## **THE VANDERVELL FOUNDATION**
Annual Report and Accounts
For the Year Ended 31 December 2022
Charity Registration Number: 255651
**THE VANDERVELL FOUNDATION**
## **ANNUAL REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|**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 2022**
## **LEGAL AND ADMINISTRATIVE DETAILS**
## **Full Name of Charity and Registered Number**
## **Bankers**
The Vandervell Foundation 255651
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**
Evelyn Partners 45 Gresham Street London EC2V 7BG
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 D Lewis M Godfrey
## **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 2022**
The Trustee presents its report together with the financial statements of the charity for the year ended 31 December 2022. 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) 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.
## **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.
## **Induction and training of trustees**
Trustees are familiar with their legal obligations under charity law. New directors of the Trustee are expected to familiarise themselves with the Trust deed and attendance at meetings is encouraged in order to understand the decision-making processes and recent financial performance of 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).
3
# **THE VANDERVELL FOUNDATION**
## **TRUSTEE’S ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)**
## **Risk Management (continued)**
## **(1) Barclays Wealth (continued)**
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.
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) Evelyn Partners**
Evelyn Partners 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.
4
## **THE VANDERVELL FOUNDATION**
## **TRUSTEE’S ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)**
## **Risk Management (continued)**
## **(2) Evelyn Partners (continued)**
## **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.
## **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.
5
## **THE VANDERVELL FOUNDATION**
## **TRUSTEE’S ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **OBJECTIVES AND ACTIVITIES (continued)**
## **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.
## **Public benefit**
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 £320,500 (2021: £364,500) 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 a decrease of 12.1% 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 2022 amounted to £7,316,038 (2021: £8,132,139), of which £7,316,034 (2021: £8,132,032) 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 2022 was 3.77% (2021: 3.14%).
## **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 increased by 7.8% during 2022 to £267,444 (2021: £248,051).
Expenditure on charitable activities during 2022 included £320,500 on grants and donations, a decrease of 12.1% on the prior year (2021: £364,500). The proportion of the Foundation’s total expenditure attributable to charitable activities has decreased from 90.7% in 2021 to 90.1% in 2022.
6
## **THE VANDERVELL FOUNDATION**
## **TRUSTEE’S ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FINANCIAL REVIEW (continued)**
## **Financial Results**
|**Financial Results**|||
|---|---|---|
||**Year ended**|**Year ended**|
||**31 December**|**31 December**|
||**2022**|**2021**|
||**£**|**£**|
|Net expenditure before other recognised gains and losses|(157,709)|(213,716)|
|(Losses)/gains on investments|(658,392)|666,694|
||_______|______|
|Net (decrease)/increase in funds for the year|£(816,101)|£452,978|
## **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 29 September 2023 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 2022**
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the charities SORP;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
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:
- there is no relevant audit information of which the charity’s auditor is unaware; and
- the trustee has taken all the steps that it ought to have taken to make itself aware of any relevant audit information and to establish that the auditor is aware of that information.
8
## **THE VANDERVELL FOUNDATION**
## **YEAR ENDED 31 DECEMBER 2022**
## **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 2022 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:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 2022**
## **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 **:**
- the information given in the trustee’s report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit _._
## **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:
- Discussions were held with the directors of the trustee company with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
- The following laws and regulations were identified as being of significance to the charity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Charities Act, Tax and Pensions legislation.
- It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity.
- Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
10
## **THE VANDERVELL FOUNDATION**
## **YEAR ENDED 31 DECEMBER 2022**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE OF THE VANDERVELL FOUNDATION**
- No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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
29 September 2023
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 2022**
## **UNRESTRICTED FUNDS**
|**Income**
**Account**
**Note £**
**INCOME**
**Investment Income:**
Investment income – from investments traded on
the UK Stock Exchange**3**
267,125
Bank interest received
319
_______
**TOTAL INCOME**
267,444
_______
**EXPENDITURE**
Costs of raising funds:
Investment management costs**4**
41,948
Expenditure on charitable activities**6**
383,205
_______
**TOTAL EXPENDITURE**
425,153
_______
**NET EXPENDITURE AND NET MOVEMENT**
**IN FUNDS BEFORE (LOSSES)/GAINS ON**
**INVESTMENTS**
**(**157,709)
**NET (LOSSES)/GAINS ON INVESTMENTS**
Net unrealised (losses)/gains on investments**11**
-
Net realised gains/(losses) on sale of investments**11**
-
_______
**NET (EXPENDITURE)/INCOME**
**(**157,709)
**GROSS TRANSFERS BETWEEN FUNDS**
Transfer Income account deficit
157,709
_______
**NET MOVEMENT IN FUNDS FOR THE YEAR**
-
**RECONCILIATION OF FUNDS**
Total funds brought forward
at 1 January 2022
-
