HEDLEY FOUNDATION LIMITED A Company Limited by Guarantee Reglstered Charity Number: 262933 Registered Company Number: 01018571 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
HEDLEY FOUNDATION LIMITED CONTENTS Page Charlty Information Report of the Trustees Statement of Trustees, Responslbllltles Report of the Auditor Consolidated Statern•nl of Financial A¢livi11os 10 Consolidalod and Company Balance Sheets Consolidated Cashflow Stalement 12 A¢countlng Poll¢le$ 13-16 Notes to th• Finan¢lal Ststements 17-29
HEDLEY FOUNDATION LIMITED CHARITY INFORMATION Trustees A C Ford {Chaimian) P R Holcroft L B Sluttaford A E Fanshawe D W Byam-cook C A G Bennett A J Scully Company Secretary MCKitto Registered Office 1 College Hill London EC4R 2RA Bankers Royal Bank of Scotland London Service Cenlre 4th Floor Regenls House 42 lslington High Slreet London N18XL Independent Auditor PKF Littlejohn LLP 15 Westferry Circus Canary Wharf London E14 4HD Invostmenl Managers Waverton Investment M8n8gement Limited 16 Babmaes Street London SW1 Y 6AH Savills Investment Management (The Charities Propety Fund) 33 Margaret Street London W1G OJD Soll¢ltors DMH Stallard LLP Griffin House 135 High Street Crawley RH10 1DQ Company Rfrgislratlon Number 01018571 Charlty Reglslratlon Number 262933
HEDLEY FOUNDATION LIMITED REPORT OF THE TRUSTEES The Trustees, who are also the Directors of Hedley Foundation Limited {the Foundation), have pleasure in presenting their Report together with the audited Financial Statements for the year ended 31 March 2024. The Trustees have adopted the provisions of the Slalement of Recommended Practice "Accounting and Reporting by Charities" {"FRS 102 SORP.) in preparing the Annual Report and Financial Statemenls of Ihe Charity. Truslees of tho Charity The Directors of the Charitable Company are its Trustees for the purposes of charity law. The Twstees who have served during the year and since the year end are listed on Page 1. Objeclivos and Activitios The Foundation was established for exclusively charitable purposes. The Foundation manages its assets and its Subsidi8ry Companies, which together comprise the Group, and uses its income after costs to make grants lo UK registered charilies. The Hedley Foundation aims to impmve the qu81ity of life of people in the UK. partIculaY those from disadvanlaged backgrounds. It achieves this by m8king grants, within budget, to UK registered charities for the benefit of young people. disabled people. elderly people. the terminally ill and otherwise disadvantaged people and their carers. The essence of the Foundation's activities is Social Welfare and for convenience the following categories are used.. Youth. Projects which r8i8e the 8spir8tions or help lo realise the fvll potential of disadvantaged young people. Typically, grants are given lo Support young people into education. training or sustainable employment. Providing an opportunity lo broaden horizons through sport and adventurous activities may fom p8rt of this category. Dlsabled. Projects to support and improve the quality of life of Ople of all ages Wlth physical and mental disabilities, sensory impairment and leaming difficulties. Elderlyrremilnally 111. Projects to help elderly people to maintain independence and projects to support those in the closing stage of life, in hospices or hospitals. Mlscellaneous Support. Projects to support carers and social welfare projects that might support the homeless. the employability opportunities for offenders and ex-offenders and the opportunity to reduce re- offending. Details of howto appty for a grant are available on the Foundation's website at www.hedle ound8tion.or .uk The Trustees award grants to selected charities that have submitted applications for funding Ihat would benefit those people outlined in the categories above. The Foundation lends not to give money lo large scale or national charities. Typically. sums of £2.000 - £5,000 are given with occasional larger sums granted to charities where high impact can be achieved. Most grants are one-off payments, bul multi-year grants might be considered. Further applications from the same organisation would not normally be conSided for period of years from the date of the grant. Charities that may have submitted an unsuccessful application for a grant may apply again after a two year period. Acknowledgements are expected from the recipient charities and occasional follow-up visits may be made by Trustees. Applications for grants are submitted to the Foundation, stating the sum they seek and articulating how they would wish to use any grant made. These are all considered with particular account being taken of how any grant would be spent, how many people would benefit, how much the applicant charity has already raised and of their latest audited accounts. All applications are considered inilially by the Chairman and Appeals Clerk and those most closely aligned with the Foundation's objectives are taken lo a Trustees, Sift Board, which discusses each application in detail. Thereafter, recommendations for payments a made lo the Main Board of Trustees, which convenes a little later. Whilst the Foundation does not have the resources to analyse the success of each grant m8de, follow-up visits are occasionally made to see the effect that a grant will have made. The Foundation requires the recipient lo send a written acknowledgement, after receipl of a grant, and asks lor a Report to be sent subsequently.
