We are pleased to enclose your annual accounts.
The Howard Foundation (Registered Charity Number 285822) Consolidated Annual Report and Financial Statements Period ended 31 July 2023
The Howard Foundation Contents for the period ended 31 July 2023 Page No Reference and Admini5tiative Details Trustees Annual Report Statement of Trustee Responsibilities Independent Auditorfs Report to the Tru5tee5 Consolidated Statement of Financial Activities io Charity Statement of Financial Activities li Consolidated Balance Sheet 12 Charity Balance Sheet 13 Con501idated Cash Flow Statement 14 Notes to the Financial Statements 15 The following pages do not form part of the statutory accounts Income and Expenditure Account 25
The Howard Foundation Reference and Administrative Details for the period ended 31 July 2023 Charity name The Howard Foundation Charity registration number 285822 Board of Trustees Mr5 J Lambert Ichairper50nl Mrs A Fleet (resigned 12 April 20231 Professor D Thurnham Dr A R Leeds (appointed 12 April 20231 Mr A P Lambert lappointed 12 April 20231 Foundation Secretary Mr l L Howard Principal Office 52 Woodpecker Way Witney Oxfordshire OX28 6NN Administrative Office 17 Cricketers Approach WrÈnthorpe West Yorkshire WF2 OJH Group's Accountant Mr5 M Everett FCA Auditor5 SMH lolliffe Cork Audit Ltd 33 George Street Wakefield WFI ILX
The Howard Foundation Report of the Trustees for the perlod ended 31 July 20Z3 The Trustees present their annual report together with the audited Consolidated financial statemÈnts of the Charity and its subsidiaries for the period ended 31 July 2023. The Trustees have adopted the provisions of Accounting and Reportin8 by Charities. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective I january 20191 and the Charities Act 2011. Objectives and activities Constitution The Howard Foundation I'the Foundation") is a registered charity and was constituted under 3 trust deed dated 24 October 1982. The Ftsundation's registered number and the address of the principal office, together with details of the trustees who served during the period are included in the Reference and Administration Detai15 on page l. Objects of the Fourtdatlon The Foundation wa5 formed by the late Dr Alan Howard. one of the country's leadine nutritionists based at the Univer51ty of Cambridge, to promote the Universlty of Cambridge and in particular bio-medical research, especially in the field of nutrititsn and health and for other humanitarian cause5. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on Public Benefit wheri reviewing the Foundation's aims and objÈrtives and in planning future activities and sÈtting the grant making policy for the year. The Ftsundation continue5 to carry out these objective5 by way of grant5 to Downing College and to both the Chair in Human Nutrition and other research activities at the South East Technological University of Ireland I'SETU'I. The Chair 15 held by Professor John NoSan I"Prof Nolan"). The Trustees are able to confirm the Foundation's activities are conducted Èn aceordance with the Tequirements of Section 4 of the Charities Act 2011 and the fulfilment of the Public Benefit provision and guidance publishèd by the Charity Commission for England and Wale5. Grfjnt making pollry Prior to 16 March 2023, the Trustee5 considered grant proposa15 falling within the Charity's Object5 based on ability to improve its existin@ intellectual property I'IP") and know-how or, in the case of local Cambridge 8r6nt5, the recipients, need and overall efficacy of the proposed grant. On 16 March 2023, the Trustees of the Foundation concluded the sale of the Patents held by Howard Foundation Holdin85 together with the intellèctual property held by the Foundation itself to Maravilla LLC, a US company owned by two long-standing busine55 Partners. IOSA and the Avantlus Group. The future policy for making grants. together with a re-alignment of the Trust Deed, is to be reviewed at a future meeting of the Tru5tee%. The Foundation may tontinue tts sponsor scientific research where all Such research is required to be peer- reviewed and published in open scientific publications as well as on web51te5 owned by the Foundation. The Foundation has continued its ¥esearch partnership with SETU and Prof Nolan. The results of the clinical trial IReMINDI led to a paper being atcepted by theJourntslofAlzheimerfs Disease I'JAD") in Au8U5t 2022 and published in JAD 90. pages 233-249. One new research grant Wa5 made in the financial year 22123 which is for Èhe Sport Nutrition Intervention in Performonce Environment l-SNIPE~I project which is looking at the influence of Lutein. Zeaxanthin and Meso- zeaxanthin oin visual function and sport5 performance. This project is managed by NOW-Science (Prof Nolan's company) in Waterford, Ireland and conducted by the NRCI (Nutrition Research Centre Irelandl at SETU and by Sport Singapore. This project forms part of the PhD funded by the Foundation at SETU and noted below. Additional sponsorshlps by the Foundation include". a second memorial lecture at the Royal Society of Medicine,. the creation of Cedor 2022. a sculpture by Ai Weiwei which now stands in First Court at Downing College and financing the catalo8uin8 of the papers from Dr Howard by the CambridEe Universlty Library. The Foundation agreed to set up the Howard Foundation Postgraduate Travel Scholarship in STEM subjects at Downing College for the total sum of £40,000 to be used over 4 years from 2023 to 2026.
