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2021-06-30-accounts

Charity number: 288205

THE RICHMOND FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

for the year ended 30 June 2021

THE RICHMOND FOUNDATION

CONTENTS

Page
Reference and administrative details of the Foundation, its Trustees and advisers 1
Trustees' report 2 - 6
Independent auditors' report on the financial statements 7 - 10
Consolidated statement of financial activities 11
Foundation statement of financial activities 12
Consolidated balance sheet 13
Foundation balance sheet 14
Consolidated statement of cash flows 15
Notes to the financial statements 16 - 40

THE RICHMOND FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERS for the year ended 30 June 2021

Trustees

Richmond, The American International University in London, Inc1 RU Trustee Limited2

1 Comprising: P Deans, A Oliviera, R King, J B Ilieva, E Robertson, C J DeLaney (appointed 1 February 2021), M Dennis (appointed 1 February 2021), A Hans (appointed 1 February 2021), F Huang, I Leroni, M Meissner (appointed 1 February 2021), A Allden OBE (resigned 26 February 2021)

2 Comprising: P Deans, A Oliviera

Charity registered number

288205

Principal office

Queen's Road, Richmond-upon-Thames, Surrey, TW10 6JP

Independent auditors

Peters Elworthy & Moore, Salisbury House, Station Road, Cambridge, CB1 2LA

Bankers

Allied Irish Bank, 10 Berkeley Square, Mayfair, London, W1J 6AA

Solicitors

Eversheds Sutherland (International) LLP, 1 Wood Street, London, EC2V 7WS

Page 1

THE RICHMOND FOUNDATION

TRUSTEES' REPORT for the year ended 30 June 2021

The Trustees submit their report and audited consolidated financial statements of The Richmond Foundation for the year ended 30 June 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Foundation, registered in England and Wales, is governed by a Declaration of Trust dated 25 October 1983, as amended by a Deed of Variation dated 30 May 1990 and as amended by a Section 280 resolution dated 5 November 2019. The Foundation's charity number is 288205 and the Foundation is unincorporated.

Financial statements

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Foundation's governing document, the Charities Act 2011 and 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 (FRS 102) second edition October 2019 (effective January 2019).

These consolidated financial statements include the results of the Foundation's wholly-owned subsidiary, Richmond College Services Ltd.

Appointment trustees

Trustees are normally appointed from the Trustee Board of Richmond, The American International University in London Inc. ("the University"), an independent US non-profit educational charity with tax exempt status under section 501 (c) (3) of the US Internal Revenue Code.

Remuneration policy and key management personnel

The Foundation's Trustees comprise the key management personnel of the Foundation in charge of directing and controlling the Foundation. All Trustees give their time freely and no Trustee received any remuneration in the year.

Trustee Induction and Training

New Trustees undergo an induction to the Foundation. This induction includes an introduction to the work of the Foundation and the Trustees' own obligations under UK charity law. The financial history of the Foundation is also covered and an explanation of the financial reporting documents is given.

Organisation

The Trustees administer the Foundation and take all major decisions, including deciding on the donations to be made to the University. The Board also reviews the strategy and operations of the Foundation including any risks.

The Trustees delegate day-to-day management of the Foundation to the President of the University and the Chief Finance Officer.

Trustees' insurance and indemnities

The Trustees have the benefit of the indemnity provisions contained in the Foundation's insurance policy, and the Foundation has maintained throughout the year Directors and Officers liability insurance for the benefit of the Foundation and its Trustees.

Related parties

The Richmond Foundation received a donation of £10 million in 2016-17 from the Cyril Taylor Charitable Foundation which required that £9 million be invested in a restricted endowment fund and the dividend income from the investment be paid each year to the University. It was agreed with the Office for Students by the Richmond Foundation that the restricted endowment would only be used in the event of the University having to teach-out its current students.

Due to changes in the governance of the Richmond Foundation and the transition to corporate trustees, the

Page 2

THE RICHMOND FOUNDATION

TRUSTEES' REPORT (CONTINUED) for the year ended 30 June 2021

University is able to exercise control over the Foundation and therefore the Foundation’s accounts have been consolidated with those of the University since 2019/20.

The charity owns 100% of the share capital of Richmond College Services Limited.

Risk Management

The Trustees have examined the major strategic, business and operational risks that the Foundation faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The sale of the property at 23 Queen’s Road has removed the principal risk to the Foundation. Its remaining risks are associated with the performance of its investment. The RF Board addressed this by agreeing in 2021 to change the investment fund manager to Cazenove, and to use an ethical investment package.

Public Benefit

The Trustees confirm that, to the best of their knowledge and belief, they have complied with Section 4 of the Charities Act 2011 in respect to having due regard to public benefit guidance published by the Charity Commission.

Reserves Policy

The Foundation's reserves are held to support financial solvency, manage uncertainty and fund future activities. The level of reserves required by the Foundation is therefore determined by reference to:

Unrestricted reserves that have been designated for specific purposes will be shown in a separate designated reserve.

The Foundation has set itself a target level of reserves of £25,000 which represents 3 years of operational costs.

The Foundation seeks to distribute the maximum available in each year to Richmond University. After a project or requirement has been identified by the University, the funds are transferred from the Foundation, subject to any restrictions imposed by the donor. The primary expenditure by the Foundation is the cost of mortgage repayments. This is covered by the rent charged to the University for use of the building.

The restricted endowment is held for the benefit of the University and can only be donated in times of crisis. At the year-end, the restricted endowment totalled £8,007,397 (2020: £7,707,635).

