The Daiwa Anglo-Japallese Foundation Financial Statements togetheT with Trustees. and independent auditor's reports For the year ended 31 March 2024 Registered Charity No.299955 The Daiwa Anglo-Japanese Foundation Referellce and admillistrative information Trustees (as at Mar¢h 312024) Sir Timothy Hitchens KCVO CMG, Chair Mr Takashi Hibino, Vice Chair Mr StepheTh Barber Mr John Charlton-jones Ms Yoko Dochi Mr Keiichi Hayashi Mr Yusuke Kawamura Professor Sachiko Kusukawa Ms Rebec¢a Salter PRA Professor Hirotaka Takeuchi Dr Victoria Tuke Ms Jessie Turnbull Professor Ssr Mark Walport FRS FRCP FRCPath Fmedsci FRSE Director Gelleral Mr Jason James OBE Registered office Daiwa Foundation Japan House 13114 Cornwall Terrace London NWI 4QP Charity Number 299955 Auditor5 Greenback Alan LLP Chartered Accountants and Registered Auditor 89 Spa Road London SE16 3SG Solieitors Clifford Chance 10 Upper Bank Street London EC14 4JJ Bankers Lloyds TSB Bank plc Clicapside Branch 34 Moorgate London EC2R 6PL Mizuho Bank Akasaka Branch Toho Building 2-5-1, Akasaka Minato-Ku Investment MaDagers BlackRock 12 Throgmorton Avenue London EC2N 2DL The Daiwa Anglo-Japanese Foundation The Trustees p￿sent their annual report on the &ctivities of the Daiwa Anglo-japanese Foundation ('%he Foundation"). The infornation on page 2 forms part of this report. Structure, Goveruanee and Management Th¢ Foundation was established with a benefaction from Daiwa Securities Co Ltd in 1988. It was constituted under a Trust Deed dated 16 August 1988 and is a registered charity, number 299955. The Tokyo office, which is fiilly consolidated into these accounts. operates as the Japanese brdnch of a UK ¢ompany. DaiwaNichiei Kikin Limited (Company Number 85 10540). This company is l 00 % 0￿￿ed by the Chair of the Daiwa Foundation, and its DI￿torS are the Managing Trustees of the Foundation, the Dire¢tor General, and the Director of the Tokyo otFice. The appointmenL retirement and management of the Board of Trustees are governed by guidelines detern)ined by Trustees and reviewed periodically. The maximum tenn of appointsnent is nornially 9 years. The power of appointing members, either by way ofreplacement oraddition, is vested in the Board of Trustees. Appointtnents should be by consensus. The induction process for any newly appointed Trustee ¢OTnprises meetings with the Chair. the Board and the Director General. Induction materials include a copy of the Foundation's Trust Deed, minutes of recent Tn￿tee5, meetings, and Copies of the Annual Review and of relevant reports and papers relating to the Foundation's activities. The Dir¢¢tor General communicates to the Trustees any significant changes to legislation or reporting requirements that may be relevant to the Foundation. Meetings of the Board of Trustees are held twice a year and deal with matters of broad strategy and policy applying to the Foundation's programmes, finances and general management. A selection panel of UK TnJst¢es meets once a year to award Daiwa Scholarships. The Trustees authorise a subset of their number (the "Managing Trustees") to exercise closer scrutiny of thc day-to-day issues facing the Foundation, and in particular to authorise all grants mlde, and to exercise all or any of the other pow¢rs of the Trustees as specified in section 8.1 of the Trust Deed. During the year under review the Managing Trustees were Sir Timothy Hitchens, Mr Stephen Barber, Ms. Yoko Dochi, Professor Sachiko Kusukaw4 and Ms. Jessie Turnbull. The day-to-day administration of wts and scholarships is delegated to the Director General and staff of the Foundation. Management meetings between the Director General and the Manaoing Trustees are held at least three ttmes a year, to approve grants and to deal with other major areas of the Foundation's work. Key management personnel remuneration The Trustees consider the board of Trustees (in particular the Mallagin(F Trustees) and the Director General to be the key management personnel of the Foundation, in charge of directing and controllin& and running and operating the Foundation on a day-to-day basis. All Trustees give of their time freely and no trustee remuneration was paid in the year. Details of tn￿tee expenses are disclosed in note 6 to the accounts. The pay of the Director General is reviewed annually by the Managing Trustees attd is nornially increased by a small increment each year, with reference to trends in average earnings 2nd inflation. The Daiwa Anglo-Japanese Foundation Risk management The prin¢ipal risks fa¢ed by the Foundation lie in the performance of its investments and in shifts in the yen-sterling exchange rate. The size of the Foundation's annual budget is based on the Trustees, view of the likely long-tertn returns on thc pernianent endomment, considered on a total return basis. In arriving at this view, the Trustees place