HEDLEY FOUNDATION LIMITED A Company Llmited by Guarantee Reglstered Charlty Number: 262933 Registered Company Number: 01018571 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 AB6YSEftL 17111r2022 COMPANIES HOUSE
HEDLEY FOUNDATION LIMITED CONTENTS Page Charity Informati Report of the Trustws Slatsment of Trustees. Responsibilities Report of the Audltor Consolldated Statemont of Financial Activltlos 10 Consolidated and Company Balance Sheets 11 Consolldated Cashflcm Statement 12 Accounting Pollcles 13-16 Notes to the Financial Statsmonts 17-28
HEOLEY FOUNDATION UMrrED CHARifY INFORMATION Trustws A C For(1 (chaimnI P R Holcroft L B Stuttaford A E Fanshawe D W Byamcook C A G Bennett A J Scully Company Socr•tary MCKitto RegIStèr oifice 1 Colle9e Hill London EC4R 2RA Bankors Royal Bank of S¢olland London Service Centre 4th FIr Regents House 42 Islington High Street London N18XL Independent Auditor PKF Littleiohn LLP 15 Westferry Circus Canary Wharf London E14 4HD Inveslmenl Managers Waverton Investrnent Management Limited 16 Babmaes Street London SW1Y 6AH Solicilors Macfarfanes LLP 20 Cursitor Street London EC4A 1LT Company Registration Numbor 01018571 Charity Reglstratlon Number 262933
HEDLEY FOUNDATION LIMITED REPORT OF THE TRUSTEES The Trustees, who are also the Directors of Hedley Foundation Limf(ed (the Foundation), have pleasure in presenting their Rewrt together with the Financkql Ststements for the year ended 31 March 2022. The Trustees have adopted the provisions of the Statement of Recommended Practice 'Accounting and Reporting by Charities. {"FRS 102 SORW) in preparing the Amual Rewrt and Financial Statements of the Charity. Trust•es of the Charity The Directors of the Chaiitable Company are its Trustees for the purposes ofcharity knv. The Trustees vtho have served duriro the year and Sin the year end are listed on page 1. Objectives and Activities The FOdatiOn was established for exclusivety charilabte puws. The Foundation manages its assets including its Subsidiary Companies. which togelher wtth the Foundation comprise the Group. in order to make grants to UK registered Chare$ out of the Group's income. The Hedley Foundation ayns to improve the quality of life of people in the United Kingdom, parti¢ularfy those from disadvantaged backgrourMJs. It achieves tt)is by makFng grants. within budget, to United Kingdom registered charities for the benefft of young people. disabled people. elderly people. the temiinally ill and otheTh4ise disadvantsged people and their carers. The essen of the Foundation's activities is Social Welfare and for nvenIenCe the followirKJ categories are used: . Youth. Projects which raise the asimrations or help to realise the fvll tential of disadvantaged young people. Typically. grants are given to support young peopl8 into education, training or sustainable employment. Providing an opportunty to broaden horizons through sport and adventurous aciivities may fomi part of this category. . Disabl¢d. Projects to support and improve the qualty of life of people of all ages with physical arKJ mentsl disabilities. sensory impairment and leamiro drfficulties. . Elderlyrrerminally 111. Projects to help elderly people to maintain irxleperthn¢e and projects to support those in the closing stage of life. in hOsceS or hoswtsls. Miscellaneous Support. Projects to SUPFQrt carers and sorial wellare projects Ihat might support the homeless. the em oyab11ty opportunities for offenders and ex-offerhjers and the opportunity to reduce re offendirvj. Details ofhow to appty for a grantare available on the Foundation'swebsite atwMw.hedle oundation.or -uk The Trustees award grant5 to those chaiilies (never individuals) that have submitted applications for funding that would benefit those people outlined in the categories aVe. The Foundation tends not lo give money to very large scale or national ¢harilies. Typically. sums of £3K - £5K are given with occasional larger sums granted to charities Whe high impact can be achieved. Most grants are one<ff payments, twt multi-year grants might be considered. Further applications from the same organisation would not normally be considered for a period of eighteen months from the date of the grant. Charities that may have submitted an unsuccessful grant may apply again after a six month period. Acknovledgements are expected from the recipient charities and c¢casional follom-up visits may be made by Tntstees. The Hedley Foundation maintsins a small office of parttime stsff who are capabl8 ofmanaging and reFK)rting all aspects of its activities. The Hedley Foundation's inGome arKI thus ils ability to support other charities is derived from a professionally managed investrnent wrtfolio wth Waverton Investment Management. an investment with the Charities Property Fund and from rents generdted from a number of reiail shops, whi( are let and mar)aged vlith the aid of professional advisers. Applications for grants are subrnitted to the Foundation. stating dearly the sum they seek and articulating precisely how they would wish to use any grant made. These are all considered carefvlly. Those most osely aligned wrth the Foundation's obieth.ves are taken to a Trustees. Sift Board, which dIuSseS eaGh application in detail. Theafter. recommendalions for payments are made to the Main Board of Twstees, which nVeneS a fortnight later.
HEDLEY FOUNDATION UMrrED REPORT OF THE TRUSTEES Follow-up visits are occasionally made to see the effect that a grant will have rnaje.. whilst the Foundation does not have the resources to analyse the success ofeach grdnt made the Trustees are generally satisfied Ihat grants are being wdl used. The Foundation requires the recipient to send a letter of acknowledgement. together a fomial reIPt. after receipt of a grant Grants yre made during FY2021122 10 173 Chare$ {FY2020121- 73) totalling £610,051 (FY2020121 - £179,092). The Grants Budget increased incrementslty. but significanly. through the year as it became clear that rents were ting paid in most cases and that some confidence in the economy was retuming as the effects of Covid-19 tEgan to fade. However, a cautious approach was maintain8d by the Trustees throughout the period, mirKJful ofthe economic threats by low growth, rapmjly increasing inflation and the fragile geoolitical 5btuation. Public Benefft The obpctives and aclivilies as listed atKfyve are undertaken to further the FourKlation's purpose for wblic benefit. The Trustees confim that they have had regard to the guidance on public benefit issued by the Charity Commission when considering the 0.e¢lIveS and activities of the Foundab'on. Strucluro, GovernanGo and Management The Foundation Yrns incorwrated on 23 July 1971 as a company limited by guardntee arKI is a registered charity. It is govemed by its Memorandum and Artides of AsKKiation. The Four)dation has no share capital but each member undertakes. in the event of winding up. to contribute up to £1 towards the cost of winding up. At 31 March 2022. there were 7 members ofthe FOUndan. who a also the Trustees arml the Directors of the Charitable Company. New Trustees ate apinted by the exisling Trustees. The Trustees met fonnally on four occasions during the year to review the progress of the Foundation's investment policy and its finanaa state and to corKluct Board Meetings of the Subsidiary Companles of which they are Directors.. Trustees have occasK)nally wsited charilies lo whth the Foundatron might make or has made grants. Recommendations for pay and MUneratiOn. including for the key management personnel, are made to a sub Committee ofthe Trustees and Direciors ofthe Subsidiary Companies (see below). The sub Committee then makes its own recommendations to Ihe full Board of the Foundation which makes the final decision. Recomrnendations for pay and remuneration take into conSideratn many benchmarks including the muneration levels paid by similar Third Sector organisations and the CPI. Fonnal remuneration has remained unchanged January 2020. amhough the Trustees agreed a modest bonus to be paid to three members of $tsff in Decemter 2021 as a mark of Kyofound appLatIon for what they had achieved during the year. Review of the Business and Fuluro Dov•lopmonts The results for the year are set out on Page 10 of the Financial Ststements. The n8t movement in fvnds for the year amounted to a movement of £3,443.761 c4)mpared to a movenpnt of £4.314,123 in the prior year. The follt)wing Companies are vtholly owned subsidiaries of the Foundation: Company Fairhood Properties Lirnited Merewood Properties Limf(ed Mounlbarrow Properties Limited Middlerigg Nominees Limtted Middlerigg Seryices Limited Principal Activity Management of investment properties Managemenl of investment properties Managemenl of investment properties Nominee company Management services company The Management Company and thè Property Companies transfer 100% of their taxable proffts to the Foundation under the Gift Aid arrangements.