The restricted fund represents investment income awaiting transfer to the University. At the year-end, the restricted fund totalled £34,570 (2020: £24,775).

Unrestricted funds are held to fund the day-to-day operations of the Foundation. Unrestricted funds are also used to fund discretionary donations to the University. At the year-end, the unrestricted funds totalled £10,162 (2020: £478,093).

The reserves policy is reviewed at least annually to ensure any amounts set aside are appropriate. At the yearend, the free reserves available to the Foundation were £10,162 (2020: £5,732). Free reserves are currently below the target level. The Trustees will meet this target by resuming its campaigning activities for unrestricted donations.

At the year-end, the Foundation held reserves of £8,051,174 (2020: £8,202,885) and consolidated group reserves of £8,052,129 (2020: £8,210,503).

Page 3

THE RICHMOND FOUNDATION

TRUSTEES' REPORT (CONTINUED) for the year ended 30 June 2021

Investment policy

Investment Objectives

The Foundation seeks to produce the best financial return within an acceptable level of risk and the investment objective is to maintain the real capital value ahead of inflation, over the long term.

The Trustees can tolerate variation in the capital value of the portfolio in the short-term and are prepared to adopt a total return (income and capital growth) approach to meet their drawdown requirement of £250k per annum (to be reviewed annually).

During the year, the Trustees elected to change the portfolio management provider to Cazenove as its fund was deemed to be more ethically aligned with the objectives of the Foundation.

The portfolio intends to be invested in the Responsible Multi-Asset Fund which has a target of inflation (CPI) plus 4% per annum, net of fees, over rolling ten-year periods. The Fund targets a stable and sustainable total return distribution of 4% per annum.

Assets

The Foundation's assets can be invested widely and should be diversified by asset class, by manager and by security. Asset classes could include cash, bonds, equities, property, hedge funds, structured products, private equity, commodities and any other asset that is deemed suitable for the Foundation.

Risk

The key risk to the long term sustainability of the Foundation is inflation, and the assets should be invested to mitigate this risk over the long term. The Trustees understand that this is likely to mean that investment will be concentrated in real assets and that the capital value will fluctuate. Therefore, the Foundation is willing to adopt a ‘medium to high' risk profile.

Liquidity Requirements

The Responsible Charity Multi-Asset Fund offers daily dealing with settlement taking five business days for withdrawals. Cash distributions should be paid to the Foundation on a quarterly basis.

Time Horizon

This portfolio is as a long-term fund.

Ethical Investment

As a charity concerned with education and students we are mindful of our stakeholders and so have selected a fund that adopts a responsible investment approach.

The Charity Responsible Multi-Asset Fund adopts a responsible investment approach seeking sustainable long term returns, using exclusions, the integration of environmental, social and governance considerations in equities and engagement throughout share ownership.

The full particulars of the policy are available at

https://www.cazenovecapital.com/sysglobalassets/wmmediaassets/uk/charities/documents/rmaf-responsibleinvestment-policy.pdf"

Management, Reporting and Monitoring

Quarterly reporting and a meeting with the investment manager (at least annually).

Approval and Review

This Investment Policy Statement was prepared to provide a framework for the management of its investment assets. It will be reviewed on an annual basis to ensure continuing appropriateness.

Page 4

THE RICHMOND FOUNDATION

TRUSTEES' REPORT (CONTINUED) for the year ended 30 June 2021

Information on fundraising practices

The Foundation does not currently rely on fundraising as a major source of income nor does it employ or engage professional fundraisers.

OBJECTIVES AND ACTIVITIES

The objective of the Foundation is to further the education of the students of Richmond, The American International University in London Inc. by provision of:

Grants are awarded by Richmond, The American International University in London Inc. on behalf of the Foundation. These scholarships are awarded on the basis of need and academic ability, subject to the restrictions imposed by the original donor of the funds.

ACHIEVEMENTS AND PERFORMANCE

During the year, the Foundation donated £1,512,457 (2020: £184,000) unrestricted funds and £124,424 (2020: £355,793) restricted funds to the University. These donations improve the quality and accessibility of education at the University.

The Foundation continued to lease the student residential property at 23 Queen's Road (programme related investment) to the University until its sale in March 2021. Mortgage repayments to Allied Irish Bank in respect of 23 Queen's Road totalled £1,292,535 (2020: £197,060). Income generated from letting 23 Queen's Road to the University was £135,000 (2020: £200,000).

Proceeds from the sale of 23 Queen’s Road, which amounted to £2,956,457, were donated to Richmond University during the year.

Investment income from the Cyril Taylor Charitable Foundation endowment was £134,219 (2020: £234,137). The cost of managing the endowment was £nil (2020: £31,670). The endowment is held for the benefit of the University. All income generated by the endowment is remitted to the University; the capital is withheld until it is needed by the University in an emergency.

The Foundation's commercial trading subsidiary, Richmond College Services Ltd, was dormant in the year. Profits were £nil (2020: £12,495). All profits are gifted to the Foundation. As the subsidiary made no profits, profits were not donated to the Foundation in 2020/21.

Financial review

The Foundation showed a consolidated deficit of £158,374 (2020 : £681,477).

The consolidated reserves of the Foundation totalled £8,052,129 (2020: £8,210,503). No reserves were in deficit.

The Foundation continued to distribute the maximum available to Richmond University. The Trustees believe that the remaining reserves are sufficient to fund the Foundation's activities for the foreseeable future.

