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2023-03-31-accounts

THE COUNCIL'S ANNUAL REPORT AND ACCOUNTS 2022-2023

TABLE OF CONTENTS

The Ditchley Foundation
Office Holders, Trustees and Committee Members page 2
Finance and General Purposes Committee page 3
Investment Sub-Committee page 3
Programme Committee page 4
The Trustees’ Annual Report
Aims, Objectives, Activities and their Public Benefit page 5
Report of 2022-2023 page 6
The 2022-2023 Programme of Events page 7
Other Projects page 9
The Ditchley Team and Governance page 10
Plans for the Future page 11
Financial Review page 11
Development Report page 13
Private Events and Other Income page 15
Reserves Policy page 15
Financial Resilience Statement page 15
Fundraising Compliance Notice page 16
Structure, Governance and Management page 16
Trustees’ Responsibilities page 17
Principal Activities and Business Review page 18
Dividends page 18
Directors page 18
Consolidated Accounts
Independent Auditor’s Report to the Members page 19
Consolidated Statement of Financial Activities page 23
Consolidated Balance Sheet page 25
Charity Balance Sheet page 26
Consolidated Statement of Cash Flows page 27
Notes to the Accounts page 28

Page 1

Office Holders, Trustees and Committee Members

COUNCIL OF MANAGEMENT

[Trustees of the Foundation]

Chairman

The Right Honourable the Lord Hill of Oareford CBE

Members of the Council Ms Rushanara Ali MP The Lord Bridges of Headley MBE Ms Pamela Dow Mrs Marjorie Neasham Glasgow BEM LL * His Excellency the Honorable Ralph Goodale PC The Right Honourable Dominic Grieve QC Sir Julian King GCMG, KCVO Mr James Landale The Rt Hon the Lord Mandelson Mr Jamie P Merisotis Mr David Morrison Mrs Elizabeth Padmore Ms Emma Reynolds The Most Honourable The Marquess of Salisbury KCVO PC DL The Hon. Robert Wills

Company Secretary Ms Katie Williams

THE FOUNDATION’S EXECUTIVE STAFF

Director : Mr James Arroyo OBE

Chief Operating Officer: Ms Wendy Shepherd Head of Programme Delivery and Company Secretary: Ms Katie Williams

Registered office: Ditchley Park, Enstone, Chipping Norton, Oxfordshire OX7 4ER

A company registered in England (No. 599389) limited by guarantee and not having a Share Capital, registered as a Charity (No. 309657) and exempt from Income Tax and Capital Gains Tax.

Auditors: Critchleys Audit LLP, Oxford Bankers: Barclays Bank plc, Oxford Investment Managers: Partners Capital LLP Solicitors: Julian Taylor Solicitors, Bicester

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FINANCE AND GENERAL PURPOSES COMMITTEE

Chairman Mr David Morrison

Members Mr James Arroyo OBE Ms Rachel Lomax Mrs Elizabeth Padmore The Hon. Robert Wills

Secretary Ms Wendy Shepherd

INVESTMENT SUB-COMMITTEE

Chairman Mr Nicholas Ferguson CBE

Members Mr David Morrison Mrs Elizabeth Padmore

Secretary Ms Wendy Shepherd

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PROGRAMME COMMITTEE

Chairman

The Rt Hon. Douglas Alexander

Members

Mr Bim Afolami MP Mr James Arroyo OBE Ms Melinda Bohannon Mr Rüdiger Bohn Mr Robert Fry Mr Charles Grant CMG Mr Darren Jones MP Ms Elizabeth Linder Mr Hiroshi Matsuura Ms Alison McGovern MP Professor Rana Mitter OBE FBA Dr Edwina Moreton OBE Mr Rajay Naik Professor Sir Adam Roberts KCMG FBA Ms Sonia Sodha Mr Rory Stewart OBE Ms Jo Swinson CBE Mrs Xenia Wickett

Secretary Ms Liz Greenhalgh

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The Trustees’ Annual Report

Aims, Objectives, Activities and their Public Benefit

The overarching aim of the Foundation as set out in its Articles of Association is “to promote, carry out or advance any charitable objects, and in particular any branches or aspects of education, likely to be for the common benefit of British subjects on the one hand and citizens of the United States of America on the other”. More specific objectives are the advancement of education and improvement of public policy-making in the UK, North America and beyond.

This broad statement devised for the inauguration of the Foundation in 1958 still holds true but has been clarified for the challenges facing the world 65 years on. Our aim is to help sustain peace, freedom and order. We work towards the renewal of democratic societies, states and alliances.

Ditchley brings people together to think new things and make new connections. We orchestrate frank conversations across divides and create space for strategic thinking.

Our primary route to impact is through people, engaging the individuals and organisations with direct influence over outcomes. Ditchley discussions address complex challenges that, as a rule, do not have simple solutions.

We aim to find and include outstanding talent from all quarters. Ditchley is committed to ensuring and encouraging access for everyone, regardless of disability, age, gender, cultural or social background, sexual orientation, faith, location or wealth. Ditchley is independent and not bound by the interests of any government, political party or company.

We publish the outcomes of conferences and other events for public benefit. We also share insights and conclusions with government ministers, civil servants, journalists, business and technology leaders and others in a targeted way, either by direct briefings, post-conference briefings to the Ditchley community, or through subsequent small group discussions exploring particular ideas or themes which require further examination. Ditchley has an increasingly wide range of partnerships with other organisations and seeks to work on issues in coordination rather than isolation, aiming to achieve maximum impact and efficiency.

The public benefits generated by Ditchley are a deeper understanding amongst decision makers and influencers of issues of international concern across different fields, delivering in turn a wider public good. By design, Ditchley addresses the systemic long-term challenges we face, and so benefits are often difficult to quantify through short-term metrics. Nonetheless these benefits are clearly attested to by participants’ feedback.

Ditchley is a global public good. In a world where there are shrinking opportunities for open, frank, and respectful discussion on key global issues, Ditchley fills an increasingly critical need. If you want a high-powered marketplace of ideas, Ditchley is it!

Mr John Hancock - Head, Policy Development, World Trade Organisation - A Profound Economic Crisis: finding a way through to a better future, January 2023

Exceptionally busy and influential people continue to make time to participate in Ditchley events, whether face to face at Ditchley Park or virtually. The Ditchley experience is educative even for those at the height of their careers and widely appreciated as a valuable contribution to public life. Ditchley conversations inform the reporting and develop the thinking on key issues of many respected journalists and news outlets.

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No individual receives financial benefit from Ditchley. Where events are residential, board and accommodation are provided in exchange for participants’ time and expertise.

Ditchley offers the house and its gardens without charge to charities in Oxfordshire and the surrounding area for several fundraising events per annum. In the last year Ditchley has hosted four such events.

The Foundation maintains Ditchley Park as a historic house, part of the national heritage. It is open by appointment to individuals, groups and societies to study its history, art and architecture. The public is given access to the building in the form of pre-booked guided tours for a small charge. The practice of setting aside a number of days in the calendar year as Public Access Days continues.

Ditchley remains committed to reducing its carbon footprint and engaged Small World Consultancy to undertake a comprehensive analysis of greenhouse gas emissions to provide a baseline from which to develop a responsible and deliverable approach to being carbon neutral by 2025. Ditchley’s fleet of vehicles has been reduced to an EV people carrier thanks to the generous support of the John H & Marjorie N Glasgow Foundation. The kitchen garden is now cleared, providing a means of growing more fruit and vegetables on site. Other Initiatives which continue to be explored include the possibility of installing discrete hidden roof solar panels, rainwater harvesting and ground source energy solutions.