particular weight on the advicc of those Trustees. along with the Director General. who have professional experience of investment markets. Risks relating to the investment portfolio are mitigated by retaining professional investtnent managers and by holding & broadly diversified investment portfolio. The yen-sterling exchange rate represents a risk to thc Foundation for two major reasons. First, an o￿lCe is maintained in Tokyo with three staff, r¢sulting in significant fixed costs denominated in yen. Secondly, the costs of the flagship Daiwa Scholarships programtne are mostly incurred in Japan, being the stipends paid io Scholars to cover their living exp¢nses, and oth¢r costs of the programme, most notably fees paid to Japanese language schools. The Foundation mitigates this risk by buying yen in advan¢¢ to cover a portion of futur¢ liabilities. The Foundation also fa¢¢s the risk that its programmes may prove ineffective in their objective of advancing the education of British citizens about Japan, and vice versa. In order to prevent this from happening, all prograEnmes are regularl), reviewed by Trustees as to their effectiveness, and programmes are from tim¢ to time discontinued and new ones introduced. The Managing Trustees in particular exercise ¢loser scrutiny of the day-to-day issues facing the Foundation to ensure that its resources are spent effectively in support of the Foundation's overall objectives. The Foundation's objects #Dd poivers The objects of the Foundation as st&ted in the Trust Deed are as follows.. (a) The advancement of the education of the citizens of the Unit¢d Kingdom and the citizens of Japan in each other's institutions, business organis&tions, economy? ¢ulture, heritage, history, language, literature, art, music, and medical and scientific achievements. (b} Tlie award of scholarships or maintenance allowances to enable students and acad¢mics at schools, colleges and universities in the United Kingdom or Japan to travel abroad to pursue their edu¢ation. (c) To make grnnts to institutions having exclusively charitable objectives according to the law of England and Wales which are engaged in promoting for the public benefst cducation in the Unitrd Kingdom or Japan, or research into cultural, hÉstorical, medi¢al and scientific subj¢¢ts and the publication of the useful results of all such resear¢h. In furtherance of these objects, the Trustees have pow¢rs'. (a) To establish a cultural celltre in the United Kingdom. (b) To organise or sponsor for the public benefit courses, conferen¢es, lectures, scminars, dtscussion groups, exhibitions, concerts, plays, film shows and readings. (c) To provide for the benefit of the publÉe tt library, reading rots￿, or other facilities for study. (d) To do such things as shall further tbe foregoing objects or any of them. The Foundation's headquarters are at Daiwa Foundation Japan House, 13114 Cornwall Terra¢e, London NWI 4QP, a five-storey Regency house overlooking Regent's Park. The facilities include exhibition The Daiwa Anglo-Japanese Foundation rooms, seminar and meeting rooms 2nd a lectyre room. The Tokyo oEYice is located in Room 103 of the Bancho Buildin& Goban-cho 12-1, Chiyoda-kw Tokyo 102-0076. Review of activities The Trustees confirm that they have referred to the .(Fuidance contained in the Chartty Commission's general guidance on public benefit when reviewing the Foundation's objectives for the year and in planning future charitable activities. To further its charitable purposes for the public benefit, the objectives ofthe Foundation are achieved by means of the following four main areas of activity.. l. Scbolarships A brief description of the four scholarship prograrnmes offered by the Foundation follows, focussing on activity during the year under review. More details of these programmes, including application fonns for the first two, are available on the Foundation's website. Daiwa Scholarships Established in 1991, the Daiwa Scholarship programme is aimed at future leaders in their fields who are given the opportunity to spend a 19-month period in Japan undertaking 12 months of intensive Japanese lan(yuage study, a l-month home stay, and a 6-month work placement. Since 2015. the programme has also included an additional one month of Japanese language training in the UK before departlwe for Japan. The programme attracts highly-qua]ified applicants from a variety of academic and professional fields. The number of Scholarships offered each year has varied between five and ten, but in the year under review there was an unusually large number of Daiwa Scholars on the programme, because covtD-related restrictions meant that those chosen in 2020 and 2021 were not able to travel to Japan until 2022. Two of the 2020 Scholars started the programme earlier in the year, but the remaining 17 2020-2022 Scholars all travelled