HEDLEY FOUNDATION LIMrrED REPORT OF THE TRUSTEES Grants totalling £798,730 were made during FY2023124 to 326 charities (FY2022123 - £745,205 to 279 charities). During the period, the Trustees believed that the macro-economic Ihreals txjsed by low 9rowth, high debl, increasing inllalion and the effects of the war in Ukraine, would be likely to cascade inlo the UK economy and potentially affect Ihe Foundation's income streams. 11 Iranspired Ihal trading conditions continued lo be difficull for High Street retailers as evidenced by two of the Foundation's fourteen shops being unoccupied for significant periods of the year, leases becoming shorter al renewal lime and rents being downwardly negolialed. The Charities Property Fund faced similar headwinds during the year. However, lo a considerable extent the effecls of these difficullies were offset by the perfomiance of Ihe Foundation's investment portfolio, which prospered. However, given the evident uncertainties, Ihe Truslees mainlained a latIvelY Cautious approach Trgarding expenditure throughout the period. The Hedley Foundalion maintains a small office ofpartlime Staff who a capable ofmanaging and reporting all aspects of its activities. The Hedley Foundation's income and thus its ability lo support other charities is derived from a professionally managed investment portfolio with Waverton Investment Management, an investmenl with the Charities Property Fund and from rents generated from a number of retail shops, which are lel and managed with the aid of professional advisers. Public Beneflt The objectives and activities as listed above are undertaken lo further the Foundation's purpose for public benefit. The Trustees confirm that they have had regard to the guidance on public benefit issued by the Charity Commi$$ion when considering the objectives and activities of the Foundation. Stru¢ture, Governance and Management The Foundation was incorporated on 23 July 19718s a company limited by guarantee and is a registered charity- It is govemed by its Memorandum and Articles of Association. The Foundation has no share capit81 bul each member undertakes, in the event of winding up, to contribute up to £1 towards the cost of winding up. At 31 March 2024 therewere 7 members ofthe Foundation, who are also the Trustees and the Directors of the Charitable Company. New Trustees are aptx)inted by the existing Trustees. The management of the quoted investment portfolio is delegated to Waverton Investment Management. who are regulated by the FCA. The holding in CPF is managed by Savills Investment Management. which is also regulated by the FCA. The retail property portfolio is directly managed by the Trustees, who take professional advice from Clive Thomas and Co and Robin Hanson FRICS. The Trustees met formally on four occasions during the year to review the perfOnanCe of the Foundation's investments and ils financial state. to aulhorise the dislrtbution of grants and lo conduct Board Meetings of the Subsidiary Companies of which they are Directors. Quarterly management accounts, formal briefings by investment managers and advisors and govemance matters are routinely considered and documented. Recommendations for pay and remuneration are made lo a sub-committee of the Trustees and Directors of the Subsidiary Companies. The sub-committee, having considered various benchmarks, makes recommendations to the full Board of the Foundation. Remuneration of staff was reviewed in December 2023. Review of Ihe Business and Future Developments The results for the year are set out on Page 10 of the Financial Statements. The nel movement in funds for the year amounted to a surplus of £5,183,924 compared to a deficit of £499,058 in the prior year. The following Companies are wholly owned subsidiaries of the Foundation.. Company Fairhood Properties Limited Merewood Properties Limited Mountbarrow Properties Limited Middlerigg Nominees Limited Middlerigg SeIces Limited Principal Activity Management of investment properties Management of investment properties Management of investment properties Nominee company Management services company
HEDLEY FOUNDATION LIMITED REPORT OF THE TRUSTEES The Management Company and the Property Companies transfer 100°A of their taxable profits to the Foundalion under the Gift Aid and Deed of Covenant 8rrangement8. The resulls of Ihe above Companies have been consolidated in the Statement of Financial Aclivities and Balance Sheet of the Foundation in accordance with the Charities, Statement of Recommended Practice ISORPI, Accounting and Reporting by Charities as updated in October 2019. The Trustees consider the results of the investmenl propety companies and management seNices company to be satisfactory. Flnan¢lal instrumonts The Foundation does not receive any public or govemment funding and relies enlirely upon its invested assets to provide funding for the making of grants. In order lo minimise the investment risk, the Truslees have diversified the range of investments to include UK and global equities, government slocks, retail property and unils within the Charities Property Fund. There has been no outsourced fundraising via professional fundraisers or other third parties. As a result, the ch8rity 1$ not registered with the fundraising regulator and received no fundraising complaints in the year. Reserves Poll¢y The Foundation has total funds of £47,246,725 at 31 March 2024 all of which are unrestricted {2023 £42,062,801). Of these lotal funds, £47,597,673 could only be realised by disposing of fixed assets {6,710.000 investment properties, £30,218,255 listed investments, £6.003.223 other investmenls and £4.666,195 investment in subsidiaries}. Unrestricted free reserves al the consolidated level on 31 March 2024 are £1.690.24712023 - £1,110,178). The Trustees consider the appropriate target level of consolidated free reseNes lo be bNelve months operating expenditure. The current level of consolidated free reserves on 31 March 2024 is in line with this target, representing 14 months of operating and granl-making expenditure. Investment Poll¢y The policy of the Foundation is to combine security with higher than average income through investments, partly in wholly owned lel retail properties, partly in units within the Charities Propety Fund and partly in 8 managed portfolio of investments. In respect of the retail properties, the annual yield was 7 /0 (2023 - 7 101. In respect of the Charities Propety Fund, the Cuent annual yield was 4.5¥. {2023- 4.4¢AI. In respect of the managed globally invested portfolio, the current annual yield was 1.80A {2023 - 2.1 oh). The rental income derived fmm the relail properties and the dividend from CPF are utilised, after expenses. for the purpose of making grants. Risk Management The Trustees consider th8t low growth, inflation and intemational political tensions to be the main threats to global economic stability. By extension these factors pose the main threat to the value of the investment portfolio. to the retail property portrolio and to the value of the units within the Charities Property Fund. The Trustees review the Risk Register periodically {and at least annually) and routinely discuss major strategic, business and operational risks Ihat may face the Foundation., mitigating actions. if any. are considered. 11 is noteworthy that the annu81 cost base for the Foundation is relatively low, with more than e1ve month's unning costs being immedialely available.
