**Draft Financial Statements at 16 September 2024 at 12:00:05**
**Charity Registration No. 293108**
## **THE JEAN SHANKS FOUNDATION**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2024**
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr Eric Rothbarth|
|---|---|
||Dr Julian Axe|
||Professor Sir James Underwood|
||Professor Sir Nicholas Wright|
||Mr Alistair Jones|
||Professor Adrienne Flanagan|
||Professor Mark Arends|
||Professor Anne MacGregor|
||Professor Humphrey Hodgson|
|**Charity number**|293108|
|**Principal address**|Peppard Cottage|
||Peppard Common|
||Henley on Thames|
||Oxon|
||United Kingdom|
||RG9 5LB|
|**Auditor**|HW Fisher LLP|
||Acre House|
||11-15 William Road|
||London|
||United Kingdom|
||NW1 3ER|
|**Bankers**|Coutts & Co|
||440 Strand|
||London|
||United Kingdom|
||WC2R 0QS|
||Lloyds Banking Group PLC|
||25 Gresham Street|
||London|
||EC2V 7HN|
|**Solicitors**|Maurice Turnor Gardner LLP|
||Milton House|
||1 Milton Street|
||London|
||EC2Y 9BH|
|**Investment advisors**|Cazenove Capital Management|
||Regency Court|
||Glategny Esplanade|
||St Peter Port|
||Guernsey|
||GY1 3UF|
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Statement of trustees' responsibilities|5|
|Independent auditor's report|6 - 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 19|
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
The Trustees present their report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Foundation's Trust Deed, 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) (effective 1 January 2019)".
## **Objectives and activities**
The objects are to ensure the advancement and promotion of medical research and education, the dissemination of the results of such research, the establishment and maintenance of scholarships grants to be awarded to scientists and other people and establishments involved in branches of medical and related sciences.
The Foundation provides research awards in the general medical field but primarily in pathology, and funds research and other projects where appropriate and in keeping with its aims.
All of the Foundation's objects are recognised by English law to be exclusively charitable.
The Trustees meet regularly with the Foundation's investment advisors to evaluate the performance of its portfolio.
The Foundation does not employ any personnel.
## **Achievements and performance**
During the year the Foundation's investments performed in line with many other charity portfolios. The Foundation had investment income of £666,320 (2023: £493,526) and a net gain in value of investments of £2,258,464 (2023: Loss £1,127,929).
The Trustees have appointed Cazenove Capital Management, an investment manager, to advise and manage the funds and to invest these funds with the aim of generating, on average, the sum of 4% (2023, 4%) plus consumer purchase index annual return and losses of no more than 15% (2023, 15%) in any one year.
The Foundation made 18 grants totaling £1,010,125 (2023: 11 totaling £536,246). The Trustees aim to make grants to more individuals who are doing research at leading medical institutions in the future. It was disappointing that not all the grants that were awarded were taken up by the applicants. The Foundation no longer gives intercalated awards but is making larger awards in a joint scheme with the Pathological Society of Great Britain and Ireland.
The Foundation reviewed the 2018 agreement with the Pathological Society of Great Britain and Ireland and concluded that the grants made were worthwhile and effective and the joint venture funding was being used correctly, for the benefits outlined in the Trust Agreement and within the confines of the joint venture funding agreement. The Trustees have agreed to extend the agreement for a further 5 year term committing to jointly fund a further £5 million for similar projects with the Pathological Society with effect from 1 January 2023.
Reports by the awardee are provided annually and are available for review and reviewed by the Foundation and the Pathological Society and a decision is made as to whether to continue funding the project.
The Foundation has made a fair start to the current financial year and remains conservatively invested in the global markets.
The Finance Committee met and communicated regularly and also met with the investment advisors on several occasions. The investment advisors have attended one Trustee meeting during the year to 31 March 2024.
The effect of the Covid pandemic was not significant in that the grants continued and the recipients were able to continue their research other than two recipients who have extended their research time by 6 months.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **Financial review**
For the year ended 31 March 2024, the results show a total net gain in funds of £1,399,715 (2023: loss of £1,297,975) and net assets of £28,833,794 (2023: £27,059,079).
