WALCOT FOUNDATION tackling poverty by creating opportunity Report of the Governors and Accounts 2022/2023 The Walcat & Hayle's Trustee Is a limited not-for-proflt company161338491 re815tered in En8land and recognised by the tharlty Commission as the sde trustee of The Waltot Educational Foundation13128001. The Hayle'5 Charity1312800- 11, The Walcot NoTh-Educatlonal Charlty 131280LL21 and the Lady Cynthia Charity 13128CQ-31. The Governors are Dlrertors of The Walcot & HayFe'sTrustse. walcotfoundation.or8.uk CONTENTS INTRODUCTION 3 A BRIEF WORD FROM OUR EXEci￿1vE DIRE￿OR 4 WHAT WE PLANNED TO DO, WHAT WE DID 5 GRANTMAKING 202212023 6 The year's headlines 6 'BounceBacV- our phase 2 Covid-19 response 6 Cost of living cris￿- Otjr response 7 Grantmaking budget 8 Grants we made directly to indlviduals 8 Example5 of grants to indiviuda15 and and what individual grantee5 said 9 Grants to schoo15* projetts. and organisations g Examples of grants to schools and or8anisations 10 Example5 of the benefits to individua15 of our fundin8 of organlsations 11 FINANCIAL REVIEW 2022123 13 Income 13 Expenditure 14 Fund balance5 14 Investments 14 Long-term Investment Policy 15 Reserves Policy 16 OTHER ACTivrrY 17 PLANS 202312024 17 srRUCTURE, GOVERNANCE AND MANAGEMENT 17 Constituent charities 17 Trustee body 17 Waltot Projects Limited 18 Pollcy on Governor expenses 18 Governor5, Office Holders and meetings 18 Recruitment. Appointment and Induction of New Governors 18 Slaff pay 19 ADMINISTRATIVE 19 Registered address and www domain 19 Slaff 19 PUBUC BENEFIT 19 INDEPENDENT AUDITOR'S REPORT 21 GLOSSARY 25 ANNUAL ACCOUNTS 2022123 26 INTRODUCTION We welcome the opportunlty to report on the work of the Foundatlon for 2022123, supporting low income mmunitles from the London Borough of Lambeth to oveicome economlc, soclal and educational slruttural and systemic disadvantage. Having operated for some four hundred years, as Governors we remain mindful of our benefactors. ori8inal Intentlon to supportth05e In need In Lambeth In perpetU￿y. The Foundatb)n work5 hard to ensure we rema5n tonnected and responsive to the challenging endemic issues low-income commvnltles face today. The context of todèy is one of ever-lncreaslng disadvantage. In 21 Century Lambeth. the challenges loom. As low-income familles look to move on from the Covld-19 pandemlc, communltle5 are Still dealing wlth its after-effects. and through our work we are needlng to provlde support In response to IncTe￿Ing mental health issue5 in Lambeth'5 young people. We have seen communtties, familte5 and individuals affected by low incomes face further challenges in the cost of livlng crisis. We have seen double-dEit inflatlon. wlth low-lncome households having to adapt to food inflation being at Its hlghest for 45 years. within this context of a tsunami of need. the Foundation Is focused on ensuring rts support brlnB5 Positive impact to the low-income communities in Lambeth. It is more important than everto understand our role In the community. notjust as funder, but as partner and as convenor, arnplrfyin8the voices of those we support to ensure that structures and systems really work for ihem. Towards the end of thts year, we started to prepare to wish the best to our current Chalr. Teresa aay, and Govempr5 Rlchard Allnutt and Frances Greenburgh who all left WF In Juty 2023, after 10 year5 of seNice, having successfully land generously) completed an extended temi of governorshlp. To the many people who help us In our role as Governors encouragers and provSders of all kinds of services- thonk you. our beneficSaTles, our staff. our advlsers, The Govemor5 November 2023 A BRIEF WORD FROM OUR EXECUTIVE DIRECTOR This has been a year of posltive transftioTr and change for the Foundation as we have stsrted to work on developin8 our first or8anisational strategy. Although we have onw lust started to work on the strdtegy wlth trustees, stsff and the wider community, It ha5 been wonderful to be re-inspired and re-ener8lsed by the commitment of coltea8ues, to find ways to do even more In and across Lambeth. We have taken the opportunlty to get muth clearer on our values and our" approaches to bein8 a geographtcalty place-based foundation that is truly'ln and of Lambeth communltk5'. We all look forward to completin8 thi5 strategy and movlng Into an implementatlon phase that transitions US to better amplify the voices of Lambeth's young people. WHAT WE PLANNED TO DO. WHAT WE DID In la5tyearfs report w• Its1￿ th•s* phns This is Wh￿ we *¢hleved To achièvè a smooth transltlon In the n Grants- a £5￿ bonus pald to those who secure work to help with some of the initlal costs of starting a new lob- highly valued. In January 2023, a thlrd and flnal year of 8ounceBack was authorlsed by the Wakot Governors. usin8 a mix of underspend from the orlglnal £2,OcQ,o￿ budget and funds from the 2023/24 grant budget. Thlsfinal year wlll alk)w us to go even further in adapting the programme to ensure we are meetlng the needs of young people who contlnue to be Impacted by the repercussions of the pandemic. We wlll fund a smaller group of some 10 speclallst organlsations, who wlll work even more closely to help people who are furthest removed from the labour market. Thls fundlng will ensure the continuatlon of the BounceBatk project until September 2024. A celebration and leaming event, to revlew what has been achieved, is now planned for early 2025. COST OF LIVING CRISIS- OUR RESPONSE The cost of Ilvlng cr1515 has been causing sIEnfficant hardshlp to many Lambeth resldents. and l¢xal organb5atlons are faclng the twln struggles of their own rising costs coupled with increased demands for seNlces. In re5rKfvnse tothis.the Govemors of the Walcot Foundation In the 2022123 flnandal year added an addit*)nal £300,[￿ to our grants budget in Order to provide some assistance. Other local charities took slmllar steps. The Foundation's help included.. Supportfvr Lambeth resldents in crlsis.. A £50,0￿ grant wa5 made to NO￿ood and Brixton Foodbank to enable the four Lambeth Trussell Trust foodbanks to provide supermarket vouchers and energy lopup payments to foodbank guests, Incre05ed 5UPPQrt to individual grantees.. Walcot university student grarbts were Increased from £1,500 per year to £1,8(￿) per year. All new applicants can apply for that increased maxlmum ladditlonal total C05t- £60,000). Support to lotol orgonlsotlons.. Cost of Ilvlng crisis top-up 8rants were made to local O￿an1$atIOnS with currently funded proJets- total top-up costs £190,C(Kl. This was to help organisatlons Iln a small way) wlth the Increased cost5 over the winter. The slze of these grants was linked to the tumover of the organisation as follows: under £50,[￿ turnover- £1,500 grant; £50,C(J04500.(W turnover- £3,0 grant: £500,LXWI,OCK).Ci)O turnover- £5,￿)0 grant. These grants were unre5tricled and the resu￿$ did not need to be reported on by the reclpients. GRANTMAKING BUDGET lftfvmotlon In blue shows the sums paid to orqgnlsutions. knght blue relates to 8ounce8ork and durk blue to other orgonisutions/schools. Infvrmqtlon In greyshows thesums PO￿ directly to Individuol9rontees. 450 5￿j BDwQBa¢kAw￿UTht £15￿,1￿ NoofGraTrts i( /è°//'*° * è°/// Grants by value and recipient type Granlsto Smallest Largest Average Indlvlduals £901£301 £43W1£4,IXKII £lJ441£1.252 OrBan15atlons (Small Grantstreaml £58S1£6901 £w.000 i£io.(ooi £4JOI1£6.1281 Or8?nlsations (Large Grant Streaml 1,000 {£11,8301 £61.1731£53.8731 £27.9581£28,7601 7heomountsshown in brutkets ortthe¢orrespondlno¢mwuntsin theyeor2021/22. GRANTS WE MADE DIRECTLY TO INDIVIDUALS Last year. granls paid directfy to Individuals Increased by 21% in volume and 22% in total value. We made 304 awards in 2022123 compared wlth 252 in the year before. The number of grants to indivlduals for vocational courses contlnued to Increase- 42% of student grant approvals compare(I to 34% in 2021122. We wlll contlnue to promote this service through Lambeth College. local grantee organisations and Centre 70 student advi50r communlty sessions. We made fewer rehousing grants in 2022123- 21 compared with 39 In 2021122. Of these grants. three went to young people in need of independent accommodatlon and 18 to those who needed alternative accommodation because of domestlc vlolence. Grants to cover bankruwcy fees remained static. We awarded five grants (five in 20211221- Grant recipients by gender were 67% female and 33% male. The percentages in 2021122 were 65% female and 35% male. Grant reclplents by ethnirity were 65%163%1 BlacVBlack British; 15%116%1 Whitelwhite British; Il% 19%) Mlxed; 3%15%1 AslanlAsian British: 6%18%1 Other. The percentages for these 8roup5 In 202V22 are stated in brackets after the figure for 2022123. EXAMPLES OF GRANTS TO INDIVIDUALS AND WHAT INDWIDUAL GRANTEES SAID 'R' IGrant towards the costs of studying for a degree In Children's Nursing) Trls gront hos given me the chunce to not worry obout the expenses whilst on plocement. My tmvel expenses and expenses Includin9Aoodot hospitals were coVe￿d. It h05 gfven me o smooth tn7nsltlon Into unlversity. Whilst also being ocodemicallyAocused l olso hod the chance to enjoy my flt¥tyearot unlverslty byjolnlng socletle5 and attendlng events.. 'M' (Grant towards the cosls of studyin8 for a degree In Crimlnologvl °It took o mossivefinoncial burden off my shoulders. I wouldn't hove had os much tlme tolocu5 on my studies and I would be worrying ¢7bout having alob tofund mefvr unlverslty essentlals whlle olso currently deollng wlth thefomllysltuutlon of my mother being ill." 'S' (Grant towards ihe costs of studying for a degree in Diagnostic Radiotherapy) The studentbursary and chlldcore grant hos enabled me to purchase the necessory resources ond equlpment requlredlor me to othieve o very good grode. It equollyprevented mefrom hoving an early dmTrout that could occur ttl wus notadequatsly5UPPQrted with chlldcore cost to mointain ¢7 great attendonce both whlle at unlverslty and on placement." 'W IGrant towards the costs of studying for a degree in History and French) The Wolcot grant enabled ft7e to hove more tlme dedlcated towurds my 5tudles. Previously I had worked purt-tlme whlch hod negotlvely Impoctedmygrodes but I wos able to slgnifKantly improve because the qront 5UPPOrted me In provldlnqfor boslcnece551tle5.- GRANTS TO SCHOOLS, PROJECTS AND ORGANISATION5 We make grants to schools. projects and organlsatlons as a means of reachlng IndlvlduaL4 who are at the heart of our charitable purpose. Our grant-making priorities are: l To directly support academic achievement, particulady projects that help close the ￿aInment gap between pupil premium children/young people and their peer5. 2 To address student Irelengagement with school, partKularly in transition years and for students at rlsk of excluslon. 3 To respond to the mental hea￿h needs of chlldren* youn8 people and thelr parentslcarers. 4 To help young people (under 301 Into employment. 5 To improve access by our target group Ilow-income Lambeth household51 to advice senlices. particularly in the fields of debt, housin& and employment. Of our grants thls year t¢ schools* woJe¢ts, and or8anlsatlons Age range of beneflclaries (2021/2022 distributions bmcketed} 0-4 years- 2%12%1 5-11 years: 30%116%1 11-18 yeaTS.' 19%117%1 1&29 years.. 37%146%) year5.. 3%13%1 Undefined: 10%115%1 Pupll premlum pup11s are those who have been ye￿rded as ell8ible for free school meals IF5Msl èt any tlme In the past 6 year> Pypll Premlum also Includes chlldren oltsmllles who h#ve no recLwrs¢ to publl¢furnls and ¢hlldren who are looked after by a local J￿h￿rtty. or have been In the past. The decrease in the 18-29 age-range percentage Is attrlbuiable to the Foundation securing additional funds for school age children vla our collaboratlon wlth Impact on Urban Heahh'5 Healihy Schoots programme land the malorlty of thts was focused on primary schootsl. This broadly matched our increased spendlng for people 18-29 years via our BounceBack programme which is targeted at under-30 youth employment. Our funding continues to be focused on our strategic priorities: 93% of 8rant519)% in 20211221 was spent on removing barriers in education, maximislng learnln& bulldlng employablllty and providing advice (the remaining 7% was spent on educational field trips and the immediate relief of needl. Of grants to schools, 70% went to primary schools {62% in 202V221. 