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2020-12-31-accounts

THE VANDERVELL FOUNDATION

Annual Report and Accounts

For the Year Ended 31 December 2020

Charity Registration Number: 255651

THE VANDERVELL FOUNDATION

ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Contents Pages
Trustee’s annual report 1 - 6
Statement of trustee’s responsibilities 7
Auditors’ report 8 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 23

1

THE VANDERVELL FOUNDATION

TRUSTEE’S ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

LEGAL AND ADMINISTRATIVE DETAILS

Full Name of Charity and Registered Number

Bankers

The Vandervell Foundation 255651

Coutts & Co 440 The Strand London WC2R 0QS

From February 2021 CAF Bank 25 Kings Hill West Malling Kent, ME19 4JQ

Governing Document

Auditors and Accountants

Trust deed created on 5 April 1968 by The Vandervell Foundation Limited. The charity is constituted as an unincorporated association.

Sawin & Edwards LLP Studio 16, Cloisters House 8 Battersea Park Road London SW8 4BG

Investment Managers

Custodian Trustee Company

Smith & Williamson Investment Management 25 Moorgate London EC2R 6AY

The Vandervell Foundation Limited Hampstead Town Hall Centre 213 Haverstock Hill London NW3 4QP

Barclays Wealth 1 Churchill Place London E14 5HP

Directors of Trustee Company

M E A Bate H A Mimpriss D Lewis

Principal Office

Senior Staff Member

Hampstead Town Hall Centre 213 Haverstock Hill London NW3 4QP

V Kaye - Administrator

2

THE VANDERVELL FOUNDATION

TRUSTEE’S ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustee presents its report together with the financial statements of the charity for the year ended 31 December 2020. The financial statements have been prepared based on the accounting policies set out in note 1 to the financial statements. Legal information set out on page 1 form part of this report. The financial statements comply with the charity’s trust deed, 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 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 and UK Generally Accepted Practice as it applies from 1 January 2015.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Vandervell Foundation is registered as a charity with the Charity Commission, number 255651. The charity is constituted as an unincorporated association, established by a Declaration of Trust dated 5 April 1968 by the Vandervell Foundation Limited, which is the trustee of the charity.

Appointment of trustees

The statutory power of appointing new trustees applies to the charity.

Organisation

All activities of the Foundation are directly administered by the directors of the Trustee. The directors of the Trustee meet on a regular basis. The activities are administered at the Principal Office.

The general administration of the charity is undertaken by the administrator, appointed by the directors of the Trustee. The charity delegates the day-to-day management of its investments to two independent investment management companies.

Risk Management

The principal risk faced by the Foundation lies in the performance of investments. The trustee considers variability of the investment returns and fall in the market value of the investments held to constitute the charity’s major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio. The main risks identified by the two investment managers are listed below:

(1) Barclays Wealth

The main risk to the charity from investments arises from the combination of uncertain investment markets and volatility in income. Through providing an investment framework which the professional investment manager is assessed against, this allows them to aim to provide the best return possible through investing in diversified asset classes to achieve the desired investment objectives of the charity.

All the charity’s investments are carried at their fair value with investments traded in quoted public markets, primarily the London Stock Exchange and other global stock exchanges. Holdings in common investment funds, unit trusts and openended investment companies are at the mid-price. The basis of fair value for quoted investments is equivalent to the market value, using the mid-price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The length of time that investments are held can be seen as a risk and the directors of the Trustee are comfortable investing for the long term and are using the services of a professional investment manager, aimed to make superior returns compared to earning interest from holding cash at a bank. The directors of the Trustee have instructed the professional investment managers to take the view that the investment time horizon for the investment portfolio is to be held for the longer term and historic studies of quoted financial instruments have shown that volatility in any particular five year period will normally be corrected which should result in steady returns over the long term.