The Director and other officers of the Foundation undertake a range of other activities to promote the reputation and objectives of the Foundation and to attract new participants and supporters for the Foundation. They regularly participate in discussions with policy-makers and thought leaders in the UK, Europe, North America and far beyond, to explore opportunities for collaboration, attract expert participants to the Ditchley programme, and to share insights from Ditchley discussions.

Some of the objectives stated in the Foundation’s original Articles of Association of 1958 (such as “to establish fellowships, scholarships and prizes” and “to establish paid residential or other fellowships”) are not currently part of Ditchley’s programme but are actively being considered within Ditchley’s development plans.

All new Trustees are provided with a copy of the Charity Commission’s guidance “The Essential Trustee (CC3)” together with Ditchley’s Articles of Association. The training needs of trustees are kept under review.

The Trustees have paid due regard to the Charity Commission’s guidance on public benefit in fulfilling their duties and in setting the Foundation’s objectives and planning its activities.

Report of 2022-2023

The twelve months covered by the period of this annual report were momentous internationally, nationally and for Ditchley.

The impact of Russia’s invasion of Ukraine on 24 February 2022, acknowledged in last year’s report, was more fully realised as it became apparent that this was not going to be a short military operation, but instead a long battle requiring resilience on the part of Ukrainians and increasing military support on the part of sympathetic democracies.

The rising military cost was in the face of a global surge in inflation, affecting even the wealthiest of nations.

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Alongside this, unprecedented global heat waves and catastrophic droughts and flooding in different parts of the world also raised the prospect of further political destabilisation with an increasing focus on the impact of climate change and corresponding increase in climate activism.

In the UK, a tumultuous year has found the country led by three different Prime Ministers, the death of Queen Elizabeth II and the succession to a new monarch, King Charles III. Stepping away from the world stage, Ditchley mourned the loss first of Lady Wills, and then Dr Catherine Wills.

The 2022-2023 Programme of Events

In the light of the events of the last year, Ditchley’s programme evolved and adapted at speed to address the emerging challenges. There were nine Ditchley conferences over the period covered by this report, each followed by a post-conference briefing via ‘the Bridge’, the worldleading audio-visual capability installed in the Library. This now established format for sharing findings to emerge from discussions with the wider Ditchley community has been extended to other strands of the programme, such as on Climate.

I just wanted to congratulate you and the whole team to the technical quality of the conference - this "TV study [sic] effect" is really amazing.”

Feedback following A Profound Economic Crisis: finding a way through to a better future, January 2023

Beyond the core conference programme, Ditchley has hosted in excess of one hundred other sessions ranging from large scale events to small working group discussions. The programme of working group discussions, hosted by the team of Network Leads, with each focussed on informing and defining a specific theme, are now a core element of the Ditchley methodology. These sessions also often act as a first introduction to Ditchley style of discussion for new contacts identified through research or recommendations.

Another significant development enhancing the programme over the last twelve months is the increasing number of collaborations with organisations aligned with Ditchley’s purpose and objectives. There have been collaborations with, for example, Oxfam, Schmidt Ocean Futures, the US National Security Council, the London Institute for Mathematical Sciences and the China Forum. The decision as to whether to partner with another organisation, is always dependent on whether the proposed discussion is aligned to Ditchley’s programme, aims and values.

Ditchley Germany is also taking shape with the core board now in place and a conference to launch the initiative scheduled for June 2023 and to be hosted at a venue located just outside of Frankfurt.

I Geopolitics

The Russian invasion of Ukraine and its impact has been a thread running through much of the programme over the last year. Alongside five conferences addressing different aspects of the topic, there was also a series of small group discussions in April and May 2022 and, of course, the Annual Lecture.

Perhaps the most significant of the conferences was Russia: countering the worst and engaging the best in June 2022. The new Supreme Allied Commander of Europe, General Chris Cavoli, participated in this conference in order to think through the challenges he would encounter in advance of assuming command of NATO the following week.

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The four other conferences addressing this theme and related issues were Geofinance: the impact of the Ukraine war, China, cyber security and other strategic issues on the global financial system in April 2022; China and the world: the impact of Russia’s war with Ukraine in September 2022; A hungry world on the move: the impact of the food crisis on migration and how we must respond in October 2022; and Zeitenwende: a new Germany for new times? in March 2022.

The Ditchley Foundation has created an outstanding environment to discuss the most pressing policy issues on open and diverse grounds. The brilliant guests brought truly unique perspectives to the room, enriching our understanding of European challenges and inspiring new ideas to build on.

Mr Julian Zelaznowski - Master of Public Policy candidate, University of Oxford - Zeitenwende: a new Germany for new times?, March 2023

In addition, Ditchley hosted a successful breakfast discussion in the margins of the Munich Security Conference in February 2023, attended again by NATO commander General Cavoli and others of note.

Ditchley’s most publicly prominent geopolitical discussion of the year, however, in February 2023, was a conference on how to make Brexit work better with our European neighbours . This brought together prominent leavers and remainers, including members of the Cabinet and the Labour front bench, to address how to make the best of the Trade and Cooperation Agreement and to look forward.

Annual Lecture

The 58[th] Ditchley Annual Lecture was delivered on Saturday 16[th] May by The Right Honourable Sir Tony Blair on the subject of After Ukraine, What Lessons Now for Western Leadership? He argued that western democracies, with living standards stagnating, millions struggling to meet their basic needs and political turmoil fuelled by social media, are facing an inflection point that is perhaps graver than those of 1945 and 1980. Within democracies, the solutions to these problems lie in the creation of a governing project which makes sense of the world, and which harnesses fundamentally the technological revolution. The ability to plan and deliver are in short supply in modern politics, but more important than ever. Abroad, Ukraine is a pivot point, demonstrating the need for increased defence spending and adoption of a stance of ‘strength plus engagement’ with China. We must recognise that we are now in a world where the East is on equal terms with the West. We need to respond to developing nations' needs, if we are to retain influence and soft power and tackle climate change.

II Education and democracy

There were two major conferences and a series of small-scale discussions, together with five linked sessions forming the annual Lumina Summit during September and October 2022.

The two conferences were: The New Fourth Estate: building a resilient 21st-century information eco-system in December 2022, a topic to be revisited in December 2023; and A Profound Economic Crisis: finding a way through to a better future in January 2023.

The theme was also explored through cross-party discussions on regionalism and devolution in England.

III Technology and democracy

There were two major conferences in the technology and democracy strand, the first, Digital security for democratic, social and economic prosperity in Ottawa in November 2022, and the second in February 2023 which addressed AI and creative destruction: how will current rapid advances in AI through large ‘foundation’ models impact on society, the economy and governments? The latter gathered many of the leading companies in the field and positioned

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Ditchley at the centre of the urgent debate on this fast moving form of AI with potentially profound economic and social consequences.

This was complemented by the Data in Democracies programme which has the objective of accelerating the development of norms for data sharing and technology regulation across democratic states. A series of smaller scale discussions culminated in a one-day conference, Data in Democracies: unifying visions, building shared infrastructure and preparing for a tsunami of legislation, in order to support democratic resilience, competitiveness and fundamental values across democracies , in September 2022.

A new initiative for 2023 was the inaugural Ditchley Winter Dialogue which brought together Peter Thiel and Hermann Hauser to debate, in person, how technology can best strengthen and renew democratic societies, states and alliances in an era of global competition . Hosted at the Royal Institution in London, this second major event of the year is designed to complement the summer Annual Lecture, putting technology and its dilemmas at the heart of democratic renewal.

IV Climate and energy

The climate and biodiversity programme continues to gain in strength and momentum, building from small working group discussions into a larger hybrid Summit in March 2023 on Critical Minerals & the Green Transition . One of the emerging issues challenging climate action in a geopolitically competitive world.