23% went to secondary schools130% In 20211221 and 7% to special 5choo1518% In 20211221. This weighting lo primary schools Is partly the result of past decisbons. It is also attributable to prlmary schools havlng smaller budgets. maklng thelr need for external support 8reater than in secondary sthools. EXAMPLES OF GRANtS TO SCHOOLS AND ORGANISATIONS MINDHEART CREATIVE THERAPIES Dramatherapy: Creatin8 Wellbein8Together In Schoolsl £75,000 over three years This project wlll fund creatlve therapeutlc Intervention5 in Lambeth schools provldlng a mix of I:1 therapy and small groups f¢xusln8 on wpS1 premium pupils. Sessions could involve Indi￿¢t play, art, muslc or traditional talking therapy techniques wRh the alm of buildlng resilience, developing positive behavlour and improvlng school participation. THE CHILDREN'S UTERACY CHARITY Expert Llteracy Lab Programme l E57,584 over three years Thls Is contlnijation fundingto help CLC provide dedicated'Liieracy Labs, In both Heathbrook Primary School and Julian's Primary School. In totsl. the project will help up to 36 children each year wlth literacy 511PPOrt sessions delivered by senior Ilteracy tutors. This Is focused on helping chlldren catch up when they are up to 24 months behind their age*xpected Ilteracy levels. CROSSUGHT ADVICE Cro55llght- Lambethl £73.095 over three years Due to increased demand from Lambeth resldents. Crossllght will open a new Lambeth branch based In Clapham Park. It will provide debt advice to residents (the equfvalent of 2.5 days) and mana8e a team of tralned volunteers. The volunteers. Sob will be t0 Supplement the advke glven and also to provide preventative budBetin8 advlce and courses. RESPEITO Safe Domestic Environment for PortUBue5e-speak5n8 Famlllesl £88,979 over three years The project wlll employ an Advlce Worker to 5UPPOrt low-income Lambeth residents from PortU8ue5e-speakin8 communlties who are experlencln8 dome5tlc vIolen￿. Areas of focus include mitlgation measure5 for those who have already been stru88lln8 With domestic abuse. preventive actions to deal wlth domestbc ten51on amongst household members arKI welfare advke and advocacy. COOE 7 'Behlnd The 5cene5'_ Famlly Intervention Projert I n9,248 over three years The Famlty Interventlon Scheme Workerwlll work Intensively with 12 familie5 over a year In orderto cre*e and Compbete a bespoke support plan. Each plan wlll be dffferent but 15 likelyto focus on issues such as household finances. housin& education sustainment and employment for immediate famlly members. io SAINT GABRIEL'S COLLEGE Removlng Barriers Fn Educatlonl £25.OW over one year Thls prolett will provlde counselllng servlces to the school's most deprlved pupils with the aim of developing their resilience and well-belng and improvingtheir progress in school. The school will a150 host a Spanlsh speaklng Counsellor for the flrst tlme. STOCKWELL PRIMARY SCHOOL Therapyloutreach Support l £15,752 over one year The proSect offers art psychotherapy, counselllng and outreach family support. Puplls wlll be identified by School staff as showlng partlcular slgns of dlstre55, anxiety, low self*steem and/or disengagement. JUVENIS Engage & DIVERTI £30,1￿1 over one year Thi5 projed will offer an addttlonal theropeutrr intevvention lincludin8 familyldomestic violence support) to the young people and famllles wlth whom Juvenis engage throu8h thelr exlstlng police custody diversion proBramme for l(k17 year olds. This 12-week InteNentK)n will be in additlon to the core work and provlde at least l extra hour a week of famity support/therapy. For more examples see walcotfoundatlon.or8.uk EXAMPLES OF THE BENEFITS TO INDIVIDUALS OF OUR FUNDING OF ORGANISATIONS Our grant to Optlons 4 Change'5 Famlty Welfare Officer enabled them to work with 'C -c is in Yeor 6 and attends one of the schools worked with. She is very talented ando high achlever in most5ubJects andschool activities. The School's Incluslon Offlcer refrrred Cs mother to our Drop In seNlcefvr o houslng mutter t75 It ht7dstarted to offect es schoolottendance. class andstudy engagement and her grades werefvlllng. The F(7mily WelfÈ7re Officer {FWO} undertook t7n ossessment and an actlon plon was devlsed. The issues identified Included... Inadequote Ilvlng condltlons wlth serious mice ond bed bugs infestotlon,. thefamlly of 7 wt75 Ilvlng on £250per month in two rooms on top of o pub, wlth the older children {aged 14 to 16yrsJ living separately elsewhere.- mother having to walk most mornings to toke the children to two different schools as She wo5 unoble to offord the busfures. Following the intervention of our FWO and the advococysupport provided.. thefamily's No Retour5e to Publi¢ Fundlng ollowonce was Increosed to £750 ond eventually£l,CWper month. The legol referrol resulted in thefamilybeing rehoused to u 3- bedr¢￿rn pmperty andore oll now Ilvlng toqether. Since our interventions Cis o lot more settled in school ond hergrodes onduttendt7nce hove improved andshe Is more actively engoged In the school." Our grant to St Stephen's CIE Prlmary Schoovs Homework Club enabled them to work with 'A' -ChildA Jolned Y4 mld-year under Chlld Protectlon. She Ilve5 close to sch1￿1/n overcmwded conditions. She has been exposed to domestic violence ond hermother is o recovering alcohollc. She W05 a child whose behaviour wo5 unpredirtoble ond she'd occusiont711y lashed out at other chlldren. yet often showlng u gentle and vulneroble side. Her ottendonce ondpurticipotion to Homework club Is 100%. Here she hos the space, time ondsupport to help her wlth Homework (English as an Addltlonol Languogej. Despite the chollenges ot home, she has made good progress Fn Readlng16 pointsj, Writing18 points) and Moths 17 polntsj. She is getting emotional support/counselling vit7 onother externologen(y.- Our grant to Ullan Baylls Technology School's Earfy Inter¥enllon project enabled them to work wilh 'K' -K concern5.' Home i55ue5 schoolrefv5er and low nKJod. Working within o lorgefy tosk orientoted li opprot7ch the mentor completed direct work with K on the highlighted oreas of need which were ottendonce and homellfe. Within her init￿1 sessions, the mentor wos oble to Identlfy the rootCQU5es off5 onxieties related to attendlng school and how these onxieties could be best mana9ed through o number of te¢hnlques ond ochlevoble goats. The mentor wos able to link K s chootlcrelatlonshlp with her515ter to some OA the issues thatshe wosfocin9 atschool. The mentor notonly worked wlth K but olso n￿de contatt wlthln thefomily home asshe believed thot a difAerent approachfrom murn ond sister would helpsupporther work with K. Over thefollowlng weeks ond months the school notlceda real lfflprovementln both fs emotlonol wellbelng ondher ottend¢7nGe, to the point where she now has 95% attenduncefor the summer terms compgred wlth 60%for the uutumn te￿.- Our grant to Toucan Employmenvs Lambeth NEET Prolert enabled them to work with 'N' "N was referred by the homele55 teom ot the St71vtttion Army In Lambeth becouse of herleurning dlfficulty. She olsofound herseyon the street uftera Jollout wlth herfomily. Toucan creotedan ACt￿n Plan to oddress herimmediate ond long-term needs. The Toucon odviser lffjised with the housing option team to secure o stifr occommodotlonfor N ond supported wlth her benefit opplicotion. N referred to her locolfood bonkso she could have o stock ojfvod ondpersonol hyglene Itemsfmm a locol chority whlle woltlngfor her applic17tion to be processed. Euch week with her Toucan odviser. W5 confidence andself-esteem grew ondshe was uble to communicate much better with her udvlser ond expressed herp05sion ond long-term dream to get o coreerln modelling/Aoshlon. Mth her TouconAdvlsorfssUPPOrt N createda CV gnd ottended workshop5 and job 5eorch/training sessions. With her odvtserfs help. N applledfvr a mentoring ond work placementscheme with Gucci ¢7nd wos shortlistedforon Interview. N wos referred by her adviser to Smt7rt Works, an organisation whlch support unemployed women with smL7rt clothesforintetview." in oddition, she underttx)k on interniew skllls workshop wlth her adv15er which gave hermore knt￿ledge ondconfidence to succeed at interwew. As o resul¢ N was offered o mentoring /placement wlth Guccl. os well as 5UPPOrt to creote her own portfvlio. She has been $0 delighted with herjourneyfrom being homeless to now o promtsinqfuture in her long-term dreom career." Our grant to fund Christ Clwrth Streatham Primary School's Access lo Llteracy {A2L) Project enabled them to work wtth 'Z' -ChildZ is a Yeor 3 glrl who was glven a diognosis of dyslexio ond then receivedsupport through the A2L progromme. Her reading andspelling skills were very low at thot time. She was rettdin9 Ot the (7ge of a year I child, 2 yeors behlnd heroge-reloted expectatlon& She h05 since received 8 months oAliteracysupport tsnd Isstarting to moke realty goodpmgress with her reoding ond writing skills. She hos improved 4 book bondsfor reodlng In thls time. She 15 now oble to both reod ondspellall ILKI of her highfrequency words. She met5/6 of her torgets thut hod been set. In the Inltlal diognostlc 05sessmen¢ lonouage dlfficulties were observed ond these have been ulso noted in the l.'I teoching sesslons. particulorty in relt7tlon to understandlng of a text, generol understonding of language ond instructions ond olso through her use of grammar in her writing. The school hove now ￿ferredz to thespeech ond Longuage Therapyservlcefor an 055e55ment. Her teocher notes tho¢ 'Zhas become more Independentin her literary leaming ond Is uble to construrt51mple sentences. She hos storted to write longer pleces ond will Sometimes use o conjunrtion to make longersentences.'Z willtontinue to hove speclallstllteroLysUPPOrtnextyeorln order to bulldon hersuccess thls year." For more examples vt5it w•lcoifoundation.or8.uk 12 FINANCIAL REVIEW 2022/23 We are a permanentty endowed Foundation. Most of our income is generated by historlc assets. We are required io preserve the capltal value and to ensure rt grows to protect it against the effect of Inflatlon. In this way the charty can assist todavs beneficlarles ond those of the future. INCOME Our Income In 2022123 amounted to £3,806,34712021122: £3,041,760) a 25.1% Increase. Income from our investments, Including directly held property, continues to be our primary income source. 2022123 Income compared wlth prforyear £2000k £1800k £1600k £14Wk £12CKlk £IOOOk • 2022123 • 202V22 £600k £400k £200k £k Oonztions & Charltable Le8acles actlvlties Rents Llsted Investments Investsnent Interest Other Donatlons Donations form a small element of our Income and vary year by year. This year we recelved £96,198. £79,674 of thls Came from Walcot Projects Llmlted's Glft Ald1202112022: £103.1011. Charftable activities The Foundatlon received £902,10712021122: £212,656) from external funders for agreed joint fundlng of speciflc proJert5. Rental Income Our largest source of Income Is in the form of rents from our properties on the Walcot Estate. This year. these amounted to £1,789.96412021122 £1,420,368). Usted investments lequltles and stocks) We received £990,605 in dlvldend Income from Ilsted Investments (2021122 £1.298,1551. Investment Interest Investment Interest in 2022/23 amounted to £24.202. Other income £3,271 was received as bank interest and other ineome. 13 EXPENDITURE Total expendlture wa5 £S￿l2,7421202v22 £4.182,894: 31.8% increasel. We spent £4.044,444 in grants 12021122 £2,821,503: 43.2% Increase). This Included £857,107 recelved from Gu(s & St Thomas, Charlty, and £45,(W from Winn & Coale5 IDensol Ltd. Our expendrture on generating income was £1,112.83912021122 £1,042,397: 6.8% Increase). Thls includes the full cost of mana8in8 our financial investments and property Portfollo. The Increase over the prevlous year reflects heightened infiation and its effect5 on property and other costs. Support costs, which Include the cost of governance, salarles and other running rost5, were£355,460 12021122 £318,994: 11.4% increase). FUND BALANCES At the end of the year. our total funds stood at £122,39027612021122: £127.043.332: 3.7% decrease). This figure includes the Foundation's investments, the Foundatlon's tsn8lble ftxed assets and the 5hort-term osh at the bank. INVESTMENTS At 31 March 2023, the Foundation's investments {property. stocks and lon8-term cash at the bank) were valued at £121,241,156 1202ty22'. £125,569,530: 3.4% decrease). 