**Charity registration number 263950** ## **THE SZEBEN-PETO FOUNDATION** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 5 APRIL 2023** ## **THE SZEBEN-PETO FOUNDATION** ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **Trustees** Ms A Peto Mr D P Kramer Mr G Wilkinson (Appointed on 4 February 2023) **Charity number** 263950 **Registered office** 66 Prescot Street London E1 8NN **Accountants** Gravita III LLP 66 Prescot Street London E1 8NN **Investment advisors** Rathbones Investment Management Limited 8 Finsbury Circus London EC2M 7AZ ## **THE SZEBEN-PETO FOUNDATION** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1| |Accountants' report|2| |Statement of financial activities|3| |Balance sheet|4| |Notes to the financial statements|5 - 10| ## **THE SZEBEN-PETO FOUNDATION** ## **TRUSTEES' REPORT** ## **FOR THE YEAR ENDED 5 APRIL 2023** The Trustees present their annual report and financial statements for the year ended 5 April 2023. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the the Charity's deed of trust, and the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). ## **Objectives and activities** The charity's principle objective is to provide charitable donations to assist and promote medical research. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** The income from investments during the year was roughly same as in previous years, due to the current economic climate. However the Trustees have received a large legacy during the year. Therefore, the trust recorded a surplus of income over expenditure of £550,868 for the year, which has been transferred from the Trust's accumulated reserved. During the year, the Trust made charitable donations totalling £12,000. ## **Financial review** The reserves of the charity, which are all unrestricted, are invested in quoted securities. Income from these investments is distributed to charities in accordance with the Foundation's objectives. The Trustees are permitted to make additional distributions from accumulated reserves, at their discretion. The Trustees did not receive any remuneration for their services nor did they receive reimbursement of expenses. Carter Backer Winter LLP / Gravita III LLP act as accountants to the charity. Governance costs includes fees payable to the accountants. Mr D P Kramer is a consultant to Carter Backer Winter LLP / Gravita III LLP. The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. ## **Structure, governance and management** The charity was constituted by deed of trust in 1972. The Trustees who served during the year and up to the date of signature of the financial statements were: Ms A Peto Mr D P Kramer Mr G Wilkinson (Appointed on 4 February 2023) None of the Trustees has any beneficial interest in the foundation. The Trustees have paid due regard to the guidance issued by the Charity Commission in deciding the methods used to recruit and appoint new Trustees. The Trustees discuss at regular intervals to consider applications made to the Foundation by charities and individuals for financial assistance towards research and other projects, and whether such requests would comply with the objects of the Foundation. during their discussion, the Trustees consider any risks that may arise that could affect its ability to continue in existence and meet its stated objectives. The Trustees' report was approved by the Board of Trustees. ## Alex Peto > Alex Peto (Feb 12, 2024 14:24 GMT) .............................. ## **Ms A Peto** Trustee 12/02/2024 Dated: ......................... - 1 - ## **THE SZEBEN-PETO FOUNDATION** ## **CHARTERED ACCOUNTANTS' REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF THE SZEBEN-PETO FOUNDATION FOR THE YEAR ENDED 5 APRIL 2023** In order to assist you to fulfil your duties under the Charities Act 2011, we have prepared for your approval the financial statements of The Szeben-Peto Foundation for the year ended 5 April 2023, set out on pages 3 to 10 from the charity’s accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation This report is made to the charity's Trustees, as a body, in accordance with the terms of our engagement letter, our work has been undertaken solely to prepare for your approval the financial statements of The Szeben-Peto Foundation and state those matters that we have agreed to state to the charity's Trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Szeben-Peto Foundation and the charity's Trustees as a body, for our work or for this report. It is your duty to ensure that The Szeben-Peto Foundation has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of The Szeben-Peto Foundation. You consider that The Szeben-Peto Foundation is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report. We have not been instructed to carry out an audit or a review of the financial statements of The Szeben-Peto Foundation. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. ## Peter Winter Peter Winter (Feb 14, 2024 08:26 GMT) ## 14/02/2024 ## **Gravita III LLP** ......................... ## **Chartered Accountants** 66 Prescot Street London E1 8NN - 2 - ## **THE SZEBEN-PETO FOUNDATION** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## **FOR THE YEAR ENDED 5 APRIL 2023** |**Notes**
**Income from:**
Donations and legacies
**3**
Investments
**4**
**Total income**
**Expenditure on:**
Charitable activities
**5**
net outgoing resources before other recognised gains and losses
