## **THE SAINSBURY RESEARCH UNIT FOR THE ARTS OF** 

**AFRICA, OCEANIA AND THE AMERICAS** 

## **ACCOUNTS** 

**FOR THE YEAR ENDED 31 JULY 2021** 



## **THE SAINSBURY RESEARCH UNIT** 

## **ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021** 

## **CONTENTS** 

|||**Page**||
|---|---|---|---|
|Trustees' Report|1|to|6|
|Independent Auditors' Report|7|to|9|
|Statement of Financial Activities||10||
|Balance Sheet||11||
|Statement of Cash Flows||12||
|Notes to the Accounts|13|to|21|





## **THE SAINSBURY RESEARCH UNIT** 

## **TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**Any other name by which**|The Sainsbury Research Unit for the Arts of Africa, Oceania and|
|---|---|
|**the charity is known**|the Americas|
|**Charity registration number**|296041 (Registered 16 February 1987)|
|**Principal address**|The Peak|
||5 Wilton Road|
||London|
||SW1V 1AP|
|**University Trustees**|Mr D I Callaghan|
||Professor I P Dewing|
||Professor D J Richardson|
|**External Trustees**|H O N & V Trustee Ltd|
||Mr P Hesketh|
||Mr J C Burns|
|**Auditors**|Crowe U.K. LLP|
||55 Ludgate Hill|
||London|
||EC4M 7JW|
|**Solicitors**|Portrait Solicitors|
||21 Whitefriars Street|
||London|
||EC4Y 8JJ|
|**Investment managers**|Cazenove Capital Management|
||1 London Wall Place|
||London|
||EC2Y 5AU|



1 



## **THE SAINSBURY RESEARCH UNIT** 

## **TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

**Structure Governance and Management Governing document** The Sainsbury Research Unit was established under a Trust Deed dated 30 December 1986. **Trustee Selection Methods** The power of appointing University Trustees is exercisable by the University of East Anglia ('UEA').  The External Trustees are appointed by the continuing External Trustees with them being required to appoint those nominated by Lord Sainsbury of Turville. **Organisational structure of** The External Trustees are responsible for investment policy and **the charity and how** management. The Trustees meet twice a year to consider reports **decisions are made** from the External Trustees on investment performance and policy, to receive reports on the application of the funds passed to the UEA in order to fulfil the objects of the Trust and to consider the annual report and financial statements. **Risk policy** The key risk to the trust fund is the volatility of market investments as evidenced by the impact of the Coronavirus pandemic, where the value of investments has fluctuated and future investment income is anticipated to be substantially lower.  The Trustees, in consultation with and on the advice of their Investment Advisers, maintain a diverse and balanced investment portfolio to mitigate so far as possible against adverse risks affecting the overall value of the endowment so that the charity can continue to pay out the income generated to the trust beneficiary.  At the same time, other major risks to which the trust is exposed are considered and, where necessary, steps are taken to mitigate and minimise those risks. **Objectives and Activities Objects** The principal purpose of the Trust is to apply income but not the capital of the Trust for charitable purposes connected with the advancement of education and learning by promoting study into the research and teaching of non-western art, and specifically to pay the costs of employing staff and other direct running costs of the Sainsbury Research Unit (SRU) for the Arts of Africa, Oceania and the Americas at the UEA. **Public Benefit Statement** The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and consider that the information contained in this Trustees' report, clearly sets out the aims, activities and achievements of the Trust which are of benefit to the general public. 

2 



**THE SAINSBURY RESEARCH UNIT** 

## **TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **Achievements and Performance** 

## **Connected Charities** 

## **Achievements** 

## **Director's Report** 

Connected charities, independently administered and with similar objects and with which this charity operates, are the Sainsbury Centre Endowment Fund (1983 and 1986). 

During the year the Trust distributed £293,159 (2020 - £321,829) to the UEA which continues to support the research and teaching on non-western art in accordance with the terms of the Trust Deed. The charity has no paid staff. 

