Cojnpany No. 1321952 Charity Commission Registrntlon Number 274100 THE CLOTHWORKERS, FOUNDATION THE CLOTHWORKERg FOUNDATION REPORT OF THE TRusfEES AND FINANCIAL ATEmENTs FOR THE YEAR ENDED 31 DECEMBER 2020 HaysmaLintyre LLP
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 ANNUAL REPORT CONTENTS REPORT OF THETRUSTEES 2-13 INDEPENDENT AUDITORS, REPORTTOTHE MEMBERS 14-16 STATEMENT OF F]NANCIAL ACTIVITIES 17 SUMMARY INCOME AND EXPENDITUREACCOUNT 18 STATEMENT OF FINANCIAL POSITION 19 CASH FLOW sfATEMENT 20 NOTE5 TO THE FINANCIAL STATEMENTS 21.32
THE CLOTHWORKERV FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRUSTEES TRUSTEES AND PROFESSIONAL ADVISORS TRUSTEES cy Rawson (Chair) Andrew Blessley Denis Clough Chloe HolDess [oppoin¢ed 12 Februory2021J Nicholas Horne [resigned 6lanuory 3021] Charlie Hutchins Emma Ingham Clarke [oppointed23September20201 Michael larvis Alex Nelson Susannah O'Leary Ola Opoosun loppointed IZ Febrnory2021] Neel Patani [oppointed23SeptemberZ0201 jonathan Portal [reswned23 September20201 Philip Portal Oonagh Smyth [tippointed IZ Febrnary 3021J Tom Stt)ddart-Scott Hanif Viril Andrew Yonge [resignedZ3SeptemberZQ20] CHIEF EXECUTIVE jocelyn Sart-GruMbar REGISTERED OFFICE AND PIUNCIPAL ADDRESS Clothworkers. Hall Dunster Court Mincing lane ndon EC3R 7AH AUDITOR Haysmacintyre LLP Z6 Red Lion Square London WCIR 4AG BANKERS Bank of Scotland London Chief Office Old Broad Street London EC3M SAN INVESTMENT MANAGERS Blackrock Advisor5 (UK) Murray House l Royal Mint Street London EC3N 4HH Gresham Investh)ent Management 67 Irving Place 12th Floor NewYorkNY 10003 WEBSITE www.foundatiOfLclothworkers.co.uk CHARITY COMISSION REGISTRATION NUMBER 274100 COMPANY REGisfRATION NUMBER 1321952
THE cLOTHwORKE FOUNDATION YEARENDED 31 DECEMBER2020 REPORT OF THE TRUSTEES The Trustees present their Reporr and the finan¢iai statements of the Foundation for the year ended 31 December 2020: these have been prepared in accordance with the provisions of the Statement of Recommended Practice {FRS1021, Accounttng and Reporting by Charities, issued in 2015 {the"SOR1. The inforniation on the preceding pages forms part of this reportThis report also Indudes the infonnatn required in a DireLtOT5' Rert and a Strategic Rew)rt for the purFx>ses of cornpany law. COVID.19 PANDEMIC In March 2020, following the emergence of the Covid-19 and subsequent pandemi¢ a lockdown was Imposed whlch had a significant negative impact on economic artivity. Further lockdowns were subsequently required. The effect for the Foundation was. initially. to redu valuations of investment assets. although there was some recovery as the year pro8re55ed. Income also adversely afferted in 2020. and it Is expected that this will contirlue to be the case in 2021. However. the Foundation's substantial asset base has meant that it has been able to withstand these efferts. Furthermore, in response to the crisis and its impact on many charities the Trustees decided to allocate additional resources. sourced from expendable endowment fvnd& to augrTJent the Foundation's ability to prowde essential relief and support This has allowed additional grants commitments o(£2.46 million to be made in 2020 for Covid-19 relief work HISTORY. OBIECTIVLS. ACHIEVEMENTS AND PVBUC BENEFIT History The Clothworkers. Foundation was incoTporated in 1977 as a company limited by guaranttt- it is a regislered charity. In over 40 years of activity. grants in excess of £152 million have been made by the Foundation and subsidiary trusts to haritable organisations and individual> Objects The objetts of the tharity are the advancement of such charitable purFK)ses as the Foundation shall frt>m time to time determine. Aims and Strat¢8les The Clothworkers. Foundation aims through its funding to provide public benefit by improving the lives of people and communities. particularly those ihat face disadvantsge. It aim5 to achleve rhls through two open grants programmes whlch fund a range of capStsl projects that meet its ellgiblllty criteria, and which fall wthin one or more ofits specified area& The programme is the Foundation's portfolio of annual grants to a small number of selected charities with which it wishes to maintain an ongoln8 relationshi It Is notan open grants programm Launched in 2007 and currently featuring five initiatives. the Proartive Grants Programrne is not open to fvnding enquiries or applications. Initiatives are developed following extensive research and consultation with organisations working Ln the selected sectors.
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OFTHE TRUSTEES The Foundation has estsblished a programme of social investsnenL funded by restrirted donation5 received from The Clothworkers. Company. Oblettlves The objectives of the Foundation are.. To manage its resources so &$ to erL%ure that the budget agreed for charitable grants can be disrrlbuted To stlmulate a flow of good quality eligible applications for funds that meet its criterla, by setting application guidelines with suificient clarity to avoid charities wasting valuable resources in preparing submissions that are ineligible. To undertake an objective assessment of all applications for grants, appropriate to the scale of support contemplated. For the proathve programme. to develop suffiaent Undetsnding of the selected areas to allow it to identify particular activides to support and organisations with which to work To maximise public benefit by distrtbuting its income in the mosteffettive way possible. To monltor the impattof the grants on the people and communities itseek% to help. To identify suitable initiatives for social investment Grant-maklng Pollcy The Foundation is a predorninantly reactive capital fihnderforcharities and pn)jects meetingits published eligibility criteria. It undertakes a grant-making review every five years, most recently in 2016. The Foundation's current grant-making activities are as follows: An open main grants programrne fvnding capital projects of charities in one or more of the following nine areas.. alcohol and substance rni5use. people with disabilities. disadvantaged minority ctsrnmunities. disadvantaged young people, domestic and sexual abuse, homelessness, older people, prisoners and ex-offenders. and visual impairment Only charities with an annual operating income of less than £15 million are eligible to apply. An open small grants programme awarding grants of up to £10,000 in the above areas to charities with annual income of less than £2 millio A regular grants prograrnme through which a limited nurnber ofcharities selerted bythe Foundation receive grants every year. sublert to regular review. A proartive ants programjne, established in 2007. which currently includes five initiatives.. Conservation. Dramatic Arts 11. BetterFure5 11. Visual Impairnient in Developing Countries artd a Care ltavers Inltiative. A response to the Covid-19 partdemlG The fitst phe wasan emergency response made through the Clothworker5' own Emergency Capital Programme, as well as major grants to the National Emergencies Trust and the London Community Re5pon5e Fund (by mean5 of a grdnt to the City Bridge Trust).
THE CLOTHWORKERS FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRuEF5 Full detaS1s of the Foundation's grant-making FMJliLy and guidelines are provided on the website r&uk)- they are also published in the Annual Review. a copyof which may be downloaded from the website or obtained from The Clothworkers. Foundatio Clothworkers. Hall, DunsterCour¢ Mincing Lane, LoThlon EC3R7AH. Sodal Investment Pollcy The Foundation's intention is to identify initiatives whtch are suited to a 'yJcial inYe5trnent' approach,. these would be complementaryto existing grant making activities and would be experted to fall within the existing programme areas. The Clothworkers. Company has previously prowded total funding of £0.75 million for this programm¢ Recent Si8nlflcant Adivitie$ andAchievements Grants totalling £9.29 million. 655 in number (2019.- £7S9 millioffj 297 in number). were comrnitted during the year, across the various prograrnmes. The substantial increase during 2020 was a consequence, in the main. of additional support provided during the Cowd-19 pandemic. Through these programmes. the Trustees considerthatthe Foundation provides public benefit ty focusfing resources in areas of greatest need. and in accordance with its objeuives. Details of grants of £25,000 or more are published in the Annual Review, and case studies on selerted proiects are featured on the FOUlation.S website [www.clothworkersfoundation.or&uk). However. a summary of each programme is set out below. Covid.19grnntsprogramm¢ As noted above. the onset of the Covid-19 pandemic caused a significant increase in need to which the Trustees responded by allocatÈng additional funds from the Foundation's expendable endowment. Total commitments of £2,4S7.621 have been made. Opengrontsprogrnmme The majority of DQll Covid-19 grant funding was made under ihe main grants programme. with £3.872.200 being cornmitted during the year to capital projert& Further commitments of £1,305,830 were made under the small granL% progrdmme. under which grants of up to £IO.000 are made to ¢apital projert5 for smaller charities. and up to £15,000 in the case of funding for minibuse Regulargrnntsprogromme The Foundation continued to award annual grants to a srnall numberofselected charities under the RegularGrants Programme which does notaccept applicauons. Commitrients totailing E373.000 were made during 2020.