The incoming funds were received from the portfolio managed by Messrs Cazenove Capital Management as investment income of £553,578 (2023: £452,189) The charity had valuation gain on its portfolio amounting to £2,258,464 (2023: a loss of £1,127,929).
Corporate governance expenditure amounted to £23,950 (2023: £15,457), investment management charges amounted to £82,907 (2023: £82,777) and direct administration and legal and professional fees amounted to £36,261 (2023: £29,592). These costs combined represent 0.39% (2023: 0.47%) of the fund. The investment management fee is due to the legislation regarding commissions payable to advisers which means that the Foundation will pay 0.3% commission on its portfolio valuation in addition to the fees charged by the fund managers. Both are deducted from the fund annually before being reported to the Foundation. The overall cost is approximately 1.25%. The charitable grants made to medical institutions are shown in Note 6 to the financial statements amounting to £1,010,125 (2023: £536,246).
## **Reserves policy**
The Trustees have carefully considered the minimum amount of reserves that they should hold, having taken into account that they wish the Foundation to continue for the long term, the annual commitments that the Foundation has made and wishes to make in the future. The foundation's policy is to distribute substantially all its income. The invested assets are in effect, a financial reserve. The grants made in recent financial years have been broadly equivalent to the foundations income. It is planned that this level of expenditure can be maintained in the future with a minimum amount of reserves at £15m. This level of reserves was maintained throughout the year.
## **Grant Making Policy**
The Fellowship grants (jointly funded with the Pathological Society of Great Britain and Ireland) continue and are progressing well. The take up has been slower than anticipated but is now moving towards the level that was initially predicted.
The Grant is recognised in the financial statements when the recipient is informed in writing that they have been selected to receive the grant and the recipient confirms their willingness to accept the award. The expenditure is recognised as incurred and offset against the total liability of that grant. The Foundation acknowledges its share of the award.
## **Future Grants**
The Foundation has decided that in future (continuing from 2018 onwards) the grants should be more focused on promoting clinical academic careers, specialising in pathology with an emphasis on histopathology. The Foundation has an agreement with the Pathological Society of Great Britain and Ireland to each fund £2,500,000 in the five years to 2023 to develop bursaries which will include pre-doctoral academic clinical fellowships, clinical PhD fellowships, clinical lecturer support and clinical intermediate fellowships. Both parties believe that this will grow during the course of this financial year as more suitably qualified candidates are found and accept our offer to fund research. This agreement has been extended for a further 5 years where each party contributes £,2,500,000 over that period.
The Foundation will also continue to make grants for other purposes at its discretion provided they are within its remit.
## **Trustees' induction, training and remuneration**
The Trustees are selected because of their skills in either medicine or their speciality in administration, finance or law.
The Trustees are or have been trustees of other charities. The medical trustees receive training from the conferences etc. that they attend. The non-medical Trustees also attend courses offered by Cazenove Asset Management and other relevant courses.
The Trustees are not remunerated other than Eric Rothbarth who deals with the day to day matters of the Foundation and manages the Foundation with respect to all its activities (fund managers, banking relationships, legal and audit as well as the website, IT needs, applications for grants) and the Foundation’s relations with its stakeholders.
## **Risk and mitigation**
The Trustees have considered the major risks to which the Foundation may be exposed are discussed at each board meeting. They are satisfied that systems are in place to mitigate exposure to these risks.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **Investment policy**
The Trustees regularly review their investment strategy and have agreed the following guidelines for their investment managers. The objective is to receive an average investment return of 4% plus consumer price index per annum in money terms over the longer term. The constraints are that:
1. There is no great requirement for liquidity but the Foundation will maintain liquid reserves to cover at least one year's grant payments and any commitments for any longer term grants.
2. The portfolio should be managed on a total (capital and income) return basis but with a minimum annual distribution to match the income generated (excluding capital gains).
3. The Trustees are looking at a medium term time horizon being 3-7 years.
4. The Trustees employ Messrs Cazenove Capital Management, a firm of investment managers, to manage the portfolio. This firm is a subsidiary of Schroder & Co and there has been no change in investment managers other than the name.
