2022-07-31-accounts

Quintin Hogg Memorial Fund (Charity Number 288144)

Report & Financial Statements

Year Ended 31 July 2022

The Quintin Hogg Trustee Company is a Charitable Company Limited by Guarantee Registered Office: 66 Lincoln’s Inn Fields, London WC2A 3LH, Registered Company Number: 10281253 Sole Trustee to the Quintin Hogg Trust and Quintin Hogg Memorial Fund, Charities. Registered with the Charity Commission, Registration numbers: 1010404 and 288144

www.quintinhoggtrust.org

Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

CONTENTS

CONTENTS	Page
Reference and administrative details	3
Report of the Trustee	4
Independent Auditor's report to the Trustee of the Quintin Hogg Memorial Fund	8
Statement of financial activities	11
Balance sheet	12
Statement of cash flows	13
Notes to the accounts	15

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

TRUSTEE

Quintin Hogg Trustee Company (QHTC) - a company limited by guarantee

Patron

The Hon Dame Mary Hogg DBE

Directors and Members (Board of Trustees, QHTC)

Victoria Batten Dr Geoffrey Copland CBE Paula Doyle Liz Duff (Appointed 5 July 2022) Joanna Embling Tracey Hartley (Resigned 5 April 2022) Richard Law Paul Millett Mark Pryce (Appointed 5 July 2022) Dr Bina Rawal (Resigned 19 April 2022) Dr Ann Rumpus Andrew Saunders-Davies Maria Semedalas (Appointed 5 July 2022) William Weston (Chairman) Don Wood CBE (Resigned 5 April 2022)

Business and Governance Manager (QHTC)

Anne Sullivan

INDEPENDENT AUDITORS

Saffery Champness LLP 71 Queen Victoria Street London EC4V 4BE

BANKERS

National Westminster Bank PLC 135 Bishopsgate London EC2M 3UR

SOLICITORS

Farrer & Co LLP Clyde & Co LLP 66 Lincolns Inn Fields 138 Houndsditch London WC2A 3LH London EC3A 7AR

INVESTMENT MANAGERS & ADVISORS

Investec Wealth & Investment Limited 30 Gresham Street, London EC2V 7QN

ACCOUNTANT

SPX Oxford Ltd Peace House 19 Paradise Street Oxford OX1 1LD

QHTC REGISTERED OFFICE AND QUINTIN HOGG MEMORIAL FUND PRINCIPAL OFFICE

66 Lincolns Inn Fields London WC2A 3LH

CHARITY NUMBER

288144

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

REFERENCE AND ADMINISTRATIVE DETAILS

REPORT OF THE TRUSTEE

The Trustee presents its report and the audited financial statements for the year ended 31 July 2022 of Quintin Hogg Memorial Fund (the Fund), a registered charity no. 288144. The financial statements have been prepared in accordance with the Fund’s governing document and the requirements of the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The information on page 3 forms part of this report.

Structure, Governance and Management

Quintin Hogg was a Victorian philanthropist most remembered for starting in the late 19[th] century what became known as the Regent Street Polytechnic (now the University of Westminster (the University)). Trusts in Quintin Hogg’s name were first set up in the early 1900s, with the Fund being established in 1990.

The Fund is administered by Quintin Hogg Trustee Company (QHTC), as trustee. Its Board (the Board) currently has twelve directors, known as trustees, all of whom are members and each of whom is appointed to serve for three years with options to renew for up to nine years.

QHTC has one employee ( 2021: one ), its Business and Governance Manager. It has engaged an accountant to undertake the accounting functions.

The Fund is related to one other charitable trust, Quintin Hogg Trust (QHT). These two trusts share the same Trustee and therefore common control exists. During the year, QHT formed a subsidiary company, 1903, Limited, to carry out part of its operations. Details of transactions with related parties are disclosed in note 17 to the financial statements.

The Trustee is in the process of consulting stakeholders about a proposed scheme to merge the two charities. This consultation was initiated in mid-2020 with the intention of making a formal application for merger to the Charity Commission.

A number of trustees are alumni and/or have other past connections with the University. A member of the Hogg family is the Patron of QHTC.

QHTC, as the parent of this group, has taken advantage of the exemption under section 398 of the Companies Act 2006 regarding the preparation of consolidated financial statements.