HEDLEY FOUNDATION UMrrED REPORT OF THE TRUSTEES The results of the atove Companies have been consolidaled in the Statement of Financial Activities and Balance Sheet of the Foundation in accordan the Charities, Statement of Recommended Practice {SORP}, Accounting arKI RetKJrtirYJ by Charities as UFMJated in October 2019. The Trustees consider the results of the investrnent Fxopety companies arKI management servw8 company to te satisfactory. Flnanclal Instruments The Foundation does not receive any put4 or govemment funding aTrJ relies entirety upon its Invested assets to provide funding for the making of grants. In order to minimise the investment risk, the Trustees have diveNfied the rar)ge of investrnents to Inde UK arKI global equities. govemment stocks. retsil propety and units within the Charikn'e5 PropeFty Furby. There has been no outsourced fvnd raisirKJ via professional fvndraisers or other third parties. As a su11, the charity is not registered with the fundraising regukqtor and r1Ved no fvndraising complaints in the year. Reserves Policy The Foundation has total funds of £42.561.859 at 31 March 2022 all of which are unrestricted {2021 £39,118,098). Of these total fvnds. £43.428.3 couhj only be realised by disposing of fixed assets {£6,860,1J)O investment prOpee$. £31.942.792 listed investments and £4,625,598 investment in subsidiaries). Unrestricted free resee$ al the consolidated levd at 31 March 2022 are £1,234,067 {2021- £2,125.1821. The Trustees consider the appropriate tanJet level of consolidated free seNe5 to be e1ve months operating expenditure. The current level of consdKJated free reserves al 31 March 2022 is in line with this target. representing 12 months of operating and grant-making expenditure. Investment Pollcy The Folicy of the Foundation is to combine security wtlh higher than average incorne by investmenl, partly in let retail propety and paruy in a managed portfolio of investsnents. In respect of the managed gk)bally invested portfolio. the current annual yK?Id 15 1.VA (2021- 2.02V•). In respecl of the ts11 propety Portfolio. the current annual yield is 7% (2021- Vh). In respect of the Charilies Propety Fund. the current annual yield is 3.5°/o after cosls12021- 3.78Yo) The fenlal Irm derived from the retail properties and the dividends a ulilised. after exp8nses. for the purpose of making grants. In January 2022. the Trustees conducted a comprehensive perfomiance review of investment portfolio managers and satisfied thernselves {at that wint in timel that the investsnent objective of a total retum of 4.5 % in excess of inllation las measured by the CPI) over the long-temi vms achievable. There were four 'biddets' for our portfolio and the decision was reached to stay with Waverton Investment Management. Risk Management The Trustees consider that sustained l¢)w growth. hh inllatK)n arrtj intsmalional wlitical tensions (that are the cause of high energy costs arKI errat sUpY chain5) lo be the main threats to global economic stability. By extension these factors pose the main threat to the value ofthe investmenl portfolio, to the retail propety portfolio and to the value of the units wilhin the Charities Property Fund. Twice a year the Trustees examine Ihe Risk Register which identifies the major strategic, business and operational risks which fa the Foundation and they consKler what actions. rf any. are required to mitigate them. It is noteworthy that the annual cost base for tre Foundats'on is reL2tively low, with more than hvelve month's running costs being Immediate available.
HEDLEY FOUNDATION LIMITED REPORT OF THE TrUSTEes Third Party Indemnlty Provlslons The Foundation has purchased professional indemnty insurd1 on behalf of the Trustees. The premium paid for the insurance was £448 {2021- £448). Trustees, Responsibilities The Statsment of Trustees. Responsibiliiies can be fourKJ on page 6. Audlt Inforniatlon The Trustees who held Offi at the date of approval of this Trustees. Report confimi that. so far as they are individually aware. there is no relevant audit inforrnation of which the Chari$ auditor is unaware.. and each Trustee has tsken all reasonable steps that helshe ought to have taken as a Trustee to make himselflhetself aware ofany relevantaudit InfOallOn and to establish thatthe Charl$ auditor is aware ofthat infonnation. Our independent auditor, PKF Litdeiohn LLP, has signifd its willingness to continue in office. By Order of the Board C Kitto Company S•Grotary 2 November 2022
HEDLEY FOUNDATION LIMrrED STATEPW OF TRUSTEES. RESPONSIBIUTIES The Trustees (who are also Directors of the Foundation for the purpose of compary law) are responsible for preparing the Trustees. Rewrt and the Financial Statements in accordan with appli¢able law and United Kingdom Accounting stsndards (UK GeIally Apted Accounting Practice). Company and Charity law requires the Trustees to prepare FinancAal Statements for each financial year. Under that law the TNstees have prepared the Financial Statements in accordance with the Charities, Statement of Recommended Practi, Accounting arKI Reporting by Charities issued in July 2015 and United Kingdom Financial ReFL)rting and Accfjunting Standards. Under company and charity law the Trustees musl not approve the Financial Ststements unless they are satisfied that they give a true and fair view ofthe state ofaffairs of the Charitable Ccmnpany and of the surplus or deficit of the Charitable Company for that period. In preparing these Financial Statements. the Trustees are required to.. select suitable aCUnting policies and apply them consistenty. observe the meth¢xls and principles of the Charities, SORP, Accounling and Reporting by Charities., make judgments and estimates that are reasonab and pwdent: state vthether applicable UK Accounting Stsndards, including SORP FRS 102 have been followed, subject to any material departures disckfysed and explained in the Financial Statements; prepare the Financral Statements on the goirKJ conrn basis unless it is inapproKTrte to assume that the Charitable Company wll be able to continue in operation. The Trustee5 are responsible ftr keeping adequate accounting records that are sufficient to show and explain the Charitable Company's transactsons arKI disdose V•ith asonable accuracy at any tirne the financial wsition ofthe CharitatrAe Company and enable them to ensure thatthe financial statements comply with the CompaniesAcl 2006 and Charities Act 2011. They are also $nSible for safeguarding the assets of the Charitsble Company and herKe for taking reasonable steps for the prevention and detection of fraud and other irregularities.