The Howard Foundation Report bythe Trustees for the period ended 31 July 2023 (continued} Achievement5 and performance Chorituble Activitffe5 The BON (Brain and Ocular Nutritionl conferente was held 27-29th July 2022 in Cambridge. This was the fifth conference on Macular Carotenoids sponsored by the Foundation. Thi5 conference, held over from 2021 due to the pandemic, wa5 attended by over 130 scientists and commercial partners. There were twenty-four scientific presentations and a number of poster presentation from young researchers. The organisinE committee made a special effort to encourage younger scientists to participate. Each of the nine scientific se55ion5 had two Chair5 with one being a young researcher. A lifetime achievement award wa5 presented to Mr José Torres, the founder of IOSA. to honour hi5 rerllarkable career in the development of production techniques for the ingredients of supplements containing carotenoids and towards sponsoring research into their application5. The BON committee, working together with the Howard Foundation. plan for the next confeTence to be held for the first timè in the USA in 2025. In recognition of its 40 anniversary, the Foundation sponsored a lecture at the Royal Socieiy of Medicine on 28 November 2022. This was given by Profe550r Mark Emberton and was titled Seeing is believing the transformotion of pr05tote concer munogement over the lost decade. In January 2023, Howard Foundation Research Limited announced the closure of its Lipotrim programme. This resulted in the loss of future royalty income to HFH. At the Trustee meeting in April 2023. Mrs Alice Fleet stepped down as a trustee. Anthony Leeds and Alistair Lambert have joined as new Trustees. Thi5 bling5 the number of Trustees to four, within the maximum of five allowed by the Trust Deed. In May 2023, a dedication ceremony was held in First Court at Downing College to unveil a plaque to cornmemorate both the creation of Cedor 2022 and the contribution of Dr Alan Howard to Downing College as alumnu5, nutritionist and benefactoi. The event was attended by Tru5tee5 and associates of Dr Howard. Mrs Julie Lambert, Foundation Chair, unveiled the pSaque. Cedar 2022 is a sculpture by Ai Weiwei using wood from the blue atlas cedar tree that used to stand in the East Lodge garden at Downing. The tree had succumbed to a disease and had to be felled as it Wa5 unsafe. In August 2023, the Chair ènd secretary travelled to Waterford for the second Alan Howard memorial lecture at SETU. They took the opportunity to hear presentations from researchers at NRCI Ithe Nutrition Research Centre Irelandl. These presentations were then made available in the new shared document Store for Trustees to view. The News section on the Howard Foundation website Iwww.how3rd-foundation.coml is updated regularly. In particular. pages were added for the memorial service and the lecture at the Royal Society of Medicine I'RSM'I. Financial review The Foundation's only direct subsidiary in this financial year was Howard Foundation Holdings Limited IHFHI. which managed and directed one other active subsidiary tradln@ company. namely Nutriproducts Limited INPI. On 16 March 2023, the patents held by HFH and the IP rights in nutriceuticals held by the Foundation were sold to Maravilla LLC, 3 US company formed by two long-standing busine55 partners, IOSA and Avantius. The contract for the sale was drawn up by Birketts, solicitor5 in Cambridge, England and approved by the Tru5tee5. NP ceased tradin8 after thi5 Sale and is in the proces5 of winding up. To facilitate this, the financial years for HF and its subsidiaries were extended to end on 31 July 2023. Due to Charity Commission rules, this year end date for HF cannot now be changed again for three years. The sale of patents and IP to Maravilla provides HFH with three payments of £376,000 in April and SepterHber 2023 with a final payment in March 2024. Following this third payment, HFH will itself become dormant The sale also gives a quarterly income to the Foundation starting in March 2024 and continuing until March 2031. In addition, Maravilla will give the Foundation payments according to the percentage growth in its sales from the previous year. Growth payments start in January 2024 with a final payment in January 2032. The measurements for growth and the relatèd payments are detailed in the Sale contract. Additional legal documents were drawn up by a US Lawyer to help Safeguard these payments.
The Howard Foundation Report bythe Trustees for the period ended 31 July 2023 (continued) Ftnanclal review lcontlnuedl Prior to the sale. the Foundation relied for its income on both its own investment portfolio and Gift Aid donation5 from these commercial sub51diaries. In this financial period, Gift Aid of £870,832 has been made from the business to the Foundation. The Major continuing commitment from the Foundation is for the Howard Chair in Humall Nutrition at SETU. There are pending discussions 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 thi5 commitment Icurrently É501,28513re more than covered by the existing investments of the charity. The Foundation continues the funding of a PhD student at SETU over four years13t É4,500 per acadernic year with two further years to payl together with covering the costs of the SNIPE research project which were paid in this financial year. Investment policy gnd perftprmtsnce The Foundation and its sybsidiaiy IHFHI invest through A55et Management Companies or directly through an advised stock holding programme, backed t>y cash reserves. The Foundation's investment5 are mainly held in Euro denominated or linked funds owing to commitments to the Chair at SETU and the associated research projects being payable in Euros. During FY23124, the investment5 held by HFH will be tiansferred to HF. Rlsk munugement In future, the principal risks faced by the Foundation will lie in the perforrrance of its investments and operational risk5 from ineffective grant making. Incorne resulting from the Sale of patents and IP was agreed to be in GBP and therefore not subject to variations in the exchange rate. Note that the'growth payments" mentioned in the Finance Review above will be in USD. The Foundation also faces financial risk from the vtrlatility in eouity markets and investment markets due to wider economic conditions. The Trustees mana8e the risk through selecting funds which are well managed by experienced managers within reputable institutions. A spread of investments helps to reduce the risk of the portfolio as a whole. Reserve5 policy The general principle for our reserves policy is to maintain Sufficient investments to cover the commitment to the Howard Chair at SETU together With cover for unforeseen expenditure. The aim of our reserves policy for FY23124 is to.. Continue to maintain unrestricted reserves to enable the Foundation to meet its eKlSting Erant obligations of £514,785 to the Howard Chair at SETU. The current reserve held as investments in eur05 as at 31 July 2023 15 É1,350,164. Plan to extend the funding of the Chair at SETU to July 3031 with the total commitment 'ring-fenced" in the inve5tment5 and payments to SETU balanced by the future income from Maravilla until March 2031. Maintain a level of working capital I£IOO,0001 to cover unforeseen expenditure such as a requirement for professional advice to represent and protect the Charity and the Trustees in the event of any claims involving research or other trust activities. Further information in respect of these obligations can be found in note 19 to the financial statements.