THE CLOTHWORKERY FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRUSTE Proactlve Inltlatlyes Toral grants of £1,156,320 were made across all of thè Proactlve sub.programmes during 2020. Care LeaveTS: this is the newest proactive initiative. ltsbroad aim is to supwrtorganisations and projects thathelp young people leaving the care system to transition suc¢e55fully to adulthood A total budget of £1.38 millkon was allocated, and this was 1]Y committed in 2018 and 2019. Its focus is on educatiotL tralning and employment for care-leavers. well standardised professional training for people working with and for care-leavers. It ts planned that a final report on the outcomes achieved will be commissioned in 2021. Conservallon: this initiative is primarilyconrerned with en5uringthatconservation skills identified a%endangered do not die out. The initiative ran from 2008 and had been allocated £2.5 million by 2019. Having been evaluated externally In 2015, the proactive Conservation initiative has been considered a success. and the13St 13 years have seen the Foundation make an important contribution to the sector. Wtth all funds cornrnitted by 2020, the Trusteeg agreed that the initiative should not be extended beyond the end of the year. Vlsual Impainnent in Developingcountrles: this initiative w&% launched in 2012 with an initial allocation of £0.375m. Following a tender proce55. a single grantof £366,000 was awarded to Vision Aid Overseas fora five-year eye re project in Sierra L¢one. The Trustees subsequendy agreed a fvrther allocation of £0.75m over a period of up to five years from 2017. This was committed through a grant of £410.000 to Orbis in 2017 for a projert which will airn to eliminate trachoma In specified regions of Ethiopii and a further £350,000 grant to Vision Aid Overseas in 2018 which built on the previous 2012 projecL All fvnds for this initiative have now been committed. Better Fure$ 11.. thi5 initiative wa% set up in 2013 as a response to the 2011 riots and to the sodo-ec(>nomlc dimate felt by many to have been a root cause. With an initial £1.25 million allocation. its overarching aim was (and is) to help young people from disadvantaged backgrounds to reach their hjll potential. In 2017. nfpsynergy was engaged to undertake an independent external ewaluation of Better Futhre& which found that it had rnet its objectives. Based both on the nfpsynergy conclusions. and on the Foundation's own Internal assessment of the seven projerts it had funded BetterFureS was extended by three years from 2019 with a new £1.25 milllon allocatio of whith £l.I million Wd5 comrnitted in thatyear. During 2020. grants were awarded to-
UK Youth: £150.000 over two years for a street-based youthwork prngrarnme thatwill aim to address the high leve15 ofdisadvantage experienced by young people in Blackburn. an area of slgnificant deprivation. nfpSyner&v: £6.320 to undertake an external evaluation ofthe two.year UK Youth project All fvnd5 for this initiative have now been committe Dramatic Arts 11.. this initiative was allocated £1.25 million over five years from 2014. It focuses on excellence In the dramatic arts, and on mainstream provision. and has two strands.. an annual Clothworker5' Theatre Award of
THE CLOTHWORKERS FOUNDATION YEAR ENDED 31 DECEMBERZ020 REPORT OF THE TRUSTEES up to £ISO,000 which concentrated on the Engjish regions (excluding IndOn}.' and full bursaries for stttdents from economically disadvantaged backgrounds to SdY at the Royal Academy of Dramatic Arts or the London Academy of Musicand Dram With all funding for the Dramatic Arts initiative allocated, an independent external evaluation was undertaken by Sam-culture in 2019. Based on the findings of the evaluation. the Dramatic Arts inithative was exrended with a new £lm allocation from 2020. from which rhe following grdnts have been awarded:
National Youth Theatre (NYT). £490.000 {£400.000 to support Nyf on to plaN Implement and evaluate a revised model foryoung people's participation over threeyears. £60,000 for bursaries over Five years, and £30.000 towards NYT on tour). IAindonAcademyofMusicand DramaticAr¢ £225.OOOoverfiveyears ro award annual bursaries of£15,000 to students frorn low-incorne backgrounds for the entlTety of the iwo-year undeJEraduate Technical or three-yearActin8 course. Royal Academyofmusic and Drarn3ticArts. £225.000 overfive years to award annual bursarie5 9f£lS,000 to sttldents from low-income backgrounds for the ¢ntirety of the two-year under8r3duate Technical, or three-year Acting course. Society of London Theatre. £50.000 for five £1000 aothworkers, IAurence Oliver bursaries over five years to final year studeAts from low-income background Sarn-culre, £IO.000 to undertake and exteTnal evaluation of the National Youth Theatre three-year participation projert detailed above. Clothworkers'ChorltyFuml (prevloUsfyLiveryTrnd- seebelowj programme Three grants were also awarded from the Clothworker5' Charity Fund (whrch does not accept application5). a 5ub- fund which receives donation5 Irom members of The Clothworkers. Company, and which are tched by the Company itself. Commitments in 2020 totslled £129.000. Soclqllnvestmentuctlvlde5 During 2019. a103n of£150.000 was made to the CAF venre50Me Development Fund. In 2020. a loan of £50.000 w&% made to )ndon Play Design CIQ through the Steppingstones Finance Facility. Also. an investment in the WomeTh in Safe Housing Fund was approved in Z020 and finalised in lanuary 2021. GovernonceRevlew Followingacomprehensive reviewof the Foundation's governance in 2019. several key changeswere implemented. These irtcluded.. an increase in the level of delegated authority forthe Grants Committee, which is now able to agree grants up to £50,000 (increased from £25.000}.. the establishment of a Regular Grants Committee that will meet annually.. and the creation of a Nominations Commirtee that will oversee the appointment of new committee members and TrUse The review has also resulted in the appointment of rwo Tjew Trustees recruited from the wider Clothworker5' membership and. for the first time. the additional recruitment of three external Trustees (from 2021)- Recruiting experienced external trustees is one of our efforts to ensure that our board works towards becoming more diverse and reflective of the sertors in which the Foundation wo&
THE CLOTHWORKERI FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRUSTEES Future Plans The Trustees are aware oftheir responsibility to ensure that the Foundation's charitable support remaiD5 Fowsed. and to build on the priorities adopted during periodic reviews of grant-making policy. According]y. during 2021 they plart to.. l. Begin groundwork for the 2022 strategic grant-making review. 2. Implement the remainderof the Foundation's Covid-19 proactivework involving targeted support for the Domestic Abuse sertor, and for Communities Experiencing Racial Inequality. 3. Undertake an analysis of the Foundation's Covid-19 emergency funding response. 4. Explore opportunities for rther social investment whilst monitoring current Investmen STRUCTURE. GOVERNANCE AND MANAGEMENT Membershlp The Clothworkers. Company is the sole member of the Foundatio Recruitment and Indurtlon ofTneeS The Board of Trustees comprises between eight and fifteen individuals who. until 2020, had en drawn exclusively from the Court and Livery of the Company. offering a rknge of pertinent experience and qualIfitiOnS. The Company's objective had been for the Foundation to hèye a board ofTrustees which 15 balanced as to age and skills. capable of formulating the policies and strategies of the Foundation, and able to provide dirertion to the Chief Executive and staff on the conduct of its affairs. In 2020, the Foundation's newly fomed Nominations Committee initiated the first open recruitment process Wlthin the Company'5 wider membership. Two applicants were successful and joined ihe Board in late 2020. Further to thi5, Followin8 one ofthe recommendations of the governance review, the Board made acommitmentto recruiL forthe firsttime, two exten)al Trustees. This expressly sought to enhance both the diversityand the lived experience around the Board table. The quality of the Cdndidates and the availability of an unexpected vacartcy on the Board. allowed the appointment of three external Trustees, joining the Board in early 2021. All Trnstees are experted to be conversant with their responsibllities. New Trustees have 3 full inductlDn pro8fdmme and all Trustees are alerted to training and CPD OprtUnitieS as they arise. A register of training undertaken is retained. On their appoirttmenL new Trustees are provided with a detsiled induction package, including a ¢opy of the Policy and Procedures Manualofthe Foundation. which isa compilationofthe key regulauons, administrative arrangernents. and codes of condurt by which the Foundation operates (and which is regularly reviewed). Presentations are regularly madeto the Trustees on topical issues by charities operating in key spheres of the Foundation's charitable activity. Statementof Trustees. Responsibllltles The Trustees {who are also directors of The Clothworkers. Foundation For the purp05es of cornpany law) are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom GenerallyAc¢epted Accounting Practice). Company law requires the Trurtees to prepare financial statrments for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resource5. Lncluding the income and expenditure, of the Charitable company for that period In Preparing these financial statements, the Trustees are required to..