HEDLEY FOUNDATION LIMrrED REPORT OF THE AUDrroR Ind•pendont Audltofs Report to the pAemlS and Trusteos of H•dl•y Foundation Llmlted Opinion le have audiled the financial staternents of The Hedley Foundation {the 'parent charilable ¢ompany') and rts subsidiaries (Ihe 'group'} for the year ended 31 March 2022 which comprise which comprise the Consolidated Stalemenl of Financial Activities {IldIng Income and Expenditure AcccNJnt), the ConsolKlaled and Parent Charitable Company Bala[ Sheets. the Consolidated Cash Fbw Siatemenl an(1 noles lo the financial statements, indvding signrficanl ac¢ounb"ng polS. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 The Financi81 Reporting standardapp11cab in th& UK8ndRepublic of Ire18nd (United Kingdom Generalty Accepted Accounting Practi1. In our opinion. the financial statements.. give a true and fair view of the state of the group's and the parent chantable company's affairs as at 31 March 2022. and of the group's incoming resources and application of resources, including its income and expenditure. for the year then ended- have been properly wepared in ac(X)rdae with United Kingjom Generally Accepted Accounting Practice.. arKI have ben pPared in awdance with the requirements of the Companie5 Act 2006 and the Charities Ac12011. 1$ for opinion We conducted our audrt in accordance with International Standards on Auditing (UK) IISAS (UK}} and applicable law. Our responsibilities under those stsndards are further described in the Auditor's responsibilities for the audit of the financial statement$ $eelion of our report. We are independent of the group and parent charitable company in ac¢ordan¢e with the ethical requirements that are relevant lo our audit of the financial statements in the UK. induding the FRC'S Ethical Standard. and we have fijlfilled our other ethical responsibilrties in accordance with these requirements. We believe that the wdrt evidence we have obtained is Su1ent and approwiate to provide a basis for our opinion. ConGluslon5 relatlng to going concern In auditing the financial ststements, we have concluded that the trustees. use of the going ¢oncem basis of accountir4J in the weparalion of the financiai statements is appropriate. Based on the WO we have performed. we have not identffied any material uncertainties relating to events or ¢ondilions that, indivKlually or Clec'Vety. may cast significant doubt on the group's or parent charitable company's ability to continue as a going concern for a period of at18ast twelve months from when the financial ststements are authorised for issue. Our responsibililies and the resr*)nsibilities of trustees wilh respect lo wing concem * destribed In the Televanl 5ecb'on$ of this rewl. Other infomialion The other information comprises the irrfcrfmation induded in the Report of Ihe Trustees. other than the financial statements and our auditor's report thereon. The trustees are responsible for the other infomation contained within the Rep(Kt of the Trustees. Our opInn on the financial statements doe5 not cover the other information and except lo the exlent olhernvise eXpl111Y staled in our rewrt. we do not express any fomi of assurance conclusion thereon. Our responsibility is lo read the other infonnalion and, in doing so, consider whether the other information is materially inconsislenl with the financial stalemenls C our krvIedge obtained in the course of Ihe audit. or otherwise appears lo be materially misstsled. If we identify such material inconsistencies or apparent material misstalemenls. we a required to detemine whether this gives rise lo a material mi5Statement in the financial slalemenls themsefves. W. based on the work we have performed. we condude that there is a material misstatement of this other informatK)n. we are required to report that fact. We have nothiTrJ to report in this regard. Opinions on other matters prescrib•d by tho Companles Act 2006 In our opinion. based M the wth undertaken in the crSe of the audit:
HEDLEY FOUNDATION UMrrED REPORT OF THE AUDITOR the infomption gNen in the trustees, report. whth indudes the directors. pOrt prepared for the purposes of company law. for the finawal yew for which the financial statements wewed is cnnsislenl with the finanual statements., 2nd the directors. ret induded withn the trustees, reFQrt has twn prepared in accordance with appllcable legal requirements. Matters on whl¢h wo roquir•d to report by •xc•ptlon In the light of the knowledge and understan(ling of IgrOupd parent charitable company arKI Iheir environmenl obtained in the course of the audit, we have not identrfd material misstatements in the directtys, report induded within the trustees. annual reFrf)rL We have nothing lo res in respect of the following matters in rela1K to whith tre Companies Act 2006 and the Charities Act 2011 requires us lo rerNt lo you rf. in our opin*)n'. adequate artd Sulent accounting records have not kept by the parent charitable compary. or returns adequate for our audit have not been received from branches not visited by us.. or the parent charitable ¢orryny's financial stslements are rK)t in agreement wth the a¢¢ounting records and returns.. or certain disclosures oflruslees, remuneration $Fwrd by law are not made., or we have not received all the information and explanations we requffe for our audit.. OT the trustees were not entstled to take advantage ofthe $mall Companies. exempts'on from the requ1Ment to prepare a strategic rewt. Responsibilities of trustees As explained rrK)re fijlty in the Statement of Trustees. RespMsibilits, ihe trustees (who are also the directors of the charitable company for the purposes of Company lawl are responsible for the preparation of the group and parent charrtable rnPany financial statements 2nd for being Satisf that they give a true and fair view. and for such internal control as the trustees determine is necessary lo enable the preparation of financk41 statements that are free from material mFsslatement. ether due to fraud or error. In preparing the group and parent chartsbte company finartfdl statements. Ihe trustees are responsible for assessing the group and parent chaTilable Company's abiltty to contsnue as a gThng concern, diKlosing, as applicable, matters related to going and using the going coreM basis of accounting unles$ the Iruslees either intend lo liquidate the group or the parent charitable company or to cease operatiorts. or have no realists'c alternative but to do so. Auditor's r•sponsibilities for the •udlt of the financlal statements We have been appointed auditor under the Companies Act 2006 and se¢lion 151 of the Charities Act 2011 arKI report in accordarte with those Acls and relevant regulalions made or having effect thereunder. Our objectr¥es a to obtain reasonable assurance abwl ether the financial statements as a wMe are free from mateTial misstatement. whether due to fraud or error. and to istsue an audilorfs 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) wll always delect a material misstatement when il exists. Misslalements can arise from fraud or error and are considered material rf. indNKlualty or in the aggregate. they could reasonably be expected to influence the econom deasK>ns of usefs tsken on the basis of these financial ststements. Irregulariltes, including fraud. are instances of nonoMpliae laws and regulatK)ns. We design procedu5 in line wlh our responsibilities. 0uuld above, lo dele¢l material misstatements in respect of irregularrties, including fraud. The exlenl lo which our Fwocedures are capable of dete¢ting irrewlarities. including fraud is detailed below: We obtained an understanding of the gr(yJp and parent charilable company and the sector in which they operate lo identify laws and regulan$ that Uld reasonably be expected lo have a direct effect on the financial statements. We obtained our understanding in this regard through diU$S1Ons with management. sector $earth a1 application of laINe audr( krKwAeth3e and experre.
