We are pleased to enclose your annual accounts.
The Howard Foundation {Registered Charity Number 285822) Consolidated Annual Report and Financial Statements Year ended 5 April 2022
The Howard Foundation Contents for the year ended 5 April 2022 Page No Reference and AdministrativÈ Details Tru5tee5 Annual Report Statement of Trustee Responsibilities Independent Auditor's Report to the Tru5tee5 Constslidated Statement of Financial Activities io Charity Staternent of Financial Activities li Consolidated Balance Sheet 12 Charity Balance Sheet 13 Consolidated Cash Flow Statement 14 Notes to the Financial Statements 15 The following pagès do not form part of the statutory accounts Income and Expenditure Account 25
The Howard Foundation Reference and Administrative Details for the year ended 5 April 2022 Charity name The Howard Foundation Charity registration nurnber 285822 Principal Office 7 Marfleet Close Great Shelford Cambridgeshire CB22 SLA Administrative Office 17 Cricketers Approach Wrenthorpe West Yorkshire WF2 OJH Board of Trustees Mr5 J Lambert Ichairpersonl MTS A Fleet Professor D Thurnham Foundation Secretary Mr J L Howard Group's Accountant Mrs M Everett FCA Auditors SMH Jolliffe Cork Audit Ltd 33 George Street Wakefield WFI ILX
The Howard Foundation Report of the Trustees for the year ended 5 April 202Z The Trustee5 present their annual report together with the audited consolidaled financial statements of the Charity and its subsidiaries for the year ended 5 April 2022. The Trustee5 have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard pplicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191 and the Charitie5 Act 2011. Objectives and artivities Consttitution The Howard Foundation I'the FoLJndation-l is a registered charity and was constituted under a Trust Deed dated 24 October 1982. The Foundation's re815tered number and the addre55 of the principal office. together with details of the Trustees who served dLsrinB the period are included in the Reference and Administration Details on pa8e l. Objerts of the Foundation The Foundation was forrned by the late Dr Alan Howard, one of the country's leading nutritionists based at the Univer51ty of Cambridge, to prornote the Univer51ty of Cambridge and in particular bio-medical research. especially in the field of nutrition and health and for other hurnanitarian cause5. The Trustee5 confirm that they have referred to the guidance ctrntained in the Charity Commission's general guidance on Public Benefit when reviewinE the Foundation's aims and objectives and in planning future activities and setting the grant making policy for the year. The Foundation has interest5 in a number of patents as well as intellectual property I"IP~I such as trademarks, copyrights and scientific'know-how in specialist foods and food supplernents. The Foundation continues to carry out these objectives by way of grants to Downing College and to both the Chair in Human Nutrition and other research activities at the former Waterford Institute of Technology, Ireland IWITI which from May 2022 became the South East Technological University of Ireland I'SETU"). The Chair is currentlv held by Professor john Ntslan I"Prof Nolan"). The Trystees are able to confirm the Foundation's activities are conducted in accordance with the requirements of Section 4 of the Charities Act 2011 and the fulfilment of the Public Benefit provision and guidance published bv the Charity Commission for England and Wales. Gmnt moking poliry The Trustee5 consider grant prop05a15 falling Wlthin the Charity's Objects based on ability to improve its existing IP and know-how or, in the case of local Cambrid8e grants. the recipients. need and over311 efficacy of the proposed Erant. All research supported by the Foundation is required to be peer-reviewed and published in open scientific publications as well as on webslte5 Owned by the Foundation. The Foundation ha5 continued its research partnership with WIT Inow SETUI and Prof Nolan worklng towards the completion and publication of clinical trials relatingto Alzheimer's Disease. The results of the clinical trial IReMINDI has led to a paper being accepted by the JAD (Journal of Alzheimer's Disease) and publication is expected in the Summer of 2022. The International Brain and Oculai Nutrition IBONI conference is organised by the Foundation and the second conference, delayed by the pandernic, will be held 27-29th July 2022 in Cambridge. The5È activities will enhance the value of the Foundation's IP, including patent applications which are underway. One new Érant has been made in the finaricial year 2V23 which 15 for the SNIPE15port Nutrition Interyention in Performance Environment) project which 15 lookin8 at the influence of Lutein. Zeaxanthin and Meso-zeaxanthin on visual function and sports performance. This project is managed by NOW-Science IProf Nolan's company) in Waterford, Ireland and conducted by the NRCI INutrition Research Centre Ireland) at SETU and by Sport Singapore. Thi5 project forms part of the Pho funded by the Foundation at SETU and noted below.