HEDLEY FOUNDATION LIMITED REPORT OF THE TRUSTEES Third Party Indornnily Provisions The Foundation has purchased professional indemnity insurance on behalf of Ihe Trustees. The premium paid for the insurance was £1,606 {2023 - £448). Trusteeg. Responslbllltle$ The Statement of Tru8lees' Responsibilities can be found on Page 6. Audit Information The Trustees who held office at Ihe date of approval of thls Trustees. Report confim Ihal, so far as they are individually aware, Ihere is no relevant audit information of which the Charity's audilor is unaware., each Trustee has taken all reasonable steps that helshe ought to have taken as a Trustee to make himselflherself aware of any relevanl audrt information and to establish that the Charity's auditor is aware of that informalion. Our independent auditor, PKF Littlejohn LLP, h88 signified its willingness lo continue in office. By Order of the Board C Kltto Company Secretary 13 November 2024
HEDLEY FOUNDATION LIMITED STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also Directors of the Foundation for the purpyjse of company law) are responsible for preparing the Trustees, Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting standards {UK Generally Accepled Accounting Practice). Company and Charity law requires the Trustees lo prepare Financial Stalemenls for each financial year. Under that law the Trustees h8ve prepared the Financial Statements in accordance with the Charities, Statement of Recommended Practice, AountIng and Reporting by Charilies issued in July 2015 and United Kingdom Financial Reporting and Ac¢ounling Standards. Under company and charity law the Trustees must not approve the Financial Slatements unless they are satisfied thal they give a true and fair view of the stale of affairs of the Charitable Company and of the Surplus or deficit of Ihe Charitable Company for that period. In preparing these Fin8ncial St8tements, the Twstees are required to.. select suitable accounling policies and lo apply them consistently., observe the methods and principles of the Charities, SORP. Accounting and Reporting by Charities., make judgmenls and eslimales that are reasonable and prudent., state whether applicable UK Accounting Standards, including SORP FRS 102 have been followed, subjeGt to any malerial departures disclosed and explained in the Financial Statements; prepare the Financial Statemenls on the going concem basis unless it is inappropriate to assume that the Charitable Company will be able to continue in operation. The Trustees are responsible for keeping adequate accounling records Ihat are sufficient to show and explain the Charitable Company's Iransaclions, lo disclose with reasonable accuracy at any time the financial position of the Charitable Company and to ensure Ihal the financial statements comply with the Companies Act 2006 8nd Charities A¢t 2011. They are also responsible for safeguarding the assets of the Charitable Company and frir taking 8$Onable steps for the prevention and detection of fraud and other irregularities.
HEDLEY FOUNDATION LIMrfED REPORT OF THE AUDITOR Independent Auditor's Report to the Members and Trustees of Hedley Foundatlon Llmlted Opinion We have audited the financial statements of Hedley Foundation Limited (the 'parent charitable company'l and its subsidiaries {the 'group'l for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities {Including Income and Expenditure Account), the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow St8lemenl and notes to the financial statements. including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 Th8 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 group's and the parent charitable company's affairs as at 31 March 2024, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in a¢cordan¢e wilh the requirements of the Companies Ad 2006 and Ihe Charities Act 2011. Basi5 for opinion We conducted our audit in accordance with Inlemalional Standards on Auditing {UK} IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audito¢s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant lo 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. Concluslons relatlng to golng concern In auditsng the financial slatements, we have concluded that the trustees, use of the going concern basis of accounling in the preparation of the financial statements is appropriate. Based on the work we have perfomied. we have not identified any materi81 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or parent charitable company's ability to continue as a going concern for a period of al least e1ve months from when the financial statements are 8Uthorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant se10n$ of this report. Other information The other information comprise8 the information included in the report of the trustees, otherthan the financial statements and our auditof s report thereon. The trustees are responsible for the other information contained within the report of the trustees. Our opinion on the financial statements does not cover the other information and, except lo the extent othenmise explicitly slated 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 materi811y 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 su¢h material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise to a material missl8lement in the financial statements themselves. If. b8sed on the work we h8ve perfomied, we conclude that there is 8 material misstatement of this other information, we are required to report that fact. We have nothing lo report in this regard.
HEDLEY FOUNDATION LIMITED REPORT OF THE AUDrroR Opinions on other mattors pr•s¢ribed by tho Companios Act 2006 In our opinion, based on the work undertak8n in the course of the audit.. the information given in the trustees, report, which includes the directors, report prepared for the purposes of company law, fr)r the finan¢ial year for which the financial statements are prepared is consistent with the financial statements., and the directors, report included wilhin the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and parent charitable company and their environment obt8ined in the course of the audit. we have not identified materi81 misstatements in the directors, report included within the trustees, annual report. We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us lo report to you if, in our opinion.. adequate and sufficient accounting records have not been kept by Ihe parent charitsble company, or returns adequate for our audit have not been received from branches nol visited by us,. or the parent charitable company's financial statements are nol in agreement