to Japan in Septsmber 2022 and ￿lUated in March 2024. A further 7 Scholarships were offered in Moreh 2023, with these Scholars starting in Japan in September 2023. Six Scholarships were then offered in March 2024. though one of these has been deferred for a year at the request of the recipient. The selection process includes a preliminary assessment of applications by the Director General and Foundation staff. first-round interviews of long-listed candidates by the Director General and two external assessors, an interim lunch and alumni forum at Daiwa Foundation Japan House, and final intsrviews by a selection panel of UK-ba5ed Trystees. The total number of alumni (including a small number who did not wmplete the full progralljme) is 212. The Daiwa Scholars Alumni Association plays an ongoing role in support of the recruittnent and briefing of new Daiwa Scholars and in creating opportunities for networking ￿rO$S the year groups. The recruitment of new Scholars is nornially facilitat¢d by the Foundation's website. university milk round visits and the involvement of the Daiwa Scholars Alumni Asso¢iation in other awareness-raising activities. Daiwa Scholarships in Japanese Studies This scholarship scheme, enabled by generous additional fLmdin(F from the Daiwa Securities Group, was launched in May 2015 to provide full funding for postgraduate students of Japanese Studies on courses in either Japan or the UK. Applicants must be British citizens who are holders of a degree in Japanese Studies, defined as a course focusing primarily on the study of Japan and contsining a substantial Japanese language component. The Daiwa Anglo-Japanese Foundation The ￿ndIng provided by Daiwa Securities has now reached the end of its agre¢d tem. it continues to apply to scholars selected during the agreed period, whom it will cover until th¢ s¢h¢duled end of their Courses. New scholars under this scheme from 2023 onwards will be funded from the Foundation's own resources, and as a result the size of the scheme is expected to b¢ smaller than it has been. Three new scholarships under this programme were awarded in March 2024, bringing the total number of scholars to31. Harold Bell Scholarship The Foundation took on this scholarship scheme when the Harold Bell Scholarship Trust was wound up in 2015. The s¢bolarsbip is intended to run every other summer, and pays for one Japanese teacher of English to take teachertraining courses at the Bell School of English in Cambridge. Because of a shortage of eligible ¢andidates, this scholarship was not awardcd in 2023. Cambridge Trllst Scholarship This scheme is run in collaboration with Cambridge Trust, a charity associated with Cambridge University, with costs shared 50=50. It pays full fces 8nd a stipend for a Japanese student taking a onc- year M￿ter'S course at Cambridge. In the year under review, a Japanese student on the s¢heme completed an MPhil in Politics and International Studies at Trinity Colle8e in thc autumn of 2023. The Scholarship was not awarded for the a¢ad¢mic year 2023-24. 2. Grants, Awards and Prizes Grant-giving during the year was carried out via the following two prograrnmes= Daiwa Foundation Small Grant5 ar¢ available from £2.000-£9,000 to individuals, societies, associations or other bodies in the UK or Japan to promote and support interaction between the two Countries. They Can cover all fields of activity, including educational and grassroots exchanges, research travel, the organisation of Conferences, exhibitions, and oth¢r projects and events th&1 fulfil this broad pump- priming objective. N¢w initiatives are especially encouTaged. Daiwa Foundation Awards are available from £9,000-£15,000 for collaborative projects thal enable British and Japanese part￿erS to work together, preferably within the ¢ontext of an institutional relationship. In 2023124, the Trustees approved Stnall Grants and Awards to a total of £260, 150 (2022123: £263,150)- Grants were allocated for a wide range of arts and humanities, social science and scientific projects, as wcll as for educational and cultural exchanges beN'een the UK and Japan. Given that a large proportion of grants awarded involve flights between the UK and Japan, the Trustecs have recently decided that a carbon offsetting payment of £50 should be made for each return flight involved. As at the end of March 2024, the accrued balance of these paytnents is £3,250,. work is ongoing to identify &n appropriate Japan- related environmental proj¢ct to which these monies will b¢ donated. A ¢ommittee structure is in place for assessing applications for Daiwa Foundation Small Grants and Daiwa Foundation Awards submitted to the Foundation's otyicts in London and Tokyo. Recommendations are then submitted to the Managing Trustees for further discussion and approval on behalf of the Board of Trust¢¢s. Details of deadlines