PLANS FOR THE FUTURE

In association with the Alumni Office at Richmond University, the Foundation aims to increase philanthropic donations from UK donors in order to support the continued work of the University.

Page 5

THE RICHMOND FOUNDATION

TRUSTEES' REPORT (CONTINUED) for the year ended 30 June 2021

GOING CONCERN

The Trustees consider that the Foundation will continue to operate for the foreseeable future due to the restrictions on the endowments and current levels of funds. The University remains to be the chief beneficiary of the Foundation's charitable activities

Auditor

Peters Elworthy & Moore has indicated its willingness to continue in office.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees' report 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 Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (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 governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Roger King, Chair

Date: 8 March 2022

Page 6

THE RICHMOND FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RICHMOND FOUNDATION

OPINION

We have audited the financial statements of The Richmond Foundation (the 'parent charity') and its subsidiary (the 'group') for the year ended 30 June 2021 which comprise the consolidated statement of financial activities, the Foundation statement of financial activities, the consolidated balance sheet, the Foundation balance sheet, the consolidated statement of cash flows and the related notes, including a summary of 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).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Trustees' 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 Group's or the parent 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 Trustees with respect to going concern are described in the relevant sections of this report.

Page 7

THE RICHMOND FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RICHMOND FOUNDATION (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine 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 Trustees are responsible for assessing the Group's and the parent 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 Trustees either intend to liquidate the Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Page 8

THE RICHMOND FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RICHMOND FOUNDATION (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 151 of the 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 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we;

Page 9

THE RICHMOND FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RICHMOND FOUNDATION (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors 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 as 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/auditorsresponsibilities. This description forms part of our auditors' report.

USE OF OUR REPORT

This report is made solely to the charity's trustees, 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 charity's trustees those matters we are required to state to them 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Peters Elworthy & Moore

Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA Date: 1. Manol.

Peters Elworthy & Moore are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 10

THE RICHMOND FOUNDATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 30 June 2021

Note
INCOME AND
ENDOWMENTS
FROM:
Charitable activities
4
Other trading activities
5
Investments
6
Other income
8
TOTAL INCOME AND
ENDOWMENTS
EXPENDITURE ON:
Raising funds
9,10
Charitable activities
11
TOTAL
EXPENDITURE
NET (EXPENDITURE)/
INCOME BEFORE
NET GAINS/(LOSSES)
ON INVESTMENTS
Net gains/(losses) on
investments
16
NET (EXPENDITURE)/
INCOME BEFORE
TAXATION
Taxation
15
NET MOVEMENT IN
FUNDS
RECONCILIATION OF
FUNDS:
Total funds brought
forward
22
Net movement in funds
22
TOTAL FUNDS
CARRIED FORWARD		 Unrestricted
funds
2021
£
135,000
-
54
1,026,700
1,161,754
4,289
1,623,022
1,627,311
(465,557)
-
(465,557)
(2,374)
(467,931)
478,093
(467,931)
10,162		 Restricted
funds
2021
£
-
-
134,219
-
134,219
-
124,424
124,424
9,795
-
9,795
-
9,795
24,775
9,795
34,570		 Endowment
funds
2021
£
-
-
-
-
-
-
-
-
-
299,762
299,762
-
299,762
7,707,635
299,762
8,007,397		 Total
funds
2021
£
135,000
-
134,273
1,026,700
1,295,973
4,289
1,747,446
1,751,735
(455,762)
299,762
(156,000)
(2,374)
(158,374)
8,210,503
(158,374)
8,052,129		 Total
funds
2020
£
200,000
71,225
234,392
1,747
507,364
90,087
576,769
666,856
(159,492)
(521,985)
(681,477)
-
(681,477)
8,891,980
(681,477)
8,210,503

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 16 to 40 form part of these financial statements.

Page 11

THE RICHMOND FOUNDATION

FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES for the year ended 30 June 2021

Unrestricted
funds		 Restricted
funds		 Endowment
funds		 Total funds Total funds
2021 2021 2021 2021 2020
Note £ £ £ £ £
INCOME AND
ENDOWMENTS FROM:
Charitable activities
4		 135,000 - - 135,000 200,000
Investments
7		 54 134,219 - 134,273 246,887
Other income
8		 1,026,700 - - 1,026,700 1,747
TOTAL INCOME AND
ENDOWMENTS		 1,161,754 134,219 - 1,295,973 448,634
EXPENDITURE ON:
Raising funds
10		 - - - - 31,670
Charitable activities
11		 1,623,022 124,424 - 1,747,446 576,769
TOTAL EXPENDITURE 1,623,022 124,424 - 1,747,446 608,439
Net gains/(losses) on
investments
16		 - - 299,762 299,762 (521,985)
NET MOVEMENT IN FUNDS (461,268) 9,795 299,762 (151,711) (681,790)
RECONCILIATION OF
FUNDS:
Total funds brought forward
23		 470,475 24,775 7,707,635 8,202,885 8,884,675
Net movement in funds
23		 (461,268) 9,795 299,762 (151,711) (681,790)
TOTAL FUNDS CARRIED
FORWARD
23
9,207
34,570
8,007,397
8,051,174
8,202,885

The Foundation statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 16 to 40 form part of these financial statements.