The Howard Foundation Report by the Trustees for the period ended 31 July 2023 {continued) Achievements and performan Icontlnuedl Plans for the future The Foundation is currently committed to one research project ISNIPEI lasting until 2025. This is u5in8 a new formulation which is covered by existing patents. This new fortllulation is to be marketed by Matuhealth as a new product. At the Trustees meeting in October 2023, it was agreed to sponsor a further lecture at the RSM in 2024 for a donation not to exceed £25,000. Also at the meeting, the Chair and Secretary werÈ asked to review the current Trust Deed with Claire Lawton at SMH Jolliffe Cork Audit Ltd and to propose changes to be reviewed at a future meeting. Structure, governance and management Recruitment und oppointment of new Trustees Mrs Julie Larnbert continues a5 chair. OneTrustee (Alice Fleet) stepped down during the year and two newTrustees IAnthony Leeds and Alistair Lambert) have been appointed giving a total of four Trustees. The minimum number of Trustees is two and additional Trustees may be appointed at any time but shall at no time exceed five. Orgunist7tionol strurture Currently the Trustees have delegated the day to day running of thè Foundation to a management team compiisin@.' Mrs Julie Larnbert, who is a director of both HFH and NP a5 well a5 being Chair of the Foundation; Mr Jon Howard, who is a director of HFH and NP.. Mr Tom Povey 35 manager of HFH & NP,. Mrs M J Everett FCA, who is the Group5 Accountant. Mr Howard 15 the point of contact for patents, trade marks, legal and contractual matter5. Mr Povey is the main contact with business partners. Mrs Everett manage5 the trading operations. Mrs Lambert represents theTrustees. The directors hold regular video conferences with the rnanager together with regular email exchange. The Groups Accountant has produced a quarterly review of accounts for the directors. The rnanagèment team maintained regular contact with both Prof Nolan as the Howard Chair and with business partner5. Trustees are updated regularly by the directors by email, phone and informal meetings. enabling intefim rronitorinÈ of activities. Formal meeting5 were held in August 2022, February and April 2023. Following the Tru5tee5 meeting in April 2023, a secure shared area on Dropbox was created to hold all documents required by Trustee5 including minutes ol meetings, grant making and research activities. The organisational Structure for FY 23124 was reviewed at the Trustees meeting in October 2023. With the closure of their trading activities, Mrs Everett now works reduced hours and Mr Povey no longer needs to maintain contacts with business partners but continue5 to rnanagè attivities within Howard Foundation Holdings Limlted. Induction ond troining ofnew Trustees Trustee5 are inductÈd into a knowledge of the Foundation's research activities and it5 past and currÈnt charitable interests. Trustee Artivity Trustees are expected to attend two trustee meeting5 each period for discussions of the Foundation's work. They are also encouraged to attend any research seminars and social events aS50ciated with project5 sponsored by the Foundation so as to understand the nature of the research and its commercia1 implications.
The Howard Foundation Report by the Trustees for the period ended 31 July 2023 (continued) Trustees responsibilities in relation to the financial statements The Trustees Bre responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdorn Generally Accepted Accounting Practicel. The law applicable to charities in Eri8land and Wales requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charitable group and of the income and expenditure of the charity for that period. In preparing these financial statements, the Trustees are required to select suitable accounting policies and then apply them consistently- tsbserve the methods and principle5 in the Charity SORP,. make judgement5 and accounting estimates that are reasonable and prudent- state whether applicable accounting standards have been followed, subject to any material departure5 disclosed and explained in the f1nancial statements, and prepare the f1nancial Statements on the going concern basi5 unle55 It is inappropriate to presume that the charity will continue in business. The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracv at any time the f1nancial p051tion of the charitable Group and to enable them to ensure that the financial Statement5 tomply with the Charities Act 2011, the applicable Chaiities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps 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 governinE the preparation and di55emination of financial statements may differ from legislation in other jurisdiction5. Independent auditors The auditors, SMH lolliffe Cork Audit Ltd. have indicated their willingne55 to remain in office. and a resolution to reappoint them will be prtsposed at the Annual General Meeting. Approved by the Trustees and signed on their behalf bv.. Mrs J Lambert- Chairperson
The Howard Foundation Independent Auditors, Report to the Trustees of The Howard Foundation Opinion We have audited the financial statement5 of The Howard Foundation Ithe'charity'l and its subsidiary undertakings I'the gFOUP'I for the period ended 31 july 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and note5 to the fsnancial statements, intluding the significant accounting policies. The financial reporting framework that has been applied in their preparation 15 applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and the parent CharitV5 affairs as at 31 July 2023 and of its income and expenditure for the period 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 ill accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilitie5 under those Standards are further described iri the'Auditorfs responsibilities for the audit of the financial statements, section of our report. We are independent of the Charity in accordance with the FRC'S Ethical Standard, and we have fulfilled our other ethical respon5ibilitie5 