_______
**Total funds carried forward**
**at 31 December 2022**
£ -
|**EXPENDABLE**
**ENDOWMENT**
**Trust**
**Fund**
**Account**
**£**
-
-
_____
-
_____
-
-
_____
-
_____
**-**
(752,615)
94,223
_______
**(**658,392)
(157,709)
_______
(816,101)
8,132,139
________
£7,316,038|**EXPENDABLE**
**ENDOWMENT**
**Trust**
**Fund**
**Account**
**£**
-
-
_____
-
_____
-
-
_____
-
_____
**-**
(752,615)
94,223
_______
**(**658,392)
(157,709)
_______
(816,101)
8,132,139
________
£7,316,038|**Unrestricted**
**Funds**
**2022**
**2021**
**Total**
**Total**
**Funds**
**Funds**
**£**
**£**
267,125
248,048
319
3
_______
_______
267,444
248,051
_______
_______
41,948
42,733
383,205
419,034
_______
_______
425,153
461,767
_______
_______
(157,709)
(213,716)
(752,615)
635,702
94,223
30,992
_______ ______
(816,101)
452,978
-
-
_______ _______
(816,101) 452,978
8,132,139
7,679,161
________
________
£7,316,038£8,132,139|
|---|---|---|---|
||
|||
|||
£|
£|
12
## **THE VANDERVELL FOUNDATION**
## **BALANCE SHEET**
## **AT 31 DECEMBER 2022**
|**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
£|**2022**
**£**
4
7,082,789
________
7,082,793
4,130
149,567
110,325
_______
264,022
(30,777)
_______
233,245
________
7,316,038
£
7,316,038
-
________
7,316,038
£|**2021**
**£**
107
7,894,972
________
7,895,079
4,135
94,329
166,886
_______
265,350
(28,290)
_______
237,060
________
8,132,139
8,132,139
-
________
8,132,139|
|---|---|---|
The financial statements on pages 11 to 23 were approved by the Trustee on 29 September 2023 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 2022**
||**Note**|**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
|**Net cash used in operating activities**|**20**|(422,558)|(447,531)|
|||_______|_______|
|**Cash flows from investing activities:**||||
|Dividends||267,125|248,048|
|Interest income||319|3|
|Purchase of investments||(683,109)|(1,984,401)|
|Proceeds from sale of investments||836,900|2,208,535|
|||_______|_______|
|||421,235|472,185|
|||_______|_______|
|**Increase in cash and cash equivalents in the year**||(1,323)|24,654|
|Cash and cash equivalents at the beginning of the year||261,215|236,561|
|||_______|_______|
|**Total cash and cash equivalents at the end of the year**|**13**|£259,892|£261,215|
14
## **THE VANDERVELL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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) 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.
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).
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, 2023, 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 2022**
## **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:
- Investment income comprises of gross amounts received by way of dividends and interest. It is accounted for on an accruals basis and forms part of the unrestricted income account.
- Other income comprises of the receipts of any resources which the charity has not been able to analyse within the main income categories and forms part of the unrestricted income account
## **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.
- Costs of raising funds comprise the costs of managing the fixed asset investments of the organisation.
- Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **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 2022**
## **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 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 2022**
## **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.
## **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|**2022**
**£**
106,245
78,768
4,729
77,383
_______
267,125
£
**2022**
**£**
41,948
______
£41,948|**2021**
**£**
110,801
76,627
4,141
56,479
_______
248,048
**2021**
**£**
42,733
______
£42,733|
|---|---|---|
||
£|
£|
## **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**|**2022**|**2021**|**Allocation**|
||**£**|**£**|**£**|**£**||
|Accountancy|-|9,462|9,462|9,062|Governance|
|Audit|-|3,200|3,200|3,000|Governance|
|Professional fees|-|72|72|72|Governance|
|Management charges|12,000|948|12,948|12,912|Actual|
|Rent, rates and office expenses|12,207|6,573|18,780|11,711|Usage|
|Salaries and NI|11,738|6,320|18,058|17,250|Staff time|
|Bank charges and interest|-|82|82|413|Governance|
|Depreciation|67|36|103|114|Usage|
||______|______|______|______||
||£36,012|£26,693|£62,705|£54,534||
18
## **THE VANDERVELL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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
£|**2022**
**£**
2,799
24,074
1,120
1,120
33,592
_____
62,705
£|**2021**
**£**
5,659
18,521
2,058
515
27,781
_____
54,534|
|---|---|---|
## **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
29,500
2,799
Medical care and research
116,000
24,074
Performing arts
8,000
1,120
Environmental regeneration
5,000
1,120
Social welfare
162,000
33,592
_______
______
£320,500
£62,705£
**ANALYSIS OF GRANTS**
Grants to institutions
(Number of grants: 112 2021: 106)
£|**Total**
**2022**
**£**
32,299
140,074
9,120
6,120
195,592
_______
383,205
£
**2022**
**£**
320,500
_______
320,500
£|**2021**
**£**
63,159
118,521
41,058
3,515
192,781
_______
419,034
**2021**
**£**
364,500
_______
364,500|
|---|---|---|
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: 5 2021: 11)
Medical care and research
(Number of grants: 43 2021: 36)
Performing arts
(Number of grants: 2 2021: 4)
Environmental regeneration
(Number of grants: 2 2021: 1)
Social welfare
(Number of grants: 60 2021: 54)
£|**2022**
**£**
29,500
116,000
8,000
5,000
162,000
_______
320,500
£|**2021**
**£**
57,500
100,000
39,000
3,000
165,000
______
364,500|
|---|---|---|
19
## **THE VANDERVELL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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
Lifeboats
University of Plymouth
University of Exeter
St John’s Hospice
University of Nottingham
City & Guilds
Queen Mary University of London
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
£|**2021**
**£**
-
-
-
-
7,500
-
5,000
-
-
15,000
5,000
5,000
5,000
5,000
7,000
5,000
5,000
**2022**
**£**
18,058
_____
18,058
£|**2021**
**£**
15,000
15,000
15,000
5,000
7,500
15,000
5,000
15,000
18,000
-
-
-
-
5,000
7,000
5,000
5,000
**2021**
**£**
17,250
_____
17,250|
|---|---|---|
The charity directly employs one person on a part time basis (2021: 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 (2021: None).