60% of Investments is In property, specrfkally, the Walcot Estate, which includes around 115 mostty residential properties in and around Walcot Square. London SEII. The remaining 40% was represented by a mixture of financial investments made on the a(fvice of the Foundation's investment manè8ers Baillie Glfford and CCLA. The asset allocation Is shown below. Asset allocation at 31 March 2023 Infr•stru¢tyre f22m _ IIA%i Private e41ilies. £0.7m10.6Y61 Other. £tX5m IOAXI Flx•d Int41me Elm 11.6%) Cash£2.7rn112%1 UK e4uitie$£2Sm {2.4%1 . Propvty £n8m 160.9Y61 Cknneo5 WJitK5 £36.5rn 14 Monitorln8 investment perfomiance The Investment Commlttee reviews the performance ofthe p)rtfolro every quarter and reports to the Board. Financial investments are benthmarked agalnst the FTSE All Share Index IUK Equitlesl. FTSE All Gilts Index (Fixed Interest). aftd MSCI All Countries World Index (Overseas Equities). Our property Investments are hLstorlcal and specialised, and we have not found a sultable Index agalnst whkh to benchmark them. although we do review the in¢ome and ylelds informally agaln5t Internet rental Income Indlces such as lendlnvest.com and londonpropertywatch.co.uk. Acr055 all investments and property, the total return (income plus capital Erowthl forthe yearwas -£141.890 1-0.12%) and the yield, as measured by income for the past ￿e1ve months dlvlded by valuatlon at 31 March 2023, was 2.31%. Our practice is to undertake a full valuatlon of our property p)rtfolio every five years. a desktop valuatlon annualty. and IndlvSdual 'tOP-up' valuation5 as needed (for example, Whe￿ resldential propertles revert from reglstered rent status and are significantly refurbished and then let at market rents), The lastfullvaluation was as at 31 Marth 2021 and the next will be In 2026. Theyield on the property portfolio las measured by rental inrome for the year dlvlded by valuatlon at 31 March 20231 was 2.4%, the relatively low ylekl being a functlon of the relatlvely hlgh value of London property and of the number of re8lstered rent tenancies. Our flnancial investments were valued at £48.202,599 (2021122: £52,686,543>. The decrease In value Is rn05tly attrlbutable to the fall in equity markets. The total return for the year on flnanclal Investments was - 4% and the yleld on the portFolio was 2.1%. LONG-TERM INVESTMENT POUCY Our Investment goals are- to Eenerate enough Income from our investments to meet the needs of current beneflclarles to ensure our investment5 grow in value to meet the needs of future beneficiaries to malntain the Inte8rf(y of the Walcot Estate and to maxlmise rental income to allgn our investment strategy to our values. Thi5 mean5- belng as rlgorous In our selectlon of investment prodLKts as we are In ourgrant-makln& and not to invest In any products or funds that we do not understand inve5tlng responslbly providing a high-quallty seNlce to reliable tenants. so maximislng rental income in the h)ng tem by brln8in8 the beneflt of well-malntalned property, low tenant turnover and a minimum of volds. The portfolio Is currently dlvlded as Inditated in column 2 below, the target range of minimum and maximum values of each class of ass￿ bein8 as Shown In columns 3 and 4. ASSET PORTFOLIO MIN MAX Property Equitle5 Alternatives and fixeLI Income 60.9% 32.5% 4.4% 0% Cash and short-term Investn)ents 2.2% 0% Total 15 RISK We keep under review the rtsks faclng the Foundatlon, These are Set out In a Rlsk Register which adopts measured approach and identwles materlal rlsks, conslders thelr severlty and probability and identities the measures needed to limit oravoid them. The Foundation is less vulnerable to many of the risks faced by other third sector Icharityl bodles. Our income is more secure and we do not provide seNices that carry Inherently higher risk levels (for example, direct services to vulnerable groups or runnin8 charity retail outlets). The Governors collertivety use thelr expertise and skill to help us contlnually revlew thls posltlon. We see the prlncipal rSsk faclng the Foundatlon as belng loss of Income land the eroslon of spending ￿Wer s inflation rises) and the consequent effect on our ability to fulfil our present charitable goals. Our pollcy Is to review our Investment Policy Iwhich applies to both linanclal Investment and mana8ement of our property Portfollol as needed and at least biennlally keep the nature and amount of grants under review dlver51fy our115ted investments-geographicalty, by asset type, and between investment managers pro-actively manage our properties to minimise voids have an active Investment Commlttee wlth governor-members who embody a range of relevant skills take professlonal speclalist advlce as required RESERVES POLICY At 31 March 2023. Ihe Foundatlon's funds were- Endowment Funds £ 97.466,144 8,760,852 1,496,012 107,723.008 Restrirfed Funds £ 5.742.150 Unrestricted Funds £ 7,505,516 1,254,695 164,907 8.915,118 Totsl £ Walcot EdUcat￿nal Foundation Ha le's Charity The Lady C nthia Charlty 110.713,811 10,015,547 1,660,918 122390,276 5,742,150 The unrestrlcted funds represent our avallable re5er¥e5. Our pollcy had been to hold reserves sufflclenl to ensure the full contlnulty of our operatlons for up to 15 months lequal to £4,661,710). We explaln the need for reserves in these terms- to stabilise8rant-makln8 at tlmes when investment income 15 below expectation,. to set aside suffitient funds for future property maintenance and development; and to relain capacity to respond to unexpected opportunilies. Liquidity and cash needs are reviewed every quarter and reserves every six months. 16 OTHER ACTIVITY Durln8 the year, Marcia A5are took up the post of Director in April 2022 Honorary Advlsers We appoint Honorary Advisers to gbve a perspective from their area of experttse. They attend meeting5 of the commbttees to which they are appolnted. During this year one Honorary Advlser. Rowena Whtte. was appointed to the Investment Committee. PLANS 2023/2024 To launch an organisational place-based strntegy. To develop a financial Strategy. To ensure the effectlve Implementstbn of the thlrd and final Year of the BounceBack programme. To obtain an acceptable planning decision on the Btshop's Terrace development. To run a sucwsful Governor recrultment campalgn. To undertake a comprehenslve revlew of the Foundatlon'5 Structure and framework for its property management. To revlew and further bulld the operatlonal capaclty of the team, to successfully dellver against the Foundatlon's alms. To condurt a biennial review of our Strategic Investment PoliLy. To appoint and successfully Induct two new Governors. To successfulty induct a new Chair (from July 20231. STRUCTURE. GOVERNANCE AND MANAGEMENT CONsrrFUENT CHARITIES We have four constituent charities.. The Wakot Ed￿atIonal Foundatlon 1312800). The HaW¥s Charlty I3128￿-11, The Walcot Non-Edu¢atl¢)nal Charity1312800-21 and The Lady Cynthla Charlty131280>31- formerly the Cynthia Mosley Memorlal Fund. renamed durin8 the year. Our charltles, notabty the Haylé$ Charity, subsumed numerous other smaller charltles over the years Includlng those of Roger Je5ton116221. Noel Caron116231, Allce Easton116401, William Hind116551. Margaret Oakley116721. Thomas Rlch116721, John Scaldwell116781, Thomas Cooper116951. Jacob Vandertin117041, Ralph Snow117071, Bryan Turberville 117181, counte￿ of Gower117211, Hayes Fortee117831. Jane Wakeling117861, John Course117861, Richard Robert118071, Mary Oakley118121. Elizabeth Lambert118141. john Pickton118211, Grace Fenner118281, Mary Chapman 118311. Eleanor Dodson 118471, Elizabeth Edrldge118481, Robert Frost 118601 and Harry Clapham119481- TRUSTEE BODY The Walcot & Hayle's Trustee Ire81stered at Companles House as 61338491 is recognlsed by the Charlty Commission as the sole trustee of our four constltuent charitles. 17 WALCOT PROJEcfs LIMITED This is a company lim￿ed by guarantee and registered in 2018. It is owned bywalcot Educational Foundatlon and manages the d￿elopment of new property holdings. Its profits are gifted to the Foundation. POLICY ON GOVERNOR EXPENSES There is a policy on Governor expenses which was adopted by the Board on 17 November 2015. GOVERNORS. OFFICE HOLDERS AND MEETINGS The followlng served as GoverTr)r5 of the Foundation during 202212023. GOVERNOR YEAR AppoIFifED 2015 2013 2020 2020 2022 2020 NOTES Mlthelle A￿Offlar RSthard Ailnutt Thomas Andeison Donatus Anyanwu Angu5 Boa Mithelle Bogle Grants Committee. On leave from December 2022. Investment Commlttee- F&GP Committee. Formerly Hon Adviser. Investmènt & F&GP Commlttee& Lambeth Council nominee. Appolnted 15 March 2022. F&GP Commlttee. ÈIE- All￿ Chapple Rezina Chowdhu Teresa Clay Helen Geor¥e Frances Greenbur Andrien Meyers Michael Marshall Glentofa Senlor Stmon Taylor 2016 2018 2013 2016 2013 2020 2022 2016 2016 F&GP cornm￿ee (Lead GovernorAuditl,' Grants Committee. Lambeth Council nominee. Chair of Governors,. Investment, F&GP Ichairl & Grants Committee. Grants Committee Ichalrl. Grants Committee. Investment Committee. Appointed 15 Marth 2022. Investment Commlttee Ichalrl: F&GP Committee. Investment Commlttee. Governors serve a term of three years and. subject to re*lection, may sèThe a maximum of three such terms. Governors a8reed that Richard Allnutt, Teresa Clay and Frances Greenburgh should extend thelr service tor one year as provided for in the Articles, in order to provide contlnutty In a tlme of transition. Fltness to seNe. trustee dlsqualrflcatlon. third-party links and artual or potential confilct of Interest declarallons were made by Governors and key staff and the results reported to the Board. Thi5 15 an annual exercise. Meetings.. Botsrdond Committees In 2022-2023 the followin8 met- Board Flnan¢e & General Purposes Commlttee Grants Commlttee In¥estm4nt Commjtt SIX meetings Three meetin85 FNe meetings Four meeting5 During the year Teresa Clay served as Chair of the Governors: Helen George sebved as Chair of the Grènts Commlttee. Glencora Senlor seNed as Chalr of the Investment Cornmittee. Alice Chapple continued to serye as Lead Governor on audit matters and MKhelle Bogle continued to serve as Lead Governor on rlsk matters. RECRUITMENT, APPOINTMENT AND INDiICTION OF NEW GOVERNORS We have in place established method5 of supportlng the Induction of new Governors. These include strLbCtured meetings With staff, a Governors. Handbook and brlefings on key aspects of the role and the Foundatlon, a55ets, flnanclal systems and controls$ 8rnnt-makin8 practices. wllcies& governance structures and other relevant Infomiation. 18 STAFF PAY For all staff except the Dlrector, pay Is dlrectfy Ilnked to an external salary structure, one used by many charitles and elements of the publlc sector. Each role (Finance Mana8er. Grants Administrator, Grants Manager. Grants Officer and Property and Estate Manager) is linked to a range of incremental splnal polnts on that scale. Staff may progress one spinal point on each annlversary of thelr appointment subjert to a positive appraisal, until the top of thelr range is reached. C05t of living increases, when adopted by the external inde& are pald by the Foundatlon to all staff. In 2014115 the Direetorfs pay was unhltched from thls arran8ement and is reviewed annually by the Chair of the Governors and everyfNe year5 by the Finance and General Purp05e5 Commlttee IF&GPI. For all staff, the Foundation contributes IO% of gross pay to a recognised pension scheme chosen by the employee Ile8acy percentages apply to some staff). ADMINISTRATIVE REGISTERED ADDRESS AND WWW DOMAIN 127 Kennin8ton Road London SEII 6SF l l￿w.WalCotI￿nd￿tlOn.Qrs.uk STAFF As at 31 March 2023 we employed seven membets of staff of whom six were full time and one part-tlme (full time equivalent: 6.61: Marcia A%are Techia Braveboy ' Danlel Chapman Daniel Hogan Lèlgh 08den Davld Paterson Djilali Toffah ExecutNe Dirertor Grants Admlni5trator Grants Manager Grant5 Offi￿r Grants OffI￿r Property and Estate Manager Flnance Manager •Port-tlme PUBLIC BENEFIT We are required to show that the Foundation's tharitable objert5 or aims ore for the public benefL known as the 'publlc benefft requlrement.. Ours fall wlthln the first two de5crlptlons set out In the Charrtles Act 2011: lal the prevention or relief of poverty, and Ibl the advancement of education. We confimi that In exerclslnE our powers we have complied with the duty to have due regard to the guidan on public benefit published bythe Charltycommlsslon. The Identrfiable pvbllc benefft provlded bythe Walcot Foundation is in the maklng of grants for the rellef of poverty amongst those residents wtthln our èrea of benefit who meet our eli8iblllty crTteria. The focus of awards made from the Wakot Educational Foundation is that of advanclngthe education (broadly defined) of benefSclarles In such ways as are likely to pernianent Improve their prospects of employment and to break cycles of deprlvation. Statement of the Board'5 ReSpO￿lbIllI1es The Board Is responslblefor preparln8the Governors, Report and thefinancial statements In atcord4ncÈwith applicable law and United Klngdom Accountlng Stsndards (United Kingdom Generally Accepted Accountlng Prattlcel Includlng FR5102 The Financlal Reportlng Standard appllcable In the UK and Republlc of Ireland.. 