in accordance with these requirement5. We believe that the audit evidence we have obtained is sufficient and appropii3te to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statement5, we have concluded that the Trustees, use of the going collrn basis of accounting in the preparation of the financial statements 15 appropriate. Based on the work we have performed, we have not identified any material uncertainties ielating to events or conditions that. individually or collectively, may cast doubt on the ChariWs 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 afid the respon5ibilitie5 of the TrusteÈ5 With respect to going concern are described in the relevant sections of this report. Other information The other information cornprise5 the information included in the annual report, other than the financial statements and our auditorfs report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements doe5 not cover the other information and, except to the extent othenMise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial statement5 or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such rnaterial inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to material misstatement in the linancial statements themselves. If, based on the work we have performed, we conclude that there is a material mi55tatement of thi5 Other information, we are required to report that fact. We have nothing to report in thi5 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 cour5È of the audit, we have not identified material misstatements in the Trustees, Repoit. We have nothing to report in respect of the followinÈ matters wherÈ the Charities Act 2011 requires us to report to you if, in our opinion.. the information given in the TrustÈes' Report is inconsistent in any material respect with the financial statements,. or sufficient accounting recoTds have not been kept,. or the financial statements are not in a@reement with the accounting record5 and returns,. or we have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained rnore fully in the Statement of Trustees Responsibilities set out on page 6, the Trustee5 are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and foi such internal control as the Trustees determine is necessary to enable the preparation of financial statement5 that are free from material rnis5tatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for assessing the Charity's ability to continue as going concern, disclosin& 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 hève no realistic Iternative but to do so. Our responsibilities for the audlt of the financial statements We have been appointed as auditor under Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mi55tatement, whether due to fraud or error, and to issue an auditor'5 report that includes our opinion. Reasonable assurance is a high level of assurance, but is not 3 gL*ar3ntee that an audit conducted in accordance with ISAS IUKI will always detect a material mis5t3tement when it exi5t5. Mi55tatements 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 basis of these financial statements. rregulèrities, including fraud, are instances of non-compliance with laws and regulation5. We design procèdures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irre8u13rities, including fraud is detailed below: The extènt to which the audit was tonsldered capable of detectlng Irregularities including fraud Our approach to identifying and asse55ing the risks of material mi55tatèmÈnts in respect of irregularities. including fraud and non-compliance with laws and regulations, was as follows.. the engagement principal ensured that the engagement team collectively had the appropriate compètente. capabilitie5 and ski115 to identify or reco8ni5e non-compliance with applicable laws and regulations; WÈ idèntified the13ws and regulations applicable to thè Charity through discussions with the Trustees and other informed management which we considered may have a direct material effect on the financial statements or the operations of the Charity and thereafter. the audit team remained alert to instantes of non- compliance throughout thè audit.
The Howard Foundation Independent Auditors, Report to the Trustee5 of The Howard Foundation Our re5ponslbilitie5 for the audit of the financial statements We assessed the susceptibility of the Charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by= making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and., considering the internal controls in place to mitigate ri5k5 of Iraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to identify any unusual or unexpected relation5hips- tested journal entries to identify unusual transactions,. assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bia5', and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations. we de51gned procedures which Included, but were not limited to.. agreeing f1nancial statement disclosures to underlying Supporting documentation- enqyiring of management as to actual and potential litigation and claims. reading the minutes of meetines of those chafged with governance. There are inherent limitation5 in our audit procedure5 described above. The rnore removed that laws ènd regulations are from financial transactions. the le55 likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence. if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error a5 they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilitie5. This description forms part of our auditorfs report. Use of our report This report is made solely to the Charity'5 Trystees, as è body. in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work ha5 been undertaken so that we might state to the Charity's 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 responsibility to anyone other than the Charity and the Charity'5 Trustees as a body, for our audit work. for this report, or for the opinions we have formed. (SMH SM Cork Audit Ltd Chartered Accountants and Statutory Auditor 33 George Street Wakefield WFI ILX Dated.. 15 DÉCÉMb 2023.