HEDLEY FOUNDATION LIMrfED REPORT OF THE AUDrfoR We determined the principal laws and regulations relevant to the group and parent charitable company in this regard lo be those arising from the Charits Act 2011. Companies Act 2006. Financial Reporting Standard 102. and relevant employee legislation. We dewgned our wdil pro¢edures to ensure Ihe audit team considered whether were any iThJtslion$ of n0nrfomkdrdn by the group and parent charitable company Vth Ihose laws and gulalions. These procedures in¢luded. but Vere not limited to enquiries of management, review of minutes and review of legal and regulatory Correspondence. We also hlenttfied the risks of material misstatement of ItrE financial statements due to fraud. We considered. in addition lo the non-rebuttatjle presumpt'on of 8 risk of fraud arising from management override of controls. that there was potential for management bias in the valuation of investment properties. We addressed this through revie4V of the valuation reports prepared by management's expert, lesling the accuracy and completeness of inputs to thlwr calculation. and challenging any assumptions aPF4ied in the valuations for example by agreement to third party metrics. We also tdenlrfd potenli81 for management bias in judgements made around recoverability of debtors. We addressed this through examinatK)n of post year end cash received, review of correspOndere with debtors and disCU55ion of recoverats'lty with managemenl. We also identified potenlial fcff management bias Ki the alktath?n of support costs against charitable activity categories. We addressed this through revwling the method used for reasonableness, and re- performing the culatK)n to ensure rt had been perfft accurately in line vthh the stated method. We also idenlifd polential for managernent bvas in the timing of recognition of rental income. We addressed this through detailed review of sigrd rental agreements. forming an expectalbon of the level of iruime lo be renised in the financial year. and comparison lo actual. As in all of our audits, y addressed the rk%k ol fraud arising from management overrKle of controls by perfomiing audit procedures which induded. but were rnl limited lo- the testing of journa15-. reviewing a¢¢ounling estimates for evidence of bias", and evaluating the business rationale of signffjn1 transactions that are unusual (K outside the nom1 course of business. 8ecau5e of the inherent lirnitalrcms of an audil. there ts a risk Ihal we wll nol delect all irregvlarilies. including those leading lo a material misstatement in the finartial statements norrfompliance with regulation. This risk increases the more that com lanCe with a law or regulation is removed from the events and transactions reflected in the financkql slalemenls. as we will be less likely to become aware of instances of nonrycompliance. The risk is also greater regarding irregularities Curring due lo fravd rar than error. as frJd involves intentional coealMenl. forgery. cOlsn. omission or mreeSentatIOn. A further des¢riplion of our responsibilities for the audit of the financial statements is ILated on the Financial Reporting Council's website at www.frc.or .ukJaudilorsres onsibililies.This description fomis part of our auditor's report. Us• of our r•port This re[ is made solety lo the charitable ccrfnpany's nwnbers. as a tKJdy. in accOrdae th Chapter 3 of Part 16 of the Compans Act 2006. Our audit work has been undertaken so that we might slate lo the charttable company's member5 and truslees those mattets we are required to slate to them in an audilorfs report and for no other purFose. To the fullest exlenl permilled by law, we do a¢¢ept or assume responsibility to anyone, other than the charilabie company and the charrtable company's nEmbers as a dY and the charitable company's trustees as a body, fof our audil woth, for this reporL or for the opinions we have formed. Alastair Duke {Sènior Statutory Auditorl For and on behalf of PKF Ltttlejohn LLP Statutory Auditor 15 Wesfferry Circus Canary Wharf Lormlon E14 4HD Date..
HEDLEY FOUNDATION LIMrrED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {In¢ludlng Income and Expenditure Account) Yoar ond•d 31 March 2022 Unrestricled Funds 2022 2021 Income from: Income from investrnent properties Income from Investment portfolios Other trading activities - subsidiary companies Other Income 496.379 473.242 224.754 81.oc 389,725 552,390 150,526 42,415 24 Total Incomo 1.275,375 1,135,056 Expenditure on: Raising funds Chaiilable activibe$ Other- on Charitable trading 363,868 687,330 93,313 314,373 243,098 98,978 24 Total Expenditure 1,144.511 656,449 Net Income 130,864 478,607 Net realised and unrealised gains on investrnent assets Unrealised losses on revaluation of investment properties Realised gain on sale of investment propety 13b 3,572,897 4,405.516 {260,0001 {570.000) Not Mov•mont in Funds 3.443.761 4.314,123 Fund balan brought fonward 39.118.098 34,803,975 Fund balances Carried forward 42.561.859 39,118.098 All of the above results are derived from continuing lIvIe$. The Company and its subsidiaries have no gains and losses other than those shown above. In accordance wth the provisrons of the Companies Acl 2006. a separate Income and Expenditure Account dealing with the results of the Foundation only has rK>t been presenied. The A¢untIng Policies and Notes on pages 13 to 29 fomi part of these Financial Ststements. 10
HEDLEY FOUNDATION LIMrrED Company Registration Number 01018571 CONSOUDATED AND COMPANY BALANCE SHEETS At 31 March 2022 Consolldatsd 2022 2021 Company 2022 2021 Fixed Ass•ts Investment properties Investments 12 9.385.OLXI 9,645,(MJ) 6.860,OLK) 7,055,000 13 31.942.792 27,347,916 36,568,39) 32,038.514 41.327,792 36.992,916 43,428,390 39.093,514 Current Assets Debtors Cash al bank and in hand 14 15 271.337 1,322,859 272.746 468,941 449.283 2.117.140 1,170,401 2,050,632 1.594.196 2.389,886 1,639,342 2,499.915 Creditors: amounts falling due within one year 16 {360.129) {264.704) {2,505.873) (2.475.331) Net Current Assetsl (Uabllltle$) 1,234.067 2,125.182 {866,531) 24.584 Nel Ass•ts 42,561.859 39.118.098 42,561,859 39,118,098 General Funds Charitable funds Non-charitable investrnenvtrading company funds 37,936.261 34.427.5(K) 37.936,261 34,427,500 4.625.598 4.690.598 4,625,598 4,690.598 Total Funds 18 42.561.859 39,118.098 42,561.859 39,118.098 These Finanaal Statements were approved and authorised for issue by the Board of Trustees on 2 November 2022. Signed on behalf of the Board of Trustees ACFord Chaimian L B Stuttaford Trustee The Accounting POlS and Notes on pages 13 to 29 fonn part of these FinanGial Statements. 11