19 The law applicable to charltles In England & Wales requires the Governors to prepare financial statement5 for each flnanclal year which 8ive a true and fair view of the state of the affairs of the charity and of the incomlng resources and application of ￿$oUrceS of the charity for that period. In preparin8 these fSnancial statements. the Governors are required to: select sultable accountlng pollcles and then appty them consistentty; observe the methods and principles in the Charitles SORP: make judgement5 and estimates that are reasonable and prudent- state whether applicable accounting standards, includin8 FRS 102, have been followed, subject to any material departure5 disclosed and explained In the financial statements; state whether a Statement of Recommended Practlce ISORPI applie5 and has been folkiwed, sublert to any materlal departures whlch are explalned In the financial statement5: prepare the financial statements on the goin8 concern bèsis unless It Is inapproprlate to presume that the charity will contlnue In operation. The Governors are responsible for keeplng proper accountlng records that disclose with reasonable accuracy at any tlme the flnanclal posttlon of the charltles and enable them to ensure that the flnanclal ststements comply wlth the char￿leS Art 2011, the Charity (Accounts and Reports) Regulation$ 2Ci18 and the provisions of the charlty's governlng Instrument. The Governors are abo responsible for safeguardlngthe as5etsof the charity and hence fortaklng reasonable steps for the prevention and deteCt￿n of fraud and other irregularitles. The Governors Approved byThe Walcot & Hawe's Tr￿￿ee Board on 15 Ni>vember 2023 and signed on tts behalf by Chair Cose5tyd1¢5 arerhed wth the (oftsent oAbentfici¢7ries. Initsvlsare ￿edIn￿l￿¢t0ffiomes. 20 WALCOT FOUNDATION INDEPENDENT AUDITOR'S REPORT YEAR ENDED 31 MARCH 2023 Independent Audltor's Report to the Trustees of Walcot Foundation Oplnion W8 havg audited the finartial statements of Walcot Foundation for tha year ended 31 March 2023, vthlch comprise the Slalement of FinancAal Acti￿ties. the Summary Income and Expenditure AccounL the Balance Sheet, the Cash Flow Statement and notes lo the financial statements, induding 51gnrf￿anI accounting policies. The financl81 reporting framework thal has been applied in their preparation is applicable law and Unlled Klngdom Accounling Standards. including FRS 102 The Financial Reporting Standard Applrable in the UK and R8publlc of Ireland, (Unrted Kingdom Generally Accepted Accounting PractKel. In our opinion Ihg financial statements- give a true and fair wew of th8 State of the ch8rtys affairs as at 31 M8rch 2023, and of its in￿nIng resources and applcalion of resourees. for the year then ended,. have been properfy prepared in accordance United Kingdom Generally Attepbj Aceountkng Practice. and have been F*ep8red in accc*dance wllh the requlrements ofthe Charfties Act 2011. Basls for oplnlon We conducted our al￿11 In 8ccord8rte with Intemali¢Jnal Standards on Auditing (UK) IISAS IUK}l and appllc8ble law. Our respon5ibililies under Iho¥e standards are further described in the Auditor's Responsibilities for the audit of the fnancial statements section of our report. We 8re in¢Jep8ntlent of the charity in accordance wfth the ethical requirements that are relevant to our audit of the fmancial statements in the UK. including the FRC'S Ethical Standard, and we have futhlled our other ethical responsibilities in accordance ￿th these requirements. We b&li8V8 that Ih8 8udit evidence we have obtained is su1￿"8n1 and appropriate to prowde a b8s¢s for our opinion. Concluslons relatlng to golng concqrn In audlllng ihe financlal statements. we have concluded that the trustee's use of the going concem basis of accountlro In the preparation of the financial ststemenls is #ppropriate. Based on the I￿rk we have parfomied, we have nol identified Bny materfal uncertalnllgs relating to events or conditions that, indNidualty or ￿llectivelY. may cast $1gnff￿anI doubl on the Charity's abiltyto continue as a going concem for a pencé of ot least tMElve months from when the fin8nci81 slalemenls are authorised for issue. Our responsibllilies ond the ￿spons￿bIlItIeS of the trustee ￿th respect to going CAThcem ere describ￿ in th8 relgyanl sections of Ihls reporL Oth•r Infornijtlon The other informallon comprisès the InfO￿nall0n induded in Ihe annual report. olherth8n th8 financlal statements and our audilorfs report Ihereon. Th8 trustee is responsible for the other information conlalned wtthin the annual report. Our opinion on the finanGial statements does not cover Ihe other informalh)n and, except lo tho extent otherwse explicilly stated in our r8por( we do not express any fcffii of assurance conclusion thereon. Our reSpor￿1b￿1ty Is lo re8d Ihe other Snfomiath)n and. in doSng 80, consider whether the other information 18 materially incon￿stent wilh the financSal statements or wr kn￿￿edge obtsined in the cours8 of the audit or otherwise appears to bg materially mlsstaled. If we Idenltfy such materK41 inconsis18n¢ies or apparent mateTi misstat8mants. we ara requirgd to d81gm)ine wh8th8r there is a m818rial misslalgmenl in th8 ffnancFal statements themsdves. If, based on the work w8 have perfomed. w8 condude ihat there Is a malerial misstslwnent of Ihls other infomi8tion. we are required lo reFrfJrt that fact. We have nolhiry to report In thls regard. 21 WALCOT FOUNDATION INDEPENDE￿ AUDITOR'S REPORT (Contlnued) Year Ended 31 MARCH 2023 Matt•rs on which w• ar• r•quir•d to r•port by •xceptlon We have nothing lo in respect of the fcllowing matt8r8 where the Charltl88 Act 2011 requires us to report to you if. in our opinion.. the Infom)allon glven In the Trusteg's Annual Rewt is irKonsisterrt in any material respect the finanual ststements., or the ch8rity has not kept adequate &counting records; or the financial statements are not in a￿eement wth the accounting recor(Is and returns" or we have not recelved all the infomatK*n and exFdanations required for cAJr audit. Responslblllllos of trust A8 exPl￿ned more fvliy in the trustee's responsibilities statsment sel out on page 19. the Iruslee Is r8sF4)nsible for Ihe preparatlon of the finandal slalements and for being satisfied that they give a true and f8ir view, and for such intemal control as the trustee d818mines is necessary to 8nable th8 preparation of finana81 ststements that 8re free from materi81 misststement, whether due to or error. In prèparing tha financial statements, th8 truste8 is resp{￿81b10 for assessing the charitls abiltyto continue as a going eoneern. disclosing, as applicable, matters related to golng concem and using the gryng conGem basis of aceounth'ng unless the trustee either inl8nds to liquidate the charity or to Ce8s8 operations. or have rKJ realistic altemative but to do 50. Audltorf$ Responslbllltlos for the audlt of th• financlal sts¢emgnts We have been appolnled 8$ audltor under secllon 144 of the Charities Act 2011 and rewrt in &cord8nce vlth regulallon8 made under sectlon 164 of that Act. Our obje¢*ves are to obtain reasonable assurance about ￿ether the financial $tatem8nts as a whc4e are free frerfn material misstatement, whetherdue lo frsud orerror and to issue an auditorfs reportthat includes our opinion. Reasonable assurance is a high level of assurance. bul Is not a guarantee that an au¢Jf( conducted in ar£ordance ith ISAS {UKI will atways detect a material misstslement vthen11 exlsts. Misstslements con orise from fraud or eiror and are considered materi81 if. individually or in aggregate. they could reason8bly be expecled to In￿ue￿O the eCor￿mI¢ doclslons of usgts lak8n on the basis of these finanrial statements. As p8rt of an audit in accor¢l8nce vAth ISAS {UKI we exerttise professional judgement and maintaln professional scepticlsm throughr)ut the aud￿. We also.. Ident￿ and assess the risks of material mlsstatement of the finw¢il statements. wh&ther due to fraud or error. design and perfom) audit procedwes responsive lo those risks. and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a malerlal mlsslatsmenl resulting from fraud is higher than for one resulting from error. a5 fraud may involve colluslon. forgery. Intentlona omlsslorts. mi5represenlations, or the override of intemal contrcA. Obtain an understsnding of inlemol contrd rèlevant to the audit in order to de￿9￿ audit procedures that are appropriate in the c1￿uMStances. but not for the purposes of expressing an opinion on the effeclivengss of the charitys internal control. Evalu8t8 the appropriateness of accounting polcles used and the reason8bl8ness ol acco￿ling estimates and relatsd disclosures made by the IAusl8e. Conclude on thè appropriateness of thètrustee's of the going concern basis of a￿Oun11n9 and. based on the audit evidence obtained, whether a material unc8rtainly exists related to events or condlllons that may cast significant doubt on Ihe charitls ability lo continue as a going concern. If we conclude that materlal uncertalnty exists. w6 are required to draw attention in our auditorfs report to the related 22 WALCOT FOUNDATION INDEPENDENT AUDITORS REPORT (Continued) Year Ended 31 MARCH 2023 dsclosures in Ihe financial statements ￿. if such discl(Air8s are inadwuote, lo modrfy our opinion. Our nclusions are based on the audll evKlence obtained up to the dale of our auditorfs report. However. futu￿ events or conditions may cause the charity to cease to continue as a going con￿rn. Evaluate the overall presenlgtion, stnjcture and contenl of the financial ststements, includlng the disck)sur6s, and whether thè financlal statements represent the urKlerlying transactions and evenl8 in a manner that achieves fair prasentalion. We communicate wilh those charged with governan￿ regarding. amorvJ other matters. the planned scope and timirg of the audit and significant audlt flndlng8, Induding any 8lgnlflc8nt delklencie8 In intemal control that we identify durfng our audit. Explanatlon a¥ to what •xt•nt th• auditwas considgred capable of dotecting irr•gularili•s. Includlng fraud Irregularitles. i￿luding fraud. are instances of nonld Street London EC2A 2AP )ore lfjngston Smth LLP 1$ ellgible to act as 8uditor In terffls of Section 1212 of the Compani9s 2006. 24 WALCOT FOUNDATION GLOSSARY YEAR ENDED 31 MARCH 2023 Tomi Dellnltion WEF Walcot Eduoalonal Foundatlon WNEC Walcot Non.Education81 Charty TLCC The Lady Cynthia Charity 25 WALCOT FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023 Unrnstv R•$t- Endow- rlcted rlctsd m•nt Totsl rfGt•d rlctad mont Noteg Funds Funds Funds 2022123 Fund• Funds Fund• 2021r22 £000 £000 £000 £000 £000 £000 INCOME AND ENDOWMENTS FROM: Donations and leg8CiaS 103 103 Charltable aclivltles 0 902 902 213 213 Investments 2.786 22 21 TOTAL 924 EXPENDITURE ON: Raising Funds Investsnenl manggement ￿$ts 61 275 320 442 Propety costs 378 335 18 731 337 263 424 396 293 1113 Charitable Activities Grants payable 19 4.035 4.044 2.806 15 1821 Grant-makiNJ SuppC￿ C08ts 356 319 319 15 TOTAL 4 814 405 293 5513 3 17 Net gains on inslrnents (321) 1206) (2,419) {2,947) 15501 175 NET INCOME (2353) 313 (2.713) {4.653) {1,259) 378 185} 1986) TRANSFER BETWEEN FUNDS 897 1897) 668 (868) Net movement In fvnds (1,3551 1S85) (2.713) {4.853) ($91) (290) (85) (988) RecA)ncilialion of I￿)dS.. TOTAL FUNDS brought forward at l April 2022 10281 6,327 110,436 127,043 10I71 6,617 110,FA1 128.009 TOTAL FUND8 Gwrl8d forward at 31 March 2023 8.925 5.742 107,7Z3 122,390 IQAQ1 6A27 110,436 127043 26 WALCOT FOUNDATION BALANCE SHEET YEAR ENDED 31 MARCH 2023 Not 2023 £000 2022 £000 FIXED ASSETS Tangfole assets Investments 10 1.617 121.241 122.858 1.569 125.569 127.138 11 CURRENT ASSETS Debtors 12 324 335 Cash at bank and in hand 673 965 CREDrroRS: Omounts falling duo within one y•ar 13 1.432 1,103 NET CURRENT LIABILMES TOTAL ASSEfs LESS CURRENT UABIUTIES 122.390 127,043 FUNDS ENDOWMETrrr FUNDS 107.723 1IOA36 RESTRICTED FUNDS 5,742 UNRESTRICTED FUNDS 8.925 10,281 122,390 127,043 Th888 $tatgnents wor& appmed bythe Board of TnK81888 on 15 November 2023 and Sign￿ on Ns b8haW by.. Chalr Date.. 27 WALCOT FOUNDATION STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2023 2022r23 2021122 £000 £000 Cash flows from oporatlng aetlvltles: N•t cash used In opernllng actlvltles 3,751 Cash flows from Inv0811ng actlvlllo8: Diwdands, intarnst and rants frcffl investments Purth8se of property. plant and equipment Prlxeeds from sale of inveslments 2.808 2.726 2,000 11,166) 123 Purchase of Investments Inve$lmenl management fees paid Nfrt cash prnvlded by Invostlng actlvldes (2,160) 156 3.519 410 Incygaso In cash and cash oqulvalgnts 232 3.471 Change in cash and cash equwaknfs in the reporting period Cash and cash equlvalents at the beglnnlrwj of th8 reporting nod (2321 13,471) 5.475 2.004 Co8h and Cash equiv8lent$ at the end of Ihe ￿portIng perlod Reconciliation of net incomel(oxponditure) to not ca8h Ilow from 0￿ratIng actlvltles Notjnoome for tho reportlng porfod (as tho $tat•m•nt of Ilnandal a¢dvitlesJ Adjustrnents for: Depredallon charges Investment manager faes paid MOvem￿t in Ihe martet V8lue of invesknents 4.653 123 156 1751 12,726) 61 Dmdends. interest and ￿nIS fr(xn investments Ilncreaseydecrea5e in debtor5 In￿ga$0/(decre0sQ) In crodltors Net cash used In operntlng actlvlues 12.808) 11 329 233 ANALYSIS OF CASH AND CASH EQUIVALENTS Cash in hand Cash held as Investrnents 673 1,000 131 1,200 131 2,004 Notice deposlls {less than 30 days} Total cash and cash equivalents 28 WALCOT FOUNDATION ANALYSIS OF CHANGES IN NET CASH YEAR ENDED 31 MARCH 2023 stsrt of y•ar Cashflow• At end of year £000 £000 £000 Cash 873 {32) 641 Cash held as investments 1.200 {2001 1.c￿0 Cash held with notKg bss than 30 days 131 131 TOTAL 2.004 (2321 1.772 29 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 I CHARrrY INFORMATION The charities are re8lStered with The Chartty Commission (registration numbers 3128(M). 