During 2020-21 the SRU endowment fund continued to provide support for staff costs, research and teaching programmes, a visiting research fellowship, student scholarships, the Robert Sainsbury Library, equipment replacement and consumables for the SRU. The entire year was affected by the Covid-19 virus, with all the disruption that has caused. All SRU members, staff, students and fellows, have remained in good health, and have adapted very well to the new situation for undertaking teaching and research. Some in-person teaching was possible last autumn, under prevailing UEA protocols, but this then became unfeasible and all teaching and supervision was for a long time only conducted online. All staff and students have persevered and adapted extremely well. 

The SRU had 6.4 FTE faculty members (reducing to 6.2 in 2021-22), 3 FTE library staff and 1.5 FTE administrative staff. All faculty have been engaged in teaching Masters students, supervising research students, attending and presenting at seminars and conferences via Teams and Zoom, and carrying out their research. 8 MAs and 3 PhDs joined in September 2020 and all have done well. Faculty continued with research projects, including Dr Lau’s AHRC/NSF project and Dr Jacobs’ British Academy project on Fijian youth and culture. Recent doctoral student Katrina Igglesden serves as a post-doc on that project. Professor Hooper prepared a book and exhibition on Oceanian clubs, a subject not covered previously. The exhibition opens in Venice in October 2021 and in Paris in June 2022. 

A notable event of the year was the submission to the REF in March 2021. The SRU submitted all faculty with strong publishing and research profiles, as well as two Impact Case Studies, one in Area Studies and the other in Art History. 

Our Autumn 2020 Visiting Fellow, Dr Barnett-Naghshineh, contributed to our programmes both in person and remotely, and 

3 



## **THE SAINSBURY RESEARCH UNIT** 

## **TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**Director's Report (cont.)**|with the postponement of our Spring Fellow (who will come in|
|---|---|
||Autumn 2021), she stayed on in an honorary capacity, participating|
||online to seminars and other gatherings.|
||The Robert Sainsbury Library continued to provide excellent|
||services for staff, students, fellows, researchers and the general|
||public, with a lot of support being provided remotely and facilitating|
||access to a wide range of digitised material necessary for staff and|
||students to continue their work.|
||Despite the restrictions of the virus, we remain optimistic about the|
||future – there is demand for what we offer and confidence is placed|
||in us by funding agencies. We have a strong group of MAs for|
||2021-22 and five new PhDs, three of whom have secured full|
||external funding. A full Director’s Annual Report will be submitted to|
||the VC’s SRU Advisory Group in November.|
||Professor Steven Hooper, Director SRU|
|**Financial Review**|This is a grant making trust with no direct activities, all distributable|
||income being donated to the UEA for the purposes specified above.|
||Therefore there are no specific activities to be reported on by the|
||Trustees.|
||The income of the year, all derived from stock exchange|
||investments and cash placed on deposit was £301,913.|
||Grants paid out of the income of the Trust for the year ended|
||31 July 2021 were £293,159.|
||Net incoming resources for the year of the Unrestricted Fund|
||after making these grants were £1,347.|
||Unrestricted Funds had a net fund balance at 31 July 2021 of|
||£33,566.|
||The UEA and External Trustees met twice during the year to|
||consider the allocation of available income. The External Trustees|
||had two further meetings with Cazenove Capital Management. The|
||Trustees receive an annual report from the University of East|
||Anglia on the application of funds paid to the UEA. The UEA|
||accounts for the activities funded from the income made over to it|
||by the Trustees within the scope of its Annual Report and Accounts.|
|**Future Plans**|The charity expects to continue to distribute grants in the|
||foreseeable future.|
|**Reserves policy**|The Trustees' policy is to pay the net income to the UEA.|