HEDLEY FOUNDATION LthIITED CONSOUDATED CASHFLOW STATEMENT Year endod 31 March 2022 Nots 2022 2021 Cash inllow from operallng acllvftles 20 227,698 496.654 Net Gash flow from oporaling aclivilios 227,698 496.654 Cash flow from invosllng aclivltles Payments to acquire inveslment propety Receipts from sales of inveslmenl property Payments from sale of propety Payments to acqui investments ReiptS from sales of investrnents {6,347,631} 5,325.652 (6.163.597) 5.708.232 Net cash flow used by Invesllng Activities (1.021.979) (455,365) Change In cash and equivalents In the year (794.281) 41,289 Cash and cash equivalents at 1 April 2021 2.117,140 2.075.851 Cash and cash equNalents al 31 March 2022 1.322.859 2,117,140 Cash and ush ¢quivalents consist ofr. Current accounts Deposit accounts Cash at Investrnent Managers 162.524 955.110 205.225 76.627 1.543,113 497,400 Cash and Cash equlvahnts at 31 March 2022 1.322.859 2.117.140 The Accounting Pol'cies and Notes on pages 13 to 29 fonn part of these Financial statnts. 12
HEDLEY FOUNDATION UMrrED ACCOUPrnNG POLICIES General Inforniatlon and basis of preparation The Hedley Foundation is a Charitable Company limited by Guarantee in the United Kingdom. In the event of the charity being wourKI up. the Ikgbilty in respect of the guarantee is limited to £1 per member of the charity. The addsS of the registered office is gwen in the charity infonnation on page 1 of these financial statements. The nature of the charilys operations arKI prinapal activities are charitable grant giving to UK registered charities. The Charity constitutes a pU1C benefit entity as defined by FRS 102. The Financial statenIs have been ppared in accordan with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities pparing their aUnts in accordance with the Financial Reporting Standard applirable in the UK and Republic of Ireland (FRS 102) from 1 January 2019 the Financial Reporting Standard applicable in the Uniled Kingdom and RepUtlC of Ireland {FRS 102), the Charities Act 2011, the Companies Ad 2006 and UK Generalty Accepted Practice as it applies from 1 January 2019 The Financial stalements have been prepared under the historical cost nventiOn. wrth Ihe exception of investments. which are inclLbJed on a market value basis and investrnent properties. which are induded on the basis of annual valuations. The Financial Statements are prepared on a gowig concem basis under the historical cost convention, modified to include certain items at fair value. The Financial Statements are prepared in sterling which is the functional curiency of the Charity. The significant a¢untIng poliues applied in the preparation of these Finanual Ststements are set out b8low. These FAIIleS have Wn consistenlly applied to all years presented Un$$ otherwise stated. Golng Concern It is the opinion of the Trustees that the use of the wing cortem basis of accxjunting is appropriate. At the time of writing this Report. the Trustees are confident that there is reasonable eXpeCtatn that the Charfty has adequate resources to continue in operational existence for the foreseeable future, at least 12 months from the date of approval of these finarn?al statemenls. As at 31 March 2022, the investment wrtfolio had recovered to pre-Covid-19 levels and Ihe Chaiilie$ Pfopety Fund continued to make dividend payments. Similady, the propety Portfolio generated a significant rental income,. in light of this, the Trustees increased the level of grants tr1ng made. The Truslees ofThe Hedley FourKlation are content that the Group remains a going concem. Basls of Con$olldalion The Group Financial Statements consolidate the Financial Ststements of The Hedley Foundation Limited and its subsidiary undertakings. Fund Accounting General funds, all of which are UnstrIcted. a available for use at the discretion of the Twstees in furtherance of the general objectives of the FoundatKJn. Incomo Rocognition l income WKJ exrendiiure is shown in the Ststement of FinancBI Activbties (SOFAI. 13
HEDLEY FOUNDATION LArrED ACCOUNTING PIXICIES Charflabl¢ Acllvities The Foundation has a portfolio of inveslment properties generatiNJ rentsl irKome whh is accounted for on a receivable basis. Investment Incomo Investment income is earned through holding assets for investrnent purpjses such as shares arKJ property. It includes dividends, interest and nt. Inte$t income is recognised when CeIVable and dividend and rent income is recognised as the Foundation's right to receive payment is established. Other Tradlng Actlvltles - Subsldlary Companles Income from trddiro acbvities indudes income eamed from tradin9 activities undertaken by subsidiary companies to raise fvnds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlernent has occurred. The gross income of the subsidiaries is shown in Ihe Gonsolidated SOFA. Expondlture All expenditure is accounted for on an accrua15 basis. Expenditure is recognised Whe the is a legal or constructive obligation to make paynnts to Ihird parties. il is probable that the settlement will be required and the amount of the obligalion can be measured reliabty. It is categorised under the following headings.. Costs of rais@ funds In¢deS the direct costs of managing the listed inveslment portfolio; Expenditure on charitaLle aclivities includes direct expenditure on grant-making activities and support costs which are allocated on a basis consistent with the use of resources.. and Non-charitable trading and investrnent property expenses indudes the costs of the subsidiary CoMpanS which are incurred in relation to these activities. Grants payable to third parbes are induded in expenditure on charitable activities. Where unconditional grants are made, these amounts a Cognised when a constructive obligation is Cated. typically when the recipient is nolFfied that a grant will be made to them. Where grants are conditional on perf0mlan, then the grant is only COgnised once any unfulfilled conditions are oulside of the control of the charity. Support Costs allocallon Support costs are those that assist the work of the charity but do not diredy represent charitable activities and include office costs and govemance costs. They are incurred directy in support of expenditure on the objects of the charity. Where supwrt costs cannot be direclly attrit)uted to particular headings they have been allocated to cost of raising funds and expenditure on chaiilable ivilies on a basis consistent with use of the resources. Premises costs have been alk¢ated on a business to charity staff time allocation basis. This had been reviewed in Seplember 2016 and subsequenly approved by the Trustees. The analysis of these costs is induded in note 5. Operating Leases Rentsls pay*le under operating leases are tharged on a straight-line basis over the term of the lease. 14