THE CL0THWORKEI. FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRUSTEES selert suitable accountir]8 polici¢s aThl then apply them consistently. observe the methods and principles contsined within'Accounting and Reporting by Charitie5 - Ststement of Recommended Practice. (the SORP). make judgements and estirnates th3tare reasonable and prndenL State whether appllcable att0unl1 stsndards have been followed. subject to any material departures disclosed and explained in the fLnanLiai statements. prepare the finartcial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in busin The Trustees are responslble for keeping properaccounting records that disdose with reasonable accuracy at any time the rinancÉal position of the charitable company and which enable th¢m to ensure rhat the financial statements comply with the Companies Art 2006. They are also respoThsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. So far as each of the Trustee5 is aware. there is no relevant infoTmation that has not been disclosed to the Foundation'5 auditors and each of the Trustees believes that all steps have been taken that ghtt0 have beerl taken to make them aware ofany relevantauditinformation and to establish that the Foundation's auditrrs have been made aware of that information. Publlc Benefit The Trustees confim that they have paid due regard to the guidan of the Charity cornmi55ion in respect of public benefit in reviewing airn5 and objectives, and in planning future artivities. setting grant-maknng policies and awarding grants. Commlttees ofthe Board ofTTUStees The Board of Trustees has delegated specific duties to a number of stsndiDg comrniitees which deal with operational matters.. Grants Committee.. For assessment of grant applications under the rnain and regular programmes Small Crants Committee: For assessment of grantapplications under the small grants programme Proactive Grants Committee: For forniulating proposals for new areas of grant-making underthe proactive programme- and for assessing grants to be made in such areas. once determined Flnance. Investment and General Purwses Committee: For financial and investment strate}manageMent and geneTaJ matters There is also a Clothworkers. Charity Fund Committee which deternhines grants to be made from the ClothwoTkers' Charity Fund.
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THETRUSTEES Deci5ion.makin8 Processes Trustees. meetlngs are held four times eath year. The business of these meetings is, broadly, to develop strategy. ¢0 setand monitor objectives. and to cornsider reports and recommendations from the standing committees referred to abov& The standing comrnittees are permitted to make decisions on operational matters within the polic5es previously agreed by the Tru5tees.' their duties are laid down in the policy and procedures maThual. In particular, grants of up to £50,000 may be approved by the relevant committee. Committees have the ability to form sub-cornmtttees to deal with more detailed matters and for takkng decisions in accordance with delegated authorltkes agreed by the Trustse& Currently. there are three standing sub-committees, all of which report to the Flnance. Investment and General Purposes Committee.. Budget, Riskand AudiL and social Inve5tmenL The duties of these sub-committees reflert their areas of specialism. In particular. the Budget Sub-committee recommends the annual budgeL and undertakes detailed monitoring of the budget throughout the year. The principal duties of the Risk and Audit Sub-cornmittee are 35 follows.. to deterniine the nature and scope of the audlL request specific Investigations frotn the auditors from time to time. and consider any issues arising therefrom- to ensure that rhe assets and funds are accounted for and safeguarded.. to ensure that adequare financial contro15 are maintsirted.. to monitor compliance In all respects: and to revlew risk exposure and ensure that appropriate steps are taken to mitigate risk& RlskAssessment- Prlndpal Rlsk5 and Uncert4lntle$ The major risks to which the Foundation is exposed. as identified by the Trustees. have been reviewed, and 5yStem5 have been established to rnanage those risks.. this process is overseen by the Riskand Audit Sub-committee. In particular, risk Is an important component olthe budgeting proces& Accordingly. the Foundation has established prudent investmentandspending policies. Mostof itsgeneral income 15 derived from its listed investment portfolio. or as a donation from The Clothworkers, Company. the latter being ultilnately derived from listed and property investments. Subject to reserving requirements. the Foundation's policy is to spend all available Income, plus any additional amounts that rnay be transferred from expendable endowment nds, when considered appropriate. The Foundation has received a significantannual donation fromThe Clothworkers, CompanyformaDyyears.Although there is no absolute a55urance that these donations will continue. the Company has confirmed its intention to carry on providing such supporL and it is expected that the Company would infornl the Foundation in the event of a change in its policy. The Trustees consider that. since the nature of the Foundation's grant-making activity involves very little by way of un-accrued tUre commitments. it is unlikely that any unplanned reduttion in funds available for grants would have an imparton benefiuaries to whom cornmitments have alreadybeen made. Furtherniore. the maintenance of general reserves allows commitrnents to be fulfllled in a timely fashion. However, it is recognised that ¢ontinuing public spending reductions in the afterniath of the finandal cri515 and. currently. the Covid-19 pandernic, have necessarily exerted some pressure on the finan5 of rnany charities. Accordingly, as in previous years, the Foundation seeks. through its assessment and monitoring procedures. to ensure that its fvnds are deployed in a manner rn05t likely to achieve advancement of its charitsble objectives.The scope of the Foundation's support now also Includes some social investtnentcommitrnents: these are assessed by performing appropriate due diligence work Connerted Charltles and Resthcted Funds Until 2013, The Clothworkers. Foundation was the corporate trustee of three Trusts and of The Clothworkers. Foundation Common Investment Fund (the CFCIF). In thatyear. with the concurrence of the Charity Commissiorn the assets ofthe three Trusts were transferred to the Foundation, to be held as restrirted fwids of the Foundation going forward, and the CFCIF was liquidated. io
THE CLOTHWORKEIS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRUSTEES The Trustees Continue to apply the income and assets contained within the three restriCd funds in accordance with the tnhst deeds of ¢he three liquidated TTUSts Further irtforniatlOD aboutthe trdTLsferand the restrirted funds is mntained within notes Iti) and 17. Related PartyTransartions The Clothworkers. Foundation is a related party of The Clothworker5' Company and its subsidiary companies. The Clothworkers, Company is a City of IA)ndon livery Company. Further details of related parties. and any associated transactions. are disclosed in te 19. The policy of the Foundation. in respect of potenual related party transactions Involving Trustees, is to avoid any conflicts of interesL Accordingly. when a Trustee has a material interest in any matter being considEred by the Foundation, that Trustee doe5 not participats in the decision-rnaking process. Furthennore. where a potential conflict of interest arises such that the conflirted member has the power to significantly alter the policies or decisions of the Foundatiory such potential conflicts are disclosed in note 19. FINANCL4L REVIEWAND PERFORMANCE Investment Pollcy The Foundation Seeks to maximise the totsl return on its portfolio. within the constraints imposed by the need to control risk. The assets ofthe Foundation (incorporatingthose of the three liquidated Trusts) are allocated in accordance with the results of an investment strategy review, conducted in 2016. and implemeftted in 2017. The adopted asset allocation seeks to achieve diversification and hence enhance risk controL and en¢ompasse5 UK equities, overseas equitie5. emerging market equities. fixed interest and rommodities: there ts also one dirert property holding. This 311ocation is managed in conjunction wlth managers and. excepting the direct properry investhieftL the entire portfolio is held in the forni of unirised investmen¢& The prlmary strategic long-term investrnent objective is the requirement that the overall investment portfolio should perform in accordance with the SE All.Share Indek In additio there is a Secondary objective that the wjrtfolio should maintain its value in real terms over time. as measured bythe Retsil Price Inde The Foundation uses the income arising from the portfolio in furtherance of its charitable objertives, artd those OF its restrirted funds. It also considers the capital return earned on its portfolio, and any fvrtherendowment donations received, and is prepared to utllase some of its expendable endowmentto supportcurrentgrdnt-making if it is considered appropriate to do so. Fund5 ofthe Foundation and Reserves Polity The net assets of the Foundation are divided beyeen'restrlcted funds. and'unrestritted fund¥ as set out below.. Restrirted Funds Permanent Endowment Fund: this fund totals £58.58 million (2019: £57.36 million) and represent5 donation5 received which were subject to a condition requiring their permanent retention as an endowmenL Income arising is credited to the General Fund. Expendable Endowrnent Fund.. this fund totsls £31.58 million [2019= £32.08 million) and represents d0ttionS received which were subject to a condition requiringtheir reteDtion asan endowmenl butallowing the Trustees to li