Objectives and activities

The object of the Fund is to promote the education of the students of the University by the provision of facilities for their recreation and for the advancement of every aspect of their education and, subject thereto, the education of other young persons as QHTC thinks fit.

The Fund owns the freehold to some 35 acres of land at Chiswick that comprise the larger part of the Quintin Hogg Memorial Sports Ground. The playing fields and complex to the North of the Hartington Road are leased directly or indirectly principally to the University and are used by the University as well as nearby schools and other sporting clubs and organisations. The Fund also owns land by the river to the south of Hartington Road on which stands the boathouse that is home to the University Boat Club (UWBC) and to the Quintin Boat Club (QBC).

QHTC confirms that it has complied with the duty in section 4 of the Charities Act 2011 to have regard to the Charity Commission’s general guidance on public benefit. The Fund's public benefit is realised through the provision of land and facilities to the University, benefiting its students and other young persons, through education and sporting activity.

The Trustee takes seriously its responsibility under The Charities (Protection and Social Investment) Act 2016. The Fund does not engage in any fundraising with the general public and therefore does not have a formal fundraising policy in place. It can accept donations, but it does not actively seek them. No donations were received during the year ( 2021: £nil ) nor any complaints regarding fundraising.

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

Development of the Boathouse and Adjacent parts of the Southern Site at Chiswick

The Trustee regards the Fund’s landholdings at Chiswick, together with those of QHT (which owns riverside land next to the boathouse at the Quintin Hogg Memorial Sports Ground), as part of a unique legacy to be preserved and maintained for the benefit of students of the University and of other young people. While retaining that focus, QHTC has a long-term ambition to create on the site a centre of sporting excellence for athletes of all abilities, with modern 21st century facilities. As a first step towards achieving this, the Trustee developed a comprehensive plan for its landholdings to the South of Hartington Road.

Planning permission has been obtained for a complete refurbishment of the boat house and the construction of a new boat store on the land owned by QHMF. However, the Trustee has yet to take a decision as to whether all of this work will be undertaken, as it will require additional funding.

The development of the adjacent land, owned by QHT, is now complete and the floodlit 3G all-weather sports and training pitches, new access and managed car parking, are fully operational.

QHMF’s expenditure on the overall project during the year amounted to £19k in total (2021: £236k). Of the expenditure, £nil (2021: £43k) was recharged to QHT (by QHMF), being expenditure on its elements of the project. QHMF was recharged £nil ( 2021: £1k ) of costs that QHT had incurred on behalf of QHMF.

The Northern Site at Chiswick

The Northern Site is leased directly or indirectly to the University on full repairing and insuring terms. The University manages the site and has sub-let parts of it.

Plans to create improved vehicular access and a new pedestrian access close to Chiswick Station are ongoing. It is anticipated that these works will be completed in 2023.

The effect of the Covid-19 pandemic

The effect on the Fund directly of the Covid-19 pandemic remains limited. Trustee meetings in person have resumed, although online platforms continue to be used for some single purpose and committee meetings.

The disruption caused to the University, as principal user of the Fund’s properties and its primary beneficiary, has moderated and use of the Fund’s properties has resumed. The medium and long-term consequences of the disruption to the University and any effect on the Fund continue to remain uncertain.

Financial Review

The Trustee reports net expenditure for the Fund before gains/losses on investments and disposals of £86k (2021: £109K) and a net surplus of £7k (2021: £1k deficit ) after investment losses ( 2021: gains ).

At the year end, the Fund had retained unrestricted funds amounting in total to £3.5m (2021: £3.5m) . The Fund has no endowment funds.

The Trustee considers that there are no material uncertainties about the Fund’s ability to continue as a going concern. The most significant areas of uncertainty that affect the carrying value of assets held by the Fund are the level of investment return and the performance of investment markets. Nevertheless, in the judgement of the Trustee, the Fund's level of unrestricted reserves and low level of non-discretionary expenditure provide adequate assurance that the Fund is able to continue as a going concern over at least 24 months.

Reserves Policy and Resources

The Fund maintains cash and short-term investments to enable it to continue in the event of an unexpected drop in income and to provide a buffer in the event of a fall in value of investment assets.

The Trustee aims to hold free reserves at least equal to the Fund’s recurrent expenditure for two years (around £200k). At 31 July 2022, the Fund’s reserves, all of which are unrestricted, were £3.5m ( 2021: £3.5m ) and free reserves (total reserves less tangible fixed assets) were £1.8m ( 2021: £1.7m ). The amount of free reserves is in excess of target as a result of an accumulation of surpluses over several years.