The Howard Foundation Consolidated Statement of Financial Activities {incorporating a consolidated Income and Expenditure account) for the period ended 31 July 2023 Note5 Unrestrirted Re5trirted Fund5 Funds Total Unrestricted Restricted 2023 Fund5 Funds Total 2022 INCOME FROM 2 Donations and legacies 3 Chttrit&Tble uctivities 155034 155,834 4 frodlng Activities 2.583,073 2.583.073 1,569,134 1,569,134 5 Investments 109.708 109,708 39.367 39,367 6 Other 1.951.188 1.951.188 4,799.803 4.799,803 1.608.501 1,608,501 EXPENDITURE ON 7 Investments 24.279 24,279 16,048 16,048 8 Chorltoble ortivitie5 384,910 384,910 162,988 162.988 4 Truding Activities 2,277.218 2.285.498 1.338,012 1.338,012 2.686.407 2.694.687 1,517,048 1,517.048 Realised gain on disposal ol Investments 11,394 11,394 14 Unre31ised I10ssl/gain on fair value adjustments lor investments 19,302 19.302 113,3321 113.3321 Taxation 966 966 19661 19661 NET INCOME FOR THE PERIOD 2.133.664 2.125,384 88.549 88,549 Transfers between funds NETMOVEMENTIN FUNDS 2,133,664 2.125.384 88,549 88,549 Total funds brought forward 2.534,965 2,534,965 2,446,416 2,446,416 18 TOTAI FUNDS CARRIED FORWARD 4.668.629 4.660.349 2,534,965 2,534,965 The statement of financial activitles includes all gains and10sses retognised in the period. All incorne and expenditure derives from continuing activities of the group. io
The Howard Foundation Charity Statement of Financlal Artivities for the period ended 31 July 2023 Notes Unrestricted Restricted Funds Funds Total Unrestricted Re5trict&d 2023 Funds Funds Total 2022 INCOME FROM 2 Don(Jtlons gnd legocies 870.832 870.832 284.000 284.000 3 Charitoble ortivities 155.834 155,834 5 Investments 42,290 42,290 155,243 155,243 6 Other 1.281.600 1.281,600 2.350.556 2.350,556 439,243 439,243 EXPENDITURE ON Roisingfunds 7 Investrnent management costs 8,768 8,768 5,203 5.203 Churitoble octivities.. G&neral Howard Foundation Chair of Human Nutrition at SETU PhD Student at SETU reMIND Donations & sponsorship- Dr A Ploward memorial letture 22.0) Dr A Ploward memorial tree 25.692 Downing college 1,768 Cataloguing Dr Howard's Papers 8,906 Travel scholarships for post graduates 40.000 Brain and Ocular Nutrition Conference 115,865 20.229 20,229 10,164 10.164 143,575 6.875 143,575 6.875 103,124 103,124 16,100 16,100 22.0 25,692 1.768 8.906 40,000 I1565 20,(X)O 12,500 I,ioo 20.000 12,500 i.ioo 393,678 393,678 168,191 168,191 Reali5ed Ilossl/gain on disposal of Investments Net Ilossesl/gains on fair value adjustments for Investments 176,796 168,506 1182,5031 1182,5031 NET INCOMÉ FOR TH£ PERIOD 2.133.674 2,125.384 88,549 88.549 Transfers between funds NET MOVEMENT IN FUNDS 2.133.674 2.12S.384 88,549 88,549 Total funds brought forward 2,534.965 2.S34,965 2,446,416 2,446,416 18 TOTAL FUNDS CARRIED FORWARD 4,668.639 4.660,349 2,534,965 2.534,965 The statement of financial activities includes all gains and105se5 recognised in the period. All incorne and expenditure derive5 from continuing activities. li
The Howard Foundation Consolidated Balance Sheet as at 31 July 2023 Notes 2023 2022 Fixed assets 12 13 14 Intangible asset5 Tangible asset5 Investments 213.204 3.117 1,989,109 163 2,740.782 2.740.945 2.205.430 Current a55ets 16 Debtors Cash at bank and short term deposits 2,100.899 229,739 101,118 366.166 2,330,638 467,284 Liablllties 17 Creditors.. Amounts falling due within one period 402.954 136.783 Net current assets 1,927,684 33C>,501 Total a55ets less current liabilitles 4,668.629 2.535.931 Provision for Ilabilities 966 Total net assets 4,668,629 2,534,965 The funds of the Charity 18 Unrestricted funds 4,668.629 2,534.965 Total Charity funds 4,668,629 2,534,965 The financial statements were approved by the Trustees on I.I . behalf by: and slgned on thelr Mrs J Lambert- Chairperson 12
The Howard Foundation Charity Balance Sheet as at 31 July 2023 Notes 2023 2022 Flxed Assets 15 Investments 3,202,380 2,343,812 Current A55ets 16 Debtors Cash at bank 1,348,081 122,678 19,489 175.264 1,470,759 194,753 Creditors 17 Amounts falling due within one period 4.500 3,600 Net Current AssetsllLiabilitiesl IA66,259 191.153 Total a$5ets less current Ilabiltties 4.668,639 2.534.965 Net asset5 4.668,639 2.534.965 The funds of the Charity 18 Unrestricted funds 4,668,639 2,534.965 Total Charlty Funds 4,668.639 2,534,965 The flnanclal statements were approved by the Trustees on I t_ 11. a by.. and signed on their behalf Mrs J Lambert- Chairperson 13
The Howard Foundation Consolidated cash flow statement for the period ended 31 July 2023 Group Charity 2023 2023 2022 2022 Net cash provided by/lu5ed in) operating activities 274,470 174.303 586,896 159,2821 Cash flows from investing activitles: Dividends and ItereSt from investments Purchase of tangible fixed assets Purchase of intangible fixed assets Purchase of fixed assets investment Sale of tangible fixed assets Sale of fixed a55ets investment 109.708 39,367 17331 18,3031 19,6741 1756,6501 1100,7521 1690.5401 119.2401 220,069 24.279 42,290 155,243 36,880 8.768 26,035 Net cash (used inl I provided by investing activities 1410.8971 134,9121 1639,4821 162.038 Change in cash and cash equivalents In the period 1136,4271 139.391 152.5861 102,756 Cash and cash equivalents at the beginning of the period 366,166 226.775 175.264 72,508 Cash and cash equivalents at the end of the period 229,739 366,166 122,678 175.264 Reconciliatlon of net lexpendituielllncome to net cash flow from operating activltles Group Charity 2023 2023 2022 2022 Net income / expenditure ftsr the period la5 per the stètement of financial activities) 2.210,406 89.515 2.133,674 88.549 Adjustmènts for: Depreciation charges Unrealised1055/lgainl on investment Dividends and interest from investments Iprofitl/Loss on disposal of tangible fixed assets Decrease/lincrea5el in debtors (Decreasellincrease in creditors Tax paid 3,518 197,0101 1109,7081 875 11,999,7811 266,170 55,182 13,332 139,3671 1176,7961 1168.5061 182,503 142,2901 1155,2431 276,243 11,328.5921 118,2961 1220,6021 9) 1156.7951 Net cash provided byllused rnl operating activitie5 274,470 174,303 586.896 159,2821 14