and criteria for Grants, Awards and Prizes, together with the relevant appli¢ation fornis and guidelines, are available on the Foundation's websil¢. The Daiwa Anglo-Japanese Foundation 3. Events The Foundation's programme of events, whi¢h are mostly held in the UK r¢flects its wider objectiV¢S ill supporting the ongoing exchange of infonnation and ideas between Britain and Japan. Online events started of necessity during the period of the COVID pandemic, and turned out to have som¢ advantages, including the ability to involve speakers and other participants from Japan. During the pandemi¢ period, the Foundation also began holding some Japanese-lallguage events aimed at increasing understanding of the UK in Japan. During the year under review there was a mixture of on-line and in-person events. including seminars and lectures on aspects of contemporary Japan, as well as book launches. The Foundation also has an art gallery at its London headquarters and holds regular exhibitions by contemporary artists from Jap2n. The 2023 annual seminar series took Innovotion as its theme. Under this headino we asked speakers to consider innovative approaches to a variety of challen(Fes, including th¢ development of space, declining birth rates, immigration and (Fender tnequality. Details of seminar proceedings are made available on- line via the Foundation's website. The Foundation also presents a wide variety of other lectures. Our event about the Johnny Kitagawa scandal, featuring a screening and discussion of the BBC'S documentary on the subject, ldded to the pressure force this topic into the open in Japan. We discussed the little-noticed trend of increasin(F emigration overseas by Japanese nationals, supply chain vulnerabilities in the global semiconductor industy, priorities in the international development sector, and th¢ role of Olympic volunteers, as well &s newly emerging subjects like the war in Ukraine and its implications for energy security, and the war in Gaza. There was also a fascinating discussion of Japan's growinu mle in the world of horse racin& and a discussion (involving several Japanese blacksmiths) about high_quality Japanese knives. Our gallery presented exhtbitions by Aki Inomat4 who 'co-creates' artWOTks with otheT species including pearly oysters, hemiit crabs and bagwonns, by the Ainu woodcarver and artist Bikky Sun2zaw4 by Sumi Kan8nw4 who Creates large-s¢ale 'ni(Fht skies, out of old newspapers with most of the news carefully erased in thick black pencil, and by Maya Erin Masud4 whose ¢oncerns focus on the polluting effects of nuclear accidents on the earth's environment and on the humans and animals living in it. We also hosted a variety of talks by other Japanese artists and aeross a range of fields. One highlight ofthe event programme was the Daiwa Ichiban Lkctur¢. givell in Tokyo by Gregory Doran (now Sir Gregory Doran) at the residence of British Ambassador Julia Longbottom CMG. He gave a fascinating talk about Shakespeare's First Folio, which was celebrating its 400 anniversary, and took the opportunity to visit several copies of it held in Japan while he was there. Book launches and associated lectures have been a regular featrre of the programme? providing support for academic authors and publishers, and a vehicle for widening access to new research publications on Japan. The facilities of Daiwa Foundation Japan House are also made available to various Japan-related associations and clubs for educational and Cul￿ra1 putTroses- regular users include the Japan Society (whose offices are located on the Foundation's top floor), Japanese community groups and educational groups teaching subjects including ikebana (Japanese flower arranging) and Japanese language. 4. Cultural Relations As one of the I￿gest UK chaTities acting to support and enhance understanding between Britain and Japan, the Foundation's role extends beyond its specific funding and events programmes. It works in close association with edu¢ational and Cul￿ra1 bodies in the UK Japan and with Japan-related agencies, organisations and foundations to facilitste links between the two countries. The Foundation is represented on various external committees and provides inforn)ation and advice on the development of Anglo-Japan¢se projects and initiatives. Through direct participation in meetings, seminars and The Daiwa Anglo-Japanese Foundation conferences, it actively ¢ontributes to developing and fostering exchange activities and cultural links at all levels. It is in this context that the Director General is a member of the UK-Japan 21st Century Group and mailltains links with Japanese departments at UK universities and with the British Association of Japanese Studies and similar bodies. He also gives presentations from time to time on UK-Japan related topi¢s to universities, schools and other organisations in