In October 2022, there was a follow up discussion on earlier work on oceans and data: Credit where credit is due: authorship of open ocean data,

Details of all conferences, and other virtual discussions and events can be found on the Ditchley website: https://www.ditchley.com/events/past-events

Other Projects

Alongside the delivery of the thematic programme, Ditchley has pressed ahead with a range of other projects to support the programme and its impact.

Internship programme

The intern programme is now well-established with a rigorous selection process to identify around 50 candidates for intern roles over the course of the academic year. We are in the final stages of recruiting some 40 interns for the forthcoming summer programme. This will include five Canadian undergraduates selected and supported by the Canadian Ditchley Foundation, who will be resident at Ditchley for a week in July 2023.

All our interns are either paid for their work (at, or above, the Oxford living wage) and/or receive credits towards their degree. Interns work largely remotely, ensuring that geography does not prevent participation in all aspects of the Ditchley interning experience. The programme includes induction and celebration days at Ditchley and engagement with the Ditchley Intern Alumni Network, which is now organising its own events in partnership with Ditchley.

The intern programme is of value in itself, providing an opportunity for those taking part to explore ideas, consider alternative career paths and connect with a growing alumni network of similarly thoughtful individuals on the cusp of transitioning from academia to the world of work. It also provides a pipeline of emerging talent with which Ditchley actively engages over the longer term.

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Ditchley’s digital presence

An important project nearing completion is the migration of the current CRM (ie database) to Salesforce. This has been a complex challenge, seeking to combine Ditchley’s bespoke and personalised approach to the organisation of events, whilst benefitting from the efficiencies and greater cyber security of the globally leading CRM. This will enable the delivery of an expanded programme and the capacity to respond agilely to opportunities as they arise. Alongside this, the new website is also in development, which will reflect the breadth of the current Ditchley programme and make it more accessible.

Heritage Projects

The completion of the Elizabethan Rooms, the restoration of Ditchley’s second floor, is in touching distance. The 14 bedrooms all benefit from dedicated or ensuite bathrooms and are decorated to the highest standards. This means that Ditchley will be able to host all participants in its events in an equal way.

Alongside this huge undertaking, the estates team have been renovating other properties on the estate to enable them to be made available as rentals on the open market.

Work was completed on the Rotunda at the end of 2022, with the occasion marked by an informal celebration with the Historic Houses Foundation as the principal donor to the project.

Finally, a high-quality copy of the Ditchley portrait of Queen Elizabeth 1 by Marcus Gheeraerts the Younger now resides at the bottom of the Elizabethan staircase, thanks to the generosity and commitment of Amanda and Rupert Ponsonby and advice from the National Portrait Gallery where the original has hung since it left Ditchley in the 1930s.

The Ditchley Team and Governance

The members of the three Ditchley Foundations have worked ever more closely to steer a course through the turbulent events of the past year and Ditchley is indebted to all those involved with UK, American and Canadian Ditchley.

There were five new Members elected to Council in the last twelve month period. Ms Rushanara Ali MP and Mr David Morrison were elected at the June 2022 Annual General Meeting. At the subsequent Extraordinary General Meeting in December 2022, they were joined by Mr James Landale, Mr Jamie Merisotis and The Hon Robert Wills.

We would like to acknowledge with sadness the deaths over the last year of the Earl of Home and Professor Sir Laurence Martin, both Governors of Ditchley for many years; Sir Richard Lloyd who was a former Chairman of the Finance and General Purposes Committee, and Robert Conway who was a Director of the American Ditchley Foundation at the time of his death, and an Honorary Governor. He had previously served as a Governor, and member of both the Council of Management and Finance and General Purposes Committee.

After the sadness of losing Lady (Eva) Wills in May of last year, there was further shock with the death of Dr Catherine Wills two months later. Ditchley had been a part of Catherine’s life since childhood, and during her adulthood she had been a presence at virtually every conference and Annual Lecture. Her absence continues to be keenly felt, but her wish to see Ditchley thrive and deliver on her father’s vision was demonstrated by her extraordinarily generous legacy.

The scale of her gift amounts to a re-founding of Ditchley, the institution into which she and her family had already invested so much. Whilst respecting the modesty with which this was done, and continuing her father’s tradition of quiet philanthropy, Ditchley will seek to honour

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their memory in deeds and action as a testament to the great vision of Sir David Wills and the continued belief and trust of his daughter, Catherine.

Plans for the Future

Thanks to Catherine’s substantial legacy Ditchley’s future is secure. The Director, supported by the members of the team and Chairman and Members of the Council of Management and Finance and General Purposes Committee, are working to develop a strategy to maximise its value and consequent impact for Ditchley. Beyond this, discussions with Members of the Council of Management and F&GP were focussed on the twin tracks of ensuring Ditchley’s financial sustainability and delivering on its purpose.

Ditchley will continue to convene a variety of discussions to address the most pressing issues, providing a space for frank conversation across divides. Above all, Ditchley will continue its efforts to build a community of ‘thoughtful doers’, drawn from all parts of society and many nations.

Financial Review

2022-2023

The year began with a gradual return to normality after the uncertainty of the pandemic but also a recasting of the Operations Team and investment in skills to ensure that it is able to support the level and ambition of the Estate and the programme. The Estate Team was rationalised, retaining highly skilled staff, augmented by additional contract support as needed. The restoration of the second floor East and West corridors was externally tendered, and works commenced early in 2023. This released the in-house team to work on wider estate properties, three of which have been refurbished and added to our commercial letting portfolio. In addition a staff property was refurbished, and a Staff Hub created in the East Wing to provide accommodation for remote staff to visit Ditchley in person to host and contribute to events. This has strengthened structure and cohesion, allowing a geographically distributed team to work effectively in a hybrid way. Equipment and estate vehicles were audited and rationalised and, with an ambition to move to electric power whenever possible, we replaced vehicles and added time and cost saving equipment.

We were able to secure a substantial filming contract, fortuitously coinciding with the summer programme break, which contributed to the healthy £318k Ditchley Park Conference Centre Limited revenue for the year. Moving furniture for filming was disruptive but with the benefit that items were added adding to our Collections Management Database (CMD) and in the process a number of historic items were restored. The CMD, introduced during the financial year, is invaluable, creating a digital asset register and housekeeping record. The database will also help greatly in the management of the many items of art and furniture included in Catherine Will’s legacy.

The cost of living continued to rise throughout the year and in recognition of the impact on staff, the F&GP agreed to a one off payment to all staff of £1k, with a note to review inflationary increases when setting staff budgets for 23/24. We continue to monitor energy use throughout the Ditchley Estate and explore alternatives.

Alongside the existing Ditchley Estate, work was undertaken to begin to understand the extent of the legacy, the property and land potential, and the integration of the movable assets. Visits were made to all the properties and surveys commissioned. We identified liabilities and risks

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and commissioned further investigation and processes where required. Additional accounts support is being secured and Scottish legal advice sought.

Management and role of the invested portfolio

The legacy, and particularly the renewables potential on the Scottish estate which forms the bulk of the legacy, is transformational to the Foundation, creating a diverse portfolio of revenue generating assets. The role of the invested portfolio is not however diminished as a result. The agreed strategy is, over the longer term, to grow and diversify the invested portfolio as assets are realised and the cash reinvested.

The portfolio had a value of £18.4 million in March 2023, compared to £20.4m in March 2022. Allowing for the drawdown in the year of £1.5m the portfolio decreased by 2.6% including fees. The Investment Sub-Committee (ISC) view is that investment managers Partners Capital performed well and steered the portfolio through the current Ukraine conflict and its global impact on energy costs and inflation. Since inception, on 1[st] September 2010, the portfolio has delivered an annualised return of +7.2% pa.in GBP (net of fees). The drawdown from the portfolio at year end of £1.5m was below budget, set at £1.7m.