The Howard Foundation Report bythe Trustees for the year ended 5 April 2022 (continued) Achievements and performan Churitable Artfvltles In May 2021, Prof Nolan and collea8ues e5tabli5hed a new and independent scientific certification for a55essing label claims of products containing carotenoids or omega-3 fatty acids. This is called Supplement Certified and came about through an original sugEestion by the Dr Alan HowaTd and is housed in the Howard Laboratory at the NRCI. In September 2021, three representative5 of the Foundation vi51ted NRCI to attend the Inaugural Alan Howard Lecture given by Prof Nolan and to disCUSS the potential funding of future research projects. A memorial service for Dr Alan Howard wa5 held in the Chapel at Downing College in October 2021 with live broadcast to both the Howard Theatre and the internet. It was recorded and remains available via the Foundation website. The Royal Society Of Medicine IRSMI held the Alon Howord Memoriol Lecture in December 2021. This was given by Professor Sir Stephen O'Rahilly and titled Celebrotlng the centenury of insulin. St wa5 chaired by Professor Sir John Cunningham and broadcast online. In December 2021, research sponsored bythe Foundation wa5 published in thejournal Clinical Nutrition. The paper by Rebecca Power. is titled Omegu-3 fotty ocid, Garotenoid t7nd vitamin E supplementution improves working memory in older odults.. A rondomised clinicol trial. In January 2022, selected scientifit and busines5 papers of Alan Howard and The Howard Foundation Group from 1960 to 2005 were delivered to the University Library at Cambridge by way of gift. Mrs Julie Lambert and Mr Jon Howard were each awarded a Foundation Fellowship at Downing Co51ege at a ceremony in February 2022. Julie is the first womari to hold a Foundation Fellowship. lon was already a Wilkins Fellow. The New5 Section on the Howard Foundation website Iwww.howard-foundation.coml is updated iegularly. In particular, pages were added for the memorial service and the lecture at the RSM. Financial review The Foundation owns subsidiary companies engaged in the comrnercial exploitation of IP right5 in nutriceuticals. The Foundation relies for its income on both an investment portfolio and GiftAid donations from these commercial subsidiaries which manage royalties from patents and trademarks, together with trading in nutriceutica15 under licensed agreements. The Foundation'5 only direct subsidiary is Howard Foundatiot) Holding5 Limited IHFHI. which manages and directs (Trne other active subsidiary trading company, namely Nutriproducts Limited INPI. HFH has received quarterly royalties fiorn Howard Foundation Research LimitÈd IHFRI. While royaltle5 have continued through FYIFinancial Yearl 21122. despite attempt5 to help find potential investors, HFR is expected to cease trading during the latter part of the FY 22123. The trading activities of NP continue to increase despite the COVID pandemic. The position of Macuhealth USA continues to be particularly strong. They capitalised on their direct connection with eye health professionals and Set up online training which helped to boost sales. They are also adding new online distributors and have adopted a new formulation with improved bioavailability resulting in part from research work funded by the Foundation at NRcI/wiT. It is expected that this will lead to increased sales in all territories. Macuprirne Ltd, based in Ireland and set up in April 2019, is the Macuhealth company for the UK and Europea market. They began sales in Ireland but the COVID pandemic held back their growth durtng FY20121 due to restrictions on travel and personal contact. They have continued to increase sales in Ireland and are becoming well represented in local pharmacies. The Macuhealth parent company are looking for ways to increase marketing and distribution into both the UK and other EU countries.
The Howard Foundation Report by the Trustee5 for the year ended 5 April 2022 Icontinuedl Flnancial review Itontlnuedl A company in Norway ha5 begun to market a new product usit)g ingredients from IOSA (the production partner for NP) that are covered by existing HFH patents and so generating a new royalty to NP. The major research activity funded by the Foundation in recent years has been tOWaTds supplements for blain health, in particular for the prevention and treatment of Alzheimer'5 disease. This has resulted in the 'Memory Health" produtt launched in the USA in 2018. Sale5 have been slowly increasing through online marketing. It is hoped that, as a result of the publication of the ReMIND papèr in the summer of 2022. sales will increase further during 2022 and 2023. Macuprime have now launched the product in EUIUK as 'ReMind" Iwww.remind.eul. HFH has continued the strategy for managing its patent portfolio that was adopted in 2021 with relevant patents being renewed during the period. A patent for "Prevention ond/or treotment of neurodegenerotive disease. was granted in Ireland in June 2021 and in Singapore in Septernber 2021. Patents have already been granted in the UK and USA. Further applications are pending. Gift Aid from HFH and NP had been paid regvlarly since the Foundation was founded up until 2018. This represented è majority of the subsidi31y's net profits year on year. In thi5 finantial year. gift aid of £284,000 has been rrade from the business to the Foundation. Both HFH and NP retain adequate working fund5 to manage themselve5 and invest in research and development. The major continuing commitrrent from the Foundation is for Howard Chair in Human Nutrition at SETU. There are pending di5CUs5ions as to whether the change from WIT to SETU will affect the current agreement but at present no significant change 15 expected. The costs of this commitrnent are more than coverÈd by the existing investments of the charitv. The Foundation has agreed to fund a FhD Student at SETU over four years lat É4.500 per academic yearl together with covering the costs of the SNIPE research projett (estimated at É83,500 to be paid in FY 221231. The Foundation is also funding the insta113tion of a tree sculpture. designed by the art15t Ai Weiwei. at Downing College with a plaque in memory of Dr Alan Howard. This is due to be installed in July 2022. The Foundation has offered to pay up to £28,250 towards this of which £12,500 was paid in February 2022. The remaining balance for this is estimated at £15,750. The Foundation 15 considering funding a second lerture at the Royal School of Medicine at a cost of £20.000. likely to be held in Autumn 2022. Investmentpolicy ondperformance The Foundation and it5 5ub5idiary IHFHI invest through Asset Management Cornpanies or directly throu8h an advised stock holding programme, backed by cash reserve5. The Foundation'5 investments are mainly held in Euro denominated or linked funds owing to commitments to the Chair at SETU and the associated research prDjectS being payable In Euros. Rlsk monagement The principal risks faced by the Foundation lie in the performance of its investments and operational risks from both ineffective grant making and performance of the trading subsidiaries. The main form of financial risk faced by the Foundation is that the primary income stream is from donation5 under Gift Aid from its subsidiary companie5 and this is dependent on them remaining profitable. The Trustees are in regular contact with the directors of the 5ub5idiaries and manage financial risk by only committing to future grants once the anticipated levels of profitability for each accounting period are reasonably certain. The Foundation also faces financial risk from the volatility in equity markets and investment markets due to wider economic ctsnditions. The Trustees manage the risk through 5è1eeting funds which are well manaeed bv experienced managers within reputable institutions. A spread of investments helps to reduce the risk of the portfolio as a whole.