At 31 March 2024, £868,070 (2023: £2,650,010) of the charity's cash was held by Messrs Cazenove Capital Management as part of the investment portfolio. A further £251,079(2023: £324) was held in a 90 day notice account, £500 (2023: £500) in a current account at Coutts and £3,046 (2023: £251,288) in a reserve account at Coutts .A further £17,718 (2023: £273,580)was held at Lloyds Banking Group PLC
## **Structure, governance and management**
The Jean Shanks Foundation is constituted by a charitable trust deed dated 11 November 1985 and is registered with the Charity Commissioners (No. 293108).
The Trustees who served during the year and up to the date of approval of the financial statements were:
Mr Eric Rothbarth
Dr Julian Axe Professor Sir James Underwood Professor Sir Nicholas Wright Mr Alistair Jones Professor Adrienne Flanagan Professor Mark Arends Professor Anne MacGregor Professor Humphrey Hodgson
The power of appointing new or additional Trustees is vested in the Board of Trustees. The Trustees meet at least twice yearly to assess grant applications, review current and ongoing projects and to review the Foundation's investment portfolio and agree future funding and strategy.
The Trustees are responsible for deciding the overall strategy of the Foundation and monitoring progress. One Trustee (Mr Eric Rothbarth) is delegated by the Board of Trustees to manage the day-to-day operation of the charity as the Managing Trustee.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **Public benefit**
The sections of this report above entitled "Objectives and Activities of the Charity" and "Achievements and Performance" set out The Jean Shanks Foundation's objectives, and report on the activity and successes in the period to 31 March 2024, as well as explaining the plans for the current financial year. The Jean Shanks Foundation's work benefits medical practitioners and medical specialists in carrying further research to further medicine and cures for present and new diseases.
The Trustees have paid due regard to guidance issued on public benefit by the Charity Commission in deciding what activities the Foundation should undertake.
The Trustees have considered the extent to which these activities are of benefit to the public and concluded:
- 1 That the aims of the organisation continue to be charitable;
- 2 That the aims and the work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals in need;
- 3 That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay; and
- 4 That there is no detriment or harm arising from the aims or activities.
On behalf of the Board of Trustees
..............................
## **Mr Eric Rothbarth**
Trustee Dated: .........................
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
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 and 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 Foundation and of the incoming resources and application of resources of the Foundation for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation 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 Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF THE JEAN SHANKS FOUNDATION**
## **Opinion**
We have audited the financial statements of The Jean Shanks Foundation (the ‘Foundation’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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 FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2024 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the Foundation 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 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 Foundation’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.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
## We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE JEAN SHANKS FOUNDATION**
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees are 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 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 Foundation’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 cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 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 auditor's 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.
As part of our planning process:
- We enquired of management the systems and controls the charity has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The charity did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the charity. We determined that the following were most relevant: the Charity SORP, FRS 102 and Charities Act 2011.
- We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key income lines, in particular cut-off, for evidence of management bias.
- Obtaining third-party confirmation of material bank and investment balances.
- Documenting and verifying all significant related party balances and transactions.
- Reviewing documentation such as the charity board minutes for discussions of irregularities including fraud.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF THE JEAN SHANKS FOUNDATION**
## **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 the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Andrew Rich (Senior Statutory Auditor)**
## **for and on behalf of HW Fisher LLP**
Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom
.........................
HW Fisher LLP is eligible for appointment as auditor of the Foundation by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2024**|2023|
||**Notes**|**£**|**£**|
|**Income from:**||||
|Investments|**3**|666,320|493,526|
|**Expenditure on:**||||
|Raising funds|**4**|82,907|82,277|
|Charitable activities|**5**|1,067,162|581,295|
|**Total resources expended**||1,150,069|663,572|
|Net gains/(losses) on investments|**10**|2,258,464|(1,127,929)|
|**Net movement in funds**||1,774,715|(1,297,975)|
|Fund balances at 1 April 2023||27,059,079|28,357,054|
|**Fund balances at 31 March 2024**||28,833,794|27,059,079|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2024**_
|**2024**
**Notes**
**£**
**£**
**Fixed assets**
Investments
**11**
30,314,553
**Current assets**
Debtors
**12**
33,357
Cash at bank and in hand
272,346
305,703
**Creditors: amounts falling due within one year**
**13**
(1,218,806)
Net current liabilities
(913,103)
**Total assets less current liabilities**
29,401,450
**Creditors: amounts falling due after more than**
**one year**
**14**
(567,656)
**Net assets**
28,833,794
**Income funds**
Unrestricted funds
28,833,794
28,833,794
The financial statements were approved by the Trustees on .........................