Page 12

THE RICHMOND FOUNDATION

CONSOLIDATED BALANCE SHEET as at 30 June 2021

2021 2021 2020 2020
Note £ £
FIXED ASSETS
Investments 16 7,507,397 7,707,635
Social investments 17 - 3,200,000
7,507,397 10,907,635
CURRENT ASSETS
Debtors 18 460,541 22,668
Cash at bank and in hand 221,103 402,642
681,644 425,310
Creditors: amounts falling due within one
year 19 (136,912) (579,231)
NET CURRENT ASSETS / LIABILITES 544,732 (153,921)
TOTAL ASSETS LESS CURRENT
LIABILITIES 8,052,129 10,753,714
Creditors: amounts falling due after more
than one year 20 - (2,543,211)
TOTAL NET ASSETS 8,052,129 8,210,503
CHARITY FUNDS
Endowment funds 22 8,007,397 7,707,635
Restricted funds 22 34,570 24,775
Unrestricted funds 22 10,162 478,093
TOTAL FUNDS 8,052,129 8,210,503

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Roger King

Richmond, The American International University in London, Inc

Date: 8 March 2022

The notes on pages 16 to 40 form part of these financial statements.

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THE RICHMOND FOUNDATION

FOUNDATION BALANCE SHEET as at 30 June 2021

2021 2021 2020 2020
Note £ £
FIXED ASSETS
Investments 16 7,507,399 7,707,637
Social investments 17 - 3,200,000
7,507,399 10,907,637
CURRENT ASSETS
Debtors 18 449,402 9,228
Cash at bank and in hand 174,150 330,578
623,552 339,806
Creditors: amounts falling due within one
year 19 (79,777) (501,347)
NET CURRENT ASSETS / LIABILITES 543,775 (161,541)
TOTAL ASSETS LESS CURRENT
LIABILITIES 8,051,174 10,746,096
Creditors: amounts falling due after more
than one year 20 - (2,543,211)
TOTAL NET ASSETS 8,051,174 8,202,885
CHARITY FUNDS
Endowment funds 22 8,007,397 7,707,635
Restricted funds 22 34,570 24,775
Unrestricted funds 22 9,207 470,475
TOTAL FUNDS 8,051,174 8,202,885

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Roger King

Richmond, The American International University in London, Inc

Date: 8 March 2022

The notes on pages 16 to 40 form part of these financial statements.

Page 14

THE RICHMOND FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 30 June 2021

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
28
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Proceeds from the sale of programme related investment
Withdrawal from endowment
NET CASH PROVIDED BY INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowing
Interest paid
NET CASH USED IN FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
29		 2021
£
(3,745,680)
129,976
4,226,700
500,000
4,856,676
(1,283,159)
(9,376)
(1,292,535)
(181,539)
402,642
221,103		 2020
£
79,534
282,250
-
-
282,250
(175,443)
(21,617)
(197,060)
164,724
237,918
402,642

The notes on pages 16 to 40 form part of these financial statements

Page 15

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

1. GENERAL INFORMATION

The Richmond Foundation is an unincorporated charity registered in England and Wales. Its registered and principal office is disclosed on the Reference and Administrative Details section of this report (page 1).

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 (FRS 102) second edition October 2019 (effective January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Richmond Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertaking, Richmond College Services Limited. The results of the subsidiary are consolidated on a line by line basis.

2.2 GOING CONCERN

These financial statements have been prepared on a going concern basis. The Trustees believe that the Foundation is able to continue operating for at least 12 months from the date these financial statements were authorised and that no material uncertainties exist.

Page 16

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.3 INCOME

All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants and donations

Cash donations, gifts and legacies are recognised in full in the Statement of Financial Activities when the Foundation is entitled to the income, the amount is measurable and receipt is probable.

Activities for generating funds (conference room hire and catering)

Income from commercial trading operations represents the invoiced value, net of Value Added Tax, of services provided to customers. No fundraising takes place in these activities.

Charitable activities (r ental income )

Rental income is recognised on an straight line accruals basis.

Investment income

Dividend income, including any recoverable tax, is recognised from the date it becomes receivable.

Interest income is recognised using the effective rate of interest.

Gift aid income

Gift aid income is recognised on an accruals basis when the receipt is both probable and measurable.

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities based on the expenditure on each activity.

Expenditure on raising funds represents investment management fees and expenditure on noncharitable trading.

Direct expenditure on charitable activities represents the costs of directly undertaking the activities which further the Group's objectives.

Support costs associated with charitable activities are allocated to activities in proportion to the direct costs incurred on each activity.

All expenditure is inclusive of irrecoverable VAT.

2.5 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 17

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.6 TAXATION

The Foundation is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Foundation is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.8 SOCIAL INVESTMENTS

Programme related investments are held at fair value if this can be measured reliably. If fair value cannot be measured reliably, they are held at cost less impairment.

2.9 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Foundation anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the consolidated statement of financial activities as a finance cost.

Page 18

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.12 FINANCIAL INSTRUMENTS

The Group only has financial assets and financial liabilities of a kind that qualify 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.