4 



## **THE SAINSBURY RESEARCH UNIT** 

## **TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**Investment policy**|The Trustees have wide powers of investment. The objective of|
|---|---|
||the Trustees is to maintain a level of investment income over time|
||that keeps pace with inflation.|
||The Trust's permanent endowment funds are invested to generate|
||income and provide long-term capital growth in line with relevant|
||indices. The Trustees regularly meet the investment managers to|
||discuss strategy and review performance. In the year under review,|
||the Trustees maintained a defensive investment strategy.|
|**Investment performance**|During the financial year the Trust’s investment portfolio has been|
||subject to unprecedented conditions arising from the Covid-19|
||pandemic. Global economic confidence has plunged, and equity|
||and financial markets have encountered large falls, extreme volatility|
||and rapidly changing conditions across the major markets.  As a|
||consequence higher levels of investment income are increasingly|
||difficult to find.  The market value of investments has increased by|
||10% compared to 2020, yet investment income has decreased by|
||10% compared with the previous financial year.|
||The charity does not raise funds from the public|
|**Going Concern**|Having assessed the Trust's financial position and plans for the|
||foreseeable future, the Trustees are satisfied that it remains|
||appropriate to prepare the financial statements on the going|
||concern basis. There are no material uncertainties about the|
||Trust's ability to continue.|
|**Directors**|The directors of HON & V Trustee Ltd are: Mr D Flynn, Ms G Harris,|
||Ms H Johnston, Miss J S Portrait.|



5 



## **THE SAINSBURY RESEARCH UNIT** 

## **TRUSTEES' REPORT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **Statement of Trustees' Responsibilities** 

The Trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and regulations. 

Charity law requires the Trustees to prepare the financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. 

Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net incoming resources for the period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting polices and apply them consistently; 

- 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; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate. 

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. 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. 

Approved  by the Trustees on 10 November 2021 and signed on their behalf by 


Mr P Hesketh 



**----- Start of picture text -----**<br>
Trustees<br>**----- End of picture text -----**<br>


Professor D J Richardson 

6 



## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE SAINSBURY RESEARCH UNIT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **Opinion** 

We have audited the financial statements of the Sainsbury Research Unit for the year ended 31 July 2021 which comprise the Statement of Financial Activities, the Balance Sheet and the Statement of Cash Flows and notes to the financial statements, 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 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity’s affairs as at 31 July 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 

7 



## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE SAINSBURY RESEARCH UNIT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

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 and returns; or 

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

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 6, 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 

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or 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. 

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. 

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 auditor’s report. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 

8 



## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE SAINSBURY RESEARCH UNIT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. 

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. 

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations. 

## **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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

## **Crowe U.K. LLP** Statutory Auditor **London** 

3 December 2021 

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 

9 



## **THE SAINSBURY RESEARCH UNIT** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**£**<br>**Income and endowments from**<br>Investment income<br>301,913<br>**Total income and endowments**<br>301,913<br>**Expenditure on**<br>Raising funds<br>-<br>Charitable activities<br>293,159<br>Other costs<br>7,407<br>**Total expenditure**<br>300,566<br>**Net income/(loss) from operations before**<br>**transfers and investment gains**<br>1,347<br>Gains/(losses) on investment<br>-<br>**Net incoming/(outgoing) resources**<br>**for the year**<br>1,347<br>**Total funds brought forward**<br>32,219<br>**Balance carried forward**<br>33,566<br>**Notes**<br>**7**<br>**8.2**<br>**8.3**<br>**8.1**<br>**Unrestricted**<br>**Funds**|**£**<br>**Income and endowments from**<br>Investment income<br>301,913<br>**Total income and endowments**<br>301,913<br>**Expenditure on**<br>Raising funds<br>-<br>Charitable activities<br>293,159<br>Other costs<br>7,407<br>**Total expenditure**<br>300,566<br>**Net income/(loss) from operations before**<br>**transfers and investment gains**<br>1,347<br>Gains/(losses) on investment<br>-<br>**Net incoming/(outgoing) resources**<br>**for the year**<br>1,347<br>**Total funds brought forward**<br>32,219<br>**Balance carried forward**<br>33,566<br>**Notes**<br>**7**<br>**8.2**<br>**8.3**<br>**8.1**<br>**Unrestricted**<br>**Funds**|**£**<br>-<br>**2021**<br> <br>**Permanent**<br>**Endowment**|_2020_<br>**£**<br>_£_<br>301,913<br>_335,484_<br> <br>**Total** _Total Funds_|
|---|---|---|---|
||301,913|-|301,913<br>_335,484_|
||-<br>293,159<br>7,407|32,804<br>-<br>6,276|32,804<br>_33,120_<br>293,159<br>_321,829_<br>13,683<br>_12,505_|
||300,566|39,080|339,646<br>_367,454_|
|||||
||1,347<br>-|(39,080)<br>923,725|(37,733)<br>_(31,971)_<br>923,725<br>_(1,218,077)_|
||1,347<br>32,219|884,645<br>8,604,149|885,992<br>_(1,250,048)_<br>8,636,368<br>_9,886,415_|
||33,566|9,488,794|9,522,360<br>_8,636,368_|