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

The Fund’s available resources at 31 July 2022 comprise fixed asset investments £1.2m ( 2021: £1.2m ) and cash £0.6m ( 2021: £0.5m ), a total of £1.8m ( 2021: £1.7m ). Additional amounts, above the Fund’s currently available resources, will be required if the proposed development referred to above is to proceed.

Investment Policy

The aim of the investment policy is to maintain investments from which the income can be used for the furtherance of the Fund’s aims.

The Fund holds an investment portfolio with Investec Wealth and Investment Ltd (Investec), with which it agrees a suitable risk profile for the funds invested. QHTC has resolved that it does not wish to invest in companies that engage in the arms trade, tobacco, animal exploitation, gambling, pornography or pay-day loans. It also considers long term sustainability important and has asked that this principle is taken into account when the Fund’s funds are being invested. The investment policy is kept under review in consultation with Investec.

During the year, the Fund’s investment portfolio provided income of £24k ( 2021: £21k ) and, as reported by Investec, a total negative return of 5%% ( 2021: positive return 11% ), net of fees. The performance of the investment portfolio is measured against a bespoke benchmark comprising elements of various indices and interest rates appropriate to the portfolio. Investec reported that, during the year, the benchmark produced a total negative return before fees of 3% ( 2021: positive return 8% ).

Management of conflicts of interest

QHTC maintains a formal conflicts of interest policy. All trustees complete a declaration of interests and a register of interests is maintained by the secretary and reviewed annually by the Board.

Risk management

QHTC is committed to undertaking a regular review of the significant strategic and operational risks affecting the Fund. The risk management policy and risk register are reviewed regularly by the Board. Major risks to which the Fund may be exposed include fluctuation in the performance of its investments and the uncertain situation created by the Covid-19 pandemic. Actions taken to mitigate these risks include regular review of investment portfolios to ensure appropriate levels of risk for investments, in consultation with the fund managers, and maintaining close relationships with the University Vice-Chancellor and other officers.

Auditors

Saffery Champness LLP has indicated its willingness to continue in office and, in accordance with the provisions of the Charities Act 2011, it is proposed that it be re-appointed as auditor to the Fund for the ensuing year.

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

Statement of Trustee’s responsibilities in respect of the trustee’s annual report and the financial statements

The Trustee is responsible for preparing the Report of the Trustee and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Fund and of the incoming resources and application of resources of the Fund for that period. In preparing these financial statements, the Trustee is required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP (FRS102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Fund and enable it to ensure that the financial statements comply with the Charities Act 2011, applicable accounting regulations and the provisions of the Fund’s governing document. The Trustee is also responsible for safeguarding the assets of the Fund and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustee is responsible for the maintenance and integrity of the Fund and financial information included on the Fund’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by QHTC and signed on behalf of the Fund

William Weston Chair, Board of Trustees, QHTC

Date: 19/12/22

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

QUINTIN HOGG MEMORIAL FUND

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE

Opinion

We have audited the financial statements of Quintin Hogg Memorial Fund for the year ended 31 July 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 charity’s affairs as at 31 July 2022 and of its incoming resources and application of resources 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 (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.

Other information

The trustee is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise 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 statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the Trustee’s Annual Report is inconsistent in any material respect with the financial statements; or

• the charity has not kept sufficient accounting records; or

• the financial statements are not in agreement with the accounting records and returns; or 8

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

• we have not received all the information and explanations we require for our audit.

Responsibilities of the Trustee

As explained more fully in the Trustee’s Responsibilities Statement set out on pages 7 the trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustee, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with the trustee and updating our understanding of the sector in which the charity operates.

Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

Use of our report

This report is made solely to the charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustee those matters we are required to state to them in an auditor’s 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 trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery Champness LLP

71 Queen Victoria Street Chartered Accountants London Statutory Auditors EC4V 4BE

Date: 15 February 2023

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 JULY 2022

		2022	2021
		£	£
	Note
INCOME FROM:
Charitable activities	5	171,861	160,777
Investment income	6	24,075	20,863
TOTAL INCOME		195,936	181,640
EXPENDITURE ON:
Raising Funds	7	3,719	3,722
Charitable activities	8	106,567	286,477
TOTAL EXPENDITURE		110,286	290,199
NET INCOME / (EXPENDITURE)
BEFORE GAIN/LOSS ON		85,650	(108,559)
INVESTMENTS
Net (losses)/ gains on investments	12	(78,881)	107,281
NET MOVEMENT IN FUNDS		6,769	(1,278)
RECONCILIATION OF FUNDS
Total funds brought forward		3,500,627	3,501,905
TOTAL FUNDS CARRIED FORWARD	15	3,507,396	3,500,627

All of the above results derive from the continuing activities of the Fund. There are no gains or losses other than as included above.

All funds are unrestricted funds.

The notes on pages 15-21 form part of these financial statements.

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

BALANCE SHEET

AS AT 31 JULY 2022

			2022		2021
		£	£	£	£
	Note
FIXED ASSETS
Tangible assets	11		1,716,684		1,759,847
Investments	12		1,205,533		1,264,230
			2,922,217		3,024,077
CURRENT ASSETS
Debtors	13	15,774		4,538
Cash at bank		596,932		535,111
		612,705		539,649
LIABILITIES
Creditors falling due within one year	14	(27,526)		(63,099)
NET CURRENT ASSETS			585,179		476,550
NET ASSETS			3,507,396		3,500,627
FUNDS
Unrestricted funds	15		3,507,396		3,500,627
			3,507,396		3,500,627

The notes on pages 15 to 21 form part of these financial statements.

Approved by QHTC and signed on behalf of the Fund

William Weston Chair, Board of Trustees, QHTC

Date: 19/12/22

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

STATEMENT OF CASH FLOWS

YEAR ENDED 31 JULY 2022

		2022		2021
		£		£
Cash flows from operating activities		57,933		(13,799)
Cash flows from investing activities
Interest and investment income	24,075		20,862
Proceeds from sale of investments	137,885		152,956
Purchase of investments	(192,786)		(145,699)
Cash provided by (used in) investing activities		(30,826)		28,119
Cash flows from financing activities
Increase (decrease) in cash and cash equivalents in the year		27,107		14,320
Cash and cash equivalents at the beginning of the year		958,565		944,245
Total cash and cash equivalents at the end of the year		985,672		958,565
Notes to the cash flow statement
Reconciliation of Net Income to Net Cash Flow from Operating
Activities
		2022		2021
		£		£
Net movement in funds for the year		6,769		(1,278)
Interest and investment income receivable		(24,075)		(20,863)
Depreciation and amortisation		43,163		43,163
(Gains)/ Loss on investments		78,881		(107,281)
(Increase)/decrease in debtors		(11,234)		82,450
(Decrease)/increase in creditors		(35,571)		(9,990)
Net cash inflow from operating activities		57,933		(13,799)
Analysis of Cash and Cash Equivalents
Cash at bank and in hand		596,932		535,111
Cash held by investment managers		388,740		423,454
Total cash and cash equivalents at the end of the year		985,672		958,565

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

Notes to the cash flow statement continued

Analysis of change in net debt

Analysis of change in net debt
	01 Aug 2021	Cash flows	31 Jul 2022
Cash at bank and in hand	535,111	61,821	596,932
Cash held by investment managers	423,454	(34,714)	388,740
Cash	958,565	27,107	985,672

The trust has no overdrafts, loans or finance lease obligations.

The notes on pages 15 to 21 form part of these financial statements.

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

1. TRUST STATUS

The Fund was registered as a charity on 30 September 1991.

2. BASIS OF PREPARATION

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The Fund constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommend Practice effective from 1 April 2005, which has since been withdrawn.

Going concern basis

QHTC considers that there are no material uncertainties about the Fund’s ability to continue as a going concern. The most significant areas of uncertainty that affect the carrying value of assets held by the Fund are the level of investment return and the performance of investment markets. Nevertheless, in the judgement of QHTC, the Fund's level of unrestricted reserves and low level of non-discretionary expenditure provide adequate assurance that the Fund is able to continue as a going concern over at least 24 months.

3. ACCOUNTING POLICIES

Income Tax and Corporation Tax

The Fund is a registered charity and is not liable to income tax to the extent that income and gains are applied exclusively to charitable activities.

Amounts of expenditure are shown including irrecoverable VAT, where appropriate.

