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2023-07-31-accounts

Quintin Hogg Memorial Fund (Charity Number 288144)

Report & Financial Statements

Year Ended 31 July 2023

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 2023

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 2023

REFERENCE AND ADMINISTRATIVE DETAILS

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 Joanna Embling Richard Law Paul Millett Mark Pryce Dr Ann Rumpus Andrew Saunders-Davies Maria Semedalas William Weston (Chairman)

Business and Governance Manager (QHTC)

Anne Engstrom

INDEPENDENT AUDITORS

Saffery 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

CMFC Accounting Limited

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 2023

REPORT OF THE TRUSTEE

The Trustee presents its report and the audited financial statements for the year ended 31 July 2023 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 1991.

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 ( 2022: 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. QHT owns a subsidiary company, 1903 Limited. Details of transactions with related parties are disclosed in note 17 to the financial statements.

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

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 two parcels of land in 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.

The Northern Site – Land to the North of Hartington Road

QHMF owns the freehold to some 35 acres of land that comprise the larger part of the Quintin Hogg Memorial Sports Ground.

The playing fields and buildings on this land were leased directly and indirectly to the University on fully repairing and insuring terms. However, during 2022, the University requested permission to assign its leases to the Latymer Foundation (the Foundation), another charity. The assignment was approved by the Trustee, subject to a payment of £1,660,000 (see note 5) and final agreement was reached in April 2023. The Foundation has taken on responsibility for managing and maintaining the site, whilst continuing to allow the students of the University use of the facilities. The Foundation has plans to upgrade the sporting facilities and to invest in the site.

The Southern Site

The Fund owns a smaller parcel of land to the South of Hartington Road with frontage to the River Thames. This land and the boat house on it are let to the Chiswick Rowing Trust (CRT), a charity. The boat house is home to both the University Boat Club (UWBC) and to the Quintin Boat Club (QBC).

Planning permission has been obtained for a complete refurbishment of the boat house and the construction of a new boat store on the site. However, an alternative approach of extending the existing boathouse is

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

being investigated and a decision as to whether all, or any, of this work will go ahead has not yet been taken.

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. Minor work continues on improving access. QHMF’s expenditure on the project during the year amounted to £nil in total (2022: £19k).There were shared costs incurred during the year of £19K (2022 £16K). More details are set out in note 17.

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 Foundation, CRT, and the University, benefiting their students, as well as other young persons, through education and sporting activity.

The Trustee takes its responsibility under The Charities (Protection and Social Investment) Act 2016 seriously. 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 ( 2022: £nil ) nor any complaints regarding fundraising.

Financial Review

QHTC reports net expenditure for the Fund before gains/losses on investments and disposals of £1.7m (2022: £86k) and a net surplus of £1.71m (2022: £7k surplus ) after investment losses ( 2022: losses ).

At the year end, the Fund had retained unrestricted funds amounting in total to £5.2m (2022: £3.5m) . The Fund has no other funds.

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 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 2023, the Fund’s reserves, all of which are unrestricted, were £5.2m ( 2022: £3.5m ) and free reserves (total reserves less tangible fixed assets) were £3.5m ( 2022: £1.8m ). The amount of free reserves is in excess of target as a result of an accumulation of surpluses over several years.

The Fund’s available resources at 31 July 2023 comprise fixed asset investments £1.2m ( 2022: £1.2m ) and cash £2.3m ( 2022: £0.6m ), a total of £3.5m ( 2022: £1.8m ). Additional amounts, above the Fund’s currently available resources, may be required if the proposed development of the boathouse 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 £35k ( 2022: £24k ) and, as reported by Investec, a total return of 0.9% ( 2022: negative return 5% ), net of fees. The performance of the investment portfolio is measured against a bespoke benchmark comprising elements of various indices and interest

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

rates appropriate to the portfolio. Investec reported that, during the year, the benchmark produced a total return before fees of 2.2% ( 2022: negative return 3% ).

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 business and governance manager 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. 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.