both countries. Financial Review Financial result for the year As can b¢ seen from the main body of the ac¢ounts, the Foundation had total cxpenditure of £1,926,354 (2022123.. £2,010,155) for the year. The last two years have both seen an unusually high level of expenditure, reflecting the large nutnber of Daiwa Scholars on the PrO￿a[nMe once Japan re-opened its borders after COVtD. The Foundation recorded a nct gain on fi]nds under man&g¢ment of £3,293,105 (2022123.. £396,220), meaning that the overall financial result swung from a loss to a gain. The net movement in funds has been added to the accumulated fund in the balance sheet. As ¢an be seen in Note I I, the Foundation disposed during the year of its holding of the BlackRock Absolut¢ Return Bond Fund, switching into a simpler cash fund to take advantage of high sterling interest rates during the period. Since the Absolute Return fuiid charged relatively high management fees, this switch resulted in a declinc in fund management fees paid during the period. An additional factor pushing up fund management charges in the prior year was the costs of gWlt¢hing the Foundation's equity investments from straightforward index funds into funds with a fo¢us on sustainability ('ESG' funds). Financial statements In drawing up the financial statements, the Foundation has complied with the Statement of Recotntn¢nded Practice applicable to charities pr¢paring accounts in accordance with FRS102. The Trustees are satisfied that the financial statements comply with current statutory requirements and with the requirements of the Found&tion's Trust Deed. Following approval of the financial statements, copies will be filed with the Charity Commission. Investment activities The Trustees confirn) that the Foundation's investments are held and managed in accordance with the Trustees, powers as set out in section 4 of tlie Trust Deed. In accordance with section 4.1.4 of the Trust Deed, the Trustees have delegated the dis¢r¢tionary management of the Foundatloll's funds to BlackRock. The Foundation's funds are managed with the objectives of protecting the valuc of the original benefactions in real terms and generating sufficient return to support the Foundation's purpos¢. Reserves poliey It is the intention of the Trustees to maintain the accumulated funds at an amount that will generate sufficient funds to meet a regular level of grants and other itetns of cxpenditure. In practice, this means that the infiation-adjusted value of the original benefactions is periodically ¢al¢ulated and compared with the value of the accumulated funds. Any adjustments in ¢xpenditure are based on maintaining thig inflation-adjusted value, except that following the Tohoku Earthquake in March 2011, the Trustees agreed to make available £250,000 for the Daiwa Tohoku Scholarships programme, to be spent out of the Foundation's reserves rather than tsken from the ongoing budget. At the end of the 2023124 financial ycar, the Foundation's net assets of £46.2m (2022123.. £44.3m) were 120/0 below (2022123.. 130/0 below) th¢ value of the original benefactions in real temis and would be I lQ/o below if the spending on the Daiwa Tohoku Scholarships had not taken Pl￿e. The Daiwa Anglo-Japanese Foundation Staff alld administration There are currently six full-time members of staff at the London headquarters of the Foundation, with one part-time staff member. The Tokyo office is staffed by on¢ full-time and two part-time members of Once again, the Trustees of th¢ Foundation acknowledge with .oratitude the generous support of Daiwa Securities Group Inc. and Daiwa Capital Markets Europe Limited ill respect of Certain overhead and other expenditures in Tokyo and London, as well as in the provision of additional ￿ndin(l to support the Daiwa Scholarships in Japanese Studies. Fixed ￿Sets Infomiation relating to tangible and intangible assets is given in notes 9 and 10 to the f]nancial statements. Auditor The Trustees who held office at the dat¢ of approval of this Trustees, report confinn thaL so far as they are each aware, there is no relevant audit information of which the Charity's auditor is unaware and the Trustees have taken all the steps that they ought to have taken as Trustees to make themselves aware of any relevant audit information and to establish that the Charity's auditor is aware of that infortnation. A resolution to appoint Greenback Alan LLP as auditor for the ensuing year is to be proposed at the winter meeting of the Trnstees. Trustees T.he Trustees who served during the year were.. Sir Timothy Hitchens KCVO CMG, Chair Mr Takashi Hibino, Vtce Chair (retired 21 June 2024) Mr Stephen Barber (retired 21 June 2024) Mr John Charlton-Jones (appointed 24 November 2023) Ms Yoko Doehi Mr Keiichi Hayashi Mr Yusuke Kawamura Professor Sachiko Kusukawa Ms Rebecca Salter PRA Professor Hirotska