3128fJ)-1, 3128Crf>2, 312800-31, are domlciled in the UK and are publlc beneflt entities. The address of the registered Offi￿ Is 127 Kennington Road, London SEII 6SF. Further information is 8Nen in the a¢countlng policles below. 2 ACCOUNTING POLiaES a) Goln8 concern The Govemors have assessed whether the use of the golng concern basis is approprote and have consKlered Ible events or conditions that ml8hi cast sb8nlficant doubt on the abS11ty of the Foundation to continue as goingconcem. They have madethls assessmentfora period of at least one yearfrom the date of approval of these flnanclal statements. In particular, the Governors have considered the Foundation'5 forecasts and proiertions and have taken account of pressures on property values and investment income, especlally in the light of the impatt of the COVID-19 pandemlc. After making enquirles they have conduded that there 15 a reasonable expectation th￿ the Foundation ha5 adequate resources to continue In operatlonal existence for the foreseeable fuwre. The Foundatlon therefore continues to adopt the going concem basis in preparfng its financial statements. bl Basls of preparatlon Wakot Foundation is the working name for the group of four charities administered by the Walcot and Hayle's Trustee Company, whlch Isthe corporate trustee foreach of the four charitie5. Three of the charitles: the Walcot Educatlonal Foundation IWEFI, the Walcot Non-Educational Charity IWNECI and the Hayle's Charity. were unlted by a Charlty Commlsslon unlting order daled 26 March 2LK17. A fourth charlty, The Lady Cynthia Charrty ITCLLII Joined the group when its trusteeship was transferred to the Walcot & Hayle's Trustee Company by Charity Commission Scheme on 23 June 2009. These flnanclal staternents are the aggre8ated accounts for the four separate charities and include all the funds of the four charltles. The funds of the Walcot Educatlonal Foundation IWEFI afe regulated by the Scheme of 6th February 1991, as amended by the Order of 24 August 2004, by the Resolulion of 5 Ottober 2LIM, by the Scheme dated 26 March 2CK17, and by the Scheme dated 14 October 2015. The funds of the Hayle's Charity are regulated bythe Scheme of 31 January 1990, as amended by the Scheme of 26 March 2007. The funds of the Walcot Non-Educational Charity IWNECI are ￿gUlated by a Scheme of 1974, as amended by the Scheme 0126 March 2007. The funds of The Lady Cynthia Charlty ITCLLI are regulated by the Declaration of Trust dated l January 1936. as amended by $d￿Me$ of 23 January 1951, 6 December 1965, 27 September 1995, and 23 June 2￿9. The accounts Ifinanclal statements) have been prepared to give a 'true and fairf vlew and have departed from the Charltles (Accounts and Reports) Regulations 2008 onty to the extent requlred to provide 4 'true and fair, view. This departure has involved following the Statement of Recommended Prattice applicable to charities preparing their a¢count5 in accordance wlth the Flnanclal Reporting Standard appllcable in the UK and Republlc of Ireland IFRS 1021 Issued on 16 July 2014. The accounts have been prepared under the historical cost conventlon, except for Investments and property fixed assets which are at market value at the balance sheet date, and in accordance with applicable accountln8 standards and the Statement of Recommended Practice 'Accounting and Reporting by Charftles: Statement of Recommended Practice applicable to charitles preparlng their accounts In accordance with the Financtal Reportlng Standard applicable in the UK and Republlc of Ireland. IFRS 1021 leffertive l January 20151, and the Charities Art 2011. 30 WALCOT FOUNDATION NOTES TO THE Accoumrs YEAR ENDED 31 MARCH 2023 The Walcot Foundation's subsldiary. Walcot Projects Llmrted, has been excluded from consolldallon 95 its Incluslon Is not materlal forthe purpose5 of 8Nln8 a true and fair vlew. The Walcot Educationèl Foundation, the Hayle's Charity and The Lady Cynthia Charlty have pemianent endowments, whlch they must retaln intact as thecharities. capital. These permanent endowments are Invested in fixed assets either used by the charltles or to provlde Income for the charltles, actlvhles. After maklng enqulries, the Governor5 have a reasonable expertatlon that the Walcot Foundation has adequate resources to contlnue its actNities for the foreseeable future. Accordingly, they continue to adopt the 8oln8 concern basis in preparin8 the financial statements as outlined in the Statement of Governors. Responsibilities above. The financial statements are prepared in sterlin& which is the functional currency of the charity. Monetary amount5 In these financlal statements are rounded to the nearest thousand pounds. cl Invertments Investment assets are stated at their market value at the balance sheet date. Gains and losses on revaluations and on Investment asset d15posals are taken to the accounts in which the investments are held, as dlsclosed In the statement of flnanclal actlvltles. Investment propertles desktop valuatlon takes place every year as per the new requlrement and a full external re-valuation 15 condurted every fNe years. When governors belleve there has been a 518nificant change in the property market value, a new external valuation can be conducted. The last external desktop valuation was carried out on 31 March 2023 and the last external full valuation wa5 carried out on 31 March 2021, both by Cluttons LLP. The results have been reflected in these financlal statements and the Governots are of the opinion that thls method of valuation Is approprlate forthe PLrrp)se of these ftnanclal ststements. dl Tan8ible FThed A55et5 and Depreciation Operational property assets are part of the endowment of the Walcot Educatlonal Foundatlon IWEFI and are Included In tangible fixed ass￿5 of the charity and shown at their current value at the balance sheet date, wlth regular revaluatlons. They are malntalned in such a conditlon that thelr resldual value Is at least equal to their carrylng value and the Govemors carry out an annual Impalm)ent revlew to ensure that thls Is so. As a result, no depreciation is charged on them. Computers and equlpment COStlng more than £2,0￿ are capitalised and included at cost, and a￿ written off over the estlmated useful Ilfe of three years through the Statement of Financlal Activities. el Fund Attountln8 Endowment funds The Walcot Educatlonal Foundatlon IWEFI, the Hayle's Charty and The Lady Cynthla Charfty have permanent Èndowed assets, which provlde unrestricted income to the WEF General Fund, the Hayle's General Fund and The Lady Cynthia Charity General Fund respertively. Reslrlctsd lunds The application of WEF'S incomels 8ovemed bythe Charlty Commlsslon Scheme, which permits WEF to allocate up to 18% of its income to a Rebullding and Repalrs Fund IR&R fundl. This fund Is treated as a restrfrted fund and has its own investment assets. but Income generated from Its assets is now credited to the WEF General Fund. as permltted by the Scheme. as the R&R fund Is judged to be large enough forthe charltVs present needs. 31 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 In addition, WEF has the St Thomas, Fund, and the Townsend fund, restricted capital funds artsing from gifts to WEF in 1995 and 2015 respectlvely. Both The St Thomas, fund and the Townsend Fund have thelr own Investment aSsetS, the incomefrom whith is credited to the StThomas' Income Fund. and theTownsend Income Fund respectively. Unrestrlcted funds All four ¢horilies have their own general funds. whlch are applied accordlng to ihe Schemes 8ovemlng the charities. fj Income Income from listed investments. unlt trusts and common Investment funds15 accounted for by reference to the date on which distributions are receivable. Investment Interest and iental income ￿ attounted for on an accruals basis. Oonatlons and voluntary Income are applled to the purposes expressed by the donor. ff app1kab￿, and are accounted for when receivable. gl Resources Expended Cost5 incurred by each charity directly are as5i8ned to that charity and all expendr¢ure is atcounted for on an accruals basls. Almost all the operational costs of the four d)arities, Including the employment of all staff are bome by the Walcot Eduotional Foundation IWEF) unless otherwise stited. Apart from grants pakl, the Hayle'5 Charty and The lady Cynthla Charlty Incur dlrertty only investment management fees and some other small costs. Eath pays an annual seNke charge to the Walcot Educational Foundation IWEFI as a contributSon towards the costs of 8rant-maklng and 8overnance. The Walcot Non- Educational Charity IWNEC} inturs no direct costs, other than grants paid. The followlng headln85 are used for the analysis of expenditure- Cost ol Ralslnq Funds - C05ts relating to the management of Investments e.g. valuatlon fees. Investment mana8ers' and surveyors, fees, managemenl, maintenance and improvement of investment properties. Chorftuble Expendlture- Grants are reco8nised when conditions attaching to their payment have been fulfilled. Grants for which Governors still have further actlons to take before releasinE thèm for payment are not recognised In the flnanclal statements but the totsl value of such grant51s disclosed in note 14. h) Allocatlon of Support Costs Support costs are allocated to the two areas above on the basis of stsff tlme spent on work in these areas. Included In support costs are the stsff costs for those staff who work across the dffferent areas together with Ihe costs of runnin8 the office, and Bovernance. Support costs are all¢xated as follows: C05t of generating funds Charitable expenditure 11 Penslons The penslon charge represents contributions payable by the Foundatlon on behalf of employeesto Independent money purchase pension schemes. WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 J) Slgnfficant Judiements and Estirn•te5 The key sources of estlmatlon uncertainty that have a SiBnificant effect on the amounts reco8nised In the flnancial statements are described In the accounting FKJlicies and are summarised below.. Valuation of land and buildlngs and valuatlon of Investment propertles. The Char￿leS, land and bulldln85. whether held as investment propertles or as tangible fixed a55ets, a￿ stated at their estiM￿ed fair value based on pn)fesslonal valuations as disclosed in Note 11. The latest professional valuation was carried out in March 2021. kl Financial instruments The Wakot Foundatlon has flnancial assets and financial liabilities of a kind that quallfy as bèslc flnanclal Instruments. Basic flnancial ifi5truments are initially recognised at tran50Ction value and subsequently meaSu￿d at the present value of future cash flows lamortised c05tl. Flnanclal assets held * amortlsed cost comprise cash at bank and in hand, short tem) cash deposlts and the group's debtors excludlng prepayments. Financial liabilrties held at amortised cost comprise the group's short term creditors excludln8 deferred Income and taxation payable. No discountinB has been applled to these flnancial instruments on the basls that the periods over which amounts will be settled are such that any discountin8 would be immaterfal. 