The Howard Foundation Report by the Trustees for the year ended 5 April 2022 (continued) Achlevements and performance Icontinuedl Reserves pollcy The general principle of our reserves policy is to maintain syffitient investment5 to cover the comrnitment to the Howard Chair at SETU together with cover for unforeseen expenditure. The aim of our reserves policy for FY22123 is to.. Continue to maintain sufficient reserve5 to enable the Foundation to meet it5 exlsting grant obligations of 1661.044 to the Howard Chair at SETU. The current reserve held in euros is £711,698. Continue to fund the Howard Chair at SETU through Gift Aid donations from the trading subsidiaries. Maintain a level of unrestricted funds I£IOO,0001 to cover unforeseen expenditure such as a requirement for professional advice to reprÈsent and protect Foundation and the Tru5tee5 in the event of any claims involving research or other Foundation activities. Further information in respect of these obligations can be found in note 18 to the financial statements. The Foundation5' reserves consist mainly of the investments held with its Asset Managers and also the investment in it5 subsidiary undertakings, a lèree propc>rtic>n of which is a150 supported by investments held with its investment managers. The balance held a5 unrestritted funds by the Foundation as at 5 April 2022 was £2,534.96512021 £2,446.4161. Plans for the future The Foundation is currently committed to one research project ISNIPEI lasting until 5umrner 2023. This is using a new formulation which 15 covered by existing patents. This new formulation 15 to be marketed by Macuhealth a5 a new product. HFH continues to look to patent a5 much of its IP as possible. NP continues to work with IOSA Ilndustrial Organica S.A.. Mexico), Macuhealth USA, Macuprime EU and Mèmory Health USA to entourage the development of new markets. Strudure. governance and management Recruitment tsnd oppolntment oAnew Tnistees Mr5 Julie Lambert continues as chair. The Trustees who have served during the year and since the year end are set out on page one. The minimum number of Trustees is two and additional Trustees may be appointed at any time, but shall at no time exceed five. Orqanisutionol strurture The Trustee5 have delegated the day to day running of the Foundation to a management team comprising.. Mrs Julie Lambert. who 15 a director of b(>th HFH and NP a5 well as being chair of the Foundation,. Mr Jon Howard. who 15 a direttor of HFH and NP.. Mr Tom Povey as manager of HFH & NP; Mrs M J Everett ACA. who is the Financial Accountant. Mr Howard is the point of contatt for patents, trademarks. legal and contractual matters. Mr Povey is the main ontact with business partners. MTS Everett manage5 the trading operations. Mrs Lambert represent5 the TIu5tees. The directors hold regular video conferences with the manager together with regular email exchange. The financial accountant produces a quarter5y review trf account5 for the directors. The management team maintain regular contact with both Prof Nolan as the Howard Chair and with business partners. Trustees are updated regularly by the director5 by email, phone and informal meeting5, enabling interim monitoring of activities. The chair reported to the trustee5 in August and December 2021 and in March 2022. Induction ond training of new Trustees TTUStees are inducted into a knowledge of the Foundation's research activities and its Past and current charitable interests.
The Howard Foundation Report by the Trustees for the year ended 5 April 2022 Icontinued) Strutturè. governance and management Icontinuedl Trustee Activity Trustees are expected to attend two trustee meetings each year for discussions of the Foundation's work. Thev are 3150 encouraged to attend any research seminars and soci31 events associated with projects sponsored by the Foundation so as to understand the nature of the research and it5 commercial implications. Trustees responsibilitie5 in relation to the financial statement5 The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standard5, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practice). The law app5icable to charities in England and Wales require5 theTru5tees to prepare financi31 statement5 for each rinancial year which give a true and fair view of the state of affairs of the charitable group and of the income and expendsture of the charity for that period. In preparing these financial statements, the Trustees are required to select suitabSe accounting policies and then apply them consistently., observe the methods and principles in the Charity SORP,. make judgements and accountin8 estimates that are reasonable and prudent- state whether applicable accounting standards have been followed, 5ubjÈct to any material departures disclosed and explained in the financial statements, and prepare the financial statements on the going concern basis unless It 15 inappropriate to presume that the charity will continue in business. The Tfustees are responsible for maintaining proper accounting records which disclose with reasonable accuracv at any time the financial posltion of the charitable Group and to enable them to ensure that the financial statements comply with the Charities Act 2011. the applicable Charitie5 (Ateounts and Reports) Regulation5 2008 and the provisions of the trust deed. They are also responsible for safeguarding thè assets of the charity and hente for taking rèasonable step5 for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Independent auditors The auditors, SMH Jolliffe Cork Audit Ltd, have indicated their willingness to remain in office. and a resolution to reappoint them will be proposed at the Annual General Meeting. Approved by the Tru5tee5 and signed on their behalf by.. Mr5 J Lambert- Chalrperson Dated.. 15 August 2022
The Howard Foundation Independent Auditors, Report to the Trustees of The Howard Foundation Oplnlon We have audited the financi315tatements of The Howard Foundation Ithe'charity'l and its subsidiaTY undertakings I'the group'l for the year ended 5 April 2022 which comprise the Statement of Financial Acrivitie5. the Statement of Financial Position, the Statement of Cash Flow5 and notes to the financial statements, including the significant actounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standard5. including Financi31 Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practicel. In our opinion the financial statements: give a true and fair view of the state of the group's and the parent Charity's affair5 as at 5 April 2022 and of it5 income and expenditure for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IuKI11SA5 IUKII and applicable law. Our respon5ibilitie5 under those standards are furthÈr described in the'Auditor's responsibilities for the audit of the financial statement5, Section of our report. We are independent of the Charity in accordance with the FRC'5 Ethical Standard. and we have fulfilled our other ethical responsibilitie5 in accordance with these requirements. We believe that the audit evidence we have obtained 15 sufficient and appropriate to provide a basis for our opinion. Conclvsions relatlng to goin8 concern In auditing the financial statements, we have concluded that the Trustees. use of the going Concern basis of accounting in the preparation of the financial st3tementS 15 appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that, individually or collertively, may cast doubt on the Charity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sectitsns of this report. Other informatlon The othèr information comprises the information intluded iti the annual report. other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statement5 doe5 not coverthe other information and, except to the extent otherwise explicitly Stated in our report, we do not expres5 anyform of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, tonsider whether the other information 15 materially inconsistent with the financial statements or our knowledge obtained in the audit. or otherwise appears to be materially misstated. If we identify such materi31 inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to material mi55tatement in the financi31 statements themselves. If, based on the work we have performed, we conclude that there 15 3 material misstatement of this other information, we are rèquired to report that fact. We have nothing to report in this regard.