with the accounting records and retums,. or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the infom)8tion and explanations we require for our 8Ltdit- or the trustees were not entitled to take advantage of Ihe small companies, exemption in preparing the directors, report and from the requirement lo prepare a strategic report. Responslblllties of trustees As explained more fully in the statemenl of trustees, responsibilities. the ITuslees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparalion of the group and parent charitable company financial slalements and for being satisfied that they give a true and fair view. and for such intemal conlrol as the trustees determine is necessary to enable Ihe preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing Ihe group and parent charitable company financial statements. the trustees are responsible for assessing the group and parent charitable company's ability to continue as a going COnrn, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company orto cease operations. or have no realisli¢ alternalive but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts and relevant regulations made or having effect Ihereunder. Our objectives are to obtain reason8ble assuran about whether the financi81 statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of 8ssuran¢e but is not a guarantee that an 8udit conducted in accordance with ISAS {UK} will always delect a material misstatement when it exists. Misstalements Can arise from fraud or error and 8re 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 slatemenls. Irregularities, including fraud, are instances of non-compliance wilh laws and regulations. We design procedures in line with our responsibilities. outlined above, lo detect material misslatements in respect of irregularities. including fraL¢d. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below-
HEDLEY FOUNDATION LIMITED REPORT OF THE AUDITOR We oblained an understanding of the group and pant charitable company and Ihe sector in which they operate to identify laws and regulations Ihal could reasonably be expected to have a direct effect on the financial statements. We oblained our understanding in this regard through discussions with management, sector research and application of cumulalive audit knowledge and experience. We determined the principal laws and regulations relevant lo Ihe group and parent charitable company in this regard to be those arising from the Charities Act 2011, Companies Act 2006, Financial Reporting Standard 102, and relevant employee legislation. We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent charitable company with those laws and regulations. These procedures included, but were not limited to enquiries of management, review of minutes and review of legal and regulatory correspondence. We also identified the risks of material misslatemenl of the financial statements due lo fraud. We considered. in addition lo the non-rebuttable presumption of a risk of fraud arising from management override of controls, that there was the potential for management bias in the valuation of investment properties. We addressed this through review of the valuation reports prepared by management's expert. testing the accuracy and completeness of inputs to their calculab'on. and challenging any assumptions applied in the valuations for example by agreement to third paty metrics. We also identified polentsal for man8gement bias in the judgements made around recoverability of debtors. We addressed this through examination of post ye8r end cash received, review of correspondence with debtors and discussion of recoverability with management. We also identified t)otenlial for management bias in the allocation of support ¢osls against charitable 8divily categories. We addressed Ihis through reviewing the method used for reasonableness, and re-perfonning the calculation to ensure it had been perfomied accurately in line with the slated method. We also identified potential for managemenl bias in the timing of recognition of rental income. We addressed this through detailed review of signed rental agreements, forming and expectalion of Ihe level of income to be recognised in the financial year, and Comparison to actual. As in all of our audits, we addressed the risk of fraud arising from management oveThide of controls by performing audit procedures which included, bul were not limited to.. the lesling of joumals,. reviewing accounting eslimales for evidence of bias,. and evalualing the business rationale of any significant Iransactions that are unusual or oulside the normal course of business. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non- compliance. The risk is also gre8ter regarding irregularities occurring due to fraud rather than error, as fraud involves intention81 concealment. forgery. collusion. omission or misrepresentation. A further des¢riplion of our spOnSIbl11t1eS for the audit of the financial st8temenls is located on the Financial Reporting Council's websile al.. www.frc.or -uklaudilorsres onsibilities. This descriplion form$ part of our auditor's report. Use of our report This report is made solely to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company's trustees, as a body, in accordance with Part 4 ofthe Charities (Accounts and Reports) Regulations 2008. Ourauditwork has been undertaken so that we might slate to the charitable company's members and trustees those matters we are required to state lo them in an auditorfs 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 charitable company and the charitable company's members as a body and the charitable company's trustees as a body, for our audit work, for this report, orfor the opinions we have fomied. Alastair Duke {Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor 15 Westferry Circus Canary Wharf London E14 4HD Date:
HEDLEY FOUNDATION LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTNITIES Ilncluding Income and Expenditure Account) Year ended 31 March 2024 Unrestricled Funds Note 2024 2023 In¢om• from: Income from inveslment properties Income from Inveslrnenl portfolios Olher Irading activilies - subsidiary companies 462,171 960,412 206,850 431,078 680,314 220,833 24 Tolal In¢omo 1,629,433 1,332,225 Expendlture on: Raising funds Charitable 8Ctivitie$ Other- on charitsble trading 362,248 867,802 128,280 342,912 815,527 112,341 24 Totsl Expendlture 1,358,330 1,270,780 Net In¢omo 271,103 61,445 Net realised and unrealised gains on investment assets Net realised and unrealised losses on other investment assets Unrealised gains on revaluation of investment properties 13b 5.243.827 498,482 (356,006) (983,985) 25,000 {75,0001 Net Movement In Funds 5,183,924 1499,058) Fund b818nces brought forward 42,062.801 42,561,859 Fund balances carrled forward 47,246.725 42,062.801 All of the alxTrve results are derived from continuing activities. The Company and its subsidiaries have no gains and losses other than those shown above. In accordance with the provisions of the Companies Act 2006, a separate Income and Expenditure Account dealing with the results of the Foundation only has not been presented. The Accounting Policies and Notes on pages 13 to 29 fomi part of these Financial Statements. 10