Auditors

Saffery 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 2023

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:

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: 12/12/2023

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

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 2023 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:

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:

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

Responsibilities of the Trustee

As explained more fully in the Trustee’s Responsibilities Statement set out on page 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 2023

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 LLP

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

Date: 19 January 2024

Saffery 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 2023

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 JULY 2023

Note
INCOME FROM:
Charitable activities
5
Investment income
6
TOTAL INCOME
EXPENDITURE ON:
Raising Funds
7
Charitable activities
8
TOTAL EXPENDITURE
NET INCOME BEFORE GAIN/LOSS ON
INVESTMENTS
Net (losses) on investments
12
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
15		 2023
£
1,859,926
35,654
1,895,580
5,182
163,809
168,991
1,726,589
(15,395)
1,711,194
3,507,396
5,218,590		 2022
£
171,861
24,075
195,936
3,719
106,567
110,286
85,650
(78,881)
6,769
3,500,627
3,507,396

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 2023

BALANCE SHEET

AS AT 31 JULY 2023

Note
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Cash at bank
LIABILITIES
Creditors falling due within one year
14
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted funds
15		 2023
£
£
1,673,521
1,216,047
2,889,568
53,922
2,314,495
2,368,417
(39,395)
2,329,022
5,218,590
5,218,590
5,218,590		 2022
£
£
1,716,684
1,205,533
2,922,217
15,774
596,932
612,705
(27,526)
585,179
3,507,396
3,507,396
3,507,396		 2022
£
£
1,716,684
1,205,533
2,922,217
15,774
596,932
612,705
(27,526)
585,179
3,507,396
3,507,396
3,507,396
2,922,217
585,179
2,368,417
(39,395)		 612,705
(27,526)
3,507,396
3,507,396
3,507,396

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: 12/12/2023

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

STATEMENT OF CASH FLOWS

YEAR ENDED 31 JULY 2023

Cash flows from operating activities
Cash flows from investing activities
Interest and investment income
35,654
Proceeds from sale of investments
1,236,584
Purchase of investments
(1,581,135)
Cash provided by (used in) investing
activities
Cash flows from financing activities
Increase (decrease) in cash and cash
equivalents in the year
Cash and cash equivalents at the beginning
of the year
Total cash and cash equivalents at the end
of the year
Notes to the cash flow statement
Reconciliation of Net Income to Net Cash Flow from
Operating Activities
Net movement in funds for the year
Interest and investment income receivable
Depreciation and amortisation
Loss on investments
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash inflow from operating activities
Analysis of Cash and Cash Equivalents
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents at the end
of the year		 35,654
1,236,584
(1,581,135)		 2023
£
1,707,818
(308,897)		 24,075
137,885
(192,786)
1,398,921
985,672
2,384,593
2023
£
1,711,194
(35,654)
43,163
15,395
(38,148)
11,868
1,707,818
2,314,495
70,098
2,384,593

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

Notes to the cash flow statement continued

Analysis of change in net debt

sis of change in net debt
Cash at bank and in hand
Cash held by investment managers
Cash		 01 Aug
2022
Cash flows
596,932
1,717,563
388,740
(318,642)
985,672
1,398,921		 31 Jul
2023
2,314,495
70,098
2,384,593

The Fund 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 2023

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

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

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 2023

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 2023

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

Premium received on assignment of
lease
Rent receivable		 2023
£
1,660,000
199,926
1,859,926		 2022
£
-
171,861
171,861

During 2023, the University requested permission to assign its lease to the Latymer Foundation, another charity. The assignment was approved subject to a payment of £1,660,000 which was received in April 2023.

6. INVESTMENT INCOME

Dividends – equities
Interest - fixed interest securities
Interest on cash deposits		 2023
£
16,296
14,476
4,882
35,654		 2022
£
11,931
11,965
179
24,075

7. FUNDRAISING COSTS

Investec Wealth & Investment
Limited
 2023
£
5,182

5,182		 2022
£
3,719
3,719

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Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

Legal and professional fees
Salaries
IT Software
Insurance
Boathouse running costs
Grants awarded
Boathouse redevelopment
Depreciation
Bank charges

GOVERNANCE COSTS
Trustee meetings
Audit Fees		 2023
£
37,672
4,644
4,913
4,127
1,074
1,000
58,772
43,163
66

458
7,920
163,809		 2022
£
12,188
21,400
3,227
2,312
154
-
16,685
43,163
62
116
7,260
106,567

The Fund had one employee during the year ( 2022; one employee ). No employee received employee benefits of more than £60,000 . Expenditure on salaries was £4,340 ( 2022: £21,400 ) . There were social security costs of £86 ( 2022: £nil ). Pension costs were £217 ( 2022: £288 ).