The Howard Foundation Notes to the Financial Statements for the period ended 31 July 2023 Accounting policies Bosis of preporution The group and individual finèncial statement5 of The Howard Foundation Ithe 'Foundation'l have beeft prepared under the historical cost convention with items recognised at a cost or transaction value unless otherwise stated in the relevant notes to these financial statements. The financial statements have been prepared in accordance with the Statement of Recommended Practice. The Trustees 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 applicable in the UK and Republic of Ireland IFRS 1021 leffective I january 20191 and the Charities Act 2011. The Foundètion meets the definition of a public benefit entity under FRS 102. The functional and presentation currency for the group is sterling (£1. All financial information presented has been rounded to the nearest 1£), unle55 Otherwise stated. Going concern The current economic conditions continue to present increased risks for all charities. In response to such uncertain conditions, the Trustees continue to consider these risks carefully and the extent to which they rright affect the preparation of the financial statements on a going concern basis. Following the improvement in the financial situation in this financial period. the Foundations, forecasted grant commitments are now less than the v31uation of its investments. The Trustees have a reasonable expettation that the Foundation will maintain adequate solvency to continue in operational existence for the foreseeable future. Accordingly, the Trustees have adopted the going concern basi5 in preparing these financial statement5. 8ts5is of consolidt7tion 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 has been included on page 11. Incoming resources Income is recognised once the Foundation has entitlement to the funds, any performance conditlOn5 relating to the itemlsl of income have been met. it is probably that the income will be received and the amount can be measured reliably. Amount5 receivable under gift aid donations are recognised when the Foundation has been notified of both the amount and the settlement date. Any amount5 of Gift Aid not received by the period end are accounted for in income and accrued income in debtors. Incorne from pooled investment vehicles is accounted for when declared by the fund manager. Royalty income which is included on a receivable basis calculated on sales of product5 Hri5in8 durin8 each accounting period as reported by licensees. Where royalty income receivable is based on a one off Settlement, the income is credited to the income statement evenly over a ten period. No account of royalty income is made until the litigation against a particular supplier is settled. Resources expended Liabilities are recognised as expenditure as SODn as there is 3 legal or constructive obligation committing the Foundation to that expenditure, it is probable that a transfer of economic benefits 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 that ageregate all c05t related to the category. Where Costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of re50urce5. 15
The Howard Foundation Note5 to the Flnancial Statements for the period ended 31 July 2023 Accountlng policies (continued) Grants payable are payments made to third partie5 in the furtherance of the charitable objectives o! the Foundation. Single or multi-period giants are accounted for when either the recipient has 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 grant is outside of the control of the Foundation. Allocution and opportionment of costs Support costs have been allocated between governance c05t5 and other support COSts. Governance costs cornprise all cost5 involving the public accountability of the Foundation and its compliance with regulation and good practice. Fund occountln9 Unrestricted funds can be used in accordance with the tharitable objective5 at the discrÈtion of the Trustees. Restricted funds can only be used for particular restricted purposes within the objects of the Foundation. 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. Investmertts- Churlty onfy Investment5 in unlisted companies. where there 15 no readily identifiable market price. are recorded at cost less impairment. The trustees determine the need for an impairment by reference to the underlying net assets of the consolidated group of companies. Inve5tments- Group Pooled investment vehicles are valued by reference to bid prices at the close of business on the reporting date. Re¢l1ed goins gndlosse5 All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and 105ses on investments are calculated as the difference between the 5ale5 proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial period. Unrealised gains and losses are calculated as the difference between the fair value at the period end and their carrying value. Realised and unrealised investment 8ains and1055es are combined in the Statement of Financial Activities. Putents and trodemorks The legal fees associated with the registering of patents and trademarks are capitalised to in relation to new application5. Am(>rtisation is calculated 50 a5 to write off the cost of an asset. less its estlmated residual value. over the useful economic life of that asset a5 follows.. Patents Trademarks IO% per annum IO% per annum 16