3

THE VANDERVELL FOUNDATION

TRUSTEE’S ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Risk Management (continued)

(1) Barclays Wealth (continued)

The charity is exposed to liquidity risk, credit risk or other market risks, for example, interest rate or currency risk as some of the investments will be held which may fall or rise in line with markets and the professional investment manager takes these into consideration in their investment decisions. The charity’s investment portfolio has a functional currency of Pounds Sterling while several of its investments are held in foreign currencies. As a result, it is subject to foreign currency exchange risk due to exchange rate movements. To manage the foreign exchange risk the investment manager can use certain financial instruments to minimise its exposure to exchange rate movements. The charity’s investment portfolio may be exposed to interest rate risk by way of its fixed rate investments that its holds. To manage the risk, the investment portfolio can use interest rate derivatives to minimise its exposure to interest rate movements. Liquidity risk is the risk that the charity may encounter in meeting its obligations associated with financial liabilities that are settled by delivering cash or other financial assets. Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the charity’s investment holdings. The charity’s investment portfolio has minimal exposure to counterparty contractual obligations due to the nature of its investment holdings.

(2) Smith & Williamson Investment Management

Smith & Williamson consider the following as general risks to the portfolio, which retains the capacity to invest across all asset classes:

i. Liquidity risk

This is the risk that an investment cannot be bought or sold quickly enough to prevent or minimise loss. Under certain trading conditions it may be difficult or impossible to buy or sell an instrument at a reasonable price or at all. This may occur, for example, at times of rapid price movement if the price rises or falls to such an extent that trading is suspended or restricted by the relevant market. The liquidity of an instrument is directly affected by the supply and demand for that instrument. Liquidity risk can be reflected in large differences between buying and selling prices, and large and rapid price movements. Lack of liquidity can also push assets higher than their asset value leading to gains.

ii. Credit or counterparty risk

This is the risk of loss caused by banks, bond issuers, bond guarantors or counterparties failing to fulfil their obligations, or the risk of their creditworthiness deteriorating.

iii. Market risk

The price of an investment depends on market supply and demand and fluctuations in financial markets. Overseas investments, or investments with an overseas element, may involve risks different from those applying in the domestic market. Price volatility in less developed markets, in particular, can be extreme as they may lack the level of transparency, liquidity, efficiency, market infrastructure and regulation that is found in more developed markets.

iv. Currency risk

Transactions in currencies, including securities in currencies other than that in which the portfolio is based, will be affected by movements in exchange rates which can create or increase a loss. Currency movements are linked to many economic, political and social factors and can be rapid. Some countries have foreign exchange controls which may include suspending the ability to exchange or transfer currency, which may cause difficulty in completing transactions in investments denominated in that currency. Hedging aims to reduce or eliminate currency risk.

v. Interest rate risk

The relative value of a security, such as a bond, may fall when interest rates rise. Rising interest rates may particularly affect investments in companies or funds which have high levels of borrowings.

4

THE VANDERVELL FOUNDATION

TRUSTEE’S ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Risk Management (continued)

(2) Smith & Williamson Investment Management

vi. Legal, political and regulatory risk

Legal, political and regulatory risks are unpredictable and depend on many factors. The risks apply anywhere but are greater in less developed overseas markets where there is generally less government supervision of business and industry practices, markets and stock exchanges. The laws and regulations that are familiar in developed markets may not exist in some places and where they do, may be subject to inconsistent or arbitrary application and may be changed with retrospective effect. Investors may encounter difficulties in pursuing legal remedies or in obtaining or enforcing judgements in overseas courts.

vii. Operational risk

Operational risks, such as breakdowns or malfunctioning of essential systems and controls or IT systems, can affect all financial products. Business risk, such as the risk that a business is run incompetently or poorly, could affect investors in any company.

viii. Concentration risk

Concentration risk is the lack of diversification in a portfolio. If a large percentage is invested in any one currency, security, country or issuer then fluctuations in value can have a disproportionate effect.

We retain a significant cash balance within the portfolio at all times in order to meet the Foundation’s short term income requirements, given the deficit between these and the portfolio’s actual income yield.