Takeuchi Dr Victoria Tuke Ms Jessie Turnbull Professor Sir Mark Walport FRS FRCP FRCPath Fmedsci FRSE Statement of Trustees, respollsibilities in respect ofthe Trustees, annual report and the financial statements Under the trust deed and charity law, the trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with appli¢able law and regulations. The trustees have elected to prepare the financial statements in accordance with FRS 102 The Fin(7ncial Reportiplg Siandardapplicable in the UKandRepublic ofIreland. The Daiwa Anglo-Japanese Foundation The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the ex¢ess of expenditure over income for that period. In preparing these f￿ancial statements, generally aceepted accounting practi¢e entails that the trust¢¢s: select suitable accounting policies and then apply them consistently- tnake judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the fmancial statements. state whether the financial statctnents comply with the trust deed, subject to any material departures disclosed and explained in the fknancial statements. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are required to aet in a¢¢ordance with the tn￿t deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting r¢¢ords, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to cnable the trustees to ensure diat, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the ¢harity and to prevent and detect fraud and other irregularities. Authority is entrusted and delegated to the Mmaging Trustees, Sir Timothy Hitchens, Mr Stephen Barber, Ms Yoko Dochi, Professor Sachiko Kusukawa, and M5 Jessie Tumbull, to exercise all or any of the powers of the Trustees as specified in section 8.1 of th¢ Trust Deed. Signed oll behaifof the Trustees Sir Timothy Hitchens KCVO CMG Chair Daiwa Foundation Japan House 13114 Cornwall Terrace London NWI 4QP 22 November 2024 10 The Daiwa Anglo-Japallese Foundation Independent auditor's report to the Trustee$ of The Daiwa Anglo-Japanese Fovndation Opinion We have audited the financial statements of the Daiwa Anglo-Japanese Foundation ('kne charity") for the year ended 31 March 2024 which comprise the Statement of Financial Activities, Balance Sheel and related notes, including the accounting policies in note l. In our opinion the fmancial statements- give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its ineomin(y resources 2nd application of resources for the year then ended. have been properly prep￿ed in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Irelalld. and have been properly prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We have been appointed as auditor under section 145 ofthe Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act. We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs IUK),) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the charity in accordance with, UK ethical requirements includin(F the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Going concern We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a pcriod of at least a year from the date of approval of the financial statements ('%he going concern period"). In our evaluation we considered the inherent risks to the charity's operations and analysed how these risks might affectthe charity's financial resources, or ability to continue its operations over the going concern period. We have nothin(F to report in these respects. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judoements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditovs report is not a guarantee that the charity will continue in operation. Other inforniation The Trustees are responsible for the other inforniation. which comprises the Trustees, Annual Report. Our opinion on the financial statements does not cover the other inforniation and, a¢¢oTdingly, we do not express an audit opinion or, except as explicitly stated below, any forni of assurance conclusion thereon. Our responsibility is to read the other inforniation and, in doing so, consider Nadher, based on our financial statements audit worl the inforniation therein is materially misstated or inconsistent with the financial Statements or our audit knowledge. We are required to report to you if: b&sed solely on that work, we have identified materiaI misstatements in the other inforniation. or in our opinion, the information given in the Trustees, Annual Report is inconsistent in any material respect with the flljancial statements. We hav¢ nothing to report in these respects. The Daiwa AJLglo-Japanese Foundation Matters oll whieh we are required to report by exteptlOD Under the Charities Act 2011 we are required to report to you if, in our opinion.. the charity has not kept sutficient accounting r¢cords; the financial statements are not in &greement with the accounting records. or we have not received all the infomation