For the coming year the budgeted figure for drawdown is set again at £1.7m, currently 9% of the reduced portfolio value. It is acknowledged that the level of drawdown is unsustainable and only appropriate in light of Catherine’s legacy. The budget will be reviewed when probate is granted. The longer-term capital waterfall projections, reflecting the proposed management of the legacy, allow for the drawdown to be reduced to 4% by financial year 25/26.

An ESG investment policy was adopted by the Council of Management in 20/21 financial year, empowering our investment managers to report on the exposure of the diverse funds in which the portfolio is invested.

Strategic financial risks

At the start of the year our main strategic financial risk was a sustained collapse in the markets and in the value of our invested portfolio. This risk was substantially reduced towards the end of the year when the full extent and potential value of the legacy became apparent. When the assets are transferred, after probate is granted, their diversity and revenue generating potential will add further income streams to decrease the reliance on the performance of the portfolio and reduce the drawdown. We will however continue to maintain careful management of the portfolio alongside continued work on development and careful management of costs. As we plan capital investment, we will look at the individual projects strategically as part of an overall plan for the estate and the Foundation’s programme. The aim will be to maximise the value of the legacy and to build a strong base for further strategic fundraising to support Ditchley’s impact.

Management of finances

FY 2022/2023 expenditure in the Annual Accounts was £3.287m, while income was over £3.083m including portfolio drawdown of £1.5m. DPCC revenue was £318k. A larger number of commercial revenue days (due to the lengthy filming contract) will also provide a boost to our VAT reclaim for the year.

The £3.287m expenditure includes the completion of restoration costs for the mid-section of the main house, carried out predominantly by the in-house team. The final total cost of the restoration (to be completed in 23/24) is estimated at £1.2m, still far below the QS estimate of £4m. Additional costs relate to the initial building costs of the 2[nd] Floor Wings, externally contracted, which include over £110k relating to additional asbestos removal before work

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could commence. The restoration will deliver 14 bedrooms with either ensuite or dedicated bathroom facilities. The transformation is extraordinary and places the quality of the bedrooms on a par with the 1[st] floor state bedrooms.

Income included over £1m in externally generated project funding (see below) and just under £140k of Estate income. The latter is budgeted to increase in 23/24 with the conversion of an additional two properties from our service accommodation to our commercial portfolio.

Expenditure in FY 2023/2024 is budgeted, in the management accounts, to be just over £3.8m. External funding secured accounts for nearly £644k of project and staff expenditure in the budget. All scheduled work has been budgeted and additional work and projects will not be committed until probate is granted. Tight controls remain in place to ensure externally funded projects are carefully monitored. A particular focus in 23/24 will be consolidating and updating all the existing estate architectural plans to produce a strategic plan for capital investment over the next four years.

Within the budget an initial 5% pay rise was agreed to reflect the rise in inflation, with a further review to take place during the year. We maintain our commitment to the Oxford Living Wage for all staff, both permanent and casual, to protect the lowest paid members of our team and to ensure consistency of terms and conditions.

Development Report

Ditchley raised just over £1.1m in donations during this year from a strong mix of individuals, trusts and foundations, and corporations bringing our total donations and pledges to around £7 million since 2018. We thank our dedicated and growing community of supporters who have made reaching this ambitious target possible over the last five years.

Special thanks are extended to American Ditchley on the heritage project, who have now fulfilled their commitment to endow four bedrooms, including the Henry Kissinger room; the Cyrus Vance room, the Barbara Jordan room and the Harry Hopkins room. We continue to seek donors’ support for the endowment of the remaining bedrooms. Development plans for the East Wing will begin in earnest this year which will increase capacity for in-person guests and secure Ditchley’s position as a gold-standard global place to convene, thanks to its unique combination of history and cutting-edge technology.

Our 1580 Fellowship income continues to rise steadily - this year we have raised £88,000. Since inception, the Fellowship has generated £250,000 and we aim to grow this muchneeded unrestricted income stream.

We are working through the implications of Catherine’s legacy for our development campaign. The added solidity of our finances will allow us to focus fundraising firmly on the programme and Ditchley’s impact. The aim will be to build a set of strategic partnerships, allowing Ditchley further to expand the programme and to consider new initiatives.

A full list of donors – trusts and foundations, and individuals – for 2022/2023 is included below in alphabetical order

The American Ditchley Foundation Deutsche Bank The Canadian Ditchley Foundation John H and Marjorie N Glasgow Foundation Historic Houses Foundation The Leche Trust

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Lumina Foundation Microsoft Corporation Open Text Corporation John Palfrey and Catherine Carter Family Fund JH Whitney Investment Management Anonymous Donor Ms Angelica Anton MSc Lord and Lady Aldington Dr Nathan Benaich Mr Sam Blyth The Rt Hon. Baroness Virginia Bottomley DL and Sir Peter Bottomley MP John and Susan Burns OBE Sir Andrew Cahn KCMG Ms Jessica Cecil Dr Pinar Emirdag Sir Simon Fraser GCMG Sir Christopher Greenwood GBE CMG KC The Rt Hon. Dominic Grieve KC Russell and Andrea Hartley The Rt Hon. The Lord Hill of Oareford CBE Mr Will Hutton Dame DeAnne Julius DCMG, CBE Sir John Kemp-Welch Mrs Caitlin Kennedy Ms Rachel Lomax Mr Chris Mairs CBE FREng The Rt Hon Sir John Major KG CH Mr Jamie Merisotis Mr Dan Morrison Mr David Morrison Col Mike and Caroline Montagu Marc and Odile Mourre Dr Eric Newell, O.C., A.O.E* Mr Paul Newman Ms Margaret Nibbi Mr Ismet Oztanik Mr Jonathan Paris Mr Mark Patrick Luke and Nicky Ponsonby Rupert and Amanda Ponsonby MBE[+] Mr Gerard Russell MBE Eric and Wendy Schmidt Fund for Strategic Innovation Sir John Sawers Dr Ishaka Shitu Almustapha Mr Philip Stephens Elisabeth Stheeman Mr Bobby Vedral Dr Diana Walford CBE MD FRCP FRCPath FFPH’ The Rt Hon. the Lord Willetts FRS FAcSS Mr Peter Wilson-Smith Dr Dawn Wright

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*Supporters of The American Ditchley Foundation.

**Supporters of The Canadian Ditchley Foundation

+Gift-in-kind

Thank you to the many individuals who support our work.

Private Events and Other Income

Ditchley Park Conference Centre Limited started the year in April with events held by key network contacts including the Civil Service and Oxford Character Project. We hosted a major filming project, Netflix’s The Diplomat , for six weeks of the summer when programme activity is reduced within the house and the focus is on the external maintenance programme.

Reserves Policy

The Foundation’s core finances are based upon its investment portfolio (valued at £18.4m as at end March 2023), which still provides the principal source of income until probate is granted. The portfolio is not a reserve, nor managed as such, and in the absence of any dedicated reserve fund, the Council of Management consider it a matter of essential financial discipline that the value of the capital is preserved as far as possible in order that the Foundation can deliver on its founding mission to run its programme for positive impact, rather than for profit or the interest of any party.

Short term reserve

The portfolio is invested across multiple asset classes and managed by Partners Capital to have a minimum of £400k of liquid reserves available to the Foundation within a week. This sum was identified by the Investment Sub-Committee, under the auspices of the Finance and General Purposes Committee, as an appropriate amount of short-term reserve to cover contingencies such as major emergency repairs. As at March 2023, the invested assets under management could provide some £2m to be available within a week, with 60% of the portfolio available to be liquidated within a four-to-seven-month period.

The Ditchley Foundation has determined on advice not to hold a separate reserves fund outside the main portfolio given both the opportunity cost (due to lower expected returns) and the additional administrative burden of operating a separate reserves portfolio.