HEDLEY FOUNDATION LIMITED Accoup¥llNG POLICIES Investmont PrortIeS Invèstment properties are measured at fair value at each balance sheet date. wlth changes in fair value recognised in 'net gains l (losses) on investments, in the SOFA. Surpluses and deficits arising on revaluab'on are taken to revaluation reserves within the Foundation's subsidiary companies (with the movement reflected in the statement of total recognised gains and losses), and to the SOFA on consolidation. Sales and purchases of investment properties are recognised at the date of exchange. vthere this is not subject to conditions, as the equitable interest has passed from the vendor to the purchaser at this date. If a contract is conditional. credit for a Sa is tsken when the last material wndttion has satisfied. Investments Subsldlary Companies Investrnents in Subsidiary Companies are Valued annually at the attributable amount of the subsidiaries, net assets at the Balance Sheet date. This is considered by the Trustees to be a fair assessment of their fair value. Publl¢ly Traded Investm•nts Publicly traded investmenls are measured al fair value at each balance sheet date, wlth changes in fair value recognised in 'net gains l (losses) on investhients. in the SOFA. Taxation The Foundation is an exempt chartty within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the F¥wnce Act 2010. It therefo meets the definition of a charitable company for UK corporation tax purwses. The Foundation is registered for VAT., irrecoverable VAT (where applicable) is included with the expenditure to which it relates. The Subsidiaries of the FourKJats'on a I?bIe to CorratIOn Tax on any taxable income not covenanted or trydnsferred by Gift Aid to the Foundation. Granls Grants authorised in the period are charged to the SOFA. Any grants authorised but unpaid at the BalarKe Sheet date are induded in creditors. Grants covering more than one period are charged to the SOFA as the money is releas and is conditional on receipt of satisfactory prcmjress reports. Pension Costs The FOundatn operates a pensM)n stheme. Payments made are (*arged against income in the period in which they are paid. Judgrnents in applying accounting policies and key sources of estimation uncertainty The Foundation makes estimates and assumptions conceming the fvture. The fesuNing accounting estimates will, by definition. seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carying amounts ofassets and liabilities within the next financial year are addressed bel(M. 15
HEDLEY FOUNDATION LIMITED AccouKfiNG POUCIES Judgmonts in apptying accounting policies and key sources of •stimatlon UnrtaInty (¢ontinu•d (i) Impairment of deblo The Foundation makes an estimate of the recoverab value of trade ar¥J other debtors. When assessing impaiment of trade and other debtofs. management coTrsider5 faciors induding the current credit rating of the debtor. the ageing profile of debtors and historical experience. See note 14 for the net carrying amount of the debtors and associated Impalrnnt provision. (li) Valuatton of investment propert The Foundation rnakes an estimate of the fair value of investment propert$. When assessing the fair value. the Board seeks the help of an expert in this area and considers. arnoThJst other things the expected rentsl yields. the length of the term of the lease. the valuatK)n of other prop8rt*s in the immediate vicinty and the condition of the building. 16
HEDLEY FOUNDATION uMrrED NOTES TO THE FINANCIAL STATeMENTS Y•ar •ndod 31 March 2022 1. Income from Investment Properties Company Company 2022 2021 Rentsl Income 496.379 389,725 2. Incomo from Inveslments Group 2022 Group 2021 Income from Managed Portfolio Inte$t Olher investmenl income 220.472 602 252.168 328,826 572 222,992 473,242 552,390 Other investrnent income relates to income from investments held in managed funds outside ofthe main investrnent portfolio. 3. Expendituro on Raising Funds Group 2022 Group 2021 Management of investment properties Investment management fees 189,2(Ki 174.668 156.706 157,667 363.868 314.373 4. Analysis of Expendlture on Charitable Actlvltles Group 2022 Total Group 2021 Total Diroct Support Grant making 21,698 610.051 55.581 687.330 243,098 Prior ar Grant making 21.C68 179.091 42.939 243.098 17
HEDLEY FOUNDATION UMrrED NOTES TO THE FINANCIAL STATEh7ENTS Y•ar •nded 31 March 2022 5. Support Costs Basls of Investment Allocation Proporti•s Granl MakSng Total 2022 Tolal 2021 Govem8nce $ts {note 6) Office cosls Premises a Maintenance 70.595 10.119 55.363 28.835 4,132 22,614 99,430 14,251 77,977 47.000 17,142 83.922 71%-29% 136.077 55.581 191,658 148.064 Prior yoar Governan costs Office costs Premises 71%-2 71Yo-2 71Y•-2 33,370 12.171 59.585 13.630 4.971 24.337 47.000 17,142 83,922 105,126 42,938 148,064 6. Govemance Costs Group 2022 Group 2021 Business Rales Insurance Accountsncy Fees Professional Fees Bank Charges 4,420 1,971 8,263 83,351 1,425 4,420 1.815 8.145 31,395 1.225 99,430 47.000 18
HEDLEY FOUNDATION LThirrED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 7. Analysis of Grants Grants to Grants to ItitUtiOnS Individuals Total 2022 Total 2021 Youlh category grants {Y) The Disabled category grants ID) The Teminally ill and Hospices (ETH} Other category grants (O) 184.592 206.370 93.489 125.600 184.592 206.370 93.489 125.600 60.791 76.184 29,128 12.989 610.051 610.051 179.092 No grants We paid to individuals in the prior year. Recipients of Grants Grant Maklng Total 2022 Total 2021 DEC- Ukraine {0) Other grants payable 10,0(K) 600,051 10,000 6¢JO,051 179.092 Total grarrts payable 610.051 610.051 179,092 Others grants payable IrdeS grants payable to UK registered charities which are each urKJer £10,000. 19
HEOLEY FOUNDATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 8. Net Income is sLited after Charylng: Group 2022 Group 2021 Auditorfs remuneration - audti - other servi5 - land and buildings - other Loss ¢Jn fair value movement of investrnent property Gain on fair value movement of investment FX)rtfolio 19,320 18.950 5,000 4.920 61,843 61,843 838 838 (260,000) (570.000) 3,572,897 4.405,516 Operating leases 9. Audltor's Remuneralion Auditorfs remuneration amounts to an audit fee of£19.320 {2021- £18.950) and fees payable for IXBRL tagging. corwration tax Complance and VAT Compliance in latIon lo the Subsidiary Companies of £5.(HJO (2021- £4.920>. 10. Staff Costs 2022 2021 Wages and salaries Social security costs Pension costs- employerfs pensi 138.937 6,834 1.419 136,954 6,383 1,419 147,190 144,756 The average nurnr of employees during the year. exduding Twstees, was 3 (2021- 3). This equates to a full time equivalent number of 2 {2021- 2}. No employee5 received total employee beneffiis (excluding employer pension costs) of rnore than £60,000.