OBJECTIVES AND ACTIVITIES

Objects

The Trustee has power to pay or apply all or part of the capital and income of the fund to any one or more of the charitable objects, the charitable objects being such charitable persons or purposes that the Trustee shall in its uncontrolled discretion determine.

In achieving these objects the Trustee awards grants to institutions, primarily in the fields of education, social welfare and medical research.

Aims and objectives for the year

During the year, income has been distributed to, or for, the benefit of various charitable bodies in accordance with the terms of the Settlement deed dated 5 April 1968.

Significant activities

Details of significant grant payments can be found in note 7 of the financial statements.

Grant Making Policy

The Foundation receives regular applications from a wide range of institutions over a wide spectrum of activities, but primarily in the fields of education, medical care and research, the performing arts, environmental regeneration and social welfare.

All applications are considered individually by one of the directors and by the administrator of the Trustee. Grants are reviewed by the Board of the Trustee which meets every other month. The awarding of grants is based upon the Board’s assessment of the degree of need and the merit of the applicants’ request.

Particulars of the grants awarded are set out in note 7 to the financial statements.

5

THE VANDERVELL FOUNDATION

TRUSTEE’S ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

OBJECTIVES AND ACTIVITIES (continued)

Grant Making Policy (continued)

The Board has due regard to the requirements of Section 17 of the Charities Act 2011 and the guidance issued thereunder by the Charity Commission and is satisfied that the public benefit requirement is complied with having regard to the number and variety of the causes which are supported by the Foundation.

ACHIEVEMENT AND PERFORMANCE

A total value of £352,000 (2019: £361,000) was provided by way of grants to institutions predominantly in the fields of education, medical care and research, the performing arts, environmental regeneration and social welfare. This represented an increase of 3.7% over the corresponding figure for the previous year.

FINANCIAL REVIEW

Investment and Reserves Policy

The Foundation was established and has been funded exclusively by the estate of the late G A Vandervell. The estate was wound up during 2003 and there will therefore be no further donations from the estate.

The trustee therefore considers that the donations from the estate form an expendable endowment of the Foundation.

Those funds are invested in income yielding investments and short term cash deposits to meet current commitments.

The Trustee expects the yield from investments will be sufficient to cover the Foundation’s grant funding activities and therefore wishes to maintain the Foundation’s total funds at approximately the current level. The balance of unrestricted funds held at 31 December 2020 amounted to £7,679,161 (2019: £8,047,518), of which £7,678,940 (2019: £8,047,183) are regarded as free reserves, after allowing for funds tied up in tangible fixed assets.

The Foundation has two professional investment advisers as stated on page 1. The investment objective is to provide a balanced return from income and capital growth within the constraints of a medium to low risk investment portfolio. The total return on all investments, before fees, for 2020 was 3.06% (2019: 3.75%).

Financial Review

Details of Income and Expenditure are given on the Statement of Financial Activities within the financial statements. The charity’s principal funding source is investment income. Total incoming resources decreased by 20.9% during 2020 to £232,904 (2019: £294,558).

Expenditure on charitable activities during 2020 included £352,000 on grants and donations, a decrease of 2.49% on the prior year (2019: £361,000). The proportion of the Foundation’s total expenditure attributable to charitable activities has increased from 90.9% in 2019 to 91.8% in 2020.

Financial Results

Year ended Year ended
31 December 31 December
2020 2019
£ £
Net expenditure before other recognised gains and losses (207,862) (163,538)
(Losses)/gains on investments (160,495) 865,618
_ ______
Net (decrease)/increase in funds for the year £(368,357) £702,080

6

THE VANDERVELL FOUNDATION

TRUSTEE’S ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

PLANS FOR FUTURE PERIODS

The trustee plans to continue the work of the Foundation in support of the areas which it has traditionally supported. It is their present intention to maintain charitable expenditure at the level achieved in the current year. However, in the current uncertain investment climate, this decision must be kept under review so as to ensure that the Foundation’s capital base is not thereby too adversely affected.