HEDLEY FOUNDATION LIMITED Company Registration Number 01018571 CONSOLIDATED AND COMPANY BALANCE SHEETS At 31 March 2024 Consolidated 2024 2023 Company 2024 Note 2023 Fixed Assets Investment properties Listed Investments Investments in subsidiaries Other Investments 12 9,335,000 9,310,000 6,710,000 6,785,000 13 30,218,255 25,283,394 30,218,255 25,283,394 13 4,666,195 4,620,799 13 6,003,223 6,359,229 6,003,223 6,359,229 45,556,478 40,952,623 47,597,673 43,048,422 Current Assets Debtors Cash at bank and in hand 14 264,672 239,879 462,163 426,085 15 1,745,923 1,166,020 1,730,847 1,137,965 2,010,595 1,405,899 2,193,010 1,564,050 CreditOTS: amounls falling due wilhin one year 16 (320,348} 1295,7211 {2,543,9581 (2,549,671) Net Current Assetsl (Liabilitiesl 1,690,247 1,110,178 (350,948) 1985,621) Net Assets 47,246,725 42,062,801 47,246.725 42,062.801 General Funds Charitable funds Non-charitable investmenvlrading company funds 42,580,530 37,442,002 42,580,530 37,442,002 4,666,195 4,620.799 4,666,195 4,620,799 Total Funds 18 47,246,725 42,062,081 47,246,725 42,062,801 These Financial Slalements were approved and authorised for issue by the Board of Trustees on 13 November 2024. Signed on behalf of the Board of Trustees ACFord Cha'rman P R Holcro Trust•e The AoUntIng Policies and Notes on pages 13 to 29 form part of these Financial Statements. 11
HEDLEY FOUNDATION LIMITED CONSOLIDATED CASHFLOW STATEMENT Year ended 31 March 2024 Note 2024 2023 Cash inflow from operating actlvltles 20 270.937 28.495 Net cash flow from operatlng activities 270,937 28.495 Cash flow from investing activities Paymenls lo acquire investments Receipts from sales of investments (5,128,863) 5,437.829 {6,542,5121 6,357.178 Net cash flow used by investing Activities 308,966 (185,334) Change in cash and cash equivalents In the year 579,903 1156,839) Cash and cash equivalents at 1 April 2023 1,166,020 1,322.859 Cash and cash equivalents al 31 March 2024 1,745,923 1,166,020 Cash and cash equivalents consist of: Current accounts Deposit accounts Cash at Investment M8n8gers 25,099 1,214,656 506.168 38,084 949,703 178,233 Cash and cash equivalents at 31 March 2024 1,745,923 1,166,020 The Accounting Policies and Notes on pages 13 to 29 form part of these Financial Statements. 12
HEDLEY FOUNDATION LIMITED ACCOUNTING POLICIES General Infomiation 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 wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity infomialion on page 1 of these financial statements. The nature of the charity's operations and principal activities are charitable granl giving lo UK registered charities. The Charity constitutes a public benefit enlity as defined by FRS 102. The Financial Statements have been prepared in accordance with Accounting and Reporting by Charities.. Stalemenl of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} from 1 January 2019 the Financial Reporting Standard applicable in the Uniled Kingdom and Republic of Ireland {FRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepled Praclice as il applies from 1 Janu8ry 2019 The Financial Statements have been prepared under the historical cost convenlion, with the exception of investments, which are included on a markel value basis and investment properties, which are included on the b8sis of annual valuations. The Financial Slatemenls are prepared on a going concem basis under the historical cost convention, modified lo include certain items al fair value. The Financial Statements are prepared in sterting which is the functional currency of the Charity. The significanl accounting policies applied In the preparalion of these Financi81 Statements are set out below. These policies have been consistently applied to all years presented unless otheIse staled. Going Concem It is the opinion of the Trustees that the use of the going concern basis of accounting is appropriate. At the time of writing this Report, Ihe Trustees a confident that there is reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future, at least 12 months from Ihe date of approval of these fin8ncial stalemenls. The Trustees of The Hedley Foundation are content Ihat the Group remains a going concern. Basis of Consolidation The Group Financial Statements ¢onsolid8te the Financial Slalements of The Hedley Foundation Limited and its subsidiary undertakings. Fund A¢¢ountlng General funds, all of which 8re unrestricted, are available for use al the discretion of the Trustees in furtherance of the general objectives of the Foundation. Income Recognltlon All income and expenditure is shown in the Statement of Financial Activities (SOFA). 13
HEDLEY FOUNDATION LIMITED ACCOUNTING POLICIES Charilablo A¢tiviti•s The Foundation has a portfolio of investrnent properties generating rental income which is accounted for on a receivable b8SiS. Inveslmfrnt Income Inveslment income is earned through holding assets for investment purposes such as shares and propety. 11 includes dividends, interest and rent. Interest income is recognised when receivable and dividend and rent income is recognised as the Foundation's right to receive payment is established. Other Trading Activities - Subsidiary Cornpanios Income from trading activities includes income eamed from trading activities undert8ken by subsidiary companies lo raise funds for the Charity. Income is received in ex¢h8nge for supplying goods and seNices in order lo raise funds and is recognised when enlitlement has occurred. The gross income of Ihe subsidiaries is shown in Ihe consolidated SOFA. Expenditure All expenditure is accounted for on an 8ccru81s basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties. il is probable that the settlemenl will be required and the amount of the obligation can be measured reliably. It is categorised under Ihe following headings.. Costs of raising fvnds includes the direct costs of managing the listed investment portfolio- Expenditure on charitable activities includes direct expenditure on granl-making activities and support costs which are allocated on a basis con818tent with