The Howard Foundation Independent Auditors, Report to the Trustees of The Howard Foundation Matters on which we are required to report by exception In the light of the knowledge and understanding of the Charity and environment obtained in the COUTse of the audit, WE have not identified material misstatements in the Trustee5' Report. We have nothing to report In respect of the foSlowin8 matters where the Charitie5 Act 2011 require5 US to report to yc)u if, in our opinion.. the information given in the Trustee5' Report is inconsistent in any material respect with the financial statements,. or sufficient accounting records have not been kept,. or the financial statement5 are not in agreement with thè accounting records and returns,. or we have not received all the information and explanations we require for our audit. Responsibilities of Trustee5 As explained more fully in the Statement of Trustees Responsibilities set out on page 5, the Trustee5 are responsible for the preparation of the financial statements and for being satisfied that they give a true and fail view. and for such internal control a5 the Trustees determine is necessary to enable the preparation of financial Statements that are free from fflaterial mi55tatement. whether due to fraud or error. In preparing the financial statements, the Trustee5 are responsible for assessing the ChaTity'S ability to continue as going ctsnrn, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. Our responslbllltles for the audtt of the financlal statements We have been appointed as auditor under Charities Act 2011 and report in accordance with the Act and relevant regulation5 madè or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements a5 B whole are free from material Thisstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but 15 not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatement5 can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basi5 of these financial statements. IrreEularities. including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with tsur responsibilities, outlined above. to detect material misstatements in respect of irregularities, includiff g fraud. The extent to which our procedvres are capable of detecting irregularities, including fraud is detailed below.. The extent to which the audit was consldered capable of deterting irrègularltles Including fraud Our approach to identifyin8 and a55es5ing the risks of material misstatements in respect of irregularities. including fraud and non-compliance with laws and regulations, was 35 follows.. the engagernent principal ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recogni5e non-compliance with applicable laws and regulations.. we identified the laws and regulations applicable to the Charity through discussions with the Trustees and other inforrned management which we considered may have a direct material effect on the financial statemenis or the operations of the Charity and thereafter, the audit team remained alert to instance5 of non- compliance throughot&t the audit.
The Howard Foundation Independent Auditors, Report to the Trustees ofThe Howard Foundation Our responsibilitie5 for the audlt of the financial statements We a55e55ed the susceptibility of the Charity's financial statement5 to material misstatement, including obtaining an understanding of how fraud might occur. by- making enquiries of rnanagement a5 to where they considered there was 5USteptibility to fraud, their knowledge of actual, suspected and alleged fraud and; considering the internal controls in place to miti8ate risks of fraud and non-compliance with laws and regulation5. To address the risk of fraud through management bTa5 and override of controls, we.. performed analytical procedures to identify any unusual or unexpected relationships; tested journal entrie5 to identify unusual transactions. a55essed whether judgement5 and assumptions made in determining the accounting estimates were indicative of potential bias.. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with law5 and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying 5upporttng documentation- enquiring of management as to actual and potential litl8ation and claims. reading the minutes of meeting5 of those charged with governance. There are inherent limitations in our audit procedures de5tribed above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify no)n-compliance with laws and regulation5 to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if anv. Material misstatement5 that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the 3udit of the financial Statements is located on the Financial Reporting Countil's website at www.frc.orE.uklauditorsre5ponsibilities. This description forms part of our auditOf'5 report. Use of our report This report is made solely to the Charity's Trustees, as a body. in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken 50 that we might state to the Charity'5 Trustees those matters we are required to state to the Trustees in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume re5pon5ibility to anyone other than the Charity and the CharitV'5 Trustees as a body, for our audit work, for this report, or for the opinions we have fortHed. SMH Jolliffe Cork Audit Ltd Chartered Accountants and Statutory Auditor 33 George Street Wakefield WFI ILX Dated.. Iq rtUJu4t 20>3