33 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Not• 3. DONATION AND LEGACIES 2022123 2022123 202W23 Unr•8tr1Ct￿ RostrIct￿ TOTAL Funds Funds £000 £000 2021122 TOTAL £000 £000 Wakot Educatlonal Foundatlon Donallons Gift aid from Wal￿1 Projects Limilod 14 14 94 101 Hayle s Charty Grant rotal Donadons and L¢gacle$ 103 Not• 4. INCOME FROM CHAR￿ABLE ACTivmES 2022123 2022123 2022123 Unr•strithd R•strl¢lod TOTAL Funds Funds £000 £000 2021122 TOTAL £000 Walcot Educational Foundation Grants 902 902 213 213 Not• * INVESThIENT INCOME 2022123 2022123 2022123 2021122 Unrostrl¢tod R•strbctod TOTAL TOTAL Funds Funds £000 £000 WaI￿t Educatlonal Foundation Invostment In¢omo Rents Listed invesknents Investment interest Bank deposit interest 1.790 1,790 777 25 1,420 1.090 21 24 2,573 2.595 2,517 Hayle s Charlty Investment Income 180 Th• Lady Cynth1• Chorfty Invgstment Incom• 29 Total Investment Incom• 2.786 Restricaed income refers to irKome from the T¢Jvmsend F￿d 8ThJ Ihe St T￿)ma3, Fund. WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Nots 8 EXPENDITURE ON RAISING FUNDS Unr•Btrlcted Rethetsd Endowrngnt Total Totsl Funds Fund• Furtd• 2022R3 2021122 £000 £000 £0 £000 £000 Walcot Educatlonal Foundatlon (WEF) Expendlture on Ralslng Funds WEF P1vpe￿ Invostment EXp￿dItUrn Staff costs Property costs (inc. Insurance & Utilitlesl Surveyors, Fees Other Professional Fees Routine Walcol Estste maintenance Improvement of PrOpe￿e$ 83 80 18 136 136 147 165 335 18 518 213 409 Supp)rt Expenditure {see Note 81 213 191 Tot41 I*EF Property Inveslm•ntExpendltur• 378 335 18 731 800 WEF Inveslment Managgment Foes forFlnanclal Investknents 39 60 198 297 345 WEF Total Expenditure on RalslnB Funds 417 396 216 1,028 HaylgS Ch*ity Inv•stm8nt Manag•mentF8es 86 73 Th• L*dy Cynthla Chahty Invgstment Managemont 11 11 13 Total E¥pOndftu￿ on Ralslng Funds 424 293 1113 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Note 7. CHARrrABLE EXPENDITURE 2022123 Number 2022123 £000 2021122 Numb•r 2021r22 £000 Walcot Educatlonal Foundatlon (WEFJ Grants Awarded Grants to Indmduals Grants to institutions WEF total grants Jwordfjd 201 210 411 275 159 114 2n 231 1068 2.299 3,570 Hayle's Ch8rlty Grnnt8 Awarded Grants to individuals Grants to ins11￿110￿$ Hayl•'s Charity total grants award•d 50 50 50 Walcot Non-Educatlonal Ch8rtly (WNECJ Grants Awarded Grants to in(Jivi(Juals Grants to instttutions WNEC tolal grants award•d 105 319 424 81 23 112 110 472 The Lady Cynthia Cherity (fLCC) Grnnts Award•d Grants to individuals Grants lo inslilutior CMMF total grants award•d Totsl grants awarded 527 4,044 2.821 Grnntrymaklng support Costs Unr•strtci•d R•strlct¢d End(MTm•nt Funds Funds Fund$ £000 £000 £000 Total 2022123 £000 Total 2021122 £000 Direct grant-making staff o)sts Other direGt r￿sts 207 207 179 12 213 142 213 142 191 128 Support costs (see Note 8) 355 355 319 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Nots 8. SUPPORT COSTS Cost of G•n•ratlng Charllable Funds A¢tivitie$ £000 2022123 2021122 TOTAL £000 TOTAL £000 £000 man￿eMeN & ￿nance Staff costs Premises costs Office expenses Legal & Profegslonal Irr8coverable VAT Audlt fees Govemance & Annual Rewew 157 105 261 251 14 17 22 14 20 13 18 213 143 319 Not• g. STAFF COSTS 2022f23 TOTAL £000 2021r22 TOTAL Wages & salaries Nalional insurance costs Accnjed holwjay pay Pension & Llfe Insurance costs Recrulm8nt & Stsff expenses 379 342 35 41 23 471 The average number of employees employed throughout the year was 8. Two 8mploye8s work part-thn8, and the full-time equN8lent basis (￿E}IS 7.4. {2021-22- average 7. FfE 6.6>. The key management of the charTty are the Dirgclor. Finance Manager, Grants Manager and Eslate & Property Manager. Thelr total remuneraoon (gross pay. employer Nl. employer pension arKJ benefitsnlfe Insurance) was £307.545 12021-22.. £262.1681 The￿ ￿tre employees ￿Ose salary plus penslon contribution fell in the £60.001-£70,000 band {2021-22.' 2}. no employee whose salary plus payment in 118u of an employer pension contribuUon fell In the £80.001Q￿.o0O b8nd {2021-22= 01 and one em￿0ye8 bthose salary plus payment in lieu of an employer penslon o)n1rib￿lon fell in th8 £90.001 Q1fK).000 band {2021-22'.1). No other staff exceeded eamings of £60,000. Pension payable lo these means all employees amounted lo £21.986 (2021-22.. £12.5321 37 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Note 10. TANGIBLE FIXED ASSETS Walcot Educa¢lonal Foundatlon IWEF) Tangible FixedAssets Fumiturn Fraohold Prop•rty Equipm•nt £000 £000 Total Cost or Valuatlon As al 1 Aprll 2022 Additions Ravaluation Disposal At 31 March 2023 1,565 41 1.615 32 1,647 DepreCI￿On As al 1 Awil 2022 Charge for period Disposal Ai 31 Marth 2023 {371 {21 (37) (2) 30 Nel Ix•ok valu At 31 Marth 2023 1.615 1.617 As al 1 April 2022 1,￿5 1.569 Historic cost of propety (stated as valuation at l January 1980, se& nots 11) 116 Investrnent Pfopety held within with the W8lcol Foundation at 1Jt January 1980 Is Induded in ¢￿$1 al the valuation at that date, and was revalued in March 2023 by Cluttons LLP. All valuations ar& on an open market basis in accordance with the Roya Instilulion of Chartered SuNeyors' VakMtion- Professional Standards. 2014 Edition. 38 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Noto 11. INVESTMEiffs Ar VALUATION Unrestricted Restrlcted Endowment Funds Funds Fund8 Totsl Funds 2022123 £(K)o Total Funds 2021122 £000 £000 £000 £(￿0 Market value at 1 Aprll 2022 (Restated) 10.332 6,341 108.897 124569 125.534 Addllions at cost 1.1fj6 1,160 2,160 rthskK)sal$ al m8rf(el value (1,034) 11,166} (2.200) {22001 Inveslmenl m8nagematt fees deducted from portfoTho {231 1671 12071 1298) 1327) Net Ioss on revaluation 13211 12061 12.469) (2,9971 502 Movement in Invoslmenl As8ets allocation bett•￿en furKIs 397 319 78 Marf(•t valu• at 31 March 2023 121241 12 Analysis of Invgstmonts held at 31 March 1023 Direclly held freehold land & bulldings 73.038 73.038 72.883 UK equlles 508 2,009 2,866 Overseas equitles 6.473 4.433 25.587 36,493 40,355 Fix8d income 247 1.424 2,031 743 Altematives 733 2.897 4132 4332 Cash Investment man8ger8 275 1.087 2.562 Cash on deposit as investment 1,002 30 1J31 TOTAL 9.351 106.142 121.241 125,$69 Freeh)kl prop•ty hdd ￿1th1n %•th the W81tr&t Foundatlon at 11f January 1980 15 induded in C￿$t at the vauatH)n at that dat8. 8nd ￿a$ m8lued in MaY¢h 2023 by Cluitons LLP. All valuatTons are cffl an op8n rnark￿ basls In aco)rdanc8 bv6th th8 Royal Insb"tution of Chartered Surveyots, Valuation- Professicffial Stsndard8, 2014 Ed￿On. Inveslments hald by the charlty Indude a £100 inves1M￿LI2O22.' £1001 in thè substdiary rA)mpany. Wacol pro1￿ Llmltod, and reprts5ents 100% of the Lssued sham capital. Projects LSmlted vos in¢J)rporated on 2 ALWUSt 2018 Ireglstratton number 11497131 and Its reglst8r8d is at 127 KennI￿tOn Road, London, United Kingdom, SE11 6SF. Thè prkndpal activity of Wa￿t Pro1￿1$ Limited Is the provision of d&sign aThJ buikl servlces to thewalcot Educational F￿ndatIOn. At 31 MBrch 2023 W8kot Projects Lkn)rted nts fixed a95ets, nel curr•nt èss•ts of £1C4) 8rKI sh8relK)kJerfg funds of £100. its tUrnOV8r lor the year was £210.10712021122 £1,e70.7921 and it made 8 profrt of £79,67412W21r22 £93,835) prior to gn accrueil Gift Aid dLstrftrrtJtb)n of t79.67412021r22 £93,835} to thè W¥l¢>)t Educational Foundation. Net losses on revaluatSon for 202212023, as shown above. are different to the totsl in the SOFA because the SOFA Include5 a £50,CrfJO revaluatlon ol freehold property which rs included in tsn8ible flxed assets. See Note 10 for details. 39 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Not• 12. DEBTORS 2023 £000 2022 Walcol EdUcat￿n￿l Foundafm Debtors Rentsl debtors Walcot Projects debt￿5 Prepayments Accrued income 16 199 23 335 Not• 13. CREDrroRS Credttors: amounts falling due ￿thin one year 2023 £000 2022 £000 Walcot EduCat￿n91 Foundatti)n Craditors andAccru81s Trade oreditors Deférred ineome Def¢￿ed rental income Accruals Accrued grants Other Cfedilors 179 135 92 85 872 20 76 21 713 980 H8fv 8 CharityAccru8ts WNEC Accrnals 178 116 The Lody Cynthia ChwityAccrnals 1.432 1,103 Note 14. GRANT COMMITMEiirs 2023 £oiJo 2022 Due for posTrent in 2022-23 Due for poyment In 202>24 Due for p0￿ent in 202*25 716 1,633 649 2.998 1.109 2.477 The amounts above have beèn provisionally approved as grants to be made by the Governors up to the 31 March 2023. As the Govemors have fijrther action5 to take on them {mostly carrying out progress remews on each one against P8rformanc8 conditions) before releasing them for payment, they have not beon r￿ognI5ed in this yearfs acc¢)unts. No discounting has been applied to grant commilments due in more than one year on the basis that the period over which amounts will be settled are such that any discOun￿n9 would be immateriol. 40 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Nots 16. ANALYSIS OF FUNDS MOVEMENTS Balance B•l•n 1Th￿me Expenditurn Galnsl Transf•rs 31 Mar22 (losmsl botwo•n 31 Mar 23 Fund8 £000 £000 £000 Unrestrlcted Funds WEF G8neral FLsnd Ha￿e'S Goner81 Fund WNEC Gener81 Fund Thg Lady C￿thia Charity Su&total unr•$trl¢tod Funds 8,980 1.165 2,867 186 (4.358) {57) 13991 1286) (35) 7.&J6 1,255 {41 136 29 2,882 165 10.281 {4,8141 {321) 897 8,925 R•strkted Funds WEFR&RFund WEF St Thomay, Income Fund WEF Sl Thomas, Capltal Fund WEF T0￿Send Income Fund WEF Townsend Capital Fund WNEC W&C & Guy's & St Thom85 5.188 115 1389) 11711 4,￿28 132 17 16) 19) {1} (311 178 141 172 Subtotal rgstrlctedFunds 6,327 924 {405) 1206) 1897) 5.742 EndowmentFunds WEF Endowmonl fund He￿8,$ Endo￿lent fund Tha Lady Cynlhla Charity Su&total •ndowmen¢ Funds 99.880 (216> (66> {2.1981 (156) 65 97,466 8.761 1.496 107,723 1,573 110,436 1293} 12.419) Tofal Funds 127,043 3.806 5.513 2,947 122,390 Thewalcot EducatSonal Foundation IWEFI Schomedirects the all¢xalion of WEF'S income.. Ihis include5 payrnenl of be￿en 100/0 and 20VA of net Income after management expenses to the Walcot Non-Educalional Charity. In 2022123, a lot81 of £399.23912021122 £259.627} was transferred WEF Gener81 Fund for thls purwse. H8yI8's Charity IHayl8's} and The Lady Cynthla Cherfty Fund ITLCCI pay an annual seNce charge to WEF tr) reflect a contribution to costs of grant-maknng and office administration. The service tharge is based on proporlion of grants each chadty pays. In 2022123 Hayle'¥ paid £4,421 (2021r22 £5,684} and TLCC paid £012021122 £01. 41 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Nol• l61Gontlnu￿). ANALYSIS OF FUNDS MOVEMENTS 2021122 Balanc• B&lane• Income Expondltur• Gain￿ Tran8fern 110￿¢1) betw••n 31 Mar 22 Funds £000 31 Mar 21 £000 £000 £000 £000 £000 UnTrstrictgd Funds WEF General Fund 9.714 1.050 2,598 182 12.987) {58) (472) 1547) {3) 202 (6) 472 8,980 1,165 Ha￿e'S G￿er81 Fund WNEC General Fund Th& Lady Cynthla Charity Su&total unrnstTiCt•d Funds 107 10.871 28 136 {3,517} 1550) 10.281 Res(rfcled Funds WEFR&RFund WEF St Thomas. Income Fund 5,510 99 (322> {466} 5,188 115 WEF Sl Thomas, Capitsl Fund WEF Townsend IrK¥Jme Fund 17) <15) (2) 10 WEF Townsend Capitsl Fund WNEC Trust For London & Battersea Power StalSon 165 14 178 213 213 Sutstotal rnstiictedFunds 6.617 233 13461 490 {8681 6,327 Endowment Funds WEF Endowment fund 99,970 8.948 1.603 110,521 12301 (76> 14 141 99,880 8,984 Ha￿e'S Endovffient fuThJ The Lady Cynthla Charity sU￿tOtal endowmènt Funds 112 18 235 13201 110.436 TotalFunds 128.009 175 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Notg 17. ANALYSIS OF NET AssEfs BEfwEEN FUNDS Un- rgstrlctsd En. Un trlcted dowm•nt TOTAL r•¥trfctgd trIGt•d dovmi•nt TOTAL Funds Funds Funds FUNDS Fund8 Funds Funds FUNDS IR••tst•dl 2021r22 2022123 £000 Funds balances At 31 March 2023 as rgpros•nt•d by: £000 £000 £000 £000 £000 Tangible fixed 8ssets 1.615 1.617 1.565 1,569 Inveslment assets 9.351 5,748 106.142 121,241 10R32 6,341 108,897 125,569 Debtors 324 324 335 Other current 8ssets 841 673 673 Current liabilities 1.392 1.432 1.063 14 1.103 8.925 5,742 107,723 122.390 127,043 Note 18 RELATED PARTY TRANSACTIONS The four ch8rf1ies fomilng th8Walcot Foundation are related p8rttes. being a118dministered bythe same oorporate tnJstee- The Walcol & Ha￿a'S Tru51ee Compony. The granl-making. govemance and support oosls for the frAJr charities are boma by th8 Waknl Educational Foundation. HaWe*'$ Charity and The Lady Cynlhla Charity Fund paid an annual serV￿e charge lo rellect these costs. In 2022123 HaWe'$ paid £4.421 12021122 - £5,684), and The Lady Cynthia Charity paid £012021122 - £01. Eight claims for expenses y certaln Governots of a total £414 were reimlxjrsed to them in 2022r23. No Govemor or any person connected wlh a Governor received any remuneration or 8ny benefit from any of the four Char￿8$ {2021122. none). Where a Trustee has an Intsts51 in a grant ben￿ciary, Ihal Trustee VAII excuse hersewlhlmself from the decbsion making process. In 2022-23. W81¢01 ProSects knmlted d￿rged É210,107 {2021r22 £1.670.7921 to the WBlcot Ethc*tion FOur￿*t10n in respect of ¢Jesign and bulld seMc88 and made prOwS￿n for Gift Aid payments lo the ch8rity of £79.674. The n&t balance owed lo thè Walcot Ed￿ation Foundation at 31st March 2023 was £79,674. WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Note 19 Grants of £10.000 or morg awarded lo institution• worklry wllh flnoncially