HEDLEY FOUNOAnoN UMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 11. Tnlees, and Key Management Personnel Rernuneralion and Expwsos 2022 Number 2021 Number The number of Company Directors in receipt of enN)luments PayN*nt ol emokrnents by the Subsidiary CompanEs to named Direcior5 {who are also Truslees of the Foundation} is made in relation to managefftnl and professional services provided to these Companies. Sir Andrew Ford is a Company Director of FairtKKMJ Properbes Limite(I for whtch he is paid a salary of £22.500, Middlerigg Services Limited, for vthich he is paid a salary of £12.000 and Mountbarrow Properties Limited for which he is paid a salary of £25,500 per annum. Payments are approved under Charity Commission Order 462ll38 sealed on 21 De¢ember 1998. The following Trustees. expenses were reimbursed or paid directly on their behaw during the year.. 2022 Number 2021 Number 2022 2021 Travel The total amount of employee trnefits received by key management personnel during the year was £72,648 {2021- £70.623). The Trust considers its key management personnel to comprise ofr. Mary Kitto.. Company Secretary Lucy Janes.. Appeals Secretary Christine Janes: Financial Accountant 21
HEDLEY FOUNDATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS Yearended 31 March 2022 12. Investment prortIeS Group Group Company Company fr¢ehold freehold frèehold freehold land and land and land and land and buildings bulldings buildings buildlngs 2022 2021 2022 2021 Valuation At beginning of year Additions at cost Disposal in year Capitalised Improvements (Lossl on revaluation 9,645.OCKI 10.215.LXIO 7,055.000 7.625,000 (260.OLK)) (570.000) 1195,000} 1570.000) At end of year 9,385.0 9.645.000 6,860.000 7.055,000 The investment properties had an original cost of £11.750.188 (2021 - £11,750,188) (Group). and £9,625,263 {2021- £9,625.263) (Company). The fair value of investrnent properties is detemiined by independent, professional valuation at 31 March 2022. The valuation was undertaken by Clive Thomas of Clive Thomas & Co Chartered SuNeyors. in ¢onjunctTron with Robin Hanson of Brackenridge Hanson Tale, Charted Surveyors and Property Consultants. Both Messrs Thomas and Hanson are Fellows of the Royal Institute of Chartered Suprfeyors. The exercise was carried out on a.desk top" valuation basis. whi¢h lakes inlo Consideration the location. the valuation of other properties in the immediate vicinity of the building. the condition of the tjuikling and the expected rentsl yields. Valuations are undertaken annually. 13. Flxed Asset Investments 2022 2021 2022 2021 Group Company Investrnent in subsidiary undertakings Listed investments 4,625,598 4,690,598 31.942.792 27.347.916 31,942,792 27.347,916 31.942.792 27.347,916 36.568.390 32.038.514 Details of the subsdiary undertakings can be found in Note 24.
HEDLEY FOUNDATION UMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 13a. Fixed Asset Investments Company Inveslm•nt in Subsidiary Undertakings Valuation al beginnwvJ of year Movement in year 4,690,598 (65,000) Valuation at end of ar 4,625,598 These FSnanclal Ststements incorporate the resufts of all the FourAYabon's subsidiaries, which are listsd in Note 23. All the subsidiaries a incorporated in England & Wales and are wholly owned at 31 March 2022. 13b. Flxod Asset Investments 2022 2022 2021 2021 Llstsd Investments Group and C¢)mpany Group and Company Market value at teginning of year Additions at cost Disposal proceeds Net investment gains unrealised gains l (losses) on revaluation realised gains on disposal 27.347.916 6.347.631 (5.325.652) 22,487,035 6,163.597 {5.708,232) 2.428.463 1.144.434 3,209,352 1,196,164 3.572,897 4.405.516 Market value at end of year 31.942,792 27.347,916 Listsd Inwslmonts 2022 2021 UK equty shares Overseas equities 11,633,070 8,974.255 20,309.722 18,373.661 Market value of listed investments 31,942.792 27,347.916 The fair value of listed investments is deterrnir)ed by reference to the quoted price for identical assets in an active market al the balance sheet date. The Charities Property Fund market value of£7,343,214 is 22.99Yo of the total investments. 23
HEDLEY FOUNDATION UMrrED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 14. Dèbtors 2022 2021 2022 2021 Group Company Amounts owed by subsidiary undertakings - deeds of covenanugift aid AnN)unts owed by subsidiary undertakings - other Prepayments and accrued incorne 126.285 58,706 206.122 136.534 205,840 184,737 271,337 272.746 271,337 272.746 468.941 449,283 15. Cash at Bank and in Hand Dewsit accounts Current accounts Cash at Investrnent Managers 955,110 162.524 205.225 1,263.695 356.045 497,400 955.110 1,263,695 10.066 289,537 205,225 497,400 1.322.859 2,117,140 1,170.401 2.050,632 16. Cr•dltors: amounts falling due within one year Amounts owed to subsidiary undertakings Taxation and social security costs Accruals and deferred income (see rv)te 17) Other creditors 2.298.000 2.298,000 84.692 180.012 73.331 134.542 70,595 106,736 260.827 360.129 264.704 2,505,873 2.475,331 The amounts owed to subsidiary undertakings are unsecured and repayable on demand. Interest is charged at the same rate of interest as that re1Ved by the Foundation for funds held in COIF. 17. Def¢rred Income 2022 2021 2022 2021 Group Company At 1 April 2021 Additions during the year Amounts released 27.164 19.880 {23.590) 41.980 47,110 (61.926) 8.453 23,269 19,880 35.569 (23,590) (50,385} At 31 March 2022 23.454 27,164 4,743 8,453 Income has been deferred in relation to rents recerrfed quarterfy in advance. All deferred income relates to a perK)d of kn than one year. 24
HEDLEY FOUNDATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 18. Fund Reconclllation Net Investment Balanco al galnsl end of (losses year Balance al beglnnlng of year Income Expenditure Company Funds Subsidiary companies, funds Consolidation adjustments 39.118.098 1.182.062 (1,051,198) 3.312,897 42.561.859 4,690.598 237.145 1237,145) (65,000) 4,625.598 (4.690.598) (143.832) 143.832 65,000 {4,625.598) Group Funds 39,118.098 1.275.375 {1.144.511) 3.312.897 42.561.859 The Company's net IrMe tefore gainsl(losses) fr)r the year ended 31 March 2022 amounted to £65,864. Detsils of the consolidalion &Jjuslments can te found in note 25. 19. Oporaling Lease Commilments- Company and Group Totsl future minimum lease payments under nOnelIable operaling leases are as follows: 2022 2021 Land and buildin98 Land and othgrs bulldings Otho Not later than one year Later than one but not later than fve yearyJ 62.820 62.820 62,820 62.820 950 714 714 125.640 1,664 125.640 As at 31 March 2022 there We Grant Commitments of £Nil. 20. R•conclllallon of net Income to net cash flow from Owraling Adivities 2022 2021 Net income for year Gains on investrnent wrtfolio Losses on revaluation of investment property Decrease l (increase) in debtors Increase in crediiors 3.443.761 4,314,123 {3.572.897) 14,405.516) 260.01)) 570.000 1.409 (87,968) 95.425 106,015 Not Cash Inflow from Oporallng Athitses 227,698 4g6.654 25
HEDLEY FOUNDATION UMrrED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 21. Penslons Dofimd ¢ontribulion nsIOn - EmPloT pons11 plan The Foundalion operates a defined contribution employer pension plan for its employees. The amunt of contributs'ons recognised as an expense during the year was £1.419 {2021- £1.419). 22. Rèlalèd Party Transactions During the year the FourKlation made granl payments of £34.10012021 - £Nil) 10 7 {2021- 7) charities where one or more of the Foundation's Trustees aiso seprfed as Trustees of the beneficiary charities.. Income Exponditure The Lo¢kie Twst (Trustee: Angus Fanshawe) At 31 March 2021 At 31 March 2022 1,800 3,500 5,300 The Phoenix Cottage Trust (Trustee: Dawd Byam£ook) At 31 March 2021 At 31 March 2022 750 6,250 5,300 The Ravensword Trust (Trustee: Patitk Holcroft) At 31 March 2021 At 31 March 2022 3,950 2,500 5.300 The Sant Trust (Trustee: Loma Stuttaford) At 31 March 2021 At 31 March 2022 6,600 3,500 5,300 The Tristenagh Tnt (Trustee.. Andrew Ford) At 31 March 2021 At 31 March 2022 2.157 2.230 2.300 The Shearwater Trust (Trustee: Charles Bennett) At 31 March 2021 At 31 March 2022 5.050 4,7(M) 5.300 The Ringford Trust (Tnjstee: AlexarKler Scully} At 31 March 2021 At 31 March 2022 300 5,870 5.300 Provisions for doubtful related party debtors amunted to £nil al the balwe sheet date {2021- £nil). The Chaiity e0gniSed £nil (2021 - £nil) as an eynse during the year in respect of bad or doubtful related party debts. There We no outstanding balan or commilments at 31 March 2022 or 2021 with related parties. Each Trustee manages a charitable Trust as disdosed above. Each Trust reiVeS an annual donation from the Foundation which can be used to make discretionary donabons lo any UK registered charity. However. due to the effects of the paTrJemic and the decwse in the grants budget during the year, no donations were made to Ihese Twsts. There were no other related party transactions in the current or Fffior year.