9. 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 ( 2022: nil ). Expenses for travel and miscellaneous costs of £nil ( 2022: £116 ) were paid to no ( 2022: two ) trustees of QHTC in respect of activities associated with the Fund.

10. TANGIBLE FIXED ASSETS

Cost
As at 1 August 2022
As at 31 July 2023
Depreciation
As at 1 August 2022
Charge for the period
As at 31 July 2023
Net book value
As at 31 July 2023
As at 31 July 2022		 Freehold land
and buildings
£
2,585,621
2,585,621
868,937
43,163
912,100
1,673,521
1,716,684

All tangible fixed assets are used for charitable activities.

18

Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

11. INVESTMENTS

Movement in fixed asset listed investments

Market value at 1 August 2022
Acquisitions at cost
Disposal proceeds
Movement on cash
Revaluation gains
Market value at 31 July 2023		 2023
£
1,205,533
1,581,135
(1,236,584)
(318,642)
(15,395)
1,216,047		 2022
£
1,264,230
192,785
(137,886)
(34,715)
(78,881)
1,205,533

Investments at fair value comprised:

Fixed interest securities
Equities
Alternative assets - property
Cash		 2023
£
197,345
694,076
254,528
70,098
1,216,047		 2022
£
266,199
450,927
99,668
388,739
1,205,533

12. DEBTORS

Accounts receivable
VAT due from HMRC
Prepayments & accrued income		 2023
£
48,328
245
5,349
53,922		 2022
£
10,643
600
4,531
15,774

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

Accounts payable
Quintin Hogg Trust
University of Westminster - rent
received in advance
Taxation and social security
Other creditors
Other accruals and deferred income		 2023
£
1,000
24,057
-
-
-
14,339
39,396		 2022
£
2,360
4,868
12,828
146
65
7,260
27,527

19

Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

14. ANALYSIS OF CHARITABLE FUNDS

UNRESTRICTED FUNDS
General Funds

2021-22
General Funds		 Balance
at 01 Aug
2022
£
3,507,396
3,507,396

Balance
at 1 Aug
2021
£
3,500,627
3,500,627		 Income
£
1,895,580
1,895,580
Income
£
195,936
195,936		 Expenditure
£
(168,991)
(168,991)
Expenditure
£
(110,286)
(110,286)		 Gains and
losses
£
(15,395)
(15,395)
Gains and
losses
£
(78,881)
(78,881)		 Balance
at 31 Jul
2023
£
5,218,590
5,218,590
Balance
at 31 Jul
2022
£
3,507,396
3,507,396

15. RENT RECEIPTS FROM NON-CANCELLABLE OPERATING LEASES

At 31st July 2023, 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:

Receivable within:
One year
Two to five years
Greater than five years
 2023
£
152,910
559,807
4,114,358
4,827,075		 2022
£
148,908
488,125
3,614,895
4,251,928

20

Quintin Hogg Memorial Fund - Report and Financial Statements – July 2023

16. 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, which is beneficially owned by QHT. The transactions between QHT, 1903 and QHMF during the year were as follows:

Transactions with QHT during the year:
Expenditure on QHMF's element of shared costs
Total during the year

Transactions with 1903 Limited during the year:
Income from 1903 for share of Boat
Race Company income

Amounts due to Quintin Hogg Trust:
Accounts payable
Amounts incurred by QHT but relating to QHMF

Amounts due from 1903:
Accounts receivable
There are no other related party transactions that require		 2023
£
(19,189)
(19,189)
5,840
5,840
-
24,057
5,840
disclosure.		 2022
£
(16,048)
(16,048)
4,676
4,676
-
4,868
4,676

17. FINANCIAL INSTRUMENTS

2023 2022
£ £
Financial assets measured at fair value
Investments 1,145,949 816,794

18. ULTIMATE CONTROLLING PARTY

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

21