Fund Accounting

The Fund maintains only unrestricted funds: these are funds available for use at the discretion of the Trustee in furtherance of the objectives of the Fund.

Income

All incoming resources are included in the Statement of Financial Activities when the Fund is entitled to the income and the amounts can be quantified with reasonable accuracy.

Rental income from property is recognised in the Statement of Financial Activities based on income receivable under the terms of the lease for the year in question, calculated on a straight-line basis.

Income from listed investments is recognised when it is receivable and the amount can be measured reliably by the Fund. This is normally upon notification by the investment advisor of the yield of the investment portfolio. Interest on cash funds and fixed interest investments is recognised, where material, on an accruals

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

basis, and calculated when the amount can be measured reliably by the Fund; this is normally upon notification of the interest income by the bank or investment advisor.

Expenditure

All expenditure is accounted for on an accruals basis. Expenditure on raising funds is those costs directly attributable to managing the investment portfolio and raising investment income.

Expenditure on charitable activities is costs of repairs, maintenance and proposed development, as well as general overhead and support costs.

Governance costs comprise all costs involved in the public accountability of the Fund and its compliance with regulation and good practice. These costs include costs relating to statutory audit.

Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date. The fair value of equity investments is measured using the closing quoted market price.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised and unrealised investment gains/losses are combined on the Statement of Financial Activities. The Fund does not hold options, derivatives or other complex financial instruments.

Financial instruments

The Fund has financial assets and financial liabilities of a kind that qualify only as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. The Fund did not have any bank loans in the current financial period.

Tangible fixed assets and depreciation

Tangible fixed assets are held at cost, less accumulated depreciation, less any impairment where applicable. While no valuation of the Chiswick site has been carried out, the Trustee believes that its current value is significantly in excess of the amount at which it is shown in the balance sheet.

A review for impairment of fixed assets is carried out if events or changes in circumstances indicate that the carrying amount of the fixed assets may not be recoverable.

Depreciation is provided on all tangible assets on cost or revalued amounts in equal instalments over the estimated lives of the assets. The rates of depreciation are as follows:

Freehold land Not depreciated Freehold buildings Over 50-60 years

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY AREAS OF UNCERTAINTY

Judgements and estimations are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In making these estimates, QHTC makes assumptions concerning the future.

The judgements and estimations that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Fixed Asset investments

The main form of financial risk faced by the Fund is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in the market’s disposition towards equities within particular sectors or sub-sectors. Fixed asset investments are held at valuation and both realised and unrealised gains are taken to the statement of financial activities.

5. INCOME FROM CHARITABLE ACTIVITIES

	2022	2021
	£	£
Rent receivable	171,861	160,777
	171,861	160,777

6. INVESTMENT INCOME

	2022	2021
	£	£
Dividends - equities	11,931	10,283
Interest - fixed interest securities	11,965	10,532
Interest on cash deposits	179	48
	24,075	20,863

7. FUNDRAISING COSTS

	2022	2021
	£	£
Investec Wealth & Investment Limited	3,719	3,722
	3,719	3,722

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

9. DIRECT COSTS OF CHARITABLE ACTIVITIES

	2022	2021
	£	£
Legal and professional fees	12,188	45,455
Salaries	21,400	7,169
IT Software	3,227	3,210
Insurance	2,312	-
Boathouse running costs	154	4,038
Boathouse repairs	-	59,610
Boathouse redevelopment	16,685	117,039
Depreciation	43,163	43,163
Bank charges	62	95
GOVERNANCE COSTS
Trustee meetings	116	38
Audit Fees	7,260	6,660
	106,567	286,477

The Fund had one employee during the year ( 2021; one employee ). No employee received employee benefits of more than £60,000 . Expenditure on salaries was £21,400 ( 2021: £7,169 ) . There were no social security costs. Pension costs were £288 ( 2021: £nil ).

10. EMOLUMENTS OF TRUSTEES

The key management personnel are the trustees of Quintin Hogg Trustee Company (QHTC). During the year, the trustees did not receive any emoluments ( 2021: nil ). £116 ( 2021: £37 ) expenses for travel and miscellaneous costs were paid to two ( 2021: one ) trustees of QHTC in respect of activities associated with the Fund.