The notes on pages 13 to 21 form part of these financial statements. 

10 



## **THE SAINSBURY RESEARCH UNIT** 

## **BALANCE SHEET** 

## **AS AT 31 JULY 2021** 

|**Notes**<br>**Fixed assets**<br>Quoted stocks and shares<br>**3.1**<br>**Total fixed assets**<br>**Current assets**<br>Debtors and prepayments<br>**4**<br>Cash at bank and in hand<br>**Total current assets**<br>**Creditors: amounts falling due within one year**<br>**5**<br>**Net current assets**<br>**Net assets**<br>**Funds of the charity:-**<br>**Unrestricted Funds**<br>**9**<br>**Endowment Funds**<br>**9**|**2021**<br>**Total**<br>**Funds**<br>**£**<br>9,493,827<br>9,493,827<br>15,350<br>24,215<br>39,565<br>(11,032)<br>28,533<br>9,522,360<br>33,566<br>9,488,794<br>9,522,360|_2020_<br>_Total_<br>_Funds_<br>_£_<br>_8,609,182_|
|---|---|---|
|||_8,609,182_|
|||_9,251_<br>_26,918_|
|||_36,169_|
|||_(8,983)_|
|||27,186|
|||_8,636,368_|
|||_32,219_<br>_8,604,149_|
|||_8,636,368_|



The notes on pages 13 to 21 form part of these financial statements. 

Approved by the Board and signed on its behalf by 

) ) Mr P Hesketh ) Trustees ) ) Professor D J Richardson ) 

10 November 2021 

11 



## **THE SAINSBURY RESEARCH UNIT** 

## **STATEMENT OF CASH FLOWS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**Notes**<br>**Cashflows from operating activities:**<br>**Net cash used in operating activities**<br>**10**<br>**Cash flows from investing activities:**<br>Dividends, interest and rents from investments<br>Proceeds from sale and return of investments<br>**3.1**<br>Purchase of investments<br>**3.1**<br>**Net cash provided by investing activities**<br>**Change in cash and cash equivalents in the reporting period**<br>**Analysis of cash and cash equivalents**<br>Capital account<br>**3.1**<br>Cash at bank and in hand<br>**Cash and cash equivalents at the beginning of the**<br>**reporting period**<br>**Cash and cash equivalents at the end of the reporting period**|**2021**<br>**Total Funds**<br>**£**<br>(343,696)|_2020_<br>_Total Funds_<br>_Restated_<br>_£_<br>_(378,725)_|
|---|---|---|
||301,913<br>411,175<br>(669,726)|_335,484_<br>_1,125,496_<br>_(565,230)_|
||43,362|_895,750_|
||||
||(300,334)|_517,025_|
||628,133|_111,108_|
||327,799|_628,133_|
||303,584<br>24,215|_601,215_<br>_26,918_|
||327,799|_628,133_|



The notes on pages 13 to 21 form part of these financial statements. 

12 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **1 Basis of Preparation** 

## 1.1 Basis of Accounting 

Form of Entity: Charitable Trust 

Country of Incorporation: United Kingdom 

Registered Office: University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ. 

These financial statements have been prepared in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. The accounts (financial statements) have been prepared to give a "true and fair" view and have departed from the charities (Accounts and Reports) Regulations only to the extent required to provide a "true and fair view". 

## 1.2 Fund accounting 

The charity has a single permanent endowment fund and unrestricted fund. 