THE CLOTHWORKERS, FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRUSTEES spend the fund in accordance with the Foundation'5 9bjeLts if they so decide. Income arising is credited to the General Fun(L Members. Endowment Fund.. this fvnd totsls £0.30 million (2019- £0.26million) and represents donations received from members of the Livery of The Clothworkers. Company. which were subjert to a condition requiring their retention as an endowment Income 3ri5ing is credited U> the Clothworkers, Charity Fund (previously Livery Fund). Sodal Investment Fund.. thi5 fvnd totals É0.75 rnillion (2019.. £0.75 mlllion] and was established during 2017, Following the rece5Ptofan initial donation from The Clothworkers. Company. which was subjectto a restrtction that it be used for social investment.. the Cornpany made a further donation during 2018. During 2019 and 2020, the Trustees made two commitments of totalirtg £200,000, and plan to make fvrther commitrnents during 2021 (see section above). Other restritted funds: there are three hJrtherre5tricted fund5 totslling £49BI million (2019: £48AO million) which repre5entthe capital ofthree Trust funds transferred to the Foundation in 2013 [see above)- The income arising on these three funds is used to fund grants which correspond with the objects of the three Trnrt funds.. however. the capital is currently retsined to art as an endowmenL Unrestrirted Funds Designated Capital Fund- this fund totals £90.55 million [2019.. £88.67 million) and was established In 1996 to represent the capital of the Foundation at that time (see Note 101)], and to acr as a fvnd to generate income for the benefit of future beneficiaries. It is the intention of the TNstees to continue to rnaintain this fund going forward, although income arising is LTedited to the General Fun¢t Clothworkers, Charity Fund: this Fund was established in 2005 as the 'Li¥ery Fund. to receive donations from members ofthe Livery ofThe Cltsthworkers. Company- itwas renamed during 2019. All such donations (other tha those credited to the Members. Endowment Fund - see above) are used to fund grants to charities selected by the Livery Charity Committee of the Foundation. The balance at 31 December 2020 was £29.682 [2019.. É32.977). Designated Proactive Grants Fund {DPGF)= this fund was created in 2019. All commitments made under the various proactive grants programmes are debited to the fund. Each year. a fixed amount of income is transferred frnm the General Fund {see below), the amountbeing setat a level which represents the expected long.tErm average annual commitment to proactive grants. Consequently. over the long-terni it is expected that total income credited to the DPGF wlll be equal to total commitments. However, in years when wmulative colnrnitments exceed cumulative income, the resulting negative fvnd balance 15 offset by a short-terni loan from the Expendable Endowment Fund. General Fund.. this fund is credited with all incomearising excepting amounts credited to the Clothworkers. Charlty Fund, or restricted funds. as set outabove. It is the intrntlOD of the Trustees to distribute all such income each year, subjert only to the agreed general reserves policy. as described below. General Reserves Policy.. during 2020.theTrusteesreviewed the level ofthe General Fund.The previou5 policywas for the balance on the Fund to be setat the level of 15% (+1- 2%) ofanticipated (General Fund) incorne for theyear. After due consideration, the TneS decided that it would be appropriate to continue to maintain the size of the General Fund at this level. in order to allow the Foundation to bjlfill its commitsnents Tn a timely f3shion. At I January 2020. the balance on the General Fund totalled £0.53 million which was equivalent to 9% of total [General Fuftdj income, as explained above; during 2020.thebalance on the General Fund increased to £1.10 million which was equivalent to 21% of totsl (General Fund) Income. The TTUStee5 intrnd to restore general reserves to their policy level during 2021. l2
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRUSTEES Income Totsl incorne in 2020 was £9.29 millitin (2019.. £9.73 million), of which £5.70 million (2019.. £4.10 millionj was a donation from The Clothworker5' Cornpany or its subsidiary. Ramteazle Ltd. Of thi5 donation, £3.15 million (2019.. £2.79 million) was subject to a restriction that it be used as an expendable endowment (see note Ilg))- Donations of £0.12 million {2019.- É0.11 million) were also received knto the Clothworkers. Charity Fund (previously Livery Fund- (see 111)]. and £0.03 million [2019- £0.02 million) was credited to the Members. Endowment Fund (see note l {h)). Expenditure Grants to charitable organisations totalling £9.29 rnillion (2019.. £7.59 million) were committed during the year (see note 6}, which included the recommitmentof Cancelled and returned grants accrued in earlieryears. totalling£O.I million {2019.- £0.08 millionj. Details of grants made, In excess of £25.000. are wblished in the Annual Review. and on the Foundation's website (WWWl0thWOrker5roUnda1LorLor). Total expenditure during theyear. excluding grants. was £0.84 million (2019: £03 million), ofwhich the cost of generating funds totalled £0.15 million (2019- £0.20 mlliion Investment Performan(e The di5POSltion of assets is shown below: zozo 2019 UK equity units Overseas equity unlts Emerging markets units Fixed interest units Commodities units Direct freehold pn)perty Uninvested trdsh 32 32 32 33 19 18 100 loo Over the course of 2020. after allowing for new funds received. the Foundation's investment assets (excluding property) earned a total rern of 3.5%.The FTSE All.ShareIndex.againstwhich the Fund benchrnarks itself. decreased by9.S%, whilst RPI increased by 1.29 AUDITORS Haysmacintyre LLP have sSgnified theirwillingness to continue in office as auditor& Dr Lucy Rawson Chair Clothworkers. Hall Dunster Court Mlncing lane IA)ndon EC3R 7AH 22 lune 2021 13
THE CLOTHWORKER5' FOUNDATION YEAR ENDED 31 DECEMBER2020 INDEPENDENT AUDITORY REPORT TO THE SOLE MEMBER OpirtKon We have audited the financial statements of The Clothworker5' Foundation ft>r the year-ended 31 December 2020 which comprise the Statement of Financial Artivities. the Summary Income and Expenditure AccounL the Statement of Financial Position, the Cash Flow Statement and notes to the financial statements, including a summary of signiflcant accountlng policies. The financial reporting frameworkthat has been applied in their preparation L5 applicable law and United Kingdom Accounring Stsndards. irtcluding Finantial Reporting Standard 102 The Finartciol Reporttn9 Standord opplicoble in the UK and Republic oflreland (United Kingdom Generally Accepted Accounting Prartice). In our opinion, the financial statements- give a tThe and fairview of the State of the charitable compan5 affairs asat 31 December2020 and of the charitable ompany's net mgvernent in funds, including the income and expenditure. for the year then ended.. have been properly prepared in accordance with United Kingdom GenerallyAccepted Accountln8 Practlce: and have been prepared in accordance with the requirements of the Companies Act 2006. Basls foroplDlon We conducted our audit in accordance with International Stsndards on Auditing (UK) [ISAs {UKI) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our reporL We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinio Conduslons relatlng to golng concern In auditing the financial statements. we have concluded tbatthetrustees, use ofthe going concern basis of accounting In the preparation of the financial statements is appropriate. Based on the work we have