This Annual Report was approved by the Trustee on 22 October 2021 and signed on its behalf by:

M E A Bate

Director – The Vandervell Foundation Limited (Trustee)

7

THE VANDERVELL FOUNDATION

STATEMENT OF TRUSTEE’S RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The charity’s trustee is responsible for preparing the Trustee’s Annual Report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England and Wales requires the trustee to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustees must not approve the financial statements unless they are satisfied that they 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 trustee is required to:

The Trustee is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable it 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. The trustee is 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.

In so far as the trustee is aware:

8

THE VANDERVELL FOUNDATION

YEAR ENDED 31 DECEMBER 2020

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE OF THE VANDERVELL FOUNDATION

We have audited the financial statements of The Vandervell Foundation (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of 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 trustee’s 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 trustee with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 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.

9

THE VANDERVELL FOUNDATION

YEAR ENDED 31 DECEMBER 2020

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE OF THE VANDERVELL FOUNDATION

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 trustee’s responsibilities statement set out on page 7, the trustee is 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 trustee determines 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 trustee is 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 trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144/145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made of 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 are detailed below:

10

THE VANDERVELL FOUNDATION

YEAR ENDED 31 DECEMBER 2020

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE OF THE VANDERVELL FOUNDATION

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

Use of our report

This report is made solely to the charity’s trustee, 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 trustee 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 trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Sawin & Edwards LLP Statutory Auditor

Studio 16, Cloisters House 8 Battersea Park Road London SW8 4BG

22 October 2021

Sawin & Edwards LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of the company under section 1212 of the Companies Act 2006.

11

THE VANDERVELL FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

UNRESTRICTED FUNDS

Income
Account
Note £
INCOME
Investment Income:
Investment income – from investments traded on
the UK Stock Exchange3
227,839
Bank interest received
212
Other income
4,853
_
TOTAL INCOME
232,904
_
EXPENDITURE
Costs of raising funds:
Investment management costs4
35,914
Expenditure on charitable activities6
404,852
_
TOTAL EXPENDITURE
440,766
_
NET EXPENDITURE AND NET MOVEMENT
IN FUNDS BEFORE LOSSES ON
INVESTMENTS
(207,862)
NET (LOSSES)/GAINS ON INVESTMENTS
Net unrealised (losses)/gains on investments11
-
Net realised (losses)/gains on sale of investments11
-
_
NET (EXPENDITURE)/INCOME
(207,862)
GROSS TRANSFERS BETWEEN FUNDS
Transfer Income account deficit
207,862
_
NET MOVEMENT IN FUNDS FOR THE YEAR
-
RECONCILIATION OF FUNDS
Total funds brought forward
at 1 January 2020
-
_
Total funds carried forward
at 31 December 2020
£ -
 EXPENDABLE
ENDOWMENT
Trust
Fund
Account
£
-
-
-
_
-

-
-
__
-
_
-
(117,644)
(42,851)
_
(160,495)
(207,862)
_
(368,357)
8,047,518
______
£7,679,161		 EXPENDABLE
ENDOWMENT
Trust
Fund
Account
£
-
-
-
_
-

-
-
__
-
_
-
(117,644)
(42,851)
_
(160,495)
(207,862)
_
(368,357)
8,047,518
______
£7,679,161		 Unrestricted
Funds
2020
2019
Total
Total
Funds
Funds
£
£
227,839
294,520
212
38
4,853
-
_
_
232,904
294,558
_
_
35,914
41,409
404,852
416,687
_
_
440,766
458,096
_
_
(207,862)
(163,538)
(117,644)
520,993
(42,851)
344,625
_ __
(368,357)
702,080
-
-
_ _
(368,357) 702,080
8,047,518
7,345,438
__
______
£7,679,161£8,047,518


