and explanations we require for our audit. We have nothing to report in these respects. Trll$tees' responsibilities As explained more fully in their statement set out on page 9, the Trustees are responsible for.. the preparation of finaneial statements which give a truc and fair view. They are also responsible for.. such internal control as they deter￿Ine is necessary to enable the preparation of financial statcmcnts that are free from material misstatement, whether due to fraud or error. assessing the ¢harity's ability to continue as a going concern, disclosing, ￿ applicable, matters related to going concern,. and using the going concern basis of accounting unless they either intend to liquidate th¢ ¢harity or to ce￿e operations, or have no realistic alternative but to do so. Auditor's responsibilities Our objectives are to obtain r¢asonable assurance about whether the financial statements as a whole are fr¢¢ from material misstatement, whethcr due to fraud or error, and to issue our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not guarantee tliat an audit conducted in a¢¢ordance with ISAS (UK) will always del¢ct a material misstatement when it exists. Misstatements can arise from fraud or em)r and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regul&tions. We design procedures in line with our responsibilities. outlined above, to det¢ct material misstatements in respect of irregularities, including fraud. The ¢xt¢nt to which our pro¢edures are capable of detecting irregularities, including fraud is detailed below.. We obtained a general understanding of the charitable foundation's legal and regulatory framework through ¢nquiry of management concerning.. their understanding of relevant laws and regulations; the entity's policies and procedures regarding compliance. and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the charitable foundation's objectives and regulation. We understand that the charitable foundation complies with the framework through having in pla¢e robust procedures and policies and by outsourcing and taking external professional legal, and ac¢ounting advice on relevant specialist functions and areas including the preparation of financial statements. In the context of the audit, we considered those laws and regulations: which determine the forni and ¢ontent of the financial statements. which are central to the charitable foundation's ability to conduct its activities- and where failure to comply could result in material penalties. We identified the following law5 and regulations as being of significance in the context of the entity.. 12 The Daiwa Anglo-Japanese Foundation The Charities SORP IFRS 102}, the Charities Act 2011. The senior statutory auditor led a discussion with all members of the engagement team regarding the susceptibility of the entity's fInancial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were: Manipulation or error in income recognition leading to overststement of income (and debtors) to inflate the amounts of funds carried forward. Manipulation or error in expenditure leading to over or under-ststement of charitable activities expenditure, resulting in over.or under statement of funds cgJried forward. Manipulation or e￿or in raising accruals and provisions for costs incurred but not invoiced before the balance sheet dats that often entail a significant degree ofjudgment; The procedures we carried otlt to gain sufficient appropriate audit evidence in the above areas included.. Identifying and assessing the design effectivelless of controls management has in place to prevent and detect fraud and error, Understandin(r the potential for override ofthese controls on the financial reporting process, and how those charged with governance address these override potentials. Performing substantive testing on appropriate samples, and investigating any discrepancies identified- Documenting the assumptions and judgements made by management in their significant accounting estimates and challenging these with management; Identifying and testing journal entries, in particular those around the year-end, and involving unusual postings, account combinations, or amounts- Overall, the senior Sta￿tOry auditor was satisfied that th¢ engagement team collectively had the appropriate competence and capabllities to identify or recO￿lse irregularities. In particular, the senior statutory auditor has a number of years, experience in dealing with charitable entities, and preparing accounts under the Charities SORP (FRS 102). A fuller description of our responsibilities is provided on the FRC'S website at www.fr¢.org.uklauditorsresponsibilities. 