Strategic long-term reserves

The Foundation’s strategic aim is to build its invested portfolio through the strategic management of the legacy, with the ambition to grow the portfolio to £48m by 29/30. The aim will be to take no more than a 4% drawdown annually, allowing the invested portfolio to grow over time. We are exploring a range of investment options to generate the necessary income, including renewable energy income.

As at 31 March 2023, total funds stood at £25,094,124 of which £25,496 were restricted. The level of unrestricted free reserves, after excluding fixed assets and designated funds, stood at £21,452,187.

Financial Resilience Statement

Ditchley’s trustees (the Council of Management) are assured that The Ditchley Foundation has sufficient funds to enable it to continue its activities on a going concern basis for a period

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of at least twelve months from the date of approval of these financial statements. The budget endorsed for FY 2023/2024 allows for an unrestricted cash balance at the end of the period, in addition to the Foundation’s invested portfolio of £18.4m with sufficient liquidity to cover any short-term urgent needs.

Fundraising Compliance Notice

The Ditchley Foundation receives income from donations and has a trading subsidiary, Ditchley Park Conference Centre Limited. The Ditchley Foundation has signed up to the Code of Practice issued by the Fundraising Regulator. We do not carry out any direct marketing to the public and give clear instructions as to how individuals can be removed from our mailing lists. Our fundraising capability is in-house, and we do not use external commercial participators in our fundraising activities. There have been no complaints about fundraising in the year. A formal donor policy was approved by the Finance and General Purposes Committee and endorsed by the Council of Management in November 2020.

Structure, Governance and Management

The Ditchley Foundation is “a Company limited by guarantee not having a share capital”, incorporated on the 24 February 1958, the Articles of Association having been subsequently amended on the 29 November 1966, 7 July 2007 and 7 July 2018.

Members of the Foundation are currently designated “Governors”. They meet at least once a year, whether virtually or in person, at the Annual General Meeting of the Foundation, to approve the Annual Report and accounts of the Foundation and to receive the report of the auditors; to elect, as necessary, in accordance with the Articles of Association, the Council of Management; and to deal with other business of the Foundation. In addition to the AGM, Governors are also invited to further briefings during the course of the year and receive regular updates by email or letter.

Trustees (Members of the Council of Management) are generally selected from the ranks of the Governors and invited to join the Council by the Chairman, acting on the recommendations and advice of the existing Trustees, with a view to maintaining a balance of experience, expertise and background within the body of Trustees. They are subsequently elected by the Governors and serve a four-year term, renewable for one further four-year term.

All Trustees are fully familiar with the aims and ideals of the Foundation.

The administration of the Foundation is carried out by the Council of Management, through the Finance and General Purposes Committee. The day-to-day management of the Foundation is conducted by the Director, who is appointed by, and responsible to, the Council of Management.

The salaries of senior members of staff are established with regard to pay levels in the sector for similar positions. From time to time, an external review of pay levels for all staff is commissioned, the most recent instance being the remuneration review conducted during 2017/2018 and implemented in 2018/2019.

Ditchley Park Conference Centre Limited (DPCC) is the trading arm of the Foundation and oversees events in the Mansion when not in use by the Foundation. These events include visits (the house is a Grade I listed historic building), conferences and meetings organised by outside bodies and use of the Mansion for education, photography and films. This activity was severely curtailed for much of the last financial year, but has now resumed.

Page 16

The Council of Management is responsible for the management of risks faced by the Foundation. Detailed considerations of risk are delegated to the Director and his staff. Risks are identified, assessed, and controls established throughout the year with a formal review undertaken tri-annually. A high-level Risk Register was introduced in 2018 and is now reviewed regularly, including at each Finance and General Purposes Committee meeting and, annually by the Council of Management. The Register assesses the following risks:

The Disaster Recovery Plan is subject to ongoing review, particularly regarding the business continuity aspects as impacted by the current pandemic. The key controls used by the Foundation include:

Through these processes the Trustees are satisfied that the major risks have been identified and adequately mitigated where necessary.

Trustees’ Responsibilities

As directors, the Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. They are required by UK company law to prepare, for each financial year, financial statements which give a true and fair view of the state of affairs of the company, and the group, and of the profit or loss of the company and the group for that period.

Page 17

The Trustees confirm that suitable accounting policies have been used and applied consistently, and that reasonable and prudent judgements and estimates have been made in the preparation of the financial statements for the year ending 31 March 2023. They are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company in recognition of their responsibilities under the Companies Act 2006. The Trustees are responsible for taking reasonable steps to safeguard the assets of the company, and the group, and to prevent and detect fraud and other irregularities.

As far as the Trustees are aware, there is no relevant audit information (information needed by the Foundation’s auditors in connection with preparing their report) of which the Foundation’s auditors are unaware. Trustees individually have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the Foundation’s Auditors are aware of that information. The Trustees are required to prepare financial statements on an ongoing concern basis, unless it is inappropriate to presume that the charity will continue in operation.

Principal Activities and Business Review

The consolidated statement of financial activities for the year is set out on pages 23-27. A review of the Foundation’s business during the year is contained in the Trustee’s Annual Report starting on page 5 and incorporates the requirements of the Directors' report as required by company law.

Dividends

In accordance with the Memorandum of Association, no dividends may be paid to Members.

Directors

The Members of the Council of Management are listed on page 2.

By order of the Council of Management,

KATIE WILLIAMS Company Secretary

Dated: 28th July 2023

Page 18

The Ditchley Foundation (A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE DITCHLEY’S FOUNDATION

Opinion

We have audited the financial statements of The Ditchley Foundation (the “Charity”) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, Balance Sheets, the Statements 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 Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 Trust’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.

Page 19

The Ditchley Foundation (A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT (CONTINUED)

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement [set out on page 5], 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 they 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 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.

Page 20

The Ditchley Foundation (A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT (CONTINUED)

Auditor’s responsibilities for the audit of the financial statements

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:

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

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Page 21

The Ditchley Foundation (A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT (CONTINUED)

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.

Use of our report

This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members 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’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Robert Kirtland FCA Senior Statutory Auditor for and on behalf of Critchleys Audit LLP Statutory Auditor Beaver House, 23-38 Hythe Bridge Street, Oxford, OX1 2EP Date: 9 August 2023

Page 22

The Ditchley Foundation (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
funds
2023
Restricted
funds
2023
Note
£
£
Income from:
Donations, grants and legacies
3
1,110,901
18,500
Trading turnover of subsidiary
322,214
-
Investment income
4
51,270
-
Other sources
84,882
-
Total income
1,569,267
18,500
Expenditure on:
Raising funds:
Voluntary income
22,872
-
Fundraising trading (DPCC costs)
47,703
-
Investment management fees
78,561
-
Charitable activities: Conference
programme costs
5
3,449,311
18,500
Total Expenditure
3,598,447
18,500
Net expenditure before net gains
on investments
(2,029,180)
-
Net gains/(losses) on investments
10/11
213,000
-
Net income / (expenditure)
(1,816,180)
-
Net movement in funds
(1,816,180)
-
Reconciliation of funds:
Total funds brought forward
26,884,808
25,496
Net movement in funds
(1,816,180)
-
Total funds carried forward
25,068,628
25,496

Page 23

The Ditchley Foundation (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

All activities relate to continuing operations.

Investment and rental income

Net gains/(losses) on investment assets
Total		 2023
£
51,270
213,000
264,270		 2022
£
49,046
2,233,502
2,282,548

For information, total cash drawdown from the investment portfolio was £1,500,000 (2022: £1,260,000). The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 28-45 form part of these financial statements.