£



£

12

THE VANDERVELL FOUNDATION

BALANCE SHEET

AT 31 DECEMBER 2020

Notes
FIXED ASSETS
Tangible assets
10
Investments
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
13
Short term deposits
13
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
14
NET CURRENT ASSETS
NET ASSETS
£
FUNDS
Trust fund account – Expendable Endowment
Income account – Unrestricted fund
£		 2020
£
221
7,452,412
_
7,452,633
8,340
-
236,561
_
244,901
(18,373)
_
226,528
_
7,679,161
£
7,679,161
-
__
7,679,161
£		 2019
£
335
7,854,017
_
7,854,352
4,241
9,219
190,761
_
204,221
(11,055)
_
193,166
_
8,047,518
8,047,518
-
__
8,047,518

The financial statements on pages 10 to 23 were approved by the Trustee on 22 October 2021 and are signed on its behalf by:

M E A Bate Director - The Vandervell Foundation Limited (Trustee)

13

THE VANDERVELL FOUNDATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Note 2020 2019
£ £
Net cash used in operating activities 20 (432,580) (454,768)
_ _
Cash flows from investing activities:
Dividends 227,839 294,520
Interest income 212 38
Purchase of investments (838,448) (1,900,553)
Proceeds from sale of investments 1,079,558 1,806,490
_ _
469,161 200,495
_ _
Increase/(decrease) in cash and cash equivalents in the year 36,581 (254,273)
Cash and cash equivalents at the beginning of the year 199,980 454,253
_ _
Total cash and cash equivalents at the end of the year 13 £236,561 £199,980

14

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. PRINCIPAL ACCOUNTING POLICIES

a) Basis of preparation

These financial statements have been prepared under the historical cost convention, with items recognised at cost or transaction value, unless otherwise stated in the relevant note to the 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 and UK Generally Accepted Practice as it applies from 1 January 2015.

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 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.

The Vandervell Foundation constitutes a public benefit entity, as defined by FRS102.

The trustee considers that there are no material uncertainties about the Charity’s ability to continue as a going concern.

The financial statements cover the individual entity. The functional and presentation currency is Sterling.

With respect to the next reporting period, 2021, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets.

b) Nature and format of funds

The Trustee has uncontrolled discretion in applying funds of the charity to any charitable purpose or person, and accordingly the funds of the charity are unrestricted. The activities and financial position are disclosed as follows:

Expendable Endowment

These funds represent the sums received from the Vandervell Will Trust, which under the terms of the Will are to be treated as the Foundation’s “capital” but can be utilised for the charity’s objectives, if there are insufficient funds on the Income Account. The Expendable Endowment consists of:

Trust Fund Account

Realised and unrealised profits and losses on fixed asset investments are taken through the Statement of Financial Activities and then transferred to/from the Trust Fund Account.

Income Account

All other incoming or expended resources not reflected in the Trust Fund Account are taken through the Statement of Financial Activities and then transferred to/from the Income Account.

15

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. PRINCIPAL ACCOUNTING POLICIES ( continued )

c) Income

Income is included in the Statement of Financial Activities when the charity is entitled to the income, it is probable that the income will be received and the amount can be measured reliably. Income is categorised as follows:

d) Expenditure

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable that settlement will be received and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis, inclusive of VAT. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings.

e) Grants Payable

Grants payable are payments made to third parties, in the furtherance of the charitable objects of the charity.

The liability for grants payable is recognised in the year in which the offer is made. The amount charged to the Statement of Financial Activities for the year comprises both grants paid in the year together with the commitment in respect of future payments due within one year. The commitment in respect of grants payable within one year are included in creditors, where the commitment has been communicated in writing, prior to the balance sheet date.

f) Allocation of governance and support 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 relating to statutory audit and legal fees, together with the apportionment of overhead and support costs.

Governance and support costs have been apportioned based on the number of individual grant awards made, in recognition that the administrative costs are broadly equivalent. The allocation of governance and support costs is analysed in note 5.

16

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. PRINCIPAL ACCOUNTING POLICIES ( continued )

g) Fixed Assets

Fixed assets are initially recognised at cost and are subject to impairment review.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Computer equipment 25% straight line Plant and machinery 25% straight line

All assets which have a useful economic life of more than one year are capitalised at cost. Assets costing less than £100 are not capitalised.

h) Fixed Asset - Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair values, 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. Income from investments is recognised, together with the related tax credit on an accruals basis and forms part of the unrestricted Income Account.

i) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities, as they arise and credited to the Trust Fund account.