perfornied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. maycastsignificantdoubtonthe charitablecompany's abilityto continue asagoingconcern for a period of at least twelve months from when the financial statements are authorised for i55ue. Our responsibilities and the responsibilities of the trustees with respert to going concern 3re described in the relevant sections of this reporL Other InfOrntIOn The trustees are reskw)nsible for the other inforn)ation. The other infOrntiOn comprises the irtfomation included in the Trustees. Annual ReporL Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly ststed in our reporL we do not express any form of 3ssurance conclusion thereon. In connection with ouraudit of the financial ststements, our responsibility is to read the other information and, in doing so, consider whether the other infoTmation is materially inconsistent with the financial statements or our knowledge obtsined in the audit or otherwise appears to be materially Misstate If we identify such material inconsistencies or apparent rnaterial misstatements. we are required to determine whether there is a material misstatement in the financial Statements or a material misstatement of the other information. If. based on the work we have performed. we conclude that there Is a material rnisstaternent of thi5 other inforrnation. we are required to report that facL We have nothing to report in this regard. Oplnlons on o¢hermatters pres¢rlbed bythe Companles Art Z006 In our oplnion, based on the work undertraken in the course of the atsdit the inforniation given in the Trustees. Annual Report (which incorporates the strategic report and the directotJ' report) for the financial year for which the financial st2ternents are prepared is consistent with the financial staternents.. and the stratsgic report and the directors. report (included withln the Trustees, Annual Report) have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified materfial misststements In the Trustees. Annual Rew>rt (whlch incorporates the strateglc report and the directors, report). 14
THE cLOTHwORKE FOUNDATION YEAR ENDED 31 DECEMBER2020 JNDEPENDENT AUDITORS, REPORTTO THE SOLE MEMBER (coDtiDued) Matters on whlch we are requlred to report by excepdon We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the charitable company.. or the charitable COTnpany finanaal statements are not in agreement with the accounting records and returns.. or certain disclosures of trustees. remuneration specified by law are not made.. or we have not received ail the inforrnation and explanations we require for ouraudit Re5ponslbllltles of trustees forthe financial ststements As explained more fully in the trustees, restrtynsibilities statement set out on pages B-9. the trustees (who are also the dlrector5 of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that theygive a trueand fair view. and for such internal control as the trustees determine is necessary to enable the preparatlon of financial statements that are free from material Tnisstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for asse55ingthe charitable company's ability to continue as a Èoingconcern. disclosiaappI1cdble. matters related togoingconcernand usingthegoingconcern basis of accounting unless the trustees either intend to liquidate the Igroup or the parent] charitable company or to cease operations, or have no realistic altsrnative butto do so. Audltorfs Tesponsibilities forthe audit of Ihe finanaal statements Our objectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assur¢ince is a high level of assurance butis not3 guarantee that anauditconducted rnaccordance with ISAS (UK) will always detect a material mi55tst¢ment when it exists. Misstatemenrs can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be experted to influence the economic decislorts of users taken on the ba515 of these financial staternents. Irreeularitie5, including fraud. are instances of non-compliance with laws and regulations. Wedesign procedures in line with our respDnsibilLtie5.OUtlined above. to detect material rnisstatements in respert of irregularities. including fraud.The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below: Based on our understanding of the charitable company and the environrnent in which it operates. we identified that the principal risks of non-compliance with laws and regulations related to registered charities. and we considered the extent to which non-compliance might have a material effect on the financial st3tements. We also considered those laws and regulations that have a dirert impact on the preparation of the financial statements such as Companies Art 2006 and the Charities Act 2011. and considered other fartors suth as income We evaluated management's incentives and opportunities for fvaudltlentmanipulation ofthe financlal statements lincluding the risk of override of controls) and determined that the principal risks were related to manual accounting journals. Audit procedures perfornied bythe engagement team included: We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements [including the risk of override of controls) and determined that the principal risk5 were related to nianual accounting journals. Audit procedures perfornied by the engagement team included- Discu55ions with management induding consideration of known or suspected instances ofnon-compliance with law5 and regulation and fraud: Evaluating rnanagernent's controls designed to preventand detect irregularities- and Identifying and testing journals. in particular journal entries posted with unusual accountcombination& postings by unusual users or with unusual descriptiorts. A further description of our reswjnsibilities foTthe audit of the financial 5>tements is located on the Financial Reporting Council's website aL' www.frcor&uk/auditorsresponsibilities.This description fornis partofour auditor's reporL 15
THE cLOTHwORKE FOUNDATION YEAR ENDED 31 DECEMBER 20ZO INDEPENDENT AUDITORS. REPORT TO THE SOLE MEMBER {contlnued} Use of our report This report is made solely to the charitable company's members. as a FK*dy. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent per itted by law,w tacceptorassume resportsibilityto anyone otherthan the charitable companyand the charitable co any's memberÈ as ody, for our audit work forthis repo or for the opinions we have formed. Andrew Broome [Se For and on behalf of Hay5macintyre LLP Chartered Accountants Statutory Auditors 10 Queen Street Place London EC4R IAG 2$$ÈpIbsr2o21 16
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER2020 srATEMENT OF FINANaAL AcrtVlTIES Unrestri¢ted Funds (note 14) Restrlrted Funds {notes IS. I& 17) Total Total Oothworke Charity. Proartlve GThntsand Gener*1 (lte5 11 Capltal ([e Ik) {neS l( l&lhl {DOte 11. I Notes zo20 2020 2020 zozo 2020 2019 INCOME Donations 2.S93.446 3.182.501 5.775.947 4.166,481 Rental iftcome 1.570 430 2,000 2,000 Investment income 2.732.985 747,638 3.480.623 5,493.020 Deposit interest and other income 26.655 26.655 63.694 Total Ineome 5,354,656 3,182.501 748.068 9,285,225 9,725.195 EXPENDITURE Costs ofgenerating funds (2.459) (59,377) (60,077] (32.678) (154.591) (197,912) Charitable arthvity.. Grants to charitsble organisations SLipport costs {8.428.171) (767.800) [9.195.971) (7,356,350] (687,337) [687.337) (634.459) Costs ofgrant-making {9.115.508) c767.8) [9.883.308) (7.990,809J Total Expendlture (9.117.967) (59J77) (60.077) {800.478) (10.037.899) [8,188,721} Operating (defldt)/surplus (3,763.311) (59.377) 3.122.424 (52,410) {752,674) 1.536.474 Transfers 4,328.176 (4J28.176) Gains l(losse5) on investments.. realised [392,213) [39635) (215.853) (1.004,9011 1.120,000 unrealised 2330.820 2.358.291 1.28Z.758 5,971.869 24.951,285 Netincorne 564.865 1,879,230 755.704 1.014.495 4.214,294 27,607,759 Fund balances brought forward at I january Fund balances arrled forward at 31 December 561,252 88,670.974 89.707.597 49.547.164 228,486,987 200,879.228 1,126,117 90550,204 90.463.301 50.561.659 232.701,281 228.486.987 The Ststement of Financial Activities incorporates the Statement of Incorne. All income and expendlture is derived from continuing operation& The notes on pages 20 to 31 forni part of these accounts. 17
THE CLOTHWORKERS. FOUNDATION YEARENDED 31 DECEMBER2020 SUMMARY INCOME AND EXPENDITUREACCOUNT 2020 2019 Total income of continuing operalions Totsi expenditure of continuing operalions Net expenditure for the year 6.102.725 6,912.278 (9.977022) (3.87S.097} [8.113,7291 (1.201,4511 The Summary Income and Expendire Account is derived from the Statement of Ftnancial Activities on page 16 which. togetherwlth the ntstes to the accounts on pages 20 to 31. provides full information on the rnovements during the year of all the funds of the Foundatio 18