The Howard Foundation Notes to the Financial Statements for the period ended 31 July 2023 Accounting policies (contlnuedj Tanglblefixed qssets Depieciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Plant and machinery Fixtures and fittings Corrputer equipment 20 % and IO% per annum IOYO per annum - 33% per annum All fixed assets are initially recorded at cost. Toxation- Charlty only The Howard Foundation is a registered charity and 35 such tax exemption applies to the incorne arising from and expended on charitable activities and to its investment income and gains. Toxotion- Gmup Taxation for the period comprises current and deferred tax. Tax 15 recognised In the Statement, except to the extent that it relates to item5 reco8nised in other comprehensive income or directly in equity. Current or deferred taxation assets and liabilitie5 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 fin6ncial position date. Deferred tox- Group Deferred tax is recogni5ed in respect of all timinÈ difference5 that have originated but not reversed at the statement of finèricial position date. rimin8 differences arise from the inclusion of incorne and expenses in tax asse55ments 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 substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. Unrelieved tax1055e5 and other deferred tax a5set5 are recognised 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 and development Expenditure on research and dèvelopment is charged to the profit and loss atcount in the period in which it is incurred with the exception of expenditure on the development of projects where the outcome of those projects 15 assessed a5 being reasonably certain as regard5 viability and technical feasibility. Suth expenditure is capitalised and am()rt15ed once commercial production begin5. Foreign currencies A55ets and liabilities in foreign currencies ale trans13tè(J into Sterling at the rates of exchange ruling at the statement of fin3nci31 position date. Transactions in foreign currencies are translated into sterling at th8 rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. Pension costs ond otherpost-retlrement benefit5 Howard FoundatioN Holdings Lirnited operates a defined contribution pension scheme. Contribution5 payable to the company's pension scheme are charged to profit or loss in the period to which they relate. Irrecoveroble VA T Irrecoverable VAT is charged against the expenditure heading for which it was incurred. 17
The Howard Foundation Notes to the Financial Statements for the period ended 31 July 2023 Group tharlty 2023 2023 2022 2022 Income from donations and legacies Donations under Gift Aid from subsidiaries 870.832 284,OCM) Income from charitable artivities Brain and Ocular Nutrition Conference Contribution towards reMIND 155,834 155.834 155,834 155.834 Income and expenditure from trading activitie5 The trading results of Howard Foundation Holdings Limited and its subsidiary undertakings is set out below.. 2023 2022 Income Income from trading activities 2,583.073 1,569,134 Expenditure Cost ol sales Disiributlon Costs Adrninistrative expense5 11,544,811) 1927.4441 1151,0081 1136,7821 1581,3991 1273.7861 12,277.2181 11,338,012) Income from Investment5 Managed funds Dividends from subsidiary undertakings Deposit income 108,220 39.362 42,108 19,243 136,000 1,488 182 109,708 39,367 42,290 155,243 Other Realised gain on 5Ble of patents and trademarks 1.951,188 1,281,600 18
The Howard Foundation Notes to the Financial Statements for the perlod ended 31 July 2023 Group Charlty 2023 2023 2022 2022 Cost of roising funds Investment management fees 24.279 16,048 8,768 5.203 24,279 16,048 8.768 5,2Q3 Expenditure from charit3ble actlvltles 2023 Grant Dirert funding of Support Costs activities costs (see note 91 Isee note 101 Totals General Howard Foundation Chair of Human Nutrition at SETU PhD student at Stru Re-MIND Donations & spon50r5hip- Dr A Howard memorial lerture Dr A Howard memorial tree Downing college Cataloguing Dr Howard'5 Papers Travel scholarship5 lor p05t graduates Brain and Ocular Nutrition Conference 11,164 9,065 20,229 143,575 6,875 143,575 6,87S 22,(N)O 25,692 1,768 8.906 40.000 115W65 Z2,000 25.692 1.768 8.906 40,0(X) 115,865 11.164 364,681 9,065 384,910 2022 Grant funding of Support activities Costs (see note 101 Isee note 111 Direct Costs Totals General How8rd Foundation Chair of Human Nutrition at WIT Re-MINO Donations & sponsorship- Dr A Howard memorial lecture Dr A Howard memorial tree Downing college 6,477 3,687 10.164 103.124 11,719 103,124 16,100 4,381 20,000 12,5(X) I,ioo 20,000 12,50D I,ioo 10,8S8 148,443 3,687 162,988 19
The Howard Foundation Notes to the Finanoal Statements for the period ended 31 July 2023 2023 2022 Grants payable The grant5 paid to institution5 during the period were as follows.. ISETUI South Easl Technological Univer51ty, Ireland Downing College Brain and Ocylar Nutrition Conference 150,450 98.366 115.865 114,843 33,600 364,681 148.443 io Support tosts Trustees expenses Audit, accountancy and other professional fees 678 8,387 87 3,600 9.065 3.687 These costs are all directly attributable to the charitable activitie5 of ihe Foundation. li Group net intoming resources for the perlod The net incoming resources is stated after chargin81 Icreditingl- Realised gains/llosse51 on disposal of investments Unreali5ed gains/llossesl on fair value adjustment for investments Auditors. remuneration.. Audit fees Other 5ervice5 11,394 19,302 113,3321 4,680 11,175 3,600 9.600 20