the use of resources., and Non-charitable trading and investment property expenses includes the costs of the subsidiary companies which are incurred in relation to Ihese aclivilies. Grants payable to third parties are included in expenditure on charitable activities. Where unconditional grants are made, these amounts are recognised when a construcb've obligation is created. typically when the recipient is notified that a grant will be made to them. Where grants are conditional on perfomiance. then the grant is only recognised once any unfulfilled condilions a outside of the control of the charity. Support costs allocation Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs and govemance costs. They are incurred directly in support of expenditure on the objects of the charity. Where support cosls cannot be direclly attributed to particular headings they have been allocated lo cost of raising funds and expenditure on Ghafitable activities on a basis consistent with use of the resources. Premises costs have been allocated on a business to charity staff time allocation basis. This had been reviewed in September 2016 and subsequenuy approved by the Trustees. The analysis of these costs is included in note 5. Operating Leases Rentals payable under operating leases are charged on a straight-line basis over the term of the lease. 14
HEDLEY FOUNDATION LIMrrED ACCOUNTING POLICIES Investment Properties Investment properties are measured at fair value al e8ch balance sheet date. with changes in fair value recognised in 'net gains I (losses) on investments, in the SOFA. Surpluses and deficits arising on revaluation are taken to revaluation reserves within the Foundation's subsidiary companies (with the movement reflected in the statement of total recognised gains and 1088es}, and to the SOFA on consolidation. Sales and purchases of investment properties are recognised at the date of exchange. where this is not subject to conditions. as the equitable interest has passed from the vendor to the purchaser at this d8te. If a conlracl is conditional, Credit for a sale is taken when the last material condition has been satisfied. Investrnents Subsidiary Companies Investments in Subsidiary Companies are valued annually at the attributable amount of the subsidiaries, net assets al the Balance Sheet date. This is considered by the Trustees to be a fair assessment of their fair value. Publicly Traded Investrnents Publicly Iraded investments are measured at fair value at each balan sheet date, with changes in fair value recognised in 'net realised and unrealised gains l {losses) on investment assets, in the SOFA. Taxation The Foundation is an exempt charity 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 Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation lax purposes. The Foundation is registered for VAT,. irrecoverable VAT (where applicable) is included with the expenditure to which it relates. The Subsidiaries of the Foundation are liable to Corporation Tax on any taxable income nol Covenanted or transferred by Gift Aid to the Foundalion. Granls Granls aulhorised in the period a charged to the SOFA. Any grants authorised but unpaid al the Balance Sheet date a included in Gredilors. Grants covering more than one period are charged to the SOFA as the money is released and is conditional on receipt of satisfactory progress reports. Penslon Cost$ The Found8tion operales a pension scheme. Payments made are charged againsl income in the period in which they are paid. Judgments in applying accounting policies and key sources of estimation uncertainty The Foundalion makes estimales and assumptions concerning the fvlure. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimales and assumplions Ihat have a significant risk of causing a material adjustment to the carrying amounls of assets and liabilities within Ihe next financial year are addressed below. 15
HEDLEY FOUNDATION LIMITED ACCOUNTING POLICIES Judgments in applying accountlng pollcles and key sourcos of ostimalion unGOrtainty (continued) li) Impaimient of debtors The Foundation makes an estimate of the recoverable value of tr8de and other debtors. When assessing impaimient of trade and other debtors, m8nagement considers fa¢tors including 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 impairment provision. (li) Valuation of investment properties The Foundation makes an estimate of the fair value of investment properties. When assessing the fair value, the Board seeks the help of an expert in this area and considers. amongst other things the expected rental yields, the length of the term of the lease. the valuation of other properties in the immediate vicinty and the condilion of the building. 16
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 1. Income from Inveslment Propertles Company Company 2024 2023 Renlal Income 462.171 431.078 2. Income from Investments Group 2024 Group 2023 Income from Managed Portfolio Interest Other investment income 510.334 56,178 393,900 391,230 21,013 268.071 960,412 680,314 Other investment income relates to income from investments held in managed funds outside of the main investment portfolio. 3. Expenditure on Raising Funds Group 2024 Group 2023 Management of investment properties Investment management fees 169,109 193,139 172,168 170,744 362,248 342,912 4. Analysis of Expenditure on Charitable ActivitiOS Group 2024 Total Group 2023 Total Direct costs Support costs Staff Grant making 23,215 798,730 45,857 867,802 815,527 Prior year Grant making 21,653 745,205 48,669 815,527 17
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 5. Support Costs Basls of Investment Allo¢atlon Propertles Grant Maklng Total 2024 Total 2023 Governance costs (note 61 Office costs Premises & Maintenance 29,243 10,741 72.287 11.945 4,387 29.525 41,188 15,128 101,812 53,438 13,811 100,574 71 D/o- 112.271 45.857 158,128 167,823 Prior year Governance costs Office costs Premises 37,941 9.806 71.408 15,497 4.005 29,166 53,438 13,811 100,574 119,155 48.668 167,823 6. Gov•man¢e Costs Group 2024 Group 2023 Business Rates Insurance Accountancy Fee$ Professional Fees Bank Charges 4,155 2,396 11,553 21,703 1,381 4,454 2,093 8,903 36.677 1,311 41,188 53,438 18
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 Mar¢h 2024 7. Analysis of Grants Grants to Grants to Institutions Individuals Totsl 2024 Total 2023 Youth category grants ly} The Disabled category grants ID) The Temiinally ill and Hospices IETHI Olher Gategory grants {01 372.162 182,467 73,279 170,822 372,162 182,467 73,279 170,822 304,170 209,307 51.761 179,967 798,730 798,730 745,205 Recipients of Grants Grant Making Total 2024 Total 2023 Veterans. Aid DEC - Turkey I Syrian10) QEST (Queen Elizabeth Scholarship Fund) ly) Other grants paid 10.000 10,000 10,000 788,730 10,000 788,730 725,205 Total grants paid 798,730 798,730 745,205 Others grants paid includes grants p8id lo UK registered charities which are each under £10,000. 19