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 the carrying value.

j) Debtors

Other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

k) Cash and cash equivalent

Cash and cash equivalent includes cash at bank and short term deposits held with the investment managers.

l) Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured reliably. Creditors are normally recognised at their settlement amount.

m) Operating Leases

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the terms of the lease.

n) Financial instruments

The charity only has financial assets and 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 with the exception of investments which are subsequently measured at the quoted market value ruling at the balance sheet date.

17

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. TAXATION

No provision for taxation has been made as the Foundation is a charity as defined by Section 467 of the Corporation Taxes Act 2010 and as such is exempt from taxation of its income and gains to the extent that they are applied for its charitable purposes. Where income tax has been deducted or tax credits relating to interest is recoverable, these amounts are included in income in the accounting periods during which it is recoverable.

3. INVESTMENT INCOME

All investment income is derived from investments traded on the UK stock exchange. Investment income is analysed as follows:

4.

UK equities
UK unit trusts
Property income
Overseas equities

£
INVESTMENT MANAGEMENT COSTS
Investment management charges		 2020
£
112,632
59,221
1,421
54,565
_

227,839
£
2020
£
35,914
______
£35,914		 2019
£
169,383
64,305
5,616
55,216
_
294,520
2019
£
41,409
______
£41,409


£
£

5. ALLOCATION OF GOVERNANCE AND SUPPORT COSTS

The charity initially identifies the costs of its support functions. It then identifies those support costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are allocated to the charitable activity undertaken in the year. Refer to table below for the basis of apportionment and analysis of support and governance costs.

Other
Support Governance Total Total Basis of
Costs Related 2020 2019 Allocation
£ £ £ £
Accountancy - 9,798 9,798 8,980 Governance
Audit - 3,000 3,000 2,950 Governance
Professional fees - 72 72 72 Governance
Management charges 12,000 876 12,876 12,852 Actual
Rent, rates and office expenses 7,417 3,995 11,412 11,662 Usage
Salaries and NI 9,712 5,229 14,941 18,447 Staff time
Bank charges and interest - 639 639 610 Governance
Depreciation 74 40 114 114 Usage
______ ______ ______ ______
£29,203 £23,649 £52,852 £55,687

18

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

5. ALLOCATION OF GOVERNANCE AND SUPPORT COSTS (continued)

The total governance and support costs attributable to charitable activities are then apportioned pro-rata, to the number of grants awarded.

Allocation of governance and other support costs

Advancement of education
Medical care and research
Performing arts
Environmental regeneration
Social welfare
£		 2020
£
4,939
17,288
3,458
988
26,179
_____
52,852
£		 2019
£
3,066
18,392
3,065
1,022
30,142
_____
55,687

6. ANALYSIS OF CHARITABLE EXPENDITURE

The charity undertakes its charitable activities through grant making and awards grants to a number of institutions in furtherance of its charitable activities.

7.

Grant
Support &
Funded
Governance
Activity
Costs
£
£
Funded from unrestricted funds:
Advancement of education
57,000
4,939
Medical care and research
88,000
17,288
Performing arts
35,000
3,458
Environmental regeneration
5,000
988
Social welfare
167,000
26,179
_
______
£352,000
£52,852£
ANALYSIS OF GRANTS
Grants to institutions
(Number of grants: 107 2019: 109)

£		 Total
2020
£
61,939
105,288
38,458
5,988
193,179
_

404,852
£
2019
£
352,000
_

352,000
£		 2019
£
53,066
110,392
36,065
6,022
211,142
_
416,687
2018
£
361,000
_
361,000

All grants have been made in accordance with the Trust Deed and are accounted for when approved.