11.TANGIBLE FIXED ASSETS

	Freehold land
	and buildings
	£
Cost
As at 1 August 2021	2,585,621
As at 31 July 2022	2,585,621
Depreciation
As at 1 August 2021	825,774
Charge for the period	43,163
As at 31 July 2022	868,937
Net book value
As at 31 July 2022	1,716,684
As at 31 July 2021	1,759,847

All tangible fixed assets are used for charitable activities.

( ~~H~~

18

Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

12. INVESTMENTS

Movement in fixed asset listed investments

	2022	2021
	£	£
Market value at 1 August 2021	1,264,230	1,137,139
Acquisitions at cost	192,785	145,698
Disposal proceeds	(137,886)	(152,957)
Movement on cash	(34,715)	27,069
Revaluation gains	(78,881)	107,281
Market value at 31 July 2022	1,205,533	1,264,230

Investments at fair value comprised:

	2022	2021
	£	£
Fixed interest securities	266,199	264,851
Equities	450,927	495,321
Alternative assets - property	99,668	80,604
Cash	388,739	423,454
	1,205,533	1,264,230

13. DEBTORS

DEBTORS
	2022	2021
	£	£
Accounts receivable	10,643	-
VAT due from HMRC	600	-
Prepayments & accrued income	4,531	4,538
	15,774	4,538

14. CREDITORS AND DEFERRED INCOME: AMOUNTS FALLING DUE WITHIN ONE YEAR

	2022	2021
	£	£
Accounts payable	2,360	2,495
Quintin Hogg Trust	4,868	9,686
University of Westminster - rent received in advance	12,828	12,828
Taxation and social security	146	21,031
Other creditors	65	-
Other accruals and deferred income	7,260	17,059
	27,526	63,099

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

15. ANALYSIS OF CHARITABLE FUNDS

UNRESTRICTED FUNDS	Balance at 01 Aug 2021	Income	Expenditure	Gains and losses	Balance at 31 Jul 2022
	£	£	£	£	£
General Funds	3,500,627	195,936	(110,286)	(78,881)	3,507,396
	3,500,627	195,936	(110,286)	(78,881)	3,507,396
2020-21
	Balance at 1 Aug 2020	Income	Expenditure	Gains and losses	Balance at 31 Jul 2021
	£	£	£	£	£
General Funds	3,501,905	181,640	(290,199)	107,281	3,500,627
	3,501,905	181,640	(290,199)	107,281	3,500,627

16. RENT RECEIPTS FROM NON-CANCELLABLE OPERATING LEASES

At 31st July 2022, lease agreements were in place for the boat house and the various elements of the main sports ground.

The minimum rent receipts under the terms of the operating leases are as follows:

	2022	2021
	£	£
Receivable within:
One year	148,908	148,908
Two to five years	488,125	518,125
Greater than five years	3,614,895	3,733,722
	4,251,928	4,400,755

( ~~H~~

20

Quintin Hogg Memorial Fund - Report and Financial Statements – July 2022

17. RELATED PARTY TRANSACTIONS

QHMF is related to one other separate charitable trust, QHT. These two Trusts have the same Trustee and therefore common control exists. QHMF is also related to 1903 Limited. 1903 Limited is beneficially owned by QHT. The transactions between QHT, 1903 and QHMF during the year are as follows:

beneficially owned by QHT. The transactions between QHT, 1903 and QHMF during the year are as follows:	beneficially owned by QHT. The transactions between QHT, 1903 and QHMF during the year are as	beneficially owned by QHT. The transactions between QHT, 1903 and QHMF during the year are as
	2022	2021
	£	£
Transactions with QHT during the year:
Income from QHT for Chiswick development costs	-	43,104
Expenditure from development costs recharged to QHMF	-	(660)
Expenditure on QHMF's element of shared costs	(16,048)	(23,563)
Total during the year	(16,048)	18,881
Transactions with 1903 Limited during the year:
Income from 1903 for share of Boat Race Company income	4,676	-
	4,676	-
Amounts due to Quintin Hogg Trust:
Accounts payable	-	8,250
Amounts incurred by QHT but relating to QHMF	4,868	1,436
Amounts due from 1903:
Accounts receivable	4,676	-

There are no other related party transactions that require disclosure.

18. FINANCIAL INSTRUMENTS

	2022	2021
	£	£
Financial assets measured at fair value
Investments	816,794	840,775

19. ULTIMATE CONTROLLING PARTY

The ultimate controlling party of the Trust is Quintin Hogg Trustee Company.

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