HEDLEY FOUNDATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 23. Results of Subsidiary Companlgs The following companies are wholly ovffled subshyiaries of the FourKlation: Company Company Numbor Faithood Prorerties Limited MewOOd ProFerties Limited Movntbarrow Properties Limited Middlerigg Nominees Limited Middlerigg SeNices Limited 00712408 01539486 00591626 02298673 LIM31334 The management company and Ihe PrOrty companies transfer 1(MYA of their taxable profits to the Foundation under the Gift Aid arrangements. The resuts of the Foundation's subsidÉaries are shtrwn in Note 24 on page 28. These results include intragroup transactions of £10.403 (2021 - £12.3681 for rnanagemenl seNices provided by Middlerigg Services Limited to fellow sUdiar1e$ and £1.988 {2021- £1.529) interest arising on loans with fellow group entities. All subsidiaries covenant cff transfer by means ofGtft Aid 100°A oftheirtaxable profits to the Foundation. The subsidiaries are involved in the management of investment properties. except Middlerigg Nominees Limited which is a nominee company and Mhddlerigg Services Limited which is a management services company. No deferred tax is provided on investment properties held by Fairhood Properties Limited as the availability of indexation redu$ any gains to nil. In Mountbarrow Properties Limited no deferred tsx is provided on the investment propertie5. There is a wtential deferred tax liability of £112.481 which has not been recognised in the Financial Stalements of this Company a5 the is an enduring Deed of Covenant in place which requi$ the entiTr Company's annual taxable profft to be donated to the Foundation arKI therefore any capital gain on the eventual disposal of the investment properties will not crystallise a corwration tsx liability. All MpanieS a registered and incorporated in England and Wales. 27
HEDLEY FOUNDATION LIED NOTES TOTHE FINANCIAL sTATENTs Y•ar ended 31 M•r¢h 2022 F81th0 Propert6es Limit•d 23. Resurt of Subskllary ¢ompAnl81 2022 2021 Movntbarrow PropertiPS Llmited Pwperts Limited Lwnited 2022 2021 Total 2022 2021 2022 2021 Gross income from inveslment Properb Management fees leommission Other incorre Interest re¢wvatrJe 37.917 18,516 51.187 29.312 64.928 187.698 47,4591 112.7Se 50,138 47.459 50.13 1.529 1,529 Total incoffle of subsldiaries 37.917 18,616 61.187 29.312 47,459 60.138 100,582 237,145 164A23 Property oulg(xng5 Administrative expense5 Intere p8yable Corporation Tax payab Oeeds ofCoven8nVGrft AKY 1.250 38,147 2B2 1.250 102,184 2,270 7,765 103,364 1,746 14.955 540 15.576 415 32.711 33.164 1.114 18.311 17,872 36.572 217 22.422 16.968 29.148 32.266 62.9)3 131.441 61.934 Total exnSeS of 5ubshliaries 37.917 23.936 51.187 34,278 47.469 41 100,582 66.457 237.146 174,809 Retained profiVIIos5esl Revaluat offreehdd property 1S0,IWI Release of realised 105s on- disposal of inveslment property Reserv&s at beginning of yèar 15.4201 14. 110.3861 115.fX)) 16S.0(Kll 107.265 112.685 1.1402 1.145.262 9.W 9.360 3.433.677 3.433.6n 4.690,598 4.700.984 RueThes otend ofyear 57.265 107.265 1.110. 1.140296 9.360 3.41e.677 3.433,677 4.626.698 4,690.598 The charitab CLvnpany also hdd5 oflhe share w¥la in a rK¥nio ty)mpary. Nomwe5 LwTWted Thi4 investrnent has bn wiiitsn to £nil 12021 - £niil. 28
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2022 24. Subsidiary Companles - total income and expendtture reconclllation note 2022 2021 (l) Totsl income of subsbjiary companies 224,754 150.526 Plus: Group transactions Management fee income Interest eamed 10.403 1,988 12,368 1.529 Total income of subsidiary c4)mpanies before Consolidation (note 23) 237,145 164.423 (li) Total expenses of subsidiary companies 93.313 98.978 Plus: Group trdnsaclions- deed of covenanvgift aid Management fee expense$ Interest paid 131.441 10,403 1.988 61.934 12.368 1.529 Total exFenses of subsidiary companies before consolKlation (note 23) 237,145 174.809 25. Posl Balance Sheet Events There We rK) Post balance sheet events. 26. Financial Instruments The Charity holds a number offinancial assets {forexample investments, debtors and cash) and financial liabilities {for example creditors) which meel the definition of bassc financial instruments under the FRS 102 SORP. Detsils of the measurement bases. aCUnting policies and canyin9 values for these financial assels and liabililies are disclosed in notes 12 to 17 atrVe. l investrnents a carried al their fair value. Investrnents in equits'es and fixed interest securities are all traded in quoled wblic markets. Property and equity investments affj reviewed regularfy to optimise th8 best finanoal outcome for The Foundation and its prolty companies. 29