Page 24

The Ditchley Foundation (A Company Limited by Guarantee)

CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2023

Note
Fixed assets:
Tangible assets
9
Investment property
10
Investments
11
Current Assets
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due
within one year
14
Net current assets
Total assets less current
liabilities
Total net assets
Charity funds
Restricted funds
16/17
Unrestricted funds
16/17
Total funds		 49,371
196,130
193,210
443,433
(523,147)		 2023
£
3,616,441
3,156,798
18,405,321
25,178,560
(84,436)
25,094,124
25,094,124
25,496
25,068,628
25,094,124		 35,890
88,758
260,231
384,879
(234,955)		 2022
£
3,370,821
2,988,000
20,401,559

26,760,380
149,294

26,910,304

26,910,304

25,496
26,884,808

26,910,304

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The Right Honourable Lord Hill of Oareford CBE

Dated: 28th July 2023

The notes on pages 28-45 form part of these financial statements.

Page 25

The Ditchley Foundation (A Company Limited by Guarantee)

COMPANY BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2023

Note
Fixed assets:
Tangible assets
9
Investment property
10
Investments
11
Current Assets
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due
within one year
14
Net current assets
Total assets less current
liabilities
Total net assets
Charity funds
Restricted funds
16/17
Unrestricted funds
16/17
Total funds		 49,371
191,238
190,091
430,700
(729,256)		 2023
£
3,616,441
3,156,798
18,405,323
25,178,562
(298,556)
24,880,006
24,880,006
25,496
24,854,510
24,880,006		 35,890
61,553
252,044
349,487
(226,972)		 2022
£
3,370,821
2,988,000
20,401,561

26,760,382
122,515

26,882,897

26,882,897

25,496
26,857,401

26,882,897

The Company’s net movement in funds for the year was £(2,002,891) (2022 - £387,861)

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The Right Honourable Lord Hill of Oareford CBE

Dated: 28th July 2023

Company registration number: 599389, Charity registration number: 309657

The notes on pages 28-45 form part of these financial statements.

Page 26

The Ditchley Foundation (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
£ £
Cash flows from operating activities
Net cash used in operating activities (note 20) (1,572,364) (1,407,885)
Cash flows from investing activities
Dividends, interest and rents from investments 51,270 49,046
Purchase of tangible fixed assets (note 9) (46,460) (149,214)
Loss on disposal of tangible fixed assets (note 9) 533 -
Drawdown from investments 1,500,000 1,260,000
Net cash provided by investing activities 1,505,343 1,159,832
Change in cash and cash equivalents in the year (67,021) (248,053)
Cash and cash equivalents at the beginning of the year 260,231 508,284
Cash and cash equivalents at the end of the year (note 21) 193,210 260,231

The notes on pages 28-45 form part of these financial statements.

Page 27

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

1.2 Company status

The charitable company is limited by guarantee, incorporated in England and Wales, and no shares are authorised or issued by the Foundation. The registered office is Ditchley Park, Enstone, Chipping Norton, Oxfordshire OX7 4ER. Each member undertakes to contribute £1 to the assets of the Foundation in the event of the same being wound up whilst a member, or within a year of ceasing to be a member, for the payment of debts and liabilities of the Foundation contracted before ceasing to be a member, and of the cost, charges and expenses of winding up, such as may be required not exceeding £1.

1.3 Going Concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4 Income

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

For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Page 28

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

1.4 Income (continued)

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Guest conference income excludes value added tax and represents the invoiced value of goods and services supplied.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs of are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds, including the activities of Ditchley Park Conference Centre Limited.

Expenditure on charitable activities comprises the costs of running the conference programme.

All resources expended are inclusive of irrecoverable VAT.

1.6 Basis of consolidation

The financial statements consolidate the accounts of the Ditchley Foundation and its subsidiary undertaking, Ditchley Park Conference Centre Limited.

1.7 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.

1.8 Tangible fixed assets and depreciation

The house and land at Ditchley Park, acquired by gift, are not valued. Expenditure on improvements is at cost less depreciation.

Individual fixed assets costing £1,000 or more are capitalised at cost.

Page 29

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

1.8 Tangible fixed assets and depreciation (continued)

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold property - between 20 and 50 years
Motor Vehicles - 5 years
Fixtures and fittings - Between 3 and 10 years
Office and IT equipment - Between 3 and 10 years

1.9 Investments

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

Freehold properties held for investment purposes are valued periodically on professional advice and are included in the financial statements at their market value at the year end.

Quoted investments have been valued at the bid market price at the close of business at the year end. The market value of unit trusts and managed funds units is either taken as the bid or Net Asset Value price at the year end as advised by the investment managers.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year or subsequent cost and are credited or charged to the Statement of financial activities in the year of disposal.

Unrealised gains and losses represent the movement in market value during the year and are credited or charged to the Statement of financial activities based on the market value at the year end.

The investment in subsidiary undertaking is valued at cost less provision for impairment.

1.10 Interest receivable

Interest on funds held on deposit is included when receivable and amount can be measured reliably by the Foundation; this is normally upon notification of the interest paid or payable by the Bank.

Page 30

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

1.11 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

1.12 Debtors

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

1.13 Cash at bank and in hand

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

1.14 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.15 Financial instruments

The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.16 Pensions

The pension scheme is a defined contribution scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

1.17 Fund accounting

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

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

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

Page 31

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Critical accounting estimates and areas of judgement (continued)

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement:

Tangible fixed assets:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values.

Investment properties:

Property valuations are performed annually by the Council, based upon external indications of value (including periodic valuations by qualified Independent Chartered Surveyors) and consideration of market conditions.

3. Income from donations, grants and legacies

Unrestricted
funds
2023
£
Restricted
funds
2023
£
Donations, grants and legacies
1,110,901
18,500
Total 2022
959,923
83,875		 Total
funds
2023
£
1,129,401
1,043,798		 Total
funds
2022
£
1,043,798

Page 32

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

4. Investment income

Unrestricted
funds
2023
£
Rents
50,758
Bank interest
512
Total 2023
51,270
Total 2022
49,046		 Total
funds
2023
£
50,758
512
51,270
49,046		 Total
funds
2022
£
48,999
47
49,046

5. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2023
£
Restricted
funds
2023
£
Conference programme costs
3,449,311
18,500
Total 2022
2,602,032
245,062		 Total
funds
2023
£
3,467,811
2,847,094		 Total
funds
2022
£
2,847,094

Summary by expenditure type

Staff costs
2023
£
Depreciation
2023
£
Other costs
2023
£
Conference programme
costs
1,563,095
259,244
1,645,472
Total 2022
1,294,547
239,736
1,312,811		 Total
funds
2023
£
3,467,811
2,847,094		 Total
funds
2022
£
2,847,094

6. Analysis of expenditure by charitable activities

Activities
Undertaken
Directly
2023
£
Support
Costs
2023
£
Conference programme costs
3,445,521
22,290
Total 2022
2,822,931
24,163		 Total
Funds
2023
£
3,467,811
2,847,094		 Total
funds
2022
£
2,847,094

Page 33

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. Analysis of expenditure by charitable activities

Analysis of direct costs

Analysis of direct costs
Unrestricted
funds
2023
£
Staff costs
1,537,004
Depreciation
259,244
Administration
297,307
Repairs and maintenance
343,258
Household and service costs
252,837
Conference and events
295,685
Irrecoverable VAT
71,100
Development programme costs
7,911
Costs attributable to DPCC
(47,703)
Bridge project, Lumina costs and Rotunda
144,622
Campaign costs
-
Second floor refurbishment costs
161,126
Asbestos removal
110,940
Total 2023
3,433,331
Total 2022
2,822,931
Analysis of support costs
Unrestricted
funds
2023
£
Auditor’s remuneration
16,000
Non-audit fees – other financial services
6,290
Total 2023
22,290
Total 2022
24,163		 Total
funds
2023
£
1,537,004
259,244
297,307