The Howard Foundation Notes to the Financial Statements for the period ended 31 July 2023 12 Intangible fixed assets- Group Patents and trademarks Research and Development Costs Tota15 Cost At 6 April 2022 Additions Disposals 568,906 8,303 1577,2091 38,620 607,526 8,303 130.7941 1608,0031 At 31 july 2023 7,826 7,826 Amortisatlon At 6 April 2022 Arnortisation for period Disposals 366,428 27,894 394,322 1,438 1,438 121.5061 1387.9341 1366,4281 At 31 july 2023 7,826 7,826 Net book value At 5 April 2022 202,478 10,726 213,204 At 31 July 2023 13 Tangible fixed assèts- Group Fixturès and Fittings Plant and Machinery Computer Equlpment Total Cost At 6 April 2022 Additions Donations 21,165 41.630 10.921 73,716 121,1651 141,6301 110,1881 172,9831 At 31 July 2023 733 733 Depretlation At 6 April 2022 Charge for period Donation5 20,868 297 121,1651 39,416 1.340 140,7561 10,315 70,599 443 2,080 110,1881 172.1091 At 31 July 2023 570 570 Net book value At 31 july 2023 163 163 At 6 April 2022 297 2,214 606 3,117 21
The Howard Foundation Notes to the Financial Statements for the period ended 31 July 2023 Pooled investment vehlcles 14 Investments- Group 2023 2022 Market vallhe At 6 April 2022 Addition5 Disp05a15 Fair value l impairment adjustments 1.989,109 1,938,569 756,650 100,752 124,2791 136,8801 19,302 113.3321 2,740,782 1,989,109 At 31 July 2023 15 Investment5- Charity Shares in Subsidiary Undertakings Pooled investment vehicles Totals Market value At 6 April 2022 Additions Disposals Fair value l impairment adjustments 1,488,351 855,461 690,540 18,7681 90,798 2,343,812 690,540 18,7681 176,796 85.998 1,574,349 1,628,031 3,202,380 At 31 July 2023 1,488,351 855,461 2,343,812 At 5 April 2022 The Foundation owns 100% of the issued Share capital of Howard Foundation Holdin8s Limited. This company in turn owns 100% ol the issued share capital of Nutripioducts Limited and Nutrition Limited. All of the subsidiary undertakings are registered In England and Wales. In respect of the active companies.. Company Shareholders Number Funds 1£) 01932630 1.566,069 0235150ts Subsidlary Undertaklng Howard Foundation Holdings Limited NutTiproducts Limited The consolidated performance of these active subsidiaries can be found in note 5 to these financial statements. Charity 2023 16 Debtors Group 2023 2022 2022 72,527 Trade debtors Vat Other debtors Prepayments and accrued income 191 2,044.498 56,210 1,293,600 54,481 28,591 19,489 2.100,899 101,118 1,348.081 19,489 22
The Howard Foundation Notes to the Financial Statements for the period ended 31 July 2023 17 Creditors.. Amounts falling due within one year Group Charlty 2023 2022 2023 2022 Trade creditors Social 5eturitV Costs and other taxes Other creditors Accrual and deferred income 11,443 6,324 27 118,989 1.801 401.153 4,500 3,600 402.954 136,783 4,500 3,600 18 Movement In funds- Group and Charity Net movèment in funds At 6.4.22 At 31.7.23 Unrestrlcted funds General fund 2.534,965 2,133,674 4,668,639 Total funds 2,534,965 2,133.674 4,668,639 Incoming Resources Resources expended Gains and Movement lossès in funds Unrestricted funds General funds 2,350,556 1393.6781 176,796 2,133,674 Total funds 2,350,556 1393,6781 176,796 2.133,674 Comparatives for movement in funds Net movement In fund5 At 6.4.21 At 5.4.22 Unrestricted funds General fund 2,446,416 88,549 2.534,965 Total funds 2.446,416 88,549 2,534,965 Comparative net movement in funds. included in the above are as follows-. Intoming Resources Galns and Movemènt Resources expended losses In fund5 Unrestrlcted funds General funds 439.243 1168.1911 1182,5031 88,549 Total funds 439,243 1168,1911 1182,5031 88.549 23
The Howard Foundation Notes to the Financial Statements for the period ended 31 July 2023 19 Other financ431 commltment5 The Foundation has cofflmitted to South East Technological Univer51ty ISETUI that it will provide sponsorship of the'Howard Chair in Human Nutrition, for a period of 10 periodg from l October 2016 until 30 September 2026. As at 31 July 2023 the iemaining amount payable under this a8rÈement is £501,28515 April 2022.. É661.0441. The Foundation will be released from this commitment should the current Professor to whom the endowment has been allocated leave the employment of South East Technological Universitv and a suitable replacement cannot be found. The Foundation is also committed to support a research project between the NRCI (Nutrition Research Centre Irelandl at SETU and Sport Singapore. Known as SN1PE (Sport Nutrition Intervention in Performance Environment) the outstanding commitment in FY22123 is around £83,500. This is a550ciated with a PhD programme at SETU which the foundation is funding at £4,500 per period starting September 2022 and giving an outstanding commitment of É18.000. 20 Related party disclosure During the accounting period the Foundation received £870,83212022-. £284.0001 under Gift Aid from its subsidiary undertakings. 24
The Howard Foundation Income and Expenditure Account for the period ended 31 July 2023 2023 Total funds 2022 Total funds Unrestricted Restricted fund5 funds INCOME Donattons and legacles Gift aid 870,832 870,832 284,000 other charitable activities Brain and Ocular Nutrition Conference Re-MIND Realised @ain on sale of patents and trademarks 155,834 155,834 1.281,600 1,281,600 1,437.434 1,437.434 Investment intome Dep051t account interest Managed funds- dividend5 rèteivable Dividends from subsidiarv 182 42,108 182 42,108 19,243 136.000 42,290 42,290 155,243 Total intoming resources 2,350,556 2.350,556 439,243 EXPENDITURE lrtvestment management costs Portfolio management 8.768 8.768 5.203 Charitable actlvltles Sundries IProfitl/Loss on foreign exchange Brain & Ocular Nutrition Conference Bank charges Grants to institutions 2.747 3,609 4,380 122 148,443 ii.ozi I1565 136 248.816 11.021 IS5.865 136 248.816 375.845 375.845 159,301 Governance tosts Trustees, expense5 Audit and legal fee5 678 8.387 678 8.387 87 3,600 9.065 9.065 3,687 Total re50uTces expended 393.678 393,678 168,191 Net lexpenditurellincome before gains and Lo55es 1.956.878 1,956,878 271.052 Reallsed recognised gains and losse5 Realised gainslllossesl on fixed asset investments 176.796 168,506 1182.5031 Net lexpendlturellincome 2.133.674 2,125.384 88,549 25
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