The Howard Foundation Consolidated Statement of Financial Activities {incorporatlng a consolidated Income and Expenditure account) for the year ended 5 April 2022 Unrestiicted Restricted Funds Fund5 Notes Total Unrestricted Restricted 2022 Funds Funds Total 2021 INCOME FROM 2 Investment5 39367 39.367 33,081 33,081 3 Donatlons fjnd legocles 4 Churitable activities 5 Trt7ding Artivities l.S69.134 1.569,134 1.383,355 1.383,355 1.608.501 1.608,SOI 1,416,436 1.416.436 EXPENDITURE ON 6 Investments 16,048 16.048 12,309 12,309 7 Chorltoble ortivities 162,988 162,988 167,187 167,187 5 Troding Attivltfes 1.338,012 1.338.012 1,239,142 1,239,142 1,517,048 1.517,048 1,418,638 1.418.638 Re3li5ed gain on dispos31 of Investments 11,394 11,394 15.010 15.010 13 Unrealised11055l/gain on fair value adjustments for inv&5ttllents {13.1321 113.33ZI 437.575 437,575 Taxation 19661 19661 6,550 6,550 NET INCOME FOR THE YEAR 88,549 88,549 456,933 456,933 Tran5fer5 between fund5 NETMOVEMENTIN FUND5 88,549 88.549 456,933 456,933 Total funds brought forward 2A46A16 2.446,416 1,989.483 1,989,483 17 TOTAL FUNDS CARRIED FORWARD 2.534,965 2.534.965 2,446,416 2.446,416 The statement of financial activities includes all gains 3nd losses recogni5ed in the year. All income and expenditure derives from continuing activities of the group. io
The Howard Foundation Charity Statement of Financlal Artivities for the year ended 5 April 2022 Note5 Unrestricted Restrlcted Funds Funds Total Unrestricted Restricted Z022 Fund5 Funds Total 2021 INCOME FROM 2 Investments 155.243 155,243 16.115 16,115 3 Donotions and legucles 284,¢X)O 284.lJOO 4 Charitoble ortivitles 439.243 439,243 16.115 16.115 EXPENDITURE ON Roisingfunds Investment management costs 5.Z03 5,203 4,162 4,162 Choritoble ortlvities.. General Howard Foundation Chair of Human Nutrition at SETU reMIND Donations & sponsorship- Dr A Howard memoria1 lecture Dr A Howard memorial tree DowTring college 10.164 10,164 12,774 12,774 103,124 16,100 103.124 16,ICKI 98,714 55,699 98,714 55,699 20.000 12,5 1,100 20,¢AIO 12,500 1.100 168,191 168.191 171,349 171,349 Reali5ed1105sllgain on disposal of Investments Net Ilossesllgains on fair value adjustments for Investments 1182,5031 1182.5031 612,167 612,167 NET INCOME FOR THE YEAR 88,$49 88.549 456,933 456,933 Transfers between funds NETMOVEMENTIN FUNDS 88.549 88,549 456,933 456,933 Total funds brought forward 2.446A16 2.446,416 1.989.483 1,989.483 TOTAL FUNDS CARRIED FORWARD 2.534,96S 2,534,965 2,446,416 2.446,416 The statement of flnancial activities include5 all gains and losses recognised in the year. All income and expenditure derives frorn continuing activities.
The Howard Foundation Consolidated Balance Sheet as at 5 April 2022 Notes 2022 2021 Flxed assets li 12 13 Intangible assets Tangible assets Investments 213.204 3,117 1,989,109 254,319 6,777 1,938,569 2.205,430 2,199,665 Current assets 15 Debtors Cash at bank and Short term deposits 101,118 366,166 227.361 226.792 467.284 454,153 Llabilitie5 16 Creditors: Amounts fallin@ due within one year 136,783 207,402 Nèt cuNent assets 330,501 246,751 Total 35sets less current liabilitles 2.535.931 2,446,416 Provlsion for liabilities 966 Total net assets 2.534,965 2.446.416 The funds of the Charity 17 Unrestricted funds 2.534,965 2,446,416 Total Charity funds 2,534,965 2,446,416 The flnanclal statements were approved bythe Trustees on 15 August 2022 and signed on their behalf bv.. Mrs J Lambèrt- Chalrperson Mrs A Fleet Mr urnh3m 12
The Howard Foundation Charity Balance Sheet as at 5 April 2022 Notes 2022 2021 Flxed Assets 14 Investrnent5 2,343,812 2,533.110 Current Assets 15 Debtor5 Cash at bank 19.489 175,264 1,193 72.508 194,753 73.701 Credltors 16 Amounts falling due within one year 3.600 160,395 Net Current AssetsllLiabllitiesl 191.153 186.6941 Total assets less current Ilabilities 2.534,965 2.446,416 Net assets 2,534,965 2.446,416 Thè funds of the Charity 17 Unrestricted funds 2.534.965 2,446,416 Total Charity Funds 2,534,965 2.446,416 The financial statements were approved by the Trustee5 on 15 August 2022 and signed on thelr behalf bv: (arfeJk Mr5 J Lambert- Chalrperson Mrs A Fleet Mr DThurnham 13
The Howard Foundation Consolidated cash flow statement for the year ended 5 April 2022 Group Charfty 2022 2022 2021 2021 Net cash provided byllused in) operating activities 174,303 96,841 159,2821 13,3241 Cash flows from Investlng artivities: Dividend5 and interest from investments Purchase of taTr8ible fixed assets Purchèse of intangible fixed assets Purchase of fixed assets investrnent Sale of fixed asset5 Investment 39,367 33,081 17331 13511 19,6741 151,7021 1100,7521 1148,0521 36,880 152.309 155,243 16,115 119,2401 116.1161 26,035 64,162 Net cash (used Inl I provided by investing activities 134,9121 114,7151 162,038 64,161 Change in tash and cash equivalents in the year 139.391 82,126 102,756 60,837 Cash and cash equivalents at the beginning of the year 266.775 144,649 72,508 11,671 Cash and cash equivalents at the end of the year 366,166 226,775 175,264 72,508 Reconciliation of net lexpenditurelllncome to net cash flow from operating activities Group Charity 2022 2022 2021 2021 Nèt income / expenditure for the year la5 per the statement of financial attivitiesl 89.515 450,383 88,549 456,933 Adlustments for.. Depreciation charges Unrealised105s/lgèinl on investment Dividends and interest frorn investments Iprofitl/Loss on disposal of tangible fixed assets Decrease/llncreasel in debtor5 IDecreasel/incre3se in creditors Tax paid 55,182 13,332 139,3671 58,045 1437,5751 182,503 1612.1671 133.0811 1155,2431 116.1151 276,243 202,516 118,2961 1220,6021 1149.9971 1156,7951 6,550 11,231 156,794 Net cash provided byllused inl operating artivities 174,303 96,841 159,2821 13.3241 14