343,258
252,837
295,685
71,100
7,911
(47,703)
144,622
-
161,126
110,940
3,433,331
2,822,931
Total
funds
2023
£
16,000
6,290
22,290
24,163		 Total
funds
2022
£
1,294,547
239,736
263,749
150,615
212,633
68,096
84,101
65,499
(45,219)
104,498
29,366
355,310
-
2,822,931

Total
funds
2022
£
9,500
14,663
24,163

Page 34

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution
pension schemes		 Group
2023
£
1,339,815
120,950
102,327
1,563,092		 Group
2022
£
1,164,511
97,911
87,758
1,350,180		 Company
2023
£
1,313,725
120,950
102,327
1,537,002		 Company
2022
£
1,139,247
97,911
87,758

1,324,916

The average number of persons employed by the Company during the year was as follows:

Group Group
2023 2022
No. No.
Administration 25 22
Establishment 13 14
Conference 18 13
56 49

The average headcount expressed as full-time equivalents was:

Group Group
2023 2022
No. No.
Administration 19 18
Establishment 11 12
Conference 3 2
33 32

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

exceeded £60,000 was:
Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 1 -
In the band £140,001 - £150,000 1 1

No members of the Council of Management received any emoluments during the year (2022: £Nil).

No members of the Council of Management received payment for professional or other services supplied to the Charity (2022: £Nil).

Page 35

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. Staff costs (continued)

During the year, a disbursement of £1,613 (2022: £Nil) for travel and associated expenses was incurred by 1 member of the Council of Management while undertaking activities directly associated with the purposes of the Foundation.

The key management personnel of the Foundation comprise the Council of Management, the Director, the Bursar and the Chief Operating Officer. The total employee benefits of the key management personnel of the Trust were £238,126 (2022: £232,555).

During the year, redundancy costs totalled £38,870 (2022: £19,477) including payments in lieu of notice.

9. Tangible fixed assets

Group
Cost of valuation
At 1 April 2022
Additions
Disposals
Transfers from investment
property
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Depreciation eliminated on
disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
property
£
Motor
vehicles
£
Fixtures
and
fittings
£
Office and IT
equipment
£
4,577,175
44,873
167,238
1,033,443
-
-
10,283
36,177
-
(17,073)
-
(11,270)
463,140
-
-
-
5,040,315
27,800
177,521
1,058,350
1,740,526
41,956
30,590
638,836
144,565
1,000
5,606
107,983
-
(17,073)
-
(6,442)
1,885,091
25,883
36,196
740,377
3,155,224
1,917
141,325
317,972
2,836,649
2,917
136,648
394,607		 Total
£
5,822,729
46,460
(28,343)
463,140

6,303,985

2,451,908
259,154
(23,515)
2,687,547

3,616,438

3,370,821

Page 36

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

9. Tangible fixed assets (continued)

Company
Cost of valuation
At 1 April 2022
Additions
Disposals
Transfers from investment
property
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Depreciation eliminated on
disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
property
£
Motor
vehicles
£
Fixtures
and
fittings
£
Office and
IT
equipment
£
4,577,175
44,873
167,238
1,033,443
-
-
10,283
36,179
-
(17,073)
-
(11,270)
463,140
-
-
-
5,040,315
27,800
177,521
1,058,352
1,740,526
41,956
30,590
638,836
144,565
1,000
5,606
107,983
-
(17,073)
-
(6,442)
1,885,091
25,883
36,196
740,377
3,155,224
1,917
141,325
317,975
2,836,649
2,917
136,648
394,607		 Total
£
5,822,729
46,462
(28,343)
463,140
6,303,988
2,451,908
259,154
(23,515)
2,687,547
3,616,441
3,370,821

Freehold property comprises expenditure on improvements. The House and associated land are valued at £Nil since they were acquired by gift. No value has been attributed to these assets as, in accordance with the wishes of the donor, it is intended that the House and associated land will be held in perpetuity to support the objectives and activities of the Foundation. Ditchley House was built in 1722 and is a lasted Grade 1 building. Significant costs would be involved in valuing the property which, in the opinion of the Trustees, would be onerous compared with the additional benefit derived by users of the accounts in assessing the stewardship of assets. The House and outbuildings are currently insured for £69,846,963.

Other properties occupied by staff and considered as permanent staff quarters are included at deemed cost based upon a valuation performed at 31 March 2008 by Laws and Fiennes, Chartered Surveyors.

Page 37

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. Investment property

Group
Freehold
investment
property
£
Valuation
At 1 April 2022 2,988,000
Revaluations 631,938
Transfers to tangible fixed assets (463,140)
At 31 March 2023 3,156,798
Company
Freehold
investment
property
£
Valuation
At 1 April 2022 2,988,000
Revaluations 631,938
Transfers to tangible fixed assets (463,140)
At 31 March 2023 3,156,798

Investment properties comprise properties and farmland on the estate rented on a commercial basis. The last professional valuation of the properties was undertaken in 2021 by Savills, Chartered Surveyors, on an open market value for existing use basis. Council have considered this valuation and its appropriateness. Council decided to increase the value of investment property in line with the Oxfordshire market since the last professional valuation. The farmland was last valued in 2020 and the Council considers this valuation to be materially correct at 31 March 2023.

Page 38

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11. Fixed asset investments

Group

Cost of valuation
At 1 April 2022
Additions
Disposals
Revaluations
Other movements
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
Company
Investments
in subsidiary
companies
£
Cost of valuation
At 1 April 2022
2
Additions
-
Disposals
-
Revaluations
-
Other movements
-
At 31 March 2023
2
Net book value
At 31 March 2023
2
At 31 March 2022
2
12. Stocks
Group
2023
£
Finished goods and goods for resale
49,371
49,371		 Investment
securities
£
Uninvested
cash
£
Total
£
19,842,168
559,391
20,401,559
4,906,604
-
4,906,604
(6,406,603)
-
(6,406,603)
(418,938)
-
(418,938)
(183,448)
106,148
(77,300)
17,739,783
665,539
18,405,322
17,739,783
665,539
18,405,322
19,842,168
559,391
20,401,559




Investment
securities
£
Uninvested
cash
£
Total
£

19,842,168
559,391
20,401,561
4,906,604
-
4,906,604
(6,406,603)
-
(6,406,603)
(418,938)
-
(418,938)
(183,448)
106,148
(77,300)

17,739,783
665,539
18,405,322

17,739,783
665,539
18,405,322

19,842,168
559,391
20,401,561
Group
2022
£
Company
2023
£
Company
2022
£
35,890
49,371
35,890
35,890
49,371
35,890







Page 39

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. Debtors

Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Due within one year
Trade debtors 9,426 30,750 4,534 3,545
Other debtors - 9,656 - 9,656
Prepayments and accrued income 143,740 46,407 143,740 46,407
VAT recoverable 42,964 1,945 42,964 1,945
196,130 88,758 191,238 61,553
14. Creditors: Amounts falling due within one year
Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Trade creditors 211,910 99,238 208,497 96,700
Amounts owed to group undertakings - - 439,142 19,123
Other taxation and social security 31,596 33,600 30,419 29,772
Other creditors 209,477 8,851 10,679 8,851
Accruals and deferred income 70,164 93,266 40,519 72,526
523,147 234,955 729,256 226,972
15. Deferred income
Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Deferred income 29,137 37,442 1,992 1,992
Deferred income is included in the financial statements as follows:
Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Deferred income is included within:
Current liabilities 29,137 37,442 1,992 1,992
Movements in the year:
Deferred income at 1 April 2022 37,442 40,212 1,992 1,992
Released from previous periods (19,202) (21,762) (1,992) (1,992)
Resources deferred in the year 10,897 18,992 1,992 1,992
Deferred income at 31 March 2023 29,137 37,442 1,992 1,992

Deferred income relates to rents received in advance and conference deposits.