..............................
..............................
Mr Eric Rothbarth
Professor Sir James Underwood
**Trustee**
**Trustee**|**2023**
**£**
14,204
525,692
539,896
(765,940)|**£**
27,644,861
(226,044)
27,418,817
(359,738)
27,059,079
27,059,079
27,059,079|
|---|---|---|
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**17**
**Investing activities**
Cash with drawn from investment portfolio
Investment income received
**Net cash generated from investing activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2024**
**£**
**£**
(407,223)
150,000
3,877
153,877
-
(253,346)
525,692
272,346|**2023**
**£**
**£**
(242,746)
400,000
-
400,000
-
157,254
368,438
525,692|
|---|---|---|
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
## **Charity information**
The Jean Shanks Foundation is a registered charity.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Foundation's Declaration of Trust, 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) (effective 1 January 2019)". The Foundation is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
The trustees believe that the Foundation has adequate resources, which include a significant investment portfolio, to be able to continue its activities for the foreseeable future.
## **1.3 Charitable funds**
All of the Foundation's funds are unrestricted funds, which are available for use at the discretion of the trustees in furtherance of their charitable objectives.
## **1.4 Incoming resources**
Income is recognised when the Foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Interest on funds held on deposit is included upon notification of the interest paid or payable by the Bank. Dividends are recognised once the dividend has been declared and notification has been received by our investment advisor of the investment portfolio.
## **1.5 Resources expended**
Liabilities are recognised as expenditure once there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated to the charitable activity in the statement of financial activities.
Costs of raising funds are those costs incurred in managing the Foundation's investment portfolio.
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**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
**(Continued)**
Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one year or multi-year grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled conditions attaching to that grant are outside of the control of the charity. Where no conditions exist, the full grant payable is recognised in the year the grant offer has been communicated.
Provisions for grants are made when the intention to make the grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.
A provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the future payments, settlement is probable, and the effect of discounting is material. The discount rate used is the rate offered on government bonds (Gilts) for a commensurate or similar time period offered in the year in which the grant award is made.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
## **1.6 Financial instruments**
The Foundation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Foundation's balance sheet when the Foundation becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The Foundation does not acquire put options, derivatives or other complex financial instruments.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
- 13 -
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **2 Critical accounting estimates and judgements**
In the application of the Foundation’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The Trustees do not believe there to be any judgements or estimates that would be considered critical to the financial statements.
## **3 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2024**|2023|
||**£**|£|
|Income from listed investments|553,578|452,189|
|Interest receivable|112,742|41,337|
||666,320|493,526|
## **4 Raising funds**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2024**|2023|
||**£**|£|
|Investment management|82,907|82,277|
||82,907|82,277|
- 14 -
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **5 Charitable activities**
|**Medical Research and Education**
Secretarial expenses
Office expenses
Legal and professional
Bank Charges
Grant funding of activities (see note 6)
Share of governance costs (see note 7)|**2024**
**£**
1,000
6,779
28,763
719
37,261
1,010,125
19,776
1,067,162|**2023**
**£**
823
7,134
21,635
-|
|---|---|---|
|||29,592
536,246
15,457|
|||581,295|
- 15 -
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **6 Grants payable**
|Grants to institutions:
University of Sheffield
University College London
Academy of Medical Sciences
Cancer Institutes
University of Southampton
University of Edinburgh
University of Nottingham
Queen Mary University of London
Ground Rounds
University of Glasgow
Student Scholarships
University of Oxford
During the year, 18 grants were made to institutions (2023: 11).