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 8. Not In¢om• is slalod after Charging: Group 2024 Group 2023 Auditorfs remuneralion audit other setvices land and buildings other 21,595 6,975 61,843 396 20,760 5,360 61,843 838 Operating leases 9. Audltor's Remuneratlon Audilorfs remuneration amounts to an audit fee of £21.595 (2023 - £20,760} and fees payable for IXBRL t8gging, corporation tax compliance and VAT Compliance in relation to the Subsidiary Companies of£6,975 {2023- £5.3601. 10. Staff Costs 2024 2023 Wages and salaries Social security costs Pension costs- employerfs pension 150,133 7,115 1,895 141,337 6,860 1,603 159,143 149.800 The aver8ge numb8r of employees during the year, excluding Trustees, was 312023 - 3). This equates to a full time equivalent number of 2 {2023 - 21. No employee received total employee benefits of more than £60,000. 20
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 11. Trustees, and Key Management Personnel R•mun•ration and Expenses 2024 Number 2023 Number The number of Company Directors in receipt of emolumenls Payment of emoluments by the Sub8idi8ry Companies lo named Directors (who are also Trustees of the Foundation) is made in relation to managemenl and professional services provided lo these Comp8nies. Sir Andrew Ford is a Company Director of Fairhood Properties Limited for which he is paid a salary of £24,500. Middlerigg Setvices Limited, for which he is paid a salary of £12,000 and Mountbarrow Properties Limited for which he is paid a salary of £29,500 per annum. Payments are approved under Charity Commission Order 462198 sealed on 21 December 1998. The following Trustees. expenses were reimbursed or paid direcuy on their behalf during the year.. 2024 Numb•r 2023 Numb•r 2024 2023 Travel 327 The total amount of employee benefits received by key man8gement personnel during Ihe year was £80.05312023 - £74.820). The Trust considers ils key management personnel to comprise of.. Mary Kitto: Company Secretary Lucy Janes.. Appeals Secretary Christine Janes.. Financial Accountant 21
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Yoar ondod 31 MarGh 2024 12. Investment Properties Group freohold land and buildings 2024 Group Company Company freehold freehold freehold land and land and land and buildings bulldlngs bulldlngs 2023 2024 2023 Valuation At beginning of year Additions al cost Disposal in year Capitalised Improvements (Gain) on revaluation 9,310,000 9,385,000 6.785.000 6.860.000 25,000 175,000) 175.000) 175.000} At end of year 9,335,000 9,310,000 6,710.000 6,785.000 The investment properties had an original cost of £11,750,188 12023 £11,750.1881 (Group), and £9,625,263 {2023 - £9,625,263} (Company}. The fair v81ue of investment properttes is determined by independent, professional valuation at 31 March 2024. The valuation was undertaken by Clive Thomas of Clive Thomas & Co Chartered Surveyors, in conjunction with Robin Hanson of Brackenridge Hanson Tale, Chartered Surveyors and Property Consultants. Both Messrs Thomas and Hanson are Fellows of the Royal Institute of Chartered SuNeyors. The exercise was carried out on a 'desk top" valuation basis, which takes inlo consideration the locatson, the valuation of other properties in the immediate vicinity of the building, the condilion of the building and the expected rental yields. Valuations are undertaken annually. 13. Flx•d Asset Investments 2024 2023 2024 2023 Group Company Investment in subsidiary undertakings Listed investrnents Other inveslments 4,666,195 4,620,799 30,218.255 25.283,394 30,218,255 25.283,394 6,003.223 6.359,229 6,003,223 6,359,229 36.221.478 31.642,623 40,887,673 36,263,422 Details of the subsidiary undertakings can be found in Note 24. 22
HEDLEY FOUNDATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 13a. Fixod Asset Investments Company Invostrnont in Subsidiary Undgrtakings Valuation at beginning of year 4,620,799 Movement in year 45,396 Valuation at end of year 4,666,195 These Financial Statements incorporate the results of all the Foundation's subsidiaries, which are listed in Nole 23. All the subsidiaries a incorporated in England & Wales and are wholly owned al 31 March 2024. 13b. Fix•d Asset Investmonls 2024 2024 2023 2023 Listod Inveslm•nts Group and Company Group and Company Market value al beginning of year Additions at cost Disposal proceeds Net investment gains unrealised g8in8 1 {1088e8) on revalu8tion realised gains on disposal 25,283,394 5.128.863 15,437.8291 24,599,578 6.542,512 {6,357.178} 4,162.974 1,080.853 (1,877.430) 2,375,912 5,243,827 489,482 Market value at ond of year 30,218,255 25.283,394 Llsted Investments 2024 2023 UK equity shares Overseas equities 2.310,187 3,870.364 27,908,068 21,413.030 Market Value of listed investments 30.218.255 25.283.394 The fair value of listed investments is detemiined by reference to the quoted price for identical assets in an active markel at the balance sheet d8te. 23
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 14. Debtors 2024 2023 2024 2023 Group Company Amounts owed by Subsidiary undertakings - deeds of coven8nVgift aid Amounts owed by subsidi8ry undertakings other Prepayments and accrued income 130,600 108,538 220.502 111,061 210,299 107,248 264,672 239,879 264,672 239,879 462,163 426,085 15. Cash at Bank and In Hand Deposit accounts Current accounts Cash at Investment Managers 1,214,656 25,099 506.168 949.703 38,084 178.233 1.214,656 10.023 506,168 949,703 10,029 178,233 1.745.923 1.166,020 1.730.847 1.137,965 16. Creditors: amounts falling due within one year Amounts owed to subsidiary undertakings Taxalion and social security costs Accruals and deferred income (see note 171 Other creditors 2,386,000 2.398.000 16 85,431 72.511 16 117.221 203.111 110.547 185.174 75,035 76,636 320.348 295,721 2.543.958 2.549,671 The amounts owed lo subsidiary undertakings are unsecured and repayable on demand. Interest is charged at the same rate of interest as that received by the Foundation for funds held in COIF. 17. Deferred Income 2024 2023 2024 2023 Group Company At 1 April 2023 Additions during the year Amounts released 23,454 20,815 {20,815) 23,454 18,968 {18,9681 4,743 4,743 20,815 18,968 {20,8151 118,968} At 31 March 2024 23,454 23,454 4,743 4,743 Income has been deferred in relation to rents received quarterly in advance. All deferred income relates to a period of less than one year. 24