disadvantagqd Lamb•th t•sid•nt8 Name of Institution Ch•rtty Descriptlon £000 Grounsthwrk London WEF BounceB8ck to RwAryk 61 Cèntré 70 Advicé Cèntrè WNEC W81tt)t Adv￿ Worker 57 Wdo)t Student Adv8nce Programme- P￿rf2 Aspire Biidging th• gap to C￿StrUction empknyment C￿t of Liwng Crisis Grant- Emerg Vouch8rs for Foodbonk cal￿ts WEF 53 Constructbn Youth Trust WEF 50 NoNLY)d And Brixion Food￿￿}k WNEC 50 Plaianos Coll&J8 WEF Platanos Healthy Sthooj Grant Rathbone Ed￿ation and ErnF4oymont Programme SI*￿￿ of Harfl Kn¢xks- At Prir Community Lambeth PLgy and Early Y8or5 Traning for ernF40ym￿1 Stirol skil￿ BounceB&k prowamme Road To SuLf8S8 Waknrth Gardan L$¥el 2 WO￿ BawJ Horbculture Boun￿* Tu186 Hill Rathbone Sctlety WEF Sthcd of Hard l(JKY*¥ WEF Slade Gardens Commwity A65wation Spiral SkJlls CIC Stre#tham Youth and CornmunÉly Tru WEF WEF WEF ￿?j￿)rth Gard?n H*3h Tr885 C(￿mUnty D•v8k)pm8nt Trust WEF WEF Rlpe LeamlNJ WEF Better Sklls, B&terJob8 Unity Work8 SOCI￿ Entsrprisa8 WEF Unity Lambeth Thè FÈctory'. Fost Forward Inb the Creallvg ¥nd CU￿1 Induslrias 198 ConternwraryAts aNJ Lg8min WEF Creative Sparkwrjrks WEF Steps and Sparks towork Motivat• and L8ad.' Empbyment R•adlness SupFQrt for 18 to 20 y$8r olds Ml Communty Enterprfse Llmlted Indo￿arican R•fug8e and Oo8ni8atknn IRMO WEF WEF b)Un￿ IRMO Larkhall Primary S¢h(d ond Childrpn's Centre Llllan Ba￿1$ TechTh)bgy S¢￿xI1 WEF WEF Larkhall Heatthy School Grant Lilian Bayli8 Hearthy Sthod Grant LOUght￿OUgh Prfmary sch￿)1 Tou(*n Employrn& Rkging St*¥ SupFrf)rt WEF WEF WEF Loughborough Heahhy School Gr8nl Toucan Hosptaity Proj8L* Flght For Your Futurè IBounceBacal 37 Allen Etthvards Prirnary Sch￿1 WEF AIKen Eoknrd8 Heahhy S¢h)ol Gront hxchbishop Ton1K￿,$ H￿lIhY School G￿t Ark Evelyn GreKe Heahhy School GrAnt Archbi¥fv)p T8nison's£chty)I Ark Evelyn Grdce Academy WEF WEF WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Notg 191contlnuad) Grnnts of £10.000 or moro awardod to In$tltutlons worklng with financl¥lly di$advantsg•d Lambeth resldents Namo of In$titutk•n Chartly D•s¢rlptlon £000 OUTSIDE THE BOX- Creatrve Entre￿en￿rS Project Brlght Lfve and Leam Well prole( LAmbÈth DooF5tsp Libr8ry projeds F8n$tsnton He8lthy School Grant Granton Healthy SchcKJl Grant Henry Fawc8tt Heatthy S¢￿1 Grant L￿￿eth Peer Athon Colleetlve Hill M8ad Heallhy Schcol Grant Larnbeth Diqital HeroeB IntoUnivgr5ity Kennington Engage & DIVERT Oasis Healthy S¢hool Grant Trfnity H•althy Schoc4 Grant Van Gogh Hoothy S¢hrx)l GMI WYMI Heathy SCI￿ Grant Moving On Year 2 The OntrStopShop.' Tad(Ihg root causes of lood ￿)￿rtY and insgwrity A￿&98 to Aorstep Ltrjrary Fenstanton Prfm8ry Sch))I Grnnton Primary Sthool Henry Fawt6tt Prtrnary Sthool Hlgh Tr88s Comrnunty Deveknpment Tn￿t Hill Mead Prfmary Sch￿1 Institute Of ImaginatK)n IntoUnNersity Juvgni$ Oas(g AcAikny South Bank A¢ademy Van Groh Prfmary School Wyvil Primgry Sthool St Matthèws PrOj￿t WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF 30 30 30 30 30 30 atak8ts sabllty Advk8 S8M¢g Larr*>eth WNEC WNEC A Safg Dcme8ti¢ En￿roThMent for Portuguese- speaking Famllies In Lambeth 'Behlnd The Sc•nes'. Famlly Interventh)n Project Young ca￿r$ Project Virtuèl Comrnunity After-￿￿1 Study Supp)rt Club R8speJto WEF Code 7 Ltd C8reTS Hub Lambeth WEF WEF CEF- C¢mrnunty Educatkjn Foundation & LynGX WEF 25 Secondary Transition EmPu￿rn￿lt Programme ISTEPI Athice for Lambeth Crisis NavKJatK)n S8rKe Chief Operatin9 Officer Dgvd0p￿￿nt Programrne Holy Trinity Heatthy SclKJol Grent Iqra Healthy Schc4)l GMt On the rfght tr&k Earfrlntsrvention L•ad Dramath8rapy.' CrBatiThJ W8llbOFro Togeth•r in Schoo19 Chance UK Citizen$ Advlce Merton And Lamb*h Commons Law CIC Communty TechAld Future Men Hoty Trfnity CE Prfmary $th￿l Iqra Primary School fek>ng Family Link8 Llllan Baylis Te￿I￿rogY Schcd WEF He￿85 WNEC WNEC WEF WEF WEF WEF WEF 25 25 25 25 25 25 Mlndhewt creats.ve Thora￿￿5 CIC WEF 25 Nor4%wd And &lxton Foodbank Options 4 Charge Orchard Primary R¢ay Primary Sch¢) Saint Gabriels coll￿]8 WNEC WEF WEF WEF WEF El￿triC Delivery Van for ￿)r￿)¢)d FIKAlb8nk Famlly W811are The (Trthard Hedthy Sthoc4 Grant Mlnd the knrd, gap,. ReM￿ng Barrfers in Education 25 25 25 25 25 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Noto 191continugd) Grants of £10.000 or mor• awarded to Instltutlons worklng whh finanGlally dlsadvantaged Lamb*th rosbdwts Name of Instftutlon Chathy Dgscripti¢ st Mark's CE Pthiary Schojl St SteF*en'8 CE Pn'mary WEF SI IAark's Heatthy Sthool ¢>ant WEF St step￿n$ Heathy sChc￿l Grant 20 WEF Lambeth Connedng forCharYJo 20 V3uxhall Primary Sdwl Yourstory WEF Vauxhall Hedthy Sc*ool Grart WEF Llving LO￿ T8m) Hèallh Condltlons 20 19 Young Futur8S Thg Childrgn'$ Litaf4Cy Charity Larnbeth Nurnory *h￿l8 Fed8ratK*n WEF Therapy for youTrJ fern￿￿ care leav•rs at Y¥onne Howe 19 WEF Ey4J•rt Lab Prograrnm8 in Lamt4th 19 WEF Music Thtrnpy ac¥oss 5 nuTsery sthD)l$- Exkensbjn 18 Lambelh Somall Community A85￿#tIOn WEF Leamlng 8ftw cO￿￿-19 IL4CI Pm1￿l Building Young Aspirations 18 AIFord Fbu8e Rth8rd Athins Primary Sthwl WEF 18 Creativè Thewy & NOPA.. a prrfjrdfflm8 of rnentsl heaw) gJH>ort at R[Cha￿ Atklns Prim8ry Therapy and Outraach Support to txkle Pupl Premium WEF CNldw'¥ M8ntsl Hedth. WEF 16 Storknwll Prtmary Sch￿1 16 Upgrad8 Yoursdf tutoring prvgrwnrne. WEF Ck)strng the att￿nment gap n Street Centrtr TrL*t 15 Hwon Acedemy WEF Th8 Mth881 Tippètt Hgathy Sthoc4 Grant 15 PwJasLts Opara Company South LorwYJn AB#ociatitsn WEF Opera Mentorfng Prowamrne Lambeth youth club and $upport for vuknwabl• young refugees nd oswum 88eker8 15 WEF 16 The Li￿ty School WEF The Li￿Y H8aMhy School G￿￿t 15 Chrf9t Church Streatham irnBry Ilenlal hgdth & wollbdng. a trdistlcaFproath to $upputing WEF dsadvanlapj pupi18 15 Art4Sp* hbiBhop Sumner C.E. prtrnary School WEF Cr•atlve Arts Preparation ForAdulthoLKI and Empk)ym• 15 WEF Child PSYL4V)tr￿raPy. Rwrnving barri￿ in gducati?n. 14 St•p Now Gkjbal CIC St Saviours CE Prlmary WEF Inspirg to Aspire Piogramme 14 WEF Creative Awts Thèr8py s￿lee& 14 Supporung dtsadvwt8ged purrfls from Lamboth to fu￿1 WEF the¥ potential 8t Sthoul and btyoNI Impmwng orooy sk1116 in MAGT puplls & Ernotiwal WEF wdfare supp￿* for PP puplls Future F￿tièrS 14 l ￿lMary School 13 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 PIIARCH 2023 Not• 19 l¢onllnued) Grnnts of £10.000 or m￿0 awardod to institutions working with flnanclally dis#dvanlaged Lambeth Nam• of Institutlon Charfty De8¢rlptlon £000 Leadershlp ThrO￿h SkffiArd Buwrths WEF Morè Th8n An Apprèntice. Lambeth Closlng tha gmp.. A¢￿8 2 Utè prL¥ramme Héalth M•ntor 12 St Jude's CE Prfmary Scaool Sunnyhill Primary School WEF WEF 12 11 Haffts At￿￿Y CL4pham Héalthy School Grant Oa￿$ Johanna Hoolthy Sthool Gr8nt Tumey Heathy School Grdnt ABC- AChi￿r￿J Beyond CapabS11I89 R8rLJvery ThrO￿3h GardenSng the Great Outtho Harris Acaderny Clapham Oasis Awlemy Johanrta T(mey SL*ocl Exee8d Re8dlTrJ Stsr5 Ltd WEF WEF WEF WEF 20 20 15 10 HNh$rf￿d Prirnary sChc￿l WEF 10 Brixton Youth TheatrB- Young Refug Elm Court Heathy Scho(A Gr8nt Kennington HèBlthy Sthcx)l Grant Brixton Comrnurity Base Elm Court Sthool Kgnnir￿tOn Pa￿ Aeadamy Lanbgth Lgrd?r CGThrnunlty Fc￿￿ R8sourr* cic Lansdowne Sthoc4 WEF WEF WEF 10 10 10 WNEC WEF Pap8r Directory of S8rvK8s 202&25 Lansdowna H•8lthy s¢￿￿1 Grant Plaffom Café Empby¥l*lity Programme Lambeth Book c￿tion aub Earfy InteNenlon Thernpyfor Vulnarabla ChiTdrgn Subtolal ofGrants U•tsd Abo 10 10 LoughboTough Junctbn Aeuon Group Station Hall Heme Hlll WEF WEF 10 10 Wolnut Tw Wdk Prfmary S¢hts)I 10 Smaller grants to organl8aUons working With financlalty dIgadVant￿0d L*nb•lh rnsld•nts (Aot Iljtod abw•) Grants to Indfvldual• 381 T¢tsl Grants P•Sd In Yoar 47 WALCOT FOUNDATION tackling poverty by creating opportunity Report of the Governors and Accounts 2022/2023 The Walcat & Hayle's Trustee Is a limited not-for-proflt company161338491 re815tered in En8land and recognised by the tharlty Commission as the sde trustee of The Waltot Educational Foundation13128001. The Hayle'5 Charity1312800- 11, The Walcot NoTh-Educatlonal Charlty 131280LL21 and the Lady Cynthia Charity 13128CQ-31. The Governors are Dlrertors of The Walcot & HayFe'sTrustse. walcotfoundation.or8.uk CONTENTS INTRODUCTION 3 A BRIEF WORD FROM OUR EXEci￿1vE DIRE￿OR 4 WHAT WE PLANNED TO DO, WHAT WE DID 5 GRANTMAKING 202212023 6 The year's headlines 6 'BounceBacV- our phase 2 Covid-19 response 6 Cost of living cris￿- Otjr response 7 Grantmaking budget 8 Grants we made directly to indlviduals 8 Example5 of grants to indiviuda15 and and what individual grantee5 said 9 Grants to schoo15* projetts. and organisations g Examples of grants to schools and or8anisations 10 Example5 of the benefits to individua15 of our fundin8 of organlsations 11 FINANCIAL REVIEW 2022123 13 Income 13 Expenditure 14 Fund balance5 14 Investments 14 Long-term Investment Policy 15 Reserves Policy 16 OTHER ACTivrrY 17 PLANS 202312024 17 srRUCTURE, GOVERNANCE AND MANAGEMENT 17 Constituent charities 17 Trustee body 17 Waltot Projects Limited 18 Pollcy on Governor expenses 18 Governor5, Office Holders and meetings 18 Recruitment. Appointment and Induction of New Governors 18 Slaff pay 19 ADMINISTRATIVE 19 Registered address and www domain 19 Slaff 19 PUBUC BENEFIT 19 INDEPENDENT AUDITOR'S REPORT 21 GLOSSARY 25 ANNUAL ACCOUNTS 2022123 26 INTRODUCTION We welcome the opportunlty to report on the work of the Foundatlon for 2022123, supporting low income mmunitles from the London Borough of Lambeth to oveicome economlc, soclal and educational slruttural and systemic disadvantage. Having operated for some four hundred years, as Governors we remain mindful of our benefactors. ori8inal Intentlon to supportth05e In need In Lambeth In perpetU￿y. The Foundatb)n work5 hard to ensure we rema5n tonnected and responsive to the challenging endemic issues low-income commvnltles face today. The context of todèy is one of ever-lncreaslng disadvantage. In 21 Century Lambeth. the challenges loom. As low-income familles look to move on from the Covld-19 pandemlc, communltle5 are Still dealing wlth its after-effects. and through our work we are needlng to provlde support In response to IncTe￿Ing mental health issue5 in Lambeth'5 young people. We have seen communtties, familte5 and individuals affected by low incomes face further challenges in the cost of livlng crisis. We have seen double-dEit inflatlon. wlth low-lncome households having to adapt to food inflation being at Its hlghest for 45 years. within this context of a tsunami of need. the Foundation Is focused on ensuring rts support brlnB5 Positive impact to the low-income communities in Lambeth. It is more important than everto understand our role In the community. notjust as funder, but as partner and as convenor, arnplrfyin8the voices of those we support to ensure that structures and systems really work for ihem. Towards the end of thts year, we started to prepare to wish the best to our current Chalr. Teresa aay, and Govempr5 Rlchard Allnutt and Frances Greenburgh who all left WF In Juty 2023, after 10 year5 of seNice, having successfully land generously) completed an extended temi of governorshlp. To the many people who help us In our role as Governors encouragers and provSders of all kinds of services- thonk you. our beneficSaTles, our staff. our advlsers, The Govemor5 November 2023 A BRIEF WORD FROM OUR EXECUTIVE DIRECTOR This has been a year of posltive transftioTr and change for the Foundation as we have stsrted to work on developin8 our first or8anisational strategy. Although we have onw lust started to work on the strdtegy wlth trustees, stsff and the wider community, It ha5 been wonderful to be re-inspired and re-ener8lsed by the commitment of coltea8ues, to find ways to do even more In and across Lambeth. We have taken the opportunlty to get muth clearer on our values and our" approaches to bein8 a geographtcalty place-based foundation that is truly'ln and of Lambeth communltk5'. We all look forward to completin8 thi5 strategy and movlng Into an implementatlon phase that transitions US to better amplify the voices of Lambeth's young people. WHAT WE PLANNED TO DO. WHAT WE DID In la5tyearfs report w• Its1￿ th•s* phns This is Wh￿ we *¢hleved To achièvè a smooth transltlon In the n Grants- a £5￿ bonus pald to those who secure work to help with some of the initlal costs of starting a new lob- highly valued. In January 2023, a thlrd and flnal year of 8ounceBack was authorlsed by the Wakot Governors. usin8 a mix of underspend from the orlglnal £2,OcQ,o￿ budget and funds from the 2023/24 grant budget. Thlsfinal year wlll alk)w us to go even further in adapting the programme to ensure we are meetlng the needs of young people who contlnue to be Impacted by the repercussions of the pandemic. We wlll fund a smaller group of some 10 speclallst organlsations, who wlll work even more closely to help people who are furthest removed from the labour market. Thls fundlng will ensure the continuatlon of the BounceBatk project until September 2024. A celebration and leaming event, to revlew what has been achieved, is now planned for early 2025. COST OF LIVING CRISIS- OUR RESPONSE The cost of Ilvlng cr1515 has been causing sIEnfficant hardshlp to many Lambeth resldents. and l¢xal organb5atlons are faclng the twln struggles of their own rising costs coupled with increased demands for seNlces. In re5rKfvnse tothis.the Govemors of the Walcot Foundation In the 2022123 flnandal year added an addit*)nal £300,[￿ to our grants budget in Order to provide some assistance. Other local charities took slmllar steps. The Foundation's help included.. Supportfvr Lambeth resldents in crlsis.. A £50,0￿ grant wa5 made to NO￿ood and Brixton Foodbank to enable the four Lambeth Trussell Trust foodbanks to provide supermarket vouchers and energy lopup payments to foodbank guests, Incre05ed 5UPPQrt to individual grantees.. Walcot university student grarbts were Increased from £1,500 per year to £1,8(￿) per year. All new applicants can apply for that increased maxlmum ladditlonal total C05t- £60,000). Support to lotol orgonlsotlons.. Cost of Ilvlng crisis top-up 8rants were made to local O￿an1$atIOnS with currently funded proJets- total top-up costs £190,C(Kl. This was to help organisatlons Iln a small way) wlth the Increased cost5 over the winter. The slze of these grants was linked to the tumover of the organisation as follows: under £50,[￿ turnover- £1,500 grant; £50,C(J04500.