THE cLOTHwORKE FOUNDATION YEAR ENDED 31 DECEMBER 2020 srATEMENT OF FINANCL4L POSITION CornpanyN 1321952 2020 2019 Notes FIXED ASSETS Investrnents at market value.. Listed investments 188.253.796 184.185.403 Freehold property Uninvested cash 44.01)0.l)00 41.500.000 li 63.169 232.316.965 200.000 2.606.081 228,291,484 150,000 Social investments CURRENT ASSETS Debtors io 12.271 321.014 Cash at bank and on deposit li 7.453.529 6.121,746 7.465AOO 6,442,760 CREDITORS Amounts falling due within one year NET CURRENT ASSETS 12 (6.968.144) (5.678.057) 497.656 764,703 229,206,187 CREDITOR5 Amounts falling due after more than one year 12 (313.340) {719.200) NEf ASss 18 232.701.281 228.486.987 RESTRICTED FUNDS Permanent Endowment Fund l[fj, 15. 18 l(g), 15, 18 l(h). 15, 18 l(i), 16, 18 l()}, 17, 18 58,580,193 57.364,446 Expendable Endowment Fund Members. Endowment Fund 31,583.646 32,079,835 299,462 263,316 Social Investment Fund 7SO,000 750,000 Other restricted fvnds 49,811,659 48.797,164 UNRESTR[ED FUNDS Designated Capital Fund Clothworkers, Charkty Fund Designated Proactive Crants Fund General Fund l(k). 14. 18 i(1). 14. 18 l(m). 14. 18 l(n). 14. 18 90,550,204 88.670,974 29.682 32.977 1,096,435 S28,275 TOTAL FUNDS 232.701.281 228.486,987 The notes on pages 20 to 31 fornl part of these accounts. Chair ofThe Clothworkers, Foundation 22 lune 2021 Dr Lucy Rawson Chair of the Finance. Investment and General Purposes Committee 22 lune 2021 Denis Cloug 19
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER2020 CASH FLOW STATEMENT 2020 2019 Net cash (outtlow) from operadng artivities Casb flows from Investlnga¢dvltles Investment income receipts Rental and interest income 13 (6.099.350) (S,151,161) 3.328.491 5,301,127 28.655 65.694 Purchases Df investments (11.948.483) 10.297,058 [15.437.872) 12.960,000 Sales of investments Net rash inflow from investlll actlvltles Cash flows from flnandng a(dvStles Endowment donations received 1.705.721 2,888,949 3,182.500 2.812.917 Decrease in cash awaiting investment Net cash Inflow from Ilnanclng artivities Increase In cash and sh equivalents 2.542.912 [463,615) 5.725.412 2,349,302 lJ31,783 87.090 ANALYSIS OF CHANGES IN CASHAND CLSH EQUIVALENTS DURING THE YEAR lrfanaged funds Cash at bank Total Atl laftuary 2019 4.506,547 1.528,109 6.034.656 Net cash inflow/(outhow) 548.555 [461,465] 87.090 At 31 December 2019 5.055.102 1.066.644 6,121,746 Net cash inflow/{outt]ow) (4,IIZ.850) 5.444.633 1,331.783 At 31 December 2020 942.252 6.511.277 7.453,529 20
THE CLOTHWOIURS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS ACCOUNTING POLICIES (a) Basis of accounting The financial statements have been prepared under the hlstorical cost convention as modified by the revaluation of tnve5tments to market value and in accordance with applicable accounting stsnd3rds. They are prepared in accordance with the requirements of the revised Statement of Recommended Prartice. Accounting ortd Reporttng by Chortties [FRS102J, issued by the Charity Commission in 2015. The principal accounting p)lities adopted are described below and are consistent with previous years. (b) InvesthieDts Investments are stated at market value and consist of units in listed investment funds. a freehold property. and cash awaiting investmenL Gains and losses on the sale and restatement of investments are shown in the Ststement of Financial ActLVlties. [c) Income Rents. dividend income, deposit interesL loan stock interest and donations are accounted for on a receivable basis. (d) Costs of generating funds These are the costs of managing listed, property and cash Investfflents. Investment management fees suffered within nd investments are grossed up. based on the fee rate applied to marketvalue. (e) Grants to charltsble orpnls*tlons Grants are accounted for in the year in which a binding obligation arises. Where there is an intention to make a grant which will be payable in a future year. and which is subject to the fuifilmeni of appropriate terms aT]d conditions, an accrual will not be made unless the conditions have been fulfilled by the balance sheet date. orare dependent on an external event overwhich the Foundation has no control. However. where all of ihe conditions have been meL It is the Foundation's policy that such grants are subject to the receipt and review of a satisfactory report before payment can proceed.. therefore. no binding obligations will arise in respert of such commitments until the Foundation has confirnied the relevant grant Returned and cancelled grants. originally accrned in prior years. are deducted from grant cornlnitments rather than being included within'incoming resources.. (Q Pernnent Endowment Fund The permanent endowment has been received by way of donations over a numberofyear& All such donations have been made subjert to a restrirtion. stipulated by the donors. that the apital should be invested and noi distributed. However, the incolne arising from the invested Capital is to be used for general purposes and is, therelore. included in the General Fund. An appropriate proportion of the costsofgenerntsng income is charged to this Fund. Also included within this Fund is the capital transferred frorn the Charity of M3fEaret Holligrave in 2004 {see note 151. ts) Expendable Endowment Futtd The expendable endowment has been received by way of donations over a number of years subject to a condition that capitsl could be retsined or distributed as the Trustees deterrnined. The income arisin8 from the invested capitsl 15 to be used for general purposes and is, therefore. included in the General Fund An appropriate proportion of the costs of generating income is charged to this Fun 21
THE CLOTHWORKEKS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL sfATEMENTS ACCOUNTING POLICIFS (contlnued) (h) Members. Endowment Fund At I lanuary 2010. £3.000 wa5 transferred from the Pernianent Endowment Fund to a new Members. Endowment Fund. This atnount represented certain legacies. lifetime gifts and [non- Livery Fund) donations from members of The Clothworkers, Company, relating to the years 2001 to 2009. plu5 accumulated (3Pital appreciation. Subsequent endowment donatlolls frorn such Members have also been credited to this Fund.. investment income arising frotn its assets is credited to the tAvery Fund. An appropriate proportion of the costs of 8eneratin8 income is also charged to the Members. End¢)wrnent Fund. (i) Social Investment Fund The Sociai Investment Fund was established in 2017, to which are credited donations received subject to a restriction that they be applied to social investment (see note 1S)- ti) Other restrlrted fvllds Three restrirted funds relate to three previous Trusts which fornlerly existed as separate charities. During 2013. the Foundation applied to The Charity Commission for permission t(F pay the assets of the three Trusts. for which it arted as corporate trustee. to The Clothworkers, FoundatiotL The transfer was in accordance with sertion 282 of the Charities Act 201 l and. having gained the consentof the Commission. ittook place as at 3 October 2013. The a55ets transferred and the tncome arising on those assets. are athninistered by the Foundation as restricted funds, with grants being made to beneficiaries broadly in accordance with the objects and distribution policies of the three original charities {see note 17). (k) DesSgnated Capital Fund The Designated Capital Fund was setaside in 1996 outof unrestrirted funds for the purpose of providing for the rtherance of the charitsble aims of the Foundation. The Fund represented the disposal proceeds arising from the sale of a leasehold property investment in 1994. together with the amount5 previously retained in recognition of the depreciatiorh of the le35e. Although the Fund is not restrirted. it is the Trustees, intention to rnaintaitl it over the long term in order to generate resources for future beneficiaries. Income arising from the Fund is redited to the General Fund. An appropriate proportion of the costs of generating income is harged to the Designated Capital Fut)d. {1) Clothworker< ljarity Fund (prevlously Llvery Fund) The livery Fund was established in 2005: it was Tenamed a5 the Clothworkers, Charity Fund (CCF) In 2019. The CCF is n]ade up of regular donations from the rnembership ofThe Clothworkers, Company, which are matched by donations from the Company itself. Investment incorne arising on the Members. Endowment Fund is also credited to the CCF (see note 14). The income of the Fund is distributed artnually.. distributions are recommended by the Livery Charity Committee, taking into account preferences expre55ed by the donors regarding the selected beneficiary charities of the year. In the event of a deficit arising on the Fund, a compensating transfer is made from the General Fund. (m) Deslgnaied Proattlve Grnts Fund IDPGF) The DPGF was established during 2019. in order to provide greater clarity in the rep)rting of the Proactive grants programme. 22