## 1.3 Going Concern 

Having assessed the Trust's financial position and plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis. There are no material uncertainties about the charity's ability to continue. 

The effect of the Coronavirus pandemic has been to reduce the value of the investment portfolio by approximately 10% compared to the end of the 2020 financial year, and dividend income receivable by the trust is very likely to be substantially lower going forward.  Nevertheless the endowment assets of the Trust remain significant, and these will continue to return income which the Trust will continue to pay out to its beneficiary in accordance with the provisions of the Trust Deed. 

## 1.4 Public Benefit 

The trust is a public benefit entity. 

13 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **2 Accounting Policies** 

- 2.1 Incoming resources are included in the Statement of Financial Activities (SoFA) when: 

   - the charity becomes entitled to the resources; 

   - the trustees are virtually certain they will receive the resources; and 

   - the monetary value can be measured with sufficient reliability. 

- 2.2 Where incoming resources have related expenditure, the incoming resources and related expenditure are reported gross in the SoFA. 

- 2.3 Grants and donations are only included in the SoFA when the charity has unconditional. entitlement to the resources. 

- 2.4 Incoming resources from tax reclaims are included in the SoFA at the same time as the income to which they relate. 

- 2.5 Investment income is included in the accounts when receivable. 

- 2.6 Investment gains and losses include any gain or loss on the sale of investments and any gain or loss resulting from revaluing the investments to market value at the end of the year. 

- 2.7 Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. 

- 2.8 Governance costs include the cost of the preparation and examination of statutory accounts, the cost of trustee meetings and cost of any legal advice to the trustees on governance or constitutional matters. 

- 2.9 Grants payable are payments made to third parties in the furtherance of the charitable objectives of the trust. The grants are accounted for where either the trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the trust. 

- 2.10 Investments quoted on a recognised stock exchange are valued at market value at the year end. 

- 2.11 The trust is an exempt charity within the meaning of Section 519 of the Income Tax Act, 2007.  Accordingly, it is potentially exempt from taxation in respect of income or capital gains received within categories covered by Section 256 of the Taxation of Chargeable Gains Act, 1992 to the extent that such income or gains are applied to exclusively charitable purposes. The trust receives no exemption in respect of Value Added Tax (VAT) and is not VAT registered. 

14 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

- 2.12 Endowed funds are permanent endowments where the donor has specified that the capital of the gift cannot be expended and that only the income arising from the capital may be used for the purpose named by the donor. None of these funds are available to meet the general costs of the Trust. Investment management charges and legal fees are charged to the capital of the endowed fund. 

- 2.13 Sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies. No specific accounting judgements and uncertainties have been identified for the current year. 

- 2.14 The charity 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 amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise trade and other creditors. Investments are held at fair value at the Balance Sheet date, with gains and losses being recognised with income and expenditure. 

- 2.15 During the year, the classification of cash held by the investment managers has been reconsidered, and cash held for reinvestment in the portfolio has been included within fixed asset investments only as it is a long term investment. The other cash that is available on demand within the income accounts, are now being included within current assets. The comparative figures have also been restated. 

|**3**<br>**Investment Assets**<br>3.1<br>**Quoted Investments**<br>Market value brought forward<br>Additions<br>Disposals<br>Net investment gains/(losses)<br>**Investments listed on a recognised stock exchange**<br>UK cash held as part of investment portfolio<br>**Market value at year end**|**2021**<br>_2020_<br>**£**<br>_£_<br>8,007,967<br>_9,786,310_<br>669,726<br>_565,230_<br>(411,175)<br>_(1,125,496)_<br>923,725<br>_(1,218,077)_<br>9,190,243<br>_8,007,967_<br>303,584<br>_601,215_<br>9,493,827<br>_8,609,182_|
|---|---|