## **9.**
|**AUDITORS’ REMUNERATION**
Audit fees
Accountancy and other services
£|**2022**
**£**
3,200
9,462
_____
12,662
£|**2021**
**£**
3,000
9,062
_____
12,062|
|---|---|---|
20
## **THE VANDERVELL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|**10.**
**TANGIBLE FIXED ASSETS**
**Cost**
At 1 January 2022
Additions
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge for year
At 31 December 2022
**Net book value**
At 31 December 2022
At 31 December 2021
The equipment is used for charitable purposes only.
**11.**
**FIXED ASSET INVESTMENTS**
**Quoted UK Investments**
Market value 1 January 2022
Additions at cost
Disposals at carrying value (proceeds £836,900; profit £94,223)
Net unrealised investment (losses)/gains
Unrealised gain in above
Historical cost as at 31 December 2022
**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
1,811
103
_____
1,914
£4
£107|**Plant &**
**Machinery**
**Total**
**£**
**£**
300
2,218
-
-
____
_____
300
2,218
300
2,111
-
103
___
_____
300
2,214
£ -
£ 4
£ -
£107
**2022**
**2021**
**£**
**£**
7,894,972
7,452,412
683,109
1,984,401
(742,677) (2,177,543)
(752,615)
635,702
________
________
£7,082,789
£7,894,972
£837,040
£1,593,807
£6,245,749
£6,301,165
1,214,022
1,249,052
3,233,089
3,455,488
450,857
537,738
888,426
1,053,816
1,296,395
1,598,878
________
________
£7,082,789
£7,894,972|
|---|---|---|
|||
£
£
£|
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 2022**
|**12.**
**DEBTORS**
Other debtors
**13.**
**CASH AND CASH EQUIVALENTS**
Short term deposits:
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
|**2022**
**£**
4,130
_____
£4,130
**2022**
**£**
110,325
______
110,325
149,567
______
259,892
£
**2022**
**£**
30,777
______
£30,777
**2022**
**£**
16,597
16,597|**2021**
**£**
4,135
_____
£4,135
**2021**
**£**
166,886
_______
166,886
94,329
_______
261,215
**2021**
**£**
28,290
______
£28,290
**2021**
**£**
16,597
33,194|**2021**
**£**
4,135
_____
£4,135
**2021**
**£**
166,886
_______
166,886
94,329
_______
261,215
**2021**
**£**
28,290
______
£28,290
**2021**
**£**
16,597
33,194|
|---|---|---|---|
|||
£
||
||||
|
The operating lease payments recognised as an expense for the year ended 31 December 2022 amounted to £16,597 (2021: £9,579).
## **16. RELATED PARTIES**
During the year, The Vandervell Foundation incurred management fees of £12,948 (2021: £12,912) for the services of the trustee, The Vandervell Foundation Limited. Included in the management fees, remuneration amounting to £12,000 (2021: £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, one director of the Trustee Company was reimbursed general office expenses of £310 (2021: £250).
22
## **THE VANDERVELL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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 £7,082,789 (2021: £7,894,972).
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 2022**
## **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 gains on investments
Decrease in debtors
Increase in creditors
Net cash used in operating activities
£|**2022**
**£**
(816,101)
103
(267,125)
(319)
752,615
(94,223)
5
2,487
_______
(422,558)£|**2021**
**£**
452,978
114
(248,048)
(3)
(635,702)
(30,992)
4,205
9,917
_______
(447,531)|
|---|---|---|