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 18. Fund Reconciliation Net Investment Balan¢• at gainsl end of (losses> y•ar Balance at beglnnlng of year Incomo Expenditure Company Funds Subsidiary companies, funds Consolidation adjuslments 42,067.600 1,555,757 4,620.799 290,700 14,625,598) {217,0241 11,230,050) 4,912,821 47.306,128 (345,3041 100,000 4.666,195 217,024 1100.0001 14,725,598} Group Funds 42.062,801 1,629,433 {1,358,330) 4,912,821 47,246,725 The Company's nel income before gainslllosses) for the year ended 31 March 2024 amounted to £325,707. Details of the consolidation adjustsnents can be found in note 24. 19. Operatlng Lease Commitments- Company and Group Total future minimum lease payments under non-cancellable operating leases are as follows- 2024 2023 Land and bulldlngs Land and othgrs buildings Others Not later than one year Later than one but not18ter than five years 62.820 188,640 396 792 62,820 62,820 950 1,188 250,740 1,188 125,640 2,138 As al 31 March 2024 there were Grant commitments of £Nil {2023 - £Nil}. 20. Reconclllatlon of nel In¢om6 lo net cash flow from Operating Actlvlties 2024 2023 Net income for year Ilncrease)Idecrease in debtors Increaselldecre8sel in Creditors 271,103 {24,793) 24,627 61,445 31,458 164,4081 Net Cash Inllow from Op•raling Activities 270,937 28,495 25
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2024 21. Penslons Defined contribulion pension - Employor ponslon plan The Foundation operates a defined contribution employer pension plan for ils employees. The amount of contributions recognised as an expense during the year was £1,895 (2023 - £1.6031. 22. Relaled Party Transactions During the year the Foundation made grant payments of £37,100 (2023 £37.100) to 7 {2023 - 7} charities where one or more of the Foundation's Trustees also served as Trustees of the beneficiary charities.. Income Grants The Lockie Trusl (Trustee: Angus Fanshawe) At 31 March 2023 At 31 March 2024 5,300 5,300 4,250 5,300 The Phoenix Cottage Trust {Trustee: David Byam-cook) At 31 March 2023 At 31 March 2024 5,300 5,300 4,350 5,950 The Ravensword Trust {Trustee: Patrick Holcroftl Al 31 March 2023 Al 31 March 2024 5,300 5,300 4,700 7,200 The Sant Trust {Trustee= Lorna Stuttafordl Al 31 March 2023 Al 31 Mah 2024 5,300 5,300 4,350 1,050 The Tristenagh Trust (Trustee= Andrew Ford) At 31 March 2023 At 31 March 2024 5,300 5,300 1,635 4,929 The Shearwater Trust (Trustee.. Charles Bennett) At 31 March 2023 At 31 March 2024 5,300 5,300 5.250 4,000 The Ringford Trust {Trustee'. Alexander Scully) At 31 March 2023 At 31 March 2024 5,300 5,300 3.320 5.760 A donation of £5.000 was made to The Choral Foundation, where Alexander Scully is a Trustee. A donation of £3,000 was made to The Grenadier Guards Charity, where Charles Bennett is a Trustee. Provisions for doubtful related paty debtors amounted to £nil al the balance sheet date12023 £nill. The Charity recognised £nil (2023 - £nil} as an expense during the year in respect of bad or doubfful related party debts. There were no outstanding balances or commitments al 31 March 2024 or 2023 wlth related p8rties. Each Trustee man8ges a charitable Trust as shown above. Each Trust receives an 8nnual donation from the Foundation which can be used to make discretionary donatlons to any UK registered charity. There were no other related paty transactions in the current or prior year. 26
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Yoar onded 31 March 2024 23. Results of Subsidiary Companles The following companies are wholly owned subsidiaries of the Foundation.. Company Company Number Fairhood Properties Limited Merewood Properties Limited Mountbarrow Properties Limited Middlerigg Nominees Limited Middlerigg Services Limited 00712408 01539486 00591626 02298673 00431334 The management company and the propety companies Iransfer 100°/o of their taxable profits to the Foundation under the Gift Aid arrangements. The results of the Foundation's subsidiaries are shown in Nole 24 on page 28. These results include intrdgroup Iransa¢tions of £11.925 {2023 £12.0911 for management services provided by Middlerigg Services Limited to fellow subsidiaries and £71.92512023 - £29,447) inleresl arising on loans with fellow group entities. All subsidiaries covenant or transfer by means of Gift Aid 100 /0 of their taxable profits to the Foundation. The subsidiaries are involved in the management of investment properties, except Middlerigg Nominees Limited which is 8 nominee company and Middlerigg SeNices Limited which is a management setvices company. No deferred tax is provided on investment properties held by Fairhood Properties Limited as the availability of indexation reduces any gains to nil. In Mountbarrow Properties Limited no deferred lax Is provided on the investment properties. There is a potential deferred tax liability of £112,481 which has not been recognised in the Financial Statements of this Company as there is an enduring Deed of Covenant in place which requires the entire Company's annual taxable profit to be donated to the Foundation and therefore any capital gain on the eventual dispos81 of the investment properties will not cryslallise a corporation tax liability. All companies are registered and incorporated in England and Wales. 27
ro ou)u) Or OJa)r mCD(g tDLno
HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 Mar¢h 2024 24. Subsidiary Companies - total income and expenditure reconclllatlon note 2024 2023 {1) Total income of subsidiary companies 206,850 220,833 Plus: Group transactions Management fee Income Interest earned 11.925 71,925 12,091 29.447 Total income of subsldlary companies before consolidation (note 231 290,700 262.371 lill Tolal expenses of subsidiary companies 128,280 112.341 Plus.. Group transactions- deed of covenanvgift aid Management fee expenses Interest paid 133,174 11,924 71,925 113.291 12.091 29.447 Total expenses of subsidi8ry companies before consolidalion {note 23) 345,304 267.170 25. Post Balance Sheet Events There were no post balance sheet events. 26. Financial Instruments The Charity holds a numbBrof financial assets (for example investments. debtors and cash} 8nd financial liabilities (for example creditors) which meet the definition of basic financial instruments under the FRS 102 SORP. Details of the measurement bases, accounting policies and c8rying values for Ihese financial assets and liabilities are disclosed in notes 12 to 17 above. All investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets. Propety and equity investments are reviewed regularly to optimise the best financial outcome for The Foundation and its pmperty companies. 29