THE CLOTHWORKER¥ FOUNDATION YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS I. ACCOUIfflNG POLICIES (cotttlnued) A transfer is made to the DPGF each year based upon the averdge amount to be allocated to proactive grants: thi5transfer is paid from the Genernl Fun¢orrestricted finds. as appropriate. Proxrive grant commitments are charged to the DPGF- it is planned that these will match the transfers received. taking one year with another. If a defictt arises C+n the DPGF in a particular year. this is offset in full bya temporary loan from the Expendable Endowment Fund. (n) General Futtd With the exception of restricted donatLOILS. and investment income allocated to the Clothworkers, Charity Fund and restricted fvnds. all income arising is credited to the General Fund. Expenditure on support costs and governance is charged to the General Fund. The level of grants is determined with reference to the 38reed reserve5 policy. DONATIONS Unre5trirted Funds Restrirted Fund5 Membe. Expendable Endowment Endowment Fund 2020 Genernl UothworkeT< Fund Charlty Fund 2020 TOTAL TOTAL 2020 2020 Z020 2019 The Clothworkers. Company Ramteazle Limited Member donations 2.367.921 60.763 15,184 3.152,132 5,596.000 3.988,000 104,000 104,000 75.947 112.000 65,881 600 60.763 15.184 Other donation5 2,471,921 121.526 30.368 3.152.132 5.775,947 4.166.481 Member donations are reiVed from members of the Livery of The Clothworkers. Company. including Gift Aid recoveries. and are credited to the Clothworkers, Charity Fund. or Members. Endowment Fund. in ¥cordance with each member's wishes. INVESTMENT ANCOME Investment incorne arises from units held in various listed investment fund5: these funds are invested in UK equities. overseas equities. fixed interest funds. and a commodities fund. COSTS OF GENERATING FUNDS Thecostof generating funds consists of listed investment managementfees and investmentproperty rnartsgement costs.. these are charged to the Designated Capital Fund15ee note 14). the endowment Fund5 (see note IS). and some restricted Funds (see note 17] in proportion to the investment IM)Idings of each nd. Some additional feesare also incurred in respeLt ofthe Foundation'scash managementservice- these are charged to income (General Fund- see note 14)- 23
THE CLOTHWORKEKY FOUNDATION YEAR ENDED 31 DECEMBER2020 NOT TO THE FINANCIAL STATEMENTS TRANSFERS The following transfers were made during the yEar: Expendable i Endowment :, Fund ', Gener41 .: Designated :. Futtd I Proactlve i Grants I Fund Fundlng for Proactive Grants programme (800.000) 800,000 Temporary transfer (356.320) 356,320 Allocate to Lwrrentyear {3.971M56)1 3.971,856 1 (4.328,176) 3.171,856 1.156.320 Grants commitrnents made under the Proactive Grants programrne are currently funded at the rate of £800.000 p.a. Averdge annual commitments made from the Designated Proactive Grnnts Fund are experted to equal this rate of fiEndingover the medium-tenn. A temporary transfer was made from the Expendable Ethlowment Fund to the Designated Proactive Grants Fund to ensure that the balance on the latter Fund wa5 not negatiVE, This transfer will be reversed in future year& The Trustees decided to transfer£3.971M56 {2018: £150.0003 from the Expendable Endowrnent Fund to the General Fund in order to supplement income from the listed investment portfolio. and to facilitate a higher level of8rant-makin CHARITABLE GRANTS 20ZO 2019 Proactive programmes.. Better Futures Care Leavers Conservation DramaticArLS Visual Impairnlent in developing countries IS6.320 1.091.750 666.000 129.750 28,000 1.000.000 1,156,320 1.915.500 Alcohol and Substan¢e Misuse Domestic and Sexual Abuse Homelessness Minority Communitie5 246,780 9SO,825 529.249 747.619 145,000 293.400 427.150 630,050 24
THE CLOTHWORKERY FOUNDATION YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS CHARITABLE GRAKTS (eontitttsed) Older People People with Disabilitie5 Prisoners and Ex-offenders Visual Impairnient Young People Other Total grant commi¢ments Returned /cancelled grants Total grants 866.245 1,500.963 177,595 451.928 1.646,643 1019.804 9.293.971 (98.000) 9,195,971 629.000 1,745.600 213,200 221,700 1,284,400 85.000 7.590.000 [233,650) 7.365.350 Details of grants made are published on the Foundation'5 website (www.clothworkers.w.uk). Bight grants accrued in a prior year were returned or ncelLed (2019.. twelve). SUPPORT cosrs 2020 2019 Administratlve servlces provlded by Ramtea71e Ixd: Stsff costs Other costs 427,569 219,431 647,000 410.1 IB 197,882 608.000 Dlreci cos. Auditors. remuneration- audit services non-audit Services 8,500 1.025 151 15,495 15.166 687.337 7.650 1.015 2.699 3.405 11,690 634,459 Trustees. expenses Other governance costs Other sUPPOrt costs No sraff aredirertlyemployed bythe Foundation. Staff costs are incurred by Ramteazle Limited, from which the Foundation purchases administrative services in accordance with its service agreement. The Foundation's share of total remuneration paid to key management personnel provided as part of this service was £129.133 (2019- £112.733). No Trustee may receive any salary or fees or receive any rernuneration or other benefit other than expenses reimbursed, from the Foundation save as expressly permitted by the Article5 of Association. During the year payment5 totalling £151 were made [2019.. £2.699),. these expenses related to travel and accommodation costs only and were paid to one Trustee (2019: two). 25
THE CLOTHWORKERS. FOUNDATION Y&4R ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS INVFsfMENTS 2020 2019 Listed investments Carrying value at I january Add: Acquisitions at cost Les5: disp05als at carrying vae (proceeds.. £12.960.000) Net gain/[loss) on revaluation at 31 December Market value at 31 December 184.185.403 11.898,483 (11,301,959} 3.471.869 188.253.796 157,086.246 15.287.872 (11.840.000) 23,651,285 184,185.403 Freehold property Carrying value at I January Net gain on revaluation at 31 December Market value at 31 December 41.500.000 2.500.000 44,000,000 40.200.QOO 1.300,000 41.500.000 Cash to be Invested 63.169 2.606,081 Total Investments at MarfLet Value 232.3 16,965 228,291.484 SOCIAL INVEEPs Durang 2019. a commitrnent of £1S0.000 was made to the CAF Venturesome Fund and. during 2020. a commitsnent of £50,000 was made to Stepping Stones. Both commitrnents were fully paid up during 2020. 10. DEBTORS 2020 2019 Accrued income and prepayments Other debtors 305,318 15,696 321.014 12,271 12,271 11. CASH AND DEposrrs At 31 December 2020 all money on 5hort-terni deposit was held in interest.bearing bank accounts, or in a managed cash fund. An additional sum of £63.169 (2019.. £2.606.081) was deriyed from endowment donations and equalisation received,. this is reportedas partof the investmentportfolio. 26
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS 12. CREDITORS 2020 2019 Amounts (alling due within one year Grants commitments unpaid Social investment commitments unpaid Other accruals Rent receivable in advance Other creditors 6.094.402 5.41S.862 150.000 34.595 500 77.100 5 678 057 25.937 500 847.305 6968 144 Amounts falllng due after more tlwi one year Grants commitmertLS unpaid 313,340 719,200 13, RECONCILIATION OF OPERATINGSURPLUS TO NET CASH OLrrFLOW FROM OPERATING AcrivmES 2020 2019 Operating [deficit]/surplus Investment and property management expenses DonatiotLS received into endowed funds Investment income receivable Rental incorne receivable Interest receivable Decrea5e/[increase) in debtors Decrease in creditors Net 125h (outflow) from operang actlvltles (752.674) 152.132 {3.182,500) {3.480,623) [2.000} (26.655) 308,743 884.227 (6,099.350) 1.536,474 191,893 {2.812,917) {5.493,020) (2.000) (63,694) {215,6761 1,707,779 (5,151,161 27