13 The Daiwa Anglo-Japanese Foundation THE PURPOSE OF OUR AUDIT WORK AND TO IVHOM WE OWE OUR RESPONSIBILITIES This report is made solely to the charity's Trustee5 as a body, in accordance with section 145 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that A¢t. Our audit work has been und¢rtaken so that we might state to the charity's Trustces those matters w¢ are required to state to them in an auditor's report and for no other purpose. To the fullest extent pemitted by law, we do not accept or assume responsibility to anyone other than the charity and its Trustees as a bodyy for our audit work, for this report, or for the opinions we have fornied. Jon Fisher for and on behalf of Greenback Alall LLP, Ststutory Auditor Chartered Accountants 89 Spa Road London SEI6 3SG 22 November 2024 Greenback Alan LLP is eligible lo act as an auditor in terms of sgction 1272 of the Companies Act 2006. 14 The Daiwa Anglo-Japanese Foundation Statement of Financial Activities For the year ended 31 March 2024 |Notes
**Income**
3
**Expenditure**
_Costs of generating funds_
Fund managers’ fees
_Charitable activities_
Scholarships
Grants, Awards & Prizes
16
Events
Cultural Relations
Total charitable activities expenditure
5
**Total expenditure**
Net gain/(loss) on investment funds
11
**Net Income/(expenditure)**
**Net movement in funds**
**Total funds brought forward**
**Total funds carried forward**|**Unrestricted Funds**
**Restricted Funds**
**Total Funds**
**31 March 2024**
£
£
£
622,803
867
623,670
(64,735)
-
(64,735)
(945,258)
-
(945,258)
(439,125)
-
(439,125)
(417,689)
-
(417,689)
(59,547)
-
(59,547)
(1,861,619)
-
(1,861,619)
(1,926,354)
-
(1,926,354)
3,287,522
5,583
3,293,105
1,983,971
6,450
1,990,421
1,983,971
6,450
1,990,421
44,209,243
74,411
44,283,654
46,193,214
80,861
46,274,075|**Total Funds**
**31 March 2023**
£
192,331| |---|---|---| |||(224,000)
(963,024)
(436,078)
(338,756)
(48,297)| |||(1,786,155)| |||(2,010,155)| |||396,220| |||(1,421,604)| |||| |||(1,421,604)| |||45,705,258| |||44,283,654| All income and expenditure derive from continuing activities. All recognised gains and losses have been included in the Statement of Financial Activities. 15 The Daiwa Anglo-Japanese Foundation Balance Sheet As at 31 March 2024 Unre5tricttd Funds RE$tritted Fllnds Totsl Fllnd5 T4ktal Funds 31 March 2024 31 MArch ZQ23 Not¢5 Filed i$$ets Tan￿lble assets 167,754 167,754 164,386 Intangible ￿ets Investtnents 45,364,520 80,539 45,445,059 43.705.178 45.532274 80.539 45.612.813 43.869,564 Current a￿¢¢$ Dcbtors 12 113,884 718.8i9 832,743 113,884 131.470 595.348 C3sh At bank 3nd ￿ hand 13 322 322 833.065 726.818 Creditors.. amounts tsllitig du¢ withiD one ye 14 Nei currellt a55et5 660,940 322 661,262 414,090 Net ll55Ets 46.193.214 80.861 46,274.075 44,283.654 Funds ofthe F•uttdation liestricted incorne funds 80.861 80.861 46,193314 Untestritkd income funds 46,193214 44,209,243 Totyl Fllnds 46.193.214 80.861 46,274.075 44,283.654 The financial stttem¢nts set out on pages 15 to 43 were approved by the Trustees on 22 November 2024 and have been signed on their behalf by.. Sir Timothy Hitchens KCVO CMG Chair D&iwa Foundation Japan House 13114 Cornwall Terrace London NWI 4QP 22 November 2024 16 The Daiwa Anglo-Japanese Foundation Notes to the financial statements (continued) For the year ended 31 March 2024 Accounting polieies A summary of the principal accounting policies of the Foundation is set out below. Except where indicated, they have been applied consistently throughout the year and the preceding year. a) Basis of preparation and assessment of goillg concern The financial statements have been prepared under the historical Cost convention &s modified by the revaluation of investments and in accordance with the 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) issued October 2019 and the Charities Act 2011. The trust constitutes a public benefit entity &5 defined by FRS 102. The trustees considerthat there are no uncertainties about the Foundation's ability to ¢ontinue as a going concmj as the Foundation has investments greatly in excess of committed grants or any other liabilities. b) Governance costs Governance costs are the costs associated with the governance arrangements of the Foundation. These costs include internal and external audit, legal advice for trustees and costs associated with constitutional and statutory requirementy for example the cost of trustee meetings and preparing statutory accounts. e) Donations Donations are ineluded in the Statement of Financial Activities on a receivable basis when their receipt is ensured. d) Investment ineome Coupon illcome and bank interest are included in the Statement of Financial Activities on an accnjals basis. Dividends are reco.(mised on the b&sis of the due date for pa￿llent and are grossed up for the amount of any taxation recoverabl¢. e) Grants and Seho12rships Grants are included in the Statement of Financial Activiti¢s as soon as they have been approved by the Trustees. Scholarships are included in the Ststement of Financial Activities, reflecting tbe timin