The Howard Foundation Notes to the Financial Statements for the year ended 5 April 2022 A¢UntIng pollcles Basis of prepumtion The group and individual financial statements of The Howard Foundation Ithe 'Foundation'l have been prepared under the historical cost convention with iteThs recognised at a cost or transaction value unless otherwise stated in the relevant notes to these financial statement5. The financial statements have been prepared in accordance with the Statement of Recommended Practice. The Trustee5 have adopted the provisions of Accounting and Reporting by Charitie5'. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of ITeland IFRS 1021 leffective l January 20191 and the Charitie5 Act 2011. The Foundation meets the definition of a public benefit entity under FRS 102. The functional and presentatioin Ck5rreney for the group is sterling (£1. All financial information presented ha5 been rounded to the nearest 1£), unle55 0therwi5e Stated. Golng COnM The current economic conditions continue to present intreased risks for all charities. In iespollse to such uncertain conditions. the Trustees continue to con5idei these risks carefully and the extent to which they might affect thè preparation of the financial statements on a going concern basis. Following the improvement in the financial situation in this financial year. the Foundations, forecasted grant commitments are now le55 than thè valuation of its investments. The Trustee5 have a reasonable expectation that the Foundation will maintain adequate solvency to continue in operational existence for the foreseeable future. ActordinEly. the Trustees have adopted the going concern basis in preparing these financial statements. Bo515 ofconsolidotion Con501idated financial statements have been prepared for the Foundation and its subsidiary undertakings on a line-by-line basis. A separate Statement of Financial Activities for the Foundation ha5 been included on page 11. Incomlng resources Income is recognised once the Foundation has entitlement to the funds, any performance conditions relating to the itemlsl of income have been met, it 15 probably that the incorne will be received and the amount can be measured reliablv. Amounts receivable under gift aid donations are recognTsed when the Foundation has been notified of both the amount and the settlement date. Any amounts of Gift Aid not received by the year end are accounted foT in income and accrued irTrctsme in debtors. Income from pooled investment vehicles is accounted for when declared by the fund manager. Royalty income which 15 included on a receiv3ble ba515 calcu13ted on 53le5 of products arising during each accounting period as reported by licen5ee5. Where royalty income receivable is based on a one off settlement, the income is credited to the income statement evenly over a ten year period. No account of royalty income 15 made until the litigation against a particular supplier is settled. Resources expended Liabilities are recognised a5 expenditure Hs 500n as there is a legal or constructive obli8ation committin8 the Foundation to that expenditure. it is probable that a transfer of economic benefit5 will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accrua15 basis and ha5 been classified under headings thèt aggreEate all cost related to the category. Where costs cannot be directly attributed to particular heading5 they have been allocated to activities on a basi5 consistent with the use of resource5. 15
The Howard Foundation Notes to the Financial Statements for the year ended 5 April 2022 Accounting pollcle5 (continued) Grants payable are payment5 made to third parties in the furtherance of the charitable objective5 of the Foundation. Single or multi-year erants are accounted for when either the recipient ha5 a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition. or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the 8rant IS Qutside of the control of the Foundation. Allocutffon ond opportlonment of costs Support costs have been allocated between governan¢e costs and other support Costs. Governance costs Comprise all costs involving the public accountability of the Foundation and Its compliance with regulation and good practice. Fund orcounting Unrestricted funds tan be used in accordance with the charitable objectives at the discretion of the Trustees. Restricted funds can only be used for particular restricted purposes within the objects of the Foundatlon. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Investments- Chorlty only Investments in unlisted companies. where there is no readily identifiable markèt price, are recorded at cost less impairment. The trustee5 determine the nèed for an impairment by reference to the underlying net a55ets of the consolidated group of companies. Investments- Group Pooled investment vehicle5 are valued by reference to bid prices at the close of busine55 on the reporting date. Reolised galns und losse5 All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losse5 on investments are calculated a5 the difference between the sale5 proceed5 and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial yÈar. Unreali5ed gain5 and losses are calculated as the difference between the fair value at the year end and their carrying valuè. Realised and unrealised investment gains and losse5 are cornbined in the Statement of Financial Activitie5. Potents ond trademarks The legal fee5 associated with the registering of patent5 and trademarks are c3Pltalised to in relation to new applications. AmortlSation is calculated so a5 to write off the c05t of an a55et. less it5 estimated residual value, over the useful economic life of that asset as follows.. Patents Trademarks IO% per annum IO% per annum 16