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER2020 NOTES TO THE FINANCIAL ATEmENTs 14. UNRFSTRlED FUNDS •rityFund Proartlve Grathts Fu#d De*thd C•pttal hEnd Totsi Balance at I January 2019 Donations (see note 2) Rental income Investment income Depostt interest and other income Costs ofgenerating fvnds Support costs Grants to charitable organisations Transfer from Expendable Endowment Fund Transfer from General Fund Transfer from Restrirted Funds Loan from Expendable Endowment Fund Realised gains on investments Unrealised losses on investrnents Balance at 31 December 2019 Donations Isee note 2) Rentsl income Investment income Deposit interest and other income Costs of generating funds Support costs Grants to charltable organisations Transfer from Expendable Endowrnent Fund Transfer from General Fund Loan from Expendable Endowment Fund Realised gains on investments Unrealksed gains on investments Balance at 31 December 2020 280,458 1.243.698 1.565 4,299,388 13.067 109.866 78.500,373 78,793,898 1.353,564 1,567 4.305.429 6,042 63.694 63.694 (6,019) (634.459) (4,621.050) Iso.000 (75.414) (81.433) [634,459) [6,632,550) 150.000 (96.000) (1.915.500) [Z49.000) 249.000 551.000 1.115.500 551.000 1,115,500 440.160 9.805.855 88.670.974 440.160 9.805.855 89.232.226 2.593.446 1.570 2,732.985 528.275 2.471.920 1.568 2.728.808 32.977 121,526 4.177 26.655 26,655 [61,836) (687.337) (8,428,171) 3.971B56 (2,459) (687,337) (7.142.BS1) 3.971.856 (59.377) [129.000) [1.156J20) [800,000) 800.000 356,320 356.320 (392.2131 2.330.820 90.550.204 (392.213) 2.330.820 91ffj76,321 1.096.43S 29h82 General Fund All intome and costs are credited or debited to the General Fund. excluding those amounts whlch must be credited or debited to other Funds. All grants are debited to the Ceneral Fund unless they are assigned to the Desiated Proartive Grants Fund the CknthwOrke, Charity Fund, or other restricted funds. ClothworfLers' Charlty Fund The Clothworkers. Charity Fund is credited with donations from members of the Livery of The Clothworkers. Company, and matching donations from the Company itself. The Fund is algo credlted with rental income and investment income derived from the Memberf Endowment Fund. Grat)ts debited are determined by the Livery Charity Committee. 28
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER2020 NOTFS TO THE FINANCIAL STATEMENTS 14. UNRESTRICTED FUNDS (tontinued) Designated Capltal Fund The Designated Capital Fund was established for the reasons explained in note l(kJ. All inmme arising is credited to the General Fund. Designxted ProAdiv¢ Grnnts Fund The Designated Proactive Grants Fund was established ftjrthe reasons explained in note l[m). IS. ENDOWMENT FUNDS Permanert eDdowwem- yner¥l Members. endtywmttht Nlargar Holll8rave Total Balance at I lanuary 2019 Donations {see note 2} Transfer to General Fund Costs of generating funds Loan to Designated Proactive Grants Fund Realised gains on investments Unrealised gains on Investments Balance at 31 December2019 Donations (see note 2) Transfer to General Fund Costs of generating funds Loan to Deslgnated Proactive Grants Fund Realised losses on investments Unrealised gains on investments Balance at 31 December 2020 27.050.244 2.791.021 (150.0001 (25.982) (1.115.500) 151.648 3.378,404 32.079.835 3.152.132 (3.971.856) [21.481) (356.320) (141.892) 843.228 31.S83.646 42.437.190 8.346.127 212,953 21.896 78,046,514 2,812,917 (150,000) (74.992) (40.777) (8.022) [211) (1.115.500) 437.696 9.750,962 89,707,597 3.182,501 (3.971.856) [60.077) {356.320) (396.835) 2,358,291 90A63,301 238,000 5.302,148 47.936.561 46.816 1.042,964 9.427085 1.232 27.446 263.316 30.369 (32,100) (6,313) (183) (212.034) 1.260.064 (41.703) 247.833 [1,206] 7,166 299.462 48.952.491 9.6Z7.702 Pernianent Endowment Fund This Fund includes the capital portion of the Charity of Margaret Holligrave which was transfeThed to the Foundation by a Scheme of the Charity Commission dated 9 March 2004.. the value Df the capital portion of the Charity atthat date was £3.943.763. At 31 December 2020, the portion of the Fund representing the capital of the Charity w&$ valued at E9.627.702 (2019.. £9.427.885). The Scheme permitted income arising from the endowment to be distributed for such charitable purposes as the Foundation shall detemine. All income arising 15 LTedited to the General Fund. Expendable EndowmeDt Fund Donations have been received from The Clothworkers. Company over a nurnber ofyeaT5 with the express intention that they be treated as an expendable endowment fund. The gifts were made wilh the instruction that the capital should be used as an endowment butcould be distributed should the Trustee5 decide to do so in the future. All income arising is credited to the General Fund. 29
THE CLOTHWORKERS, FOUNDATION YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL ATEmENTs 15. ENDOWMENT FUNDS (contlnued) Members. Endowment Fund Donationsarereceived from membersofThe Clothworkers'Company.Wherethememberrtipulates that the donation should be retained and invested, it is credited to the Members. Endowment Fund. All such donations are matched byThe Clothworkerf Company. All income arising is credited tt> the Clothworkers. Charity Fund. 16. SOCIAL INVFsfMENT FUND This Fund was established in 2017 following the receipt of an initial donation frorn The Cloihworkers. Company.which was subjertto a restriction thatit be used to fund social investmen Total donations of £750.000 were received: commitments of £200.000 have been made as at 31 December 2020. 17. OTHER RESTRICTED FUNDS Re]lef In Need Welfare of the Blittd Edu¢atlon Total Balance at I January 2019 Rental iticome Investment income Costs of generating funds Grants to charitable organisations Transfer to DPG Fund Reali5ed gains on investments Unrealised Gains on Investments Balance at 31 December 2019 Retltal irtcome Investment income Costs of generating fvnds Grants to charitsble organisations Transfer to DPG Fund Realised losses on investments Unrealised gains on Snvestments Balance at 31 December 2020 8,607,704 87 236.749 (8.271J (55,500] (176,0001 48.372 1.075.400 9.728A41 86 148,971 [6.511) (149.OOOJ 24.476.178 244 10,204,934 102 280.693 (9.806) (270,600) 43.288.816 433 1,187,591 {41,488) [723,800) (551,000) 242.144 5.394,468 48,797,164 430 670.149 (23.411) (397.700) (375.000) 136.640 3.044.057 27.531.157 242 421.851 (18,439) (434,800) 57.232 1.275,011 11.537.566 ioz 176,816 (7.728) (184,000) 747.638 (32.678] [767.800] [43.010) 255,596 9.934.573 DPG Fund= Designated Proactive Grants Fund Other restrirted funds relate to resources transferred from three Trusts in 2013, plus subsequent net income and investment gains and losse5 (see note l[j)). Invesiment management Costs are charged against each Fund. butother running costs are met by the General Fund of the Foundation. Grdnts are made in accordance with the objects of the original charities. as set out bElow. Where the obSects of a Fund require that preference is given to a particular constituency when applying a proportion of the Income. the Trustee5 give pretedertce to such appe8Js when considering applications. (121,794) 723.791 28.102.008 [51.049) 303.371 11.775,078 (215,853] 1.282,758 49.811.6S9 30
THE CLOTHWORKERS, FOUNDATION YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIALSTATEMENTS 17. 1yrHER REsTricfED FUNDS {eMli*ued) Eduratlon: The income 15 used to advance the eduL7tion of the public. with preference in respeLt of 7596 of the income being given to persons under age 25 who live I or attend educational esrabllshments in. or whose parents live in, Greater London. Relief In Need: A minimum of 92.5% olthe income is used to relieve hardship. subiert to the following preferences.. 4% to people who reside irA the tondon Boroughs of Islington and Canmlen,. then to people who reside in neighiN)uring boroughs and then to people who reside in Greater London,. 3% to people who reside in Greater knd0 then to people who live in neighix)uring counties.. and then to people who reside in the remainder of the U Welfare of the Blind.. A minimum of 0-third$ of the income is used to relieve hardshlp of people in the UK who are visually impaired. 18. ANALYSIS OF NEf ASSEfs BMVEEN FUNDS Other restrlcted funds [5ee notes 16and 17 lunds unre$trk funds Total Funds 2020 {se¢ ttote 15 Genera] Dèsi8naled Capltai Other Investments at market value Social investments at cost Flxed asset trdsh 90.550,204 1.471020 91071,952 49,831.640 232,253,796 zoo,000 200,000 63.169 63,169 7,465.800 [19.9BI) [6.968,144) 1313,340) 232,701,281 Current assets Current liabilities 6.915,800 (5.819.365) 550.000 (1.128.798) [313.340) 29,682 90,463.301 50.561.659 Long term treditors 1.096.435 90,550.204 Totsl funds include revaluation reserves of £28,135,686 [2019.. £26.537.6791 19. RELATED pARTyTRANsAIONS A majority of the Trustees of The Clothworker< Foundation are members of the Livery of The Clothworkers. Company. which Means that the two organisations are related parties. All transactions were entered into on normal cornrnercRai ternis. 31
THE CLOTHWORKERS. FOUNDATION YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS 19. RELATED PARTYTRANSACTIONS (contlthued) Transactions concerning related parties were a5 follows- 2020 2019 Amounts received}(paid) Donations.. The Clothworkers. Comparty Rarnteazle Limitsd Administrative seryice charges.. Ramteazle Limited S.596.000 104.000 3,988,000 112.000 (647,000) 1608.000) Debtors/(credltors) The Clothworkers. Company Ramteazle Limited (924) (846.381) (924) (76,175) Rarnteazle Limited ts a wholly owned subsidiary of The Clothworkers. mpanY. There were no potential conflicts of intsrest involvingTrustees. 3Z