15 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|3.2|**Historical Cost**|||
|---|---|---|---|
||At 31 July 2021|6,657,635||
||At 1 August 2020||_6,575,599_|
|3.3|The following material investment holdings represented more than 5% of the||total value of|
||the charity's total investments:-|||
|||**2021**|_2020_|
|||**£**|_£_|
||Trojan Investment Funds|478,150|_437,425_|
||iShares Plc - S&P 500 Index|727,968|_568,260_|
|**4**|**Debtors and Prepayments**|||
|||**2021**|_2020_|
|||**£**|_£_|
||Investment income due at year end|14,923|_8,824_|
||Prepayments|427|_427_|
|||15,350|_9,251_|
|**5**|**Creditors: Amounts Falling Due Within One Year**|||
|||**2021**|_2020_|
|||**£**|_£_|
||Audit Fees|6,000|_3,950_|
||Professional Fees|2,500|_2,500_|
||Insurances|-|_-_|
||Investment Management Fees|2,532|_2,533_|
|||11,032|_8,983_|



16 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**6**|**Transactions With Related Parties**|||
|---|---|---|---|
|6.1|The Trustees are considered the Key Management Personnel of the charity.|||
|6.2|No Trustee is or has been entitled to any fee or salary|(2020 - £Nil).||
|6.3|No Trustee has been reimbursed with any out-of-pocket expenses (2020 - £Nil).|||
|6.4|There were no transactions with Trustees or connected persons (2020 - £Nil).|||
|**7**|**Analysis of Incoming Resources**|||
|||**2021**|_2020_|
|||**£**|_£_|
||**Investment Income**|||
||Income receivable on quoted investments|301,913|_335,484_|
|||301,913|_335,484_|
|**8**|**Analysis of Resources Expended**|||
|||**2021**|_2020_|
|||**£**|_£_|
|8.1|**Investment management fees**|||
||Stockbrokers' management fee|32,804|_33,120_|
|||32,804|_33,120_|
|||**2021**|_2020_|
|||**£**|_£_|
|8.2|**Charitable Activities**|||
||Donations to the University of East Anglia|293,159|_321,829_|
|||293,159|_321,829_|



17 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|8.3<br>**Other Costs**<br>Legal fees<br>Audit fees<br>Insurances|**2021**<br>_2020_<br>**£**<br>_£_<br>6,276<br>_7,852_<br>6,000<br>_3,950_<br>1,407<br>_703_<br>13,683<br>_12,505_|
|---|---|



Legal fees are for services provided by Portait Solicitors, a firm in which Miss J S Portrait and Mr D Flynn are partners.  Amounts due at year end in respect of professional fees from the firm are disclosed in Note 5. 

- 8.4 The Fund employed no staff during the year ended 31 July 2021 (2020 - none). 

18 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**9**<br>**Analysis of Fund Movements**<br>9.1<br>**Balances**<br>**Brought**<br>**Forward,**<br>**01.08.2020**<br>**£**<br>a Unrestricted<br>32,219<br>b Permanent<br>8,604,149<br>8,636,368<br>9.2<br>_Balances_<br>_Brought_<br>_Forward,_<br>_01.08.2019_<br>_£_<br>_a Unrestricted_<br>_Funds_<br>_23,217_<br>_b Permanent_<br>_endowment_<br>_9,863,198_<br>_9,886,415_<br>**Income**<br>**£**<br>301,913<br>Endowment<br>-<br>Funds<br>301,913<br>_335,484_<br>_335,484_<br>_-_<br>_Income_<br>_£_|**Expenditure**<br>**£**<br>(339,646)<br>(39,080)<br>(300,566)<br>_(367,454)_<br>_(326,482)_<br>_(40,972)_<br>_Expenditure_<br>_£_|**Investments**<br>**Gain/(Loss)**<br>**£**<br>-<br>923,725<br>923,725<br>_Investments_<br>_Gain/(Loss)_<br>_£_<br>_-_<br>_(1,218,077)_<br>_(1,218,077)_|**Funds**<br>**Carried**<br>**Forward,**<br>**31.07.2021**<br>**£**<br>33,566<br>9,488,794|
|---|---|---|---|
||||9,522,360|
||||_Funds_<br>_Carried_<br>_Forward,_<br>_31.07.2020_<br>_£_<br>_32,219_<br>_8,604,149_|
||||_8,636,368_|



9.3 The permanent endowment represents the value of assets held as investments arising from the original assets settled by Sir Robert James Sainsbury on 30 December 1986. The income arising on these assets is available for use in accordance with the trust's objects and is included in unrestricted income. 