Page 40

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. Statement of funds

Statement of funds – current year

Balance at
1 April 2022
£
Unrestricted funds
General funds
26,884,808
Restricted funds
Travel fund
25,496
Earmarked donations
-
25,496
Total funds
26,910,304
Statement of funds – prior year
Balance at
1 April 2021
£
Unrestricted funds
General funds
26,308,474
Restricted funds
Travel fund
25,496
Earmarked donations
59,852
Dulverton fund
15,000
Bridge
81,881
Rotunda
3,954
Rooms
500
American Ditchley
-
186,683
Total funds
26,495,157		 Income
£
Expenditure
£
Gains/
(Losses)
£
Balance at
31 March
2023
£
1,569,269
(3,598,447)
213,000
25,068,628
-
-
-
25,496
18,500
(18,500)
-
-
18,500
(18,500)
-
25,496
1,587,767
(3,616,947)
213,000
25,094,124
Income
£
Expenditure
£
Gains/
(Losses)
£
Balance at 31
March 2022
£
1,221,284
(2,878,452)
2,233,502
26,884,808
-
-
-
25,496
2,500
(62,352)
-
-
-
(15,000)
-
-
-
(81,881)
-
-
23,117
(27,071)
-
-
-
(500)
-
-
58,258
(58,258)
-
-
83,875
(245,062)
-
25,496
1,305,159
(3,123,514)
2,233,502
26,910,304		 Balance at
31 March
2023
£
25,068,628
25,496
-
25,496
25,094,124
25,496
26,910,304

Page 41

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Summary of funds

Summary of funds – current year

Balance at
1 April 2022
£
Unrestricted funds
General funds
26,884,808
Restricted funds
25,496
Total funds
26,910,304
Summary of funds – prior year
Balance at
1 April 2021
£
Unrestricted funds
General funds
26,308,474
Restricted funds
186,683
Total funds
26,495,157		 Income
£
Expenditure
£
1,569,267
(3,598,447)
18,500
(18,500)
1,587,234
(3,616,414)
Income
£
Expenditure
£
1,221,284
(2,878,452)
83,875
(245,062)
1,305,159
(3,123,514)		 Gains/
(Losses)
£
Balance at
31 March
2023
£
213,000
25,068,628
-
25,496
213,000
25,094,124
Gains/
(Losses)
£
Balance at 31
March 2022
£
2,233,502
26,884,808
-
25,496
2,233,502
26,910,304		 Balance at
31 March
2023
£
25,068,628
25,496
25,094,124
26,910,304

Restricted funds are non-staff project specific expenditure, earmarked by the donor.

Unrestricted funds are allocated towards the general Ditchley Foundation programme, staff costs, associated technology and infrastructure.

18. Analysis of net assets between funds

Analysis of net assets between funds – current year

Unrestricted
Funds
2023
£
Restricted
Funds
2023
£
Tangible fixed assets
3,616,441
-
Fixed asset investments
18,405,321
-
Investment property
3,156,798
-
Current assets
413,215
25,496
Creditors due within one year
(523,147)
-
Total
25,068,628
25,496		 Total
Funds
2023
£
3,616,441
18,405,321
3,156,798
438,711
(523,147)
25,094,124

Page 42

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds – prior year

Unrestricted
Funds
2022
£
Restricted
Funds
2022
£
Tangible fixed assets
3,370,821
-
Fixed asset investments
20,401,559
-
Investment property
2,988,000
-
Current assets
359,383
25,496
Creditors due within one year
(234,955)
-
Total
26,884,808
25,496
Reconciliation of net movement in funds to net cash flow from operating activities
Group
2023
£
Net income for the year (as per Statement of Financial Activities)
(1,816,180)
Adjustments for:
Depreciation charges
259,154
Investment property gain
(631,938)
Gains on investments
418,938
Dividends, interests and rents from investments
(51,270)
(Increase)/decrease in stocks
(13,481)
(Increase)/decrease in debtors
(107,372)
Increase/(decrease) in creditors
288,192
Other investment movements
77,300
Exchange rate gains
4,293
Total funds
(1,572,364)
Analysis of cash and cash equivalents
Group
2023
£
Cash in hand
193,210
Total cash and cash equivalents
193,210		 Total
Funds
2022
£
3,370,821
20,401,559
2,988,000
384,879
(234,955)
26,910,304
Group
2022
£
415,147
239,736
-
(2,233,502)
(49,046)
23,481
32,935
(22,910)
186,274
-
(1,407,885)
Group
2022
£
260,231
260,231

20. Reconciliation of net movement in funds to net cash flow from operating activities

21. Analysis of cash and cash equivalents

Page 43

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

22. Analysis of changes in net debt

At 1 April Cash flows At 31 March
2022 £ 2023
£ £
Cash in hand 260,231 (67,021) 193,210
Total cash and cash equivalents 260,231 (67,021) 193,210
**23. ** Capital commitments
Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Contracted for but not provided in
these financial statements
Acquisition of tangible fixed assets - 6,095 - 6,095

24. Operating lease commitments

At the reporting end date the Charity had outstanding commitments for future minimum payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 Group
2023
£
6,449
11,610
18,059		 Group
2022
£
2,566
-
2,566		 Group
2022
£
2,566
-
2,566
2,566

Amounts recognised in profit or loss as an expense during the period in respect of operating lease arrangements was £17,657 (2022: £10,324).

25. Pensions commitments

The Foundation maintains a pension scheme covering all of its permanent and casual employees. It is a defined contribution scheme (employer 10%) administered by the Trustees. Its funds are kept separate from those of the Foundation. Contributions outstanding at 31 March 2023 were £10,300 (2022: £8,651). The pension cost charge represents contributions payable by the Foundation in accordance with the rules of the scheme.

26. Principal subsidiary

The following was a subsidiary undertaking of the Company:

Name Company
number		 Holding Included in
consolidation
Ditchley Park Conference Centre Limited 01944182 100% Yes

Page 44

The Ditchley Foundation (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

27. Principal subsidiary (continued)

The financial results of the subsidiary for the year were:

Profit/(Loss)
Name Income Expenditure for the year Net assets
£ £ £ £
Ditchley Park Conference
Centre Limited 322,214 108,096 214,118 214,120

The registered office is Ditchley Park, Enstone, Chipping Norton, Oxfordshire OX7 4ER.

28. Related party transactions

In the year, 8 Trustees (2022: 7 Trustees) made donations totalling £53,063 (2022: £20,000) to the Foundation under the 1580 Fellowship Scheme.

Dr C Wills, who is a Trustee, was also a Trustee of The HDH Wills 1965 Charitable Trust. During the year The HDH Wills Charitable Trust charged the Foundation £63,491 (2022: £69,555). At the year end the Foundation owed £7,422 (2022: £Nil).

During the period, the Foundation recharged The HDH Wills 1965 Charitable Trust £2,598 (2022: £14,145). At the year end the Foundation was owed £Nil (2022: £500).

The wife of the Foundation’s Director, K Arroyo, was paid £6,000 in the year (2022: £6,000) for interior design consultancy work as part of the second floor and library projects.

Marjorie Neasham Glasgow, who is a Trustee, was also a Trustee of The Glasgow Foundation. During the year, The Glasgow Foundation, donated £39,608 (2022: £Nil) to the Foundation.

29. Post-reporting date events

During the year, the Foundation was made aware of a generous legacy. The legacy has not yet met the threshold to be recognised in these financial statements, but Trustees estimate it to be some tens of millions.

Page 45