The Howard Foundation Notes to the Financial Statements for the year ended 5 April 2022 Accounting policies Icontinuedj Tongiblefixed ussets Depreciation is prcivided at the following annual rates in order to write off each a55et over it5 estimated Plant and machinery Fixtures and fittings Computer equipment 20 % and IO% per annum - IOYO per annum - 33% per annum All fixed assets are initially recorded at cost. Toxotion- Charityonty The Howard Foundation 15 a registered charity and as such tax exemption applies to the income arising from and expended on charitable activities and to its investment income and gains. Taxation- Group Taxation for the year comprises current and deferred tax. Tax is recogni5ed in the Staternent, except to the extent that it relates to items recognised in other comprehensive income or directly in equitv. Curreni or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. Deferred tax- Gmup Deferred tax is rectrgnised in respect of all timing differences that have originated but not reversed at the statement of financial posltion date. riming difference5 arise from the inclusion of Income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or 5ub5tantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Unrelieved taK10sses and other deferred tax assets are recogni5ed only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Research ond development Expenditure on research and development is charged to the profit and105s account in the year in which it is incurred with the exception of expenditure on the development of projects where the ovtcome of those projects is assessed as being reasonably cÈrt3in as regards viability and technical feasibility. Such expenditure 15 capitalised and amort15ed once commercial production begins. Forei9n currencie5 A55ets and liabilities in foreign currencie5 are translated into sterling at the rate5 of exchange ruling al the statement of financial position date. Transactions in fc*reiEn currencie5 are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. Penslon costs ond otherpost-retirement benefits Howard Foundation Holdings Limited operate5 a defined ctsntribution pension scheme. Contributions payable to the company's pension scheme are chareed to profit or105s in the period to which they relate. Irrecoverable VA T Irrecoverable VAT is charged a8ain5t the expenditure heading for which it was incurred. 17
The Howard Foundation Notes to the Financial Statements for the year ended 5 April 2022 Group Charlty 2022 2022 2021 2021 Income from Investmènts Managed funds Dividends from 5ub5idiary undertakings Deposit income 39,362 33,041 19.243 136.000 16,115 40 39,367 33,081 155.243 16,115 Income from donations and legacies Donation5 undei Gift Aid from subsidiaries 284.000 Income from charitable activities Brain and Ocular Nutrition Conference Contribution towards reMIND Income and expendÈture from trading activltles The trading results of Howard Foundation Holdings Lirnited and tts subsidiary undertakings is set out below- 2022 2021 Inwme Income from trading activities 1,569,134 1,383,355 Expenditure Cost of sales Distribution costs Administrative expenses 1927,4441 1792,5781 1136,7821 1128.3711 1273,7861 1318.193 11,338,0121 11.239,1421 Group Chartty 2022 2022 2021 2021 C05t of raising funds Investment management fees 16,048 12.309 5,203 4,162 16.048 12.309 4,162 18
The Howard Foundation Notes to the Financial Statements for the year ended 5 April 2022 Expendlture from charltable actlvltles 2022 Grant Dirert funding of Support Costs artivities costs Isee note 91 Isee note 101 Totals General Howard Foundarion Chair of Human Nutrition èt SETU Re-MIND Donations & sponsorship- Dr A Howard memorial letture Dr A Howard memorial tree Downing college 6,477 3,687 10,164 103,124 11.719 103,124 16,100 4,381 20,CfftI 12,500 I,ioo 20,CM)) 12,51)0 1,100 10,858 148A43 3.687 162,988 2021 Grant funding of Support actbvities Costs Isee note 9115ee note 101 Direct Costs Totals Gèneral Howard Foundation Chair of Human Nutrition at WIT Re-MIND Donations & sponsorship- Dr A Howard memorial lecture Dr A Howard memorial tree Downing college 9,003 3,771 12,774 98.714 16,179 98,714 55,699 39,520 48,523 114.893 3.771 167,187 19
The Howard Foundation Notes to the Financial Statements for the year ended 5 April 2022 2022 2021 Grants payable The grants paid to institutions during the year were as follows.. ISETUI South East Technological Univer51ty, Ireland Downing College 114,843 33,600 114.893 148,443 114.893 Support costs Trustees expenses Audit, accountancy and other professional fee5 87 3,600 171 3,600 3,687 3,771 These costs are 311 difectly attributable to the charitable activitie5 of the Foundation. io Group net incoming resources for the year The net incoming resources is stated after cha Tging / Icreditingl.. Re31ised gain5111055esl on disposal of investments Unrealised gains/llossesl on fair value adjustment for investments Auditors. remuneration.. Audit fees Other services 11,394 15,OlQ 113,3321 437,575 3.600 9.600 3,600 9,600 20
The Howard Foundation Notes to the Financial Statements for the year ended 5 April 2022 li Intangible fixed assets- Group Patents and trademarks Research and Development costs Totals C05t At 6 April 2021 Additions DTsposals 559.472 9,434 38.380 240 597.852 9.674 At 5 April 2022 568.906 38,620 607,526 Amortisation At 6 April 2021 Amortisation for year Disposals 318,408 48,020 25.125 2,769 343,533 50.789 At 5 April 2022 366,428 27,894 394,322 Net book value At 5 April 2022 202,478 10.726 213,204 At 5 April 2021 241,064 13,255 254,319 12 Tanglble fixed assets- Group Flxtures and Fittings Plant and Machinery Computer Equipment Total Cost At 6 April 2021 Additions Donations 21.165 41,630 10,188 733 72,983 733 At 5 April 2022 21,165 41,630 10,921 73,716 Depreciation At 6 April 2021 Charge for year Donètions 19,274 1,594 37,056 2,360 9,876 439 66,206 4,393 At 5 April 2022 20,868 39.416 10,315 70.599 Net book value At 5 April 2022 297 2.214 606 3,117 At 6 April 2021 1,891 4,574 312 6,777 21