2.13 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Endowment funds comprise the donation from the Cyril Taylor Charitable Foundation (CTCF). The income generated from these funds is payable to Richmond, The American International University in London. The Foundation can only draw on the capital of the endowment fund with the express permission of the CTCF.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. INCOME FROM CHARITABLE ACTIVITIES - GROUP AND FOUNDATION

Unrestricted
funds
2021
£
Rental income from social investments
135,000
TOTAL 2020
200,000		 Total
funds
2021
£
135,000
200,000		 Total
funds
2020
£
200,000

Page 19

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

5. INCOME FROM OTHER TRADING ACTIVITIES - GROUP

Income from non charitable trading activities

Unrestricted
funds
2021
£
Catering and conference room hire
-
TOTAL 2020
71,225		 Total
funds
2021
£
-
71,225		 Total
funds
2020
£
71,225

6. INVESTMENT INCOME - GROUP

Unrestricted
funds
2021
£
Dividends
-
Interest
54
54
TOTAL 2020
255		 Restricted
funds
2021
£
133,519
700
134,219
234,137		 Total
funds
2021
£
133,519
754
134,273
234,392		 Total
funds
2020
£
232,943
1,449
234,392

7. INVESTMENT INCOME - PARENT

Unrestricted
funds
2021
£
Distribution from subsidiary
-
Dividends
-
Interest
54
54
TOTAL 2020
12,750		 Restricted
funds
2021
£
-
133,519
700
134,219
234,137		 Total
funds
2021
£
-
133,519
754
134,273
246,887		 Total
funds
2020
£
12,495
232,943
1,449
246,887

Page 20

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

8. OTHER INCOMING RESOURCES

Quilter Cheviot compensation
Gain on disposal of 23 Queen's Road
TOTAL 2020		 Unrestricted
funds
2021
£
-
1,026,700
1,026,700
-		 Endowment
funds
2021
£
-
-
-
1,747		 Total
funds
2021
£
-
1,026,700
1,026,700
1,747		 Total
funds
2020
£
1,747
-
1,747

9. EXPENDITURE ON RAISING FUNDS - GROUP

Subsidiary fundraising trading expenses

Unrestricted
funds
2021
£
Bank charges
89
Auditor's remuneration
2,000
Auditor's remuneration - non audit services
2,000
Management charge
-
Bad debt write off
-
HMRC filing penalties
200
4,289
TOTAL 2020
58,417		 Total
funds
2021
£
89
2,000
2,000
-
-
200
4,289
58,417		 Total
funds
2020
£
2
2,000
2,000
53,184
1,231
-
58,417

Page 21

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

10. INVESTMENT MANAGEMENT COSTS - GROUP AND FOUNDATION

Investment management fees
TOTAL 2020		 Restricted
funds
2021
£
-
11,974		 Endowment
funds
2021
£
-
19,696		 Total
funds
2021
£
-
31,670		 Total
funds
2020
£
31,670

11. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES - GROUP AND FOUNDATION

Summary by fund type

Unrestricted
funds
2021
£
Provision of facilities and equipment
8,978
Provision of donations
1,614,044
1,623,022
TOTAL 2020
220,976		 Restricted
funds
2021
£
-
124,424
124,424
355,793		 Total
funds
2021
£
8,978
1,738,468
1,747,446
576,769		 Total
funds
2020
£
21,684
555,085
576,769

12. ANALYSIS OF EXPENDITURE BY ACTIVITIES - GROUP AND FOUNDATION

Provision of facilities and equipment
Provision of donations
TOTAL 2020		 Activities
undertaken
directly
2021
£
8,896
1,722,526
1,731,422
560,879		 Support
costs
2021
£
82
15,942
16,024
15,890		 Total
funds
2021
£
8,978
1,738,468
1,747,446
576,769		 Total
funds
2020
£
21,684
555,085
576,769

Page 22

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

12. ANALYSIS OF EXPENDITURE BY ACTIVITIES - GROUP AND FOUNDATION (CONTINUED)

ANALYSIS OF DIRECT COSTS

Mortgage interest payments
Legal and professional fees
Maintenance
Richmond University donation: dividends
Richmond University donation: building
TOTAL 2020		 Provision of
facilities
and
equipment
2021
£
8,896
-
-
-
-
8,896
21,086		 Provision of
donations
2021
£
-
77,821
7,824
124,424
1,512,457
1,722,526
539,793		 Total
funds
2021
£
8,896
77,821
7,824
124,424
1,512,457
1,731,422
560,879		 Total
funds
2020
£
21,086
-
-
355,793
184,000
560,879

ANALYSIS OF SUPPORT COSTS

Bank charges
Audit and accountancy fees
Legal and professional fees
Insurance
TOTAL 2020		 Provision of
facilities
and
equipment
2021
£
1
65
-
16
82
598		 Provision of
donations
2021
£
283
12,535
-
3,124
15,942
15,292		 Total
funds
2021
£
284
12,600
-
3,140
16,024
15,890		 Total
funds
2020
£
45
14,200
1,645
-
15,890

Page 23

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

13. AUDITORS' REMUNERATION

2021 2020
£ £
Fees payable to the Foundation's auditor in respect of:
Audit of the Foundation's financial statements 8,000 8,000
Preparation of the Foundation's financial statements 2,500 2,500

14. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 30 June 2021, no Trustee expenses have been incurred (2020 - £NIL).