Net gains/(losses) on investment assets
**10**
**Net movement in funds**
Fund balances at 6 April 2022
**Fund balances at 5 April 2023**|**2023**
**£**
559,221
11,015
570,236
19,368
550,868
(37,819)
513,049
522,435
1,035,484|**2022**
**£**
-
8,806
8,806
11,295
(2,489)
(5,290)
(7,779)
530,214
522,435| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 3 - ## **THE SZEBEN-PETO FOUNDATION** ## **BALANCE SHEET** ## **AS AT 5 APRIL 2023** |**Notes**
**Fixed assets**
Investments
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2023**
**£**
**£**
734,494
246,441
58,269
304,710
(3,720)
300,990
1,035,484
1,035,484
1,035,484|**2022**
**£**
**£**
492,666
29,657
2,512
32,169
(2,400)
29,769
522,435
522,435
522,435|**2022**
**£**
**£**
492,666
29,657
2,512
32,169
(2,400)
29,769
522,435
522,435
522,435| |---|---|---|---| ||||522,435| ||||522,435| ||||522,435| 12/02/2024 The financial statements were approved by the Trustees on ......................... ## Alex Peto Alex Peto (Feb 12, 2024 14:24 GMT) .............................. Ms A Peto **Trustee** - 4 - **NOTES TO THE FINANCIAL STATEMENTS** ## **THE SZEBEN-PETO FOUNDATION** ## **FOR THE YEAR ENDED 5 APRIL 2023** ## **1 Accounting policies** ## **Charity information** The charity is constituted by a Deed of trust in 1972 and is registered with the Charity Commission, registration number is 263950. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's deed of trust, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Incoming resources** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 5 - ## **THE SZEBEN-PETO FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023** ## **1 Accounting policies** ## **(Continued)** ## **1.5 Resources expended** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Expenses include VAT where applicable as the foundation cannot reclaim it. Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Grants payable are payments made to third parties in the furtherance of the charitable objectives. Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SoFA once the recipient of the grant has provided the specific service or output. Grants payable without performance conditions are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to the grant which remain in the control of the charity. Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters. ## **1.6 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. ## **1.7 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.8 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. - 6 - **THE SZEBEN-PETO FOUNDATION** **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023** ## **1 Accounting policies** ## **(Continued)** ## _**Derecognition of financial assets**_ Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Donations and legacies** ||**Unrestricted**|Total| |---|---|---| ||**funds**|| ||**2023**|2022| ||**£**|£| |Donations and gifts|559,221|-| - 7 - ## **THE SZEBEN-PETO FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 5 APRIL 2023** ## **4 Investments** |Income from listed investments
Interest receivable|**2023**
**£**
10,975
40
11,015|2022
£
8,806
-| |---|---|---| |||8,806| ## 4 **Charitable Activities** |Grant funding of activities (see note 6)
Share of governance costs (see note 7)
**Grants payable**
Grants to institutions:
Kings College London
University College London
Eye Hope|| |---|---| **6 Grants payable** - - 8 - ## **THE SZEBEN-PETO FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023** ## **7 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Accountancy
-
2,520
Legal and professional
-
1,200
Brokers fees
-
3,648
-
7,368|**2023**
**£**
2,520
1,200
3,648
7,368|2022
£
2,400
1,020
3,875| |---|---|---| |||7,295| Governance costs includes payments to the accountants of £3,720 (2022- £3,420) for accountancy and professional fees. Carter Backer Winter LLP / Gravita III LLP act as accountants to the charity. Mr D P Kramer is a consultant to Carter Backer Winter LLP / Gravita III LLP. ## **8 Trustees** None of the Trustees (or any persons connected with them) received any remuneration or reimbursed expenses during the year. ## **9 Employees** There were no employees during the year (2021- none). ## **10 Net gains/(losses) on investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2023**|2022| ||**£**|£| |Revaluation of investments|(37,819)|(5,290)| ## **11 Fixed asset investments** - 9 - ## **THE SZEBEN-PETO FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 5 APRIL 2023** |**11**
**Fixed asset investments**
**Cost or valuation**
At 6 April 2022
Additions
Valuation changes
Disposals
At 5 April 2023
**Carrying amount**
At 05 April 2023
At 05 April 2022
**12**
**Debtors**
**Amounts falling due within one year:**
Amounts held by Investment Manager
**13**
**Creditors: amounts falling due within one year**
Trade creditors
Accruals and deferred income|**(Continued)**
**Listed**
**investments**
**£**
492,666
296,355
(37,818)
(16,709)
734,494
734,494
492,666
**2023**
**2022**
**£**
**£**
246,441
29,657
**2023**
**2022**
**£**
**£**
1,200
-
2,520
2,400
3,720
2,400| |---|---| ## **14 Related party transactions** There were no disclosable related party transactions during the year (2022 - none). ## **Remuneration of key management personnel** There were no disclosable remuneration of key management personnel during the year (2022- none). - 10 -