**Reconciliation of grants payable**
Commitments made in the year
Grants paid during the year
Commitments as at 1 April 2023
Commitments as at 31 March 2024
**Support costs**
**Support costs**
**Governance**
**costs**
**£**
**£**
Audit fees
-
19,776
-
19,776
Analysed between
Charitable activities
-
19,776|**Total**
**2024**
**£**
239,928
418,823
25,000
-
21,784
32,904
116,639
59,993
750
25,000
6,841
62,463
1,010,125
**2024**
**£**
1,010,125
(355,316)
1,068,049
1,722,858
**2024**
Support costs
Governance
costs
**£**
£
£
19,776
-
15,457
19,776
-
15,457
19,776
-
15,457|Total
2023
£
-
164,688
25,000
1,900
15,154
125,211
-
49,669
145,691
-
8,933
536,246
2023
£
536,246
(202,490)
734,293
1,068,049
2023
£
15,457
15,457
15,457|
|---|---|---|
## **7 Support costs**
- 16 -
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year save for Mr Eric Rothbarth who was paid a fee of £25,000 (2023: £21,600) for his services managing the Foundation on a day to day basis. One trustee (2023: one) was reimbursed a total of £3,362 (2023: £3,129) for travel and office expenses.
## **9 Employees**
There were no employees during the current or prior year.
## **10 Net gains/(losses) on investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2024**|2023|
||**£**|£|
|Revaluation of investments|2,344,432|(1,070,913)|
|Gain/(loss) on sale of investments|(85,968)|(57,016)|
||2,258,464|(1,127,929)|
## **11 Fixed asset investments**
|**Investments Cash**
**£**
**Cost or valuation**
At 1 April 2023
24,994,851
Additions
8,614,989
Valuation changes
2,344,432
Cash withdrawn
-
Investment management fees
-
Dividends and interest received
-
Disposals
(6,507,789)
At 31 March 2024
29,446,483
**Carrying amount**
At 31 March 2024
29,446,483
At 31 March 2023
24,994,851|**in portfolio**
2,650,010
(8,614,989)
-
(150,000)
(82,062)
643,290
6,421,821
868,070
868,070
2,650,010|**Total**
**£**
27,644,861
-
2,344,432
(150,000)
(82,062)
643,290
(85,968)
30,314,553
30,314,553
27,644,861|
|---|---|---|
- 17 -
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**12**|**Debtors**|||
|---|---|---|---|
|||**2024**|**2023**|
||**Amounts falling due within one year:**|**£**|**£**|
||Prepayments and accrued income|33,357|14,204|
|**13**|**Creditors: amounts falling due within one year**|||
|||**2024**|**2023**|
|||**£**|**£**|
||Grants payable|1,155,202|708,311|
||Accruals and deferred income|63,604|57,629|
|||1,218,806|765,940|
|**14**|**Creditors: amounts falling due after more than one year**|||
|||**2024**|**2023**|
|||**£**|**£**|
||Grants Payable|567,656|359,738|
|**15**|**Deferred income**|||
||Deferred income is included in the financial statements as follows:|||
|||**2024**|**2023**|
|||**£**|**£**|
||Current liabilities|(1,155,202)|(708,311)|
||Non-current liabilities|(567,656)|(359,738)|
|||(1,722,858)|(1,068,049)|
Deferred Income is the value of grants payable.£1,068,049 was deferred as at 31 March 2023. £355,315 was released in the year. New commitments within the year were £1,010,110. £1,722,858 was deferred as at 31 March 2024
## **16 Related party transactions**
At 31 March 2024, Mr Eric Rothbarth was owed £25,000 (2023: £21,600) by the Foundation.
During the year, included within grants payable is £861,429 (2023: £534,025). These amounts represent grants which are payable to The Pathological Society of Great Britain & Ireland, who then grant these amounts to the institutions, under the terms of agreement. Under this agreement, The Foundation and The Pathological Society of Great Britain & Ireland share grants payable 50/50.
- 18 -
**Draft Financial Statements at 16 September 2024 at 12:00:05 THE JEAN SHANKS FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**17**|**Cash generated from operations**|**2024**|**2023**|
|---|---|---|---|
|||**£**|**£**|
||Surplus/(deficit) for the year|1,774,715|(1,297,975)|
||Adjustments for:|||
||Investment income recognised in statement of financial activities|(666,320)|(493,526)|
||Loss on disposal of investments|85,968|57,016|
||Fair value gains and losses on investments|(2,344,432)|1,070,913|
||Investment management fees from portfolio|82,062|92,030|
||Movements in working capital:|||
||(Increase) in debtors|-|(6,968)|
||Increase in creditors|660,784|335,764|
||**Cash absorbed by operations**|(407,223)|(242,746)|
## 18 **Analysis of changes in net funds**
The Foundation had no debt during the year.
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