19 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**10**<br>**Adjustments for:**<br>Dividends, interest and rents from investments<br>Increase/(decrease) in creditors<br>(Increase)/Decrease in debtors<br>**Net cash used in operating activities**<br>**11**<br>**Statement of Financial Activities: year ended 31 July 2020**<br>**Unrestricted**<br>**Funds**<br>**Reconciliation of Cash Flows From Operating Activities**<br>Net (expenditure) for the year(as per Statement of Financial<br>Activities)<br>335,484<br>**Income and endowments from**<br>Investment income<br>**£**<br>Losses on investment<br>**Total expenditure**<br>Other costs<br>**Expenditure on**<br>Raising funds<br>Charitable activities<br>**Net income/(loss) from operations before**<br>**transfers and investment gains**<br>9,002<br>335,484<br>-<br>-<br>326,482<br>321,829<br>4,653<br>**Total income and endowments**<br>**Net incoming/ (outgoing) resources for**<br>**the year**<br>**Total funds brought forward**<br>**Balance carried forward**<br>9,002<br>23,217<br>32,219|**2021**<br>**£**<br>(37,733)<br>(301,913)<br>2,049<br>(6,099)<br>(343,696)<br>**£**<br>-<br>-<br>33,120<br>-<br>7,852<br>40,972<br>(40,972)<br>(1,218,077)<br>(1,259,049)<br>9,863,198<br>8,604,149<br>**Permanent**<br>**Endowment**|_2020_<br>_£_<br>_(31,970)_<br>(335,484)<br>_(13,649)_<br>_2,378_|
|---|---|---|
|||_(378,725)_|
|||**£**<br>335,484<br>**Total**|
|||335,484|
|||33,120<br>321,829<br>12,505|
|||367,454|
||||
|||(31,971)<br>(1,218,077)|
|||(1,250,048)<br>9,886,415|
|||8,636,368|



20 



## **THE SAINSBURY RESEARCH UNIT** 

## **NOTES TO THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**12**<br>**Analysis of Net Assets Between Funds**<br>12.1<br>Debtors and prepayments<br>Cash at bank and in hand<br>12.2<br>Fixed assets/ investments<br>Current assets<br>Debtors and prepayments<br>Cash at bank and in hand<br>Current (liabilities)<br>**13**<br>**Financial Instruments**<br>**Current (liabilities)**<br>**Current assets**<br>**Fixed assets/ investments**|_Unrestricted_<br>_Funds_<br>26,918<br>(3,950)<br>32,219<br>£<br>9,251<br>-<br>24,215<br>(6,000)<br>33,565<br>**Unrestricted**<br>**Funds**<br>**£**<br>15,350<br>-|**£**<br>9,493,827<br>-<br>-<br>(5,032)<br>9,488,794<br>£<br>8,609,182<br>-<br>-<br>(5,033)<br>8,604,149<br>_Permanent_<br>_Endowment_<br>_2020_<br>**Permanent**<br>**Endowment**<br>**2021**|**£**<br>9,493,827<br>15,350<br>24,215<br>(11,032)<br>**Total**|
|---|---|---|---|
||||9,522,360|
||||£<br>8,609,182<br>9,251<br>26,918<br>(8,983)<br>_Total_|
||||8,636,368|
|||||



At the balance sheet date, the Fund held financial assets at fair value of £9,190,243 _(2020: £8,007,967)_ and financial liabilities at amortised cost of £11,032 _(2020: £8,983)_ . Total interest charged in respect of financial assets held at amortised cost totalled £Nil _(2020: interest received of £Nil)_ . Income in respect of assets held at fair value totalled £301,913 _(2020: £335,484)_ and expenditure incurred was £32,804 _(2020: £33,120)_ . Gains in the period were £923,726 _(2020: losses of £1,218,077)_ . 

21