15. TAXATION

Richmond College Services 2019/20 corporation tax 2021
£
2,374
2,374		 2020
£
-
-

16. FIXED ASSET INVESTMENTS

GROUP
COST OR VALUATION
At 1 July 2020
Revaluations
Cash withdrawal
AT 30 JUNE 2021
NET BOOK VALUE
AT 30 JUNE 2021
AT 30 JUNE 2020		 Listed
investments
£
2,235,401
299,762
-
2,535,163
2,535,163
2,235,401		 Investment
cash
£
5,472,234
-
(500,000)
4,972,234
4,972,234
5,472,234		 Total
£
7,707,635
299,762
(500,000)
7,507,397
7,507,397
7,707,635

Page 24

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

16. FIXED ASSET INVESTMENTS (CONTINUED)

FOUNDATION
COST OR VALUATION
At 1 July 2020
Revaluations
Cash withdrawal
AT 30 JUNE 2021
NET BOOK VALUE
AT 30 JUNE 2021
AT 30 JUNE 2020		 Investments
in subsidiary
companies
£
2
-
-
2
2
2		 Listed
investments
£
2,235,401
299,762
-
2,535,163
2,535,163
2,235,401		 Investment
cash
£
5,472,234
-
(500,000)
4,972,234
4,972,234
5,472,234		 Total
£
7,707,637
299,762
(500,000)
7,507,399
7,507,399
7,707,637

Page 25

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

16. FIXED ASSET INVESTMENTS (CONTINUED)

PRINCIPAL SUBSIDIARIES

The following was a subsidiary undertaking of the Foundation:

Name Company Charity Registered office or principal Principal activity Class of Holding number registration place of business shares number Richmond College Services Limited 02234479 N/A Queen's Road, Richmond-uponRoom hire and Ordinary 100% Thames, Surrey, TW10 6JP catering The financial results of the subsidiary for the year were: Name Expenditure Profit/(Loss) Net assets £ for the year £ £ Richmond College Services Limited (6,663) (6,663) 957

The financial results of the subsidiary for the year were:

During the year, Richmond College Services Limited did not generate profits to donate to the Foundation (2020 - £12,495).

Page 26

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

17. SOCIAL INVESTMENTS

GROUP AND FOUNDATION

COST OR VALUATION
At 1 July 2020
Disposals
IMPAIRMENT PROVISION
NET BOOK VALUE
At 30 June 2021
At 30 June 2020
Social investments comprise:
PROGRAMME RELATED INVESTMENTS		 Programme
related
investments
£
3,200,000
(3,200,000)
-
-
-
3,200,000

Total 2020 £ 3,200,000 23 Queen's Road

The programme related investment represented the land and buildings at 23 Queen's Road, Richmondupon-Thames, TW10 6LA. The building was let as student accommodation to Richmond The American International University in London. The investment was held specifically to enable the University to undertake activities that furthered the Foundation's charitable objectives. Any rental income generated from letting the building was incidental.

During the year, the programme related investment was sold. The gain on disposal amounted to £1,026,700 and is disclosed as other incoming resources in the Statement of Financial Activities. All proceeds arising from the disposal were donated to Richmond University.

Page 27

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

18. DEBTORS

19.

Group
Group
2021
2020
£
£
DUE AFTER MORE THAN ONE YEAR
Amounts owed by group undertakings
279,259
-
279,259
-
DUE WITHIN ONE YEAR
Trade debtors
-
13,440
Amounts owed by group undertakings
156,618
-
Other debtors
11,139
-
Prepayments and accrued income
13,525
9,228
460,541
22,668
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Group
2021
2020
£
£
Bank loans
-
183,948
Trade creditors
-
480
Amounts owed to group undertakings
120,276
319,362
Other taxation and social security
-
1,880
Other creditors
-
480
Accruals and deferred income
16,636
73,081
136,912
579,231
Group
Group
2021
2020
£
£
Deferred income at 1 July 2020
50,000
68,265
Resources deferred during the year
(50,000)
50,000
Amounts released from previous periods
-
(68,265)
-
50,000		 Foundation
2021
£
279,259
279,259
-
156,618
-
13,525
449,402
Foundation
2021
£
-
-
67,177
-
-
12,600
79,777
Foundation
2021
£
50,000
(50,000)
-
-		 Foundation
2020
£
-
-
-
-
-
9,228
9,228
Foundation
2020
£
183,948
-
247,874
-
480
69,045
501,347
Foundation
2020
£
50,000
50,000
(50,000)
50,000

Page 28

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Other creditors		 Group
2021
£
-
-
-		 Group
2020
£
1,099,211
1,444,000
2,543,211		 Foundation
2021
£
-
-
-		 Foundation
2020
£
1,099,211
1,444,000
2,543,211

The balance in other creditors represented an accrual for the donation of the property at 23 Queen's Road to Richmond University. In the prior year, the bank loan represented the mortgage attached to the same property.

The property was sold in March 2021. The proceeds from the sale were used to settle the mortgage and the other creditors balance before the year-end.

Included within the above are amounts falling due as follows:

BETWEEN ONE AND TWO YEARS
Bank loans
BETWEEN TWO AND FIVE YEARS
Bank loans
OVER FIVE YEARS
Bank loans
Due to parent company > 5 yrs		 Group
2021
£
-
-
-
-		 Group
2020
£
185,761
569,086
344,364
1,444,000		 Foundation
2021
£
-
-
-
-		 Foundation
2020
£
185,761
569,086
344,364
1,444,000

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments
Payable or repayable other than by
instalments		 Group
2021
£
-
-
-		 Group
2020
£
344,364
1,444,000
1,788,364		 Foundation
2021
£
-
-
-		 Foundation
2020
£
344,364
1,444,000
1,788,364

Page 29

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

21. FINANCIAL INSTRUMENTS

FINANCIAL ASSETS
Financial assets measured at fair value
through income and expenditure
FINANCIAL LIABILITIES
Financial liabilities measured at amortised
cost		 Group
2021
£
7,728,500
Group
2021
£
(330,098)		 Group
2020
£
8,110,277
Group
2020
£
(3,070,562)		 Foundation
2021
£
7,681,547
Foundation
2021
£
(272,963)		 Foundation
2020
£
8,038,213
Foundation
2020
£
(2,994,558)

Financial assets measured at fair value through income and expenditure comprise cash and cash equivalents and investments in listed shares.