Analysis of grants to institutions
Advancement of education
(Number of grants: 10 2019: 6)
Medical care and research
(Number of grants: 35 2019: 36)
Performing arts
(Number of grants: 7 2019: 6)
Environmental regeneration
(Number of grants: 2 2019: 2)
Social welfare
(Number of grants: 53 2019: 59)

£		 2020
£
57,000
88,000
35,000
5,000
167,000
_
352,000
£		 2019
£
50,000
92,000
33,000
5,000
181,000
______
361,000

19

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

7. ANALYSIS OF GRANTS (continued)

Material grants made to institutions included in the above were as follows:

8.

Arts Education School Tring Park
British Exploring Society
King’s College London School of Medicine
The Outward Bound Trust
PMS Foundation
Barts and The London
University of Plymouth
University of Exeter
English National Ballet
St John’s Hospice
Wac Arts
The Anne Frank Trust UK
Fareshare
Hamsptead Theatre
St Joseph’s Hospice
London’s Air Ambulance
Prisoner’s Education Trust
Roy Castle Lung Cancer Foundation

STAFF SALARIES
Salaries
Social security costs
£		 2020
£
15,000
15,000
15,000
7,000
-
15,000
7,500
7,500
5,000
5,000
-
5,000
5,000
5,000
5,000
7,000
5,000
5,000

2020
£
17,233
(2,291)
_____
14,942
£		 2019
£
15,000
15,000
15,000
7,000
7,500
15,000
-
7,500
5,000
5,000
5,000
5,000
-
5,000
5,000
7,000
5,000
5,000
2019
£
17,250
1,197
_____
18,447

The charity directly employs one person on a part time basis (2019: 1). The staff costs above also represent the key management personnel remuneration for their services to the charity.

No employee has employee benefits in excess of £60,000 per annum (2019: None).

9.

AUDITORS’ REMUNERATION
Audit fees
Accountancy and other services
£		 2020
£
3,000
9,798
_____
12,798
£		 2019
£
2,950
8,980
_____
11,930

20

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

10.
TANGIBLE FIXED ASSETS
Cost
At 1 January 2020
Additions
At 31 December 2020

Depreciation
At 1 January 2020
Charge for year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
The equipment is used for charitable purposes only.
11.
FIXED ASSET INVESTMENTS
Quoted UK Investments
Market value 1 January 2020
Additions at cost
Disposals at carrying value (proceeds £1,079,558; loss £42,851)
Net unrealised investment (losses)/gains
Unrealised gain in above
Historical cost as at 31 December 2020
Geographical Analysis
United Kingdom – Fixed Interest /International Bonds
United Kingdom – Equity
Europe – Equity
USA – Equity
Asia/Pacific/Global – Equity		 Computer
Equipment
£
1,918
-
_
1,918
1,583
114
___
1,697
£221
£335
 Plant &
Machinery
Total
£
£
300
2,218
-
-
_

300
2,218
300
1,883
-
114


300
1,997
£ -
£221
£ -
£335
2020
2019
£
£
7,854,017
6,894,336
838,448
1,900,553
(1,122,409) (1,461,865)
(117,644)
520,993
_
_
£7,452,412
£7,854,017
£1,298,292
£1,545,126
£6,154,120
£6,308,891
992,281
1,365,498
3,235,436
4,295,626
474,492
468,306
1,058,092
886,120
1,692,111
838,467
_
_
£7,452,412
£7,854,017

Investments are held primarily to provide an investment return for the charity.

21

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

12.
DEBTORS
Other debtors
13.
CASH AND CASH EQUIVALENTS
Short term deposits:
Held by bank cash deposit account
Held by investment managers

Cash at bank and in hand

£
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
15.
LEASING COMMITMENTS– Land and Buildings
At the year end the Foundation had commitments under
non-cancellable operating leases as set out below:
Operating leases which expire:
Within 1 year

Within 2-5 years		 2020
£
8,340
_
£8,340
2020
£
94,785
140,776
_

235,561
1,000
_

236,561
£
2020
£
18,373
____
£18,373
2020
£
7,184
-		 2019
£
4,241
_
£4,241
2019
£
32,015
158,746
_
190,761
9,219
_
199,980
2019
£
11,055
____
£11,055
2019
£
9,579
7,184		 2019
£
4,241
_
£4,241
2019
£
32,015
158,746
_
190,761
9,219
_
199,980
2019
£
11,055
____
£11,055
2019
£
9,579
7,184



£


£

The operating lease payments recognised as an expense for the year ended 31 December 2020 amounted to £9,579 (2019: £9,370).

