:
Grant commitments recognised at the start of the year
New grant commitments charged to the SoFA (see note 5)
Grants paid during the year
Amount of grant commitment recognised at 5 April 2021		 2022
£
1,476,000
737,915
(299,999)
1,913,916
2021
£
1,481,000
838,197
(843,197)
1,476,000

11. Related party transaction

During the year, donations of £126,458 (2021: £76,225) were made to a number of charities, each of which had one common trustee with the Foundation.

12. Analysis of charitable funds

As at 5 April 2022
Expendable endowment
Unrestricted		 Investments
2022
£
126,002,462
18,222,376
144,224,838		 Net assets
2022
£
-
3,212,749
3,212,749		 Total
2022
£
126,002,462
21,435,125
147,437,587

Page 23

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

12 Analysis of charitable funds (continued)

Investments
2021
£
13.
Reconciliation of net movement in funds to net cash flow from
Net movement in funds
Investment income
Losses/(gains) on investments
Decrease/(increase) in debtors
Increase in creditors
Net cash used in operating activities
Analysis of cash and cash equivalents:
Cash in hand
As at 5 April 2021
Expendable endowment
120,869,919
Unrestricted
16,413,687
137,283,606		 Net assets
Total
2021
2021
£
£
operating activities
2022
2021
£
£
9,611,456
19,584,309
(5,130,934)
(4,083,611)
(5,127,690)
(16,673,783)
(7,930)
14,262
420,331
13,394
(234,767)
(1,145,384)
2022
2021
£
£
5,058,577
1,975,952
5,058,577
1,975,952
-
120,869,919
542,525
16,956,212
542,525
137,826,131		 Total
2021
£
120,869,919
16,956,212
137,826,131
(1,145,384)
2021
£
1,975,952
1,975,952

14. Post balance sheet events

Following the balance sheet of these accounts, market volatility has had an impact on investment values. This has resulted from external shocks such as the war in Ukraine and its ongoing impact on inflation and the global economy. The duration and ongoing severity of this impact is unknown at this time. As at 30 January 2023 the value of the main Sarasin portfolio had fallen by £2,519,050 to £85,700,724 and the value of the investment in ECP IHS (Mauritius) Limited had fallen by £1,117,327 to £2,958,787.

Page 24

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

15. Grants payments

Health/welfare/medical research
Alzheimer’s Drug Discovery Foundation
Felix Project
Follicular Lymphoma Foundation
Good Samaritan Foundation
Hygienebank
Leon Foundation
Quintessentially Foundation
Royal Hospital Chelsea
Valid Nutrition
Wellbeing for Women
The Arts
Coram Shakespeare Schools Foundation
Creative Dimensions Trust
National Horseracing Museum
Philharmonia Orchestra
Roundhouse Trust / Sadler’s Wells
Royal College of Art
Royal Ballet School
Somerset House Trust		 2022
£
2022
£
-
-
50,000
-
150,000
-
50,000
-
-
-
250,000
-
25,000
-
-
-
125,000
-
20,000
170,000		 2021
£
34,892
25,000
25,000
25,000
34,895
-
10,000
-
154,790
2021
£
70,167
50,000
-
50,000
-
50,000
-
10,000
50,000
20,000
300,167

Page 25

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2022

15. Grants payments (continued)

Grants payments (continued)
Education
American Civil Liberties Union
Burnet News Club
Children’s Scholarship Fund
Coalition for Inclusive Capitalism
David Sheldrick Wildlife Trust
Global Dialogue (The Five Foundation)
Global Greengrants
IntoUniversity
Liberal Jewish Synagogue
London School of Economics
McCain Institute Foundation
Peterson Institute for International Economics
Place2Be
Ross Initiative in Sports for Equality
Royal Botanic Gardens Kew
School Readers Buckinghamshire
Smallpeice Trust
Summer Search
Voice for Nature Foundation
Youth Sport Trust
Zoological Society of London		 2022
£
-
-
-
76,458
-
-
90,000
-
36,500
10,000
76,458
-
-
-
-
28,499
-
-
-
-
-
317,915		 2021
£
8,000
58,750
(3,860)
-
10,000
25,000
-
35,000
-
10,000
-
76,225
30,000
8,000
5,000
-
22,000
(4,875)
50,000
44,000
10,000
383,240

Page 26