Financial liabilities measured at amortised cost comprise trade creditors, accruals, loans and amounts due to group undertakings.

Page 30

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

22. GROUP STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

Balance at 1
July 2020
£
144,529
333,564
478,093
7,707,635
24,775
8,210,503		 Income
£
1,161,754
-
1,161,754
-
134,219
1,295,973		 Expenditure
£
(1,629,685)
-
(1,629,685)
-
(124,424)
(1,754,109)		 Transfers
in/out
£
333,564
(333,564)
-
-
-
-		 Gains/
(Losses)
£
-
-
-
299,762
-
299,762		 Balance at
30 June
2021
£
10,162
-
UNRESTRICTED
FUNDS
Unrestricted
funds
Revaluation
reserve
ENDOWMENT
FUNDS
Endowment
Fund
RESTRICTED
FUNDS
Restricted Fund
TOTAL OF
FUNDS
10,162
8,007,397
34,570
8,052,129

Page 31

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

22. STATEMENT OF FUNDS (CONTINUED)

GROUP STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
Unrestricted funds
Revaluation reserve
ENDOWMENT FUNDS
Endowment Fund
RESTRICTED FUNDS
Restricted Fund
TOTAL OF FUNDS		 Balance at
1 July 2019
£
152,442
333,564
486,006
8,247,569
158,405
8,891,980		 Income
£
271,480
-
271,480
1,747
234,137
507,364		 Expenditure
£
(279,393)
-
(279,393)
(19,696)
(367,767)
(666,856)		 Gains/
(Losses)
£
-
-
-
(521,985)
-
(521,985)		 Balance at
30 June
2020
£
144,529
333,564
478,093
7,707,635
24,775
8,210,503

Restricted endowment fund

The restricted endowment fund was created in 2016/17 using the £9,000,000 donation from the Cyril Taylor Charitable Foundation (CTCF). The endowment is invested with Quilter Cheviot in a fund comprising listed investments and property.

Investment income generated by the endowment is remitted to Richmond The American International University in London. In the event of an emergency situation affecting the University's finances, part of the endowment can be released with the consent of both The Richmond Foundation and CTCF.

Restricted fund

The restricted fund houses investment income generated by the endowment and restricted donations received from donors.

Unrestricted funds

Unrestricted funds can be used by the Foundation as it wishes.

Revaluation reserve

The revaluation reserves balance is from the revaluation of 23 Queen's Road on 1 July 2014. As the property was sold during the financial year, the balance has been transferred to unrestricted funds.

Page 32

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

23. FOUNDATION STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

Balance at 1
July 2020		 Income Expenditure Transfers Gains/
(Losses)		 Balance at
30 June
2021
£ £ £ £ £ £
UNRESTRIC-
TED FUNDS
Unrestricted
funds		 136,911 1,161,754 (1,623,022) 333,564 - 9,207
Revaluation
reserve		 333,564 - - (333,564) - -
470,475 1,161,754 (1,623,022) - - 9,207
ENDOWMENT
FUNDS
Endowment
Fund		 7,707,635 - - - 299,762 8,007,397
RESTRICTED
FUNDS
Restricted
Fund		 24,775 134,219 (124,424) - - 34,570
TOTAL OF
FUNDS		 8,202,885 1,295,973 (1,747,446) - 299,762 8,051,174

Page 33

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

23. FOUNDATION STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

Balance at 1
July 2019		 Income Expenditure Gains/
(Losses)		 Balance at
30 June
2020
£ £ £ £ £
UNRESTRICTED FUNDS
Unrestricted funds 145,137 212,750 (220,976) - 136,911
Revaluation reserve 333,564 - - - 333,564
478,701 212,750 (220,976) - 470,475
ENDOWMENT FUNDS
Endowment Fund 8,247,569 1,747 (19,696) (521,985) 7,707,635
RESTRICTED FUNDS
Restricted Fund 158,405 234,137 (367,767) - 24,775
TOTAL OF FUNDS 8,884,675 448,634 (608,439) (521,985) 8,202,885

Page 34

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

24. CONSOLIDATED SUMMARY OF FUNDS

SUMMARY OF FUNDS - CURRENT YEAR

Balance at
Balance at 1 Transfers Gains/ 30 June
July 2020 Income Expenditure in/out (Losses) 2021
£ £ £ £ £ £
General funds 478,093 1,161,754 (1,629,685) - - 10,162
Endowment
funds 7,707,635 - - - 299,762 8,007,397
Restricted funds 24,775 134,219 (124,424) - - 34,570
8,210,503 1,295,973 (1,754,109) - 299,762 8,052,129
SUMMARY OF FUNDS - PRIOR YEAR
Balance at
Balance at Gains/ 30 June
1 July 2019 Income Expenditure (Losses) 2020
£ £ £ £ £
General funds 486,006 271,480 (279,393) - 478,093
Endowment funds 8,247,569 1,747 (19,696) (521,985) 7,707,635
Restricted funds 158,405 234,137 (367,767) - 24,775
8,891,980 507,364 (666,856) (521,985) 8,210,503