16. RELATED PARTIES

During the year, The Vandervell Foundation incurred management fees of £12,876 (2019: £12,852) for the services of the trustee, The Vandervell Foundation Limited. Included in the management fees, remuneration amounting to £12,000 (2019: £12,000) was paid to the Trustee, The Vandervell Foundation Limited, in accordance with the Trust Deed. The remuneration has been paid to the three directors of the Trustee Company for their time and expertise provided to support the charity’s day to day activities.

During the year, no directors of the Trustee Company were reimbursed expenses (2019: £142 general office expenses were reimbursed to one director).

22

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

17. EXPENDABLE ENDOWMENT

These funds represent the sums received from the Vandervell Will Trust, which under the terms of the Will are to be treated as the Foundations ‘capital’ but can be utilised for the charity’s objectives, if there are insufficient funds on the Income Account.

The Statement of Recommended Practice requires the initial gift and subsequent increases and decreases in the amount of the endowment to be shown in the Statement of Financial Activities as part of these funds. Due to the historical nature of this data and the length of time that the Foundation has been running, the trustee is of the opinion that it is not possible to distinguish between the initial gift and subsequent increases/decreases to that gift. As a result, this information is not disclosed as part of the Statement of Financial Activities and therefore represents a departure from the Statement of Recommended Practice.

The trustee has uncontrolled discretion in applying funds of the charity to any charitable purpose or person and accordingly the funds are unrestricted.

The expendable endowment consists of:

Trust Fund Account

Realised and unrealised profits and losses on fixed asset investments are taken through the Statement of Financial Activities and then transferred to or from the Trust Fund Account.

18. INCOME ACCOUNT

These funds represent all other incoming or expended resources not reflected in the Trust Fund Account. These are taken through the Statement of Financial Activities and then transferred to or from the Income Account.

Any shortfall in the Income Account is supplemented by a transfer from the Expendable Endowment. These funds are treated as unrestricted.

19. FINANCIAL INSTRUMENTS

The charity’s principal financial instruments comprise cash, short term deposits and listed investments, the main purpose of which is to finance the charity’s operations and activities.

Financial instruments measured at fair value comprise the listed investments. The fair value of the listed investments at the year-end amounted to £7,452,412 (2019: £7,854,017).

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

The main risks arising from the charity’s financial instruments are interest rate risk, market risk and liquidity risk. The trustee reviews and agree policies for managing each of these risks and these are summarised below.

Interest rate risks

The charity manages its liquidity through the use of cash deposits at variable rates of interest for a variety of short term periods, depending on cash requirements. The rates are reviewed regularly and the best rate obtained in the context of the charity’s need.

Market risk

The main market risk the charity is exposed to is the fall in the market value of the investments and volatility in yield, due to uncertain investment markets. To mitigate this risk the funds are managed by two well-known investment managers, who regularly review the performance and the value of the investments.

23

THE VANDERVELL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

19. FINANCIAL INSTRUMENTS (continued)

Liquidity risks

The charity’s policy throughout the year has been to ensure that it has adequate liquidity by careful management of its working capital.

20. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the year
Adjustments for:
Depreciation charges
Investment income
Interest income
Unrealised losses/(gains) on investments
Realised losses/(gains) on investments
(Increase)/decrease in debtors
Increase/ (decrease) in creditors
Net cash used in operating activities
£		 2020
£
(368,357)
114
(227,839)
(212)
117,644
42,851
(4,099)
7,318
_
(432,580)£		 2019
£
702,080
114
(294,520)
(38)
(520,993)
(344,625)
2,969
245
_
(454,768)