The Howard Foundation Note5 to the Financial Statements for the year ended 5 Aprll 2022 13 Investments- Group Pooled investment vehicles 2021 2022 Market value At 6 April 2021 Additions Di5P05a15 Fair value / impairment adjustments 1.938,569 1,505.251 100,752 148,052 136,8801 1152,3091 113.3321 437,575 At 5 April 2022 1,989,109 1,938,569 14 Inve5tment5- Charity Shares in Pooled Subsidiary investment Undertakings vehicles Totals Market value At 6 April 2021 Additions Di5PQ5815 Fair value / impairment adjustments 1,651,193 881,917 2.533,110 19,240 19,Z40 126.0351 126,0351 119.6611 1182.5031 1162,8421 At 5 April 2022 1.488.351 855,461 2,343,812 At S April 2021 1,651,193 881,917 2,533,110 The Foundation owns 100% of the issued Share capital of Howard Foundation Holdings limited. This company in turn owns 100% of the issued share capital of Nutriproducts Limited and Nutrition Limited. All of the subsidiary undertakings are re815tered in England and Wales. In respect of the active companies.. Company Number 01932630 02351500 Shareholders Funds (£1 1,214,956 373A03 Subsidiary Undertaking How3rd Foundation Holdings limited Nutriproducts Limited The consolidated performance of these active subsidiaries can be found in note 5 to these financial Statements. 15 Debtor5 Group Charity 2022 2022 2021 2021 Trade debtors Amounts owed by subsidiary undertakin85 Taxation recoverable Other debtors Prepayment5 and accrued income 72,527 224.771 28,591 2,590 19,489 1,193 101.118 227,361 19.489 1,193
The Howard Foundation Notes to the Financial Statements for the year ended 5 April 2022 16 Creditors.. Amounts falling due within one year Group Charity 2022 2021 2022 2021 Bank loans and overdrafts Trade creditors Amount5 owed to 5ub5idiary undertaking5 Tax Socia5 security costs and other taxes Other creditor5 Accrual and deferred income 17 93,455 11,443 150,0 6,324 27 118.989 6.673 107,257 3,600 10,395 136.783 207,402 3,600 160,395 17 Movement in funds- Charlty Net movement in funds At 6.4.21 At 5.4.22 Unrestrlcted funds Genera5 fund 2,446,416 88,549 2,534.965 Total funds 2,446,416 88,549 2,534,965 Incoming Resources ReSoUrS expended Gains and Movement losses In funds Unrestricted funds General funds 439.243 1168.1911 1182,5031 88,549 Total funds 439.243 1168.1911 1182,5031 88,549 Comparatives for movement in funds Net movement In funds At 6.4.20 At 5.4.21 Unrestrlcted furtds General fund 1,989,483 456,933 2,446.416 Total funds 1,989,483 456.933 2,446,416 Comparative net movement in funds, included in the above are as follow5= Incoming Resour$ Galns and Movement Resources expendèd 1055es in funds Unrestrlcted funds General funds 16,115 1171,3491 612,167 456,933 Total funds 16,115 1171,3491 612,167 456,933
The Howard Foundation Notes to the Financial Statements forthe year ended 5 April 2022 18 Other financlal commitments The Foundation has committed to South East Technological University ISETUI that it will provide sponsorship of the'Howard Chair in Human Nutrition. for a period of 10 years from l October 2016 until 30 September 2026. As at 5 April 2022 the remaining amount payable under this agreement 15 £661.04415 April 2021.. É734.0731. The Foundation will be released from this commitment should the current Profe550r to whom the endowment has been allocated leave the employment of South East Technological Universitv and a suitable replacement cannot be found. The Foundation 15 a150 cornmitted to support a research project between the NRCI (Nutrition Research Centre Ireland) at SETU and Sport Singapore. Known as SNIPE (Sport Nutrition Intervention in Performance Environment) the Outstanding commitment in FY22123 is around É83,500. This is associated with a PhD programme at SETU which the foundation 15 funding at £4,500 per year starting September 2022 and giving an outstanding comrnitment of £18,000. The final outstanding commitment 15 for the completion of the tree sculpture at Downing College for which £15,750 15 reserved. 19 Related party di5tlosure During the accounting peiiod the Foundation received £284,0(X) 12021.. £nill under Gift Aid from its subsidiary undertakings. 24
The Howard Foundation Income and Expenditure Account for the year ended 5 April 2022 2022 Total funds 2021 Total funds Unrestricted Restricted funds funds INCOME Donations and legacies Gift 3id 284,000 284,000 Other charitable artivities Brain and Ocular Nutrition Conference Re-MIND Investment income Deposit account interest Managed funds- dividends receivable Dividends from subsidiary 19.243 136.000 19,243 136,000 16.115 155,243 155.243 16.115 Total incoming resources 439,243 439,243 16,115 EXPENDITURE Investment manègement costs Portfolio management 5,203 5.203 4,162 Charitable activltSes Sundries IProfitl/L055 on foreign exchange 8rain & Ocular Nutrition Research Bank charge5 Grant5 to institutions 2,747 3,609 4.380 122 148,443 2,747 3,609 4,380 122 148.443 72 9.157 39,520 12261 114,893 159.301 159,301 163.416 Governance costs Trustees, expenses Audit and legal fees 87 3.600 87 3,600 171 3.600 3,687 3.687 3.771 Total resOurS expended 168,191 168,191 171,349 Net lèxpenditurelllneome before gains and Losses 271,052 271.052 1155,2341 Reallsed recogni5ed galns and losses Realised gainslllossesl on fixed asset investments 1182,5031 1182,5031 612,167 Net lexpenditurellincome 88,549 88.549 456,933
T: 01924 376045 www.suttonmcgrathhartley.co.uk