Page 35

THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

25. FOUNDATION SUMMARY OF FUNDS

SUMMARY OF FUNDS - CURRENT YEAR

Balance at 1
July 2020		 Income Expenditure Gains/(Losses) Balance at
30 June
2021
£ £ £ £ £
General funds 470,475 1,161,754 (1,623,022) - 9,207
Endowment funds 7,707,635 - - 299,762 8,007,397
Restricted funds 24,775 134,219 (124,424) - 34,570
8,202,885 1,295,973 (1,747,446) 299,762 8,051,174

SUMMARY OF FUNDS - PRIOR YEAR

Balance at 1
July 2019		 Income Expenditure Gains/(Losses) Balance at
30 June
2020
£ £ £ £ £
General funds 478,701 212,750 (220,976) - 470,475
Endowment funds 8,247,569 1,747 (19,696) (521,985) 7,707,635
Restricted funds 158,405 234,137 (367,767) - 24,775
8,884,675 448,634 (608,439) (521,985) 8,202,885

26. CONSOLIDATED ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2021
£
Fixed asset investments
-
Debtors due after more than one year
-
Current assets
147,074
Creditors due within one year
(136,912)
TOTAL
10,162		 Restricted
funds
2021
£
-
-
34,570
-
34,570		 Endowment
funds
2021
£
7,507,397
279,259
220,741
-
8,007,397		 Total
funds
2021
£
7,507,397
279,259
402,385
(136,912)
8,052,129

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THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

26. CONSOLIDATED ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Fixed asset investments
Social investments
Current assets
Creditors due within one year
Creditors due in more than one year
TOTAL		 Unrestricted
funds
2020
£
-
3,200,000
194,742
(373,438)
(2,543,211)
478,093		 Restricted
funds
2020
£
-
-
230,568
(205,793)
-
24,775		 Endowment
funds
2020
£
7,707,635
-
-
-
-
7,707,635		 Total
funds
2020
£
7,707,635
3,200,000
425,310
(579,231)
(2,543,211)
8,210,503

27. FOUNDATION ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds		 Restricted
funds		 Endowment
funds		 Total funds
2021 2021 2021 2021
£ £ £ £
Fixed asset investments 2 - 7,507,397 7,507,399
Debtors due after more than one year - - 279,259 279,259
Current assets 88,982 34,570 220,741 344,293
Creditors due within one year (79,777) - - (79,777)
TOTAL 9,207 34,570 8,007,397 8,051,174

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THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

27. FOUNDATION ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Unrestricted
funds		 Restricted
funds		 Endowment
funds		 Total funds
2020 2020 2020 2020
£ £ £ £
Fixed asset investments 2 - 7,707,635 7,707,637
Social investments 3,200,000 - - 3,200,000
Current assets 109,238 230,568 - 339,806
Creditors due within one year (295,554) (205,793) - (501,347)
Creditors due in more than one year (2,543,211) - - (2,543,211)
TOTAL 470,475 24,775 7,707,635 8,202,885

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 28. ACTIVITIES

Net expenditure for the year (as per Statement of Financial Activities)
ADJUSTMENTS FOR:
Interest charges
(Gains)/losses on endowment investments
(Gains)/losses on programme related investments
Dividends, interests and rents from investments
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Quilter Cheviot non-cash transactions
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES		 Group
2021
£
(158,374)
8,896
(299,762)
(1,026,700)
(134,273)
(433,576)
(1,701,891)
-
(3,745,680)		 Group
2020
£
(681,477)
21,086
521,985
-
(234,392)
4,303
430,080
17,949
79,534

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THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

29. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
Cash at investment broker
TOTAL CASH AND CASH EQUIVALENTS		 Group
2021
£
200,059
21,044
221,103		 Group
2020
£
387,095
15,547
402,642

30. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 July
2020
£
402,642
(183,948)
(1,099,211)
(880,517)		 Cash flows
£
(181,539)
183,948
1,099,211
1,101,620		 At 30 June
2021
£
221,103
-
-
221,103

31. RELATED PARTY TRANSACTIONS

Transactions with Richmond College Services Limited

During the year, Richmond College Services did not donate profits to the Foundation (2020: £12,495). At the year-end, £67,177 was due to Richmond College Services (2020: £42,081 due to).

Transactions with Richmond University

During the year, The Richmond Foundation donated £1,636,881 to the University (2020: £539,793). The Foundation received rent amounting to £135,000 (2020: £200,000) for leasing 23 Queen's Road to the University. At the year-end, £435,877 was due from the University (2020: £1,645,793 due to).

Transactions with Cyril Taylor Charitable Foundation (CTCF)

At the year-end, the CTCF endowment totalled £7,507,397 (2020: £7,707,635).

During the year, there were no other transactions or balances with CTCF (2020: £nil).

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THE RICHMOND FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2021

32. CONTROLLING PARTY

The ultimate controlling party of the Foundation is Richmond, The American International University in London, Inc, an independent US non-profit educational charity with tax exempt status (US company registration No. 722450; UK company registration No. FC8955). The University's registered office is The Corporation Trust Company Corporation Trust Centre, 1209 Orange Street, Wilmington, Delaware 19801, United States.

The principal purposes and activities of Richmond, The American International University in London, Inc is to provide university education to UK and international students, giving them the opportunity to obtain both a UK and a US degree.

Richmond, The American International University in London, Inc is able to exert control over the Foundation by virtue of its power to appoint and remove the majority of the Trustees.

The consolidated accounts of Richmond, The American International University in London, Inc can be obtained from Queen's Road, Richmond-upon-Thames, London, TW10 6JP.

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