(W turnover- £3,0 grant: £500,LXWI,OCK).Ci)O turnover- £5,￿)0 grant. These grants were unre5tricled and the resu￿$ did not need to be reported on by the reclpients. GRANTMAKING BUDGET lftfvmotlon In blue shows the sums paid to orqgnlsutions. knght blue relates to 8ounce8ork and durk blue to other orgonisutions/schools. Infvrmqtlon In greyshows thesums PO￿ directly to Individuol9rontees. 450 5￿j BDwQBa¢kAw￿UTht £15￿,1￿ NoofGraTrts i( /è°//'*° * è°/// Grants by value and recipient type Granlsto Smallest Largest Average Indlvlduals £901£301 £43W1£4,IXKII £lJ441£1.252 OrBan15atlons (Small Grantstreaml £58S1£6901 £w.000 i£io.(ooi £4JOI1£6.1281 Or8?nlsations (Large Grant Streaml 1,000 {£11,8301 £61.1731£53.8731 £27.9581£28,7601 7heomountsshown in brutkets ortthe¢orrespondlno¢mwuntsin theyeor2021/22. GRANTS WE MADE DIRECTLY TO INDIVIDUALS Last year. granls paid directfy to Individuals Increased by 21% in volume and 22% in total value. We made 304 awards in 2022123 compared wlth 252 in the year before. The number of grants to indivlduals for vocational courses contlnued to Increase- 42% of student grant approvals compare(I to 34% in 2021122. We wlll contlnue to promote this service through Lambeth College. local grantee organisations and Centre 70 student advi50r communlty sessions. We made fewer rehousing grants in 2022123- 21 compared with 39 In 2021122. Of these grants. three went to young people in need of independent accommodatlon and 18 to those who needed alternative accommodation because of domestlc vlolence. Grants to cover bankruwcy fees remained static. We awarded five grants (five in 20211221- Grant recipients by gender were 67% female and 33% male. The percentages in 2021122 were 65% female and 35% male. Grant reclplents by ethnirity were 65%163%1 BlacVBlack British; 15%116%1 Whitelwhite British; Il% 19%) Mlxed; 3%15%1 AslanlAsian British: 6%18%1 Other. The percentages for these 8roup5 In 202V22 are stated in brackets after the figure for 2022123. EXAMPLES OF GRANTS TO INDIVIDUALS AND WHAT INDWIDUAL GRANTEES SAID 'R' IGrant towards the costs of studying for a degree In Children's Nursing) Trls gront hos given me the chunce to not worry obout the expenses whilst on plocement. My tmvel expenses and expenses Includin9Aoodot hospitals were coVe￿d. It h05 gfven me o smooth tn7nsltlon Into unlversity. Whilst also being ocodemicallyAocused l olso hod the chance to enjoy my flt¥tyearot unlverslty byjolnlng socletle5 and attendlng events.. 'M' (Grant towards the cosls of studyin8 for a degree In Crimlnologvl °It took o mossivefinoncial burden off my shoulders. I wouldn't hove had os much tlme tolocu5 on my studies and I would be worrying ¢7bout having alob tofund mefvr unlverslty essentlals whlle olso currently deollng wlth thefomllysltuutlon of my mother being ill." 'S' (Grant towards ihe costs of studying for a degree in Diagnostic Radiotherapy) The studentbursary and chlldcore grant hos enabled me to purchase the necessory resources ond equlpment requlredlor me to othieve o very good grode. It equollyprevented mefrom hoving an early dmTrout that could occur ttl wus notadequatsly5UPPQrted with chlldcore cost to mointain ¢7 great attendonce both whlle at unlverslty and on placement." 'W IGrant towards the costs of studying for a degree in History and French) The Wolcot grant enabled ft7e to hove more tlme dedlcated towurds my 5tudles. Previously I had worked purt-tlme whlch hod negotlvely Impoctedmygrodes but I wos able to slgnifKantly improve because the qront 5UPPOrted me In provldlnqfor boslcnece551tle5.- GRANTS TO SCHOOLS, PROJECTS AND ORGANISATION5 We make grants to schools. projects and organlsatlons as a means of reachlng IndlvlduaL4 who are at the heart of our charitable purpose. Our grant-making priorities are: l To directly support academic achievement, particulady projects that help close the ￿aInment gap between pupil premium children/young people and their peer5. 2 To address student Irelengagement with school, partKularly in transition years and for students at rlsk of excluslon. 3 To respond to the mental hea￿h needs of chlldren* youn8 people and thelr parentslcarers. 4 To help young people (under 301 Into employment. 5 To improve access by our target group Ilow-income Lambeth household51 to advice senlices. particularly in the fields of debt, housin& and employment. Of our grants thls year t¢ schools* woJe¢ts, and or8anlsatlons Age range of beneflclaries (2021/2022 distributions bmcketed} 0-4 years- 2%12%1 5-11 years: 30%116%1 11-18 yeaTS.' 19%117%1 1&29 years.. 37%146%) year5.. 3%13%1 Undefined: 10%115%1 Pupll premlum pup11s are those who have been ye￿rded as ell8ible for free school meals IF5Msl èt any tlme In the past 6 year> Pypll Premlum also Includes chlldren oltsmllles who h#ve no recLwrs¢ to publl¢furnls and ¢hlldren who are looked after by a local J￿h￿rtty. or have been In the past. The decrease in the 18-29 age-range percentage Is attrlbuiable to the Foundation securing additional funds for school age children vla our collaboratlon wlth Impact on Urban Heahh'5 Healihy Schoots programme land the malorlty of thts was focused on primary schootsl. This broadly matched our increased spendlng for people 18-29 years via our BounceBack programme which is targeted at under-30 youth employment. Our funding continues to be focused on our strategic priorities: 93% of 8rant519)% in 20211221 was spent on removing barriers in education, maximislng learnln& bulldlng employablllty and providing advice (the remaining 7% was spent on educational field trips and the immediate relief of needl. Of grants to schools, 70% went to primary schools {62% in 202V221. 23% went to secondary schools130% In 20211221 and 7% to special 5choo1518% In 20211221. This weighting lo primary schools Is partly the result of past decisbons. It is also attributable to prlmary schools havlng smaller budgets. maklng thelr need for external support 8reater than in secondary sthools. EXAMPLES OF GRANtS TO SCHOOLS AND ORGANISATIONS MINDHEART CREATIVE THERAPIES Dramatherapy: Creatin8 Wellbein8Together In Schoolsl £75,000 over three years This project wlll fund creatlve therapeutlc Intervention5 in Lambeth schools provldlng a mix of I:1 therapy and small groups f¢xusln8 on wpS1 premium pupils. Sessions could involve Indi￿¢t play, art, muslc or traditional talking therapy techniques wRh the alm of buildlng resilience, developing positive behavlour and improvlng school participation. THE CHILDREN'S UTERACY CHARITY Expert Llteracy Lab Programme l E57,584 over three years Thls Is contlnijation fundingto help CLC provide dedicated'Liieracy Labs, In both Heathbrook Primary School and Julian's Primary School. In totsl. the project will help up to 36 children each year wlth literacy 511PPOrt sessions delivered by senior Ilteracy tutors. This Is focused on helping chlldren catch up when they are up to 24 months behind their age*xpected Ilteracy levels. CROSSUGHT ADVICE Cro55llght- Lambethl £73.095 over three years Due to increased demand from Lambeth resldents. Crossllght will open a new Lambeth branch based In Clapham Park. It will provide debt advice to residents (the equfvalent of 2.5 days) and mana8e a team of tralned volunteers. The volunteers. Sob will be t0 Supplement the advke glven and also to provide preventative budBetin8 advlce and courses. RESPEITO Safe Domestic Environment for PortUBue5e-speak5n8 Famlllesl £88,979 over three years The project wlll employ an Advlce Worker to 5UPPOrt low-income Lambeth residents from PortU8ue5e-speakin8 communlties who are experlencln8 dome5tlc vIolen￿. Areas of focus include mitlgation measure5 for those who have already been stru88lln8 With domestic abuse. preventive actions to deal wlth domestbc ten51on amongst household members arKI welfare advke and advocacy. COOE 7 'Behlnd The 5cene5'_ Famlly Intervention Projert I n9,248 over three years The Famlty Interventlon Scheme Workerwlll work Intensively with 12 familie5 over a year In orderto cre*e and Compbete a bespoke support plan. Each plan wlll be dffferent but 15 likelyto focus on issues such as household finances. housin& education sustainment and employment for immediate famlly members. io SAINT GABRIEL'S COLLEGE Removlng Barriers Fn Educatlonl £25.OW over one year Thls prolett will provlde counselllng servlces to the school's most deprlved pupils with the aim of developing their resilience and well-belng and improvingtheir progress in school. The school will a150 host a Spanlsh speaklng Counsellor for the flrst tlme. STOCKWELL PRIMARY SCHOOL Therapyloutreach Support l £15,752 over one year The proSect offers art psychotherapy, counselllng and outreach family support. Puplls wlll be identified by School staff as showlng partlcular slgns of dlstre55, anxiety, low self*steem and/or disengagement. JUVENIS Engage & DIVERTI £30,1￿1 over one year Thi5 projed will offer an addttlonal theropeutrr intevvention lincludin8 familyldomestic violence support) to the young people and famllles wlth whom Juvenis engage throu8h thelr exlstlng police custody diversion proBramme for l(k17 year olds. This 12-week InteNentK)n will be in additlon to the core work and provlde at least l extra hour a week of famity support/therapy. For more examples see walcotfoundatlon.or8.uk EXAMPLES OF THE BENEFITS TO INDIVIDUALS OF OUR FUNDING OF ORGANISATIONS Our grant to Optlons 4 Change'5 Famlty Welfare Officer enabled them to work with 'C -c is in Yeor 6 and attends one of the schools worked with. She is very talented ando high achlever in most5ubJects andschool activities. The School's Incluslon Offlcer refrrred Cs mother to our Drop In seNlcefvr o houslng mutter t75 It ht7dstarted to offect es schoolottendance. class andstudy engagement and her grades werefvlllng. The F(7mily WelfÈ7re Officer {FWO} undertook t7n ossessment and an actlon plon was devlsed. The issues identified Included... Inadequote Ilvlng condltlons wlth serious mice ond bed bugs infestotlon,. thefamlly of 7 wt75 Ilvlng on £250per month in two rooms on top of o pub, wlth the older children {aged 14 to 16yrsJ living separately elsewhere.- mother having to walk most mornings to toke the children to two different schools as She wo5 unoble to offord the busfures. Following the intervention of our FWO and the advococysupport provided.. thefamily's No Retour5e to Publi¢ Fundlng ollowonce was Increosed to £750 ond eventually£l,CWper month. The legol referrol resulted in thefamilybeing rehoused to u 3- bedr¢￿rn pmperty andore oll now Ilvlng toqether. Since our interventions Cis o lot more settled in school ond hergrodes onduttendt7nce hove improved andshe Is more actively engoged In the school." Our grant to St Stephen's CIE Prlmary Schoovs Homework Club enabled them to work with 'A' -ChildA Jolned Y4 mld-year under Chlld Protectlon. She Ilve5 close to sch1￿1/n overcmwded conditions. She has been exposed to domestic violence ond hermother is o recovering alcohollc. She W05 a child whose behaviour wo5 unpredirtoble ond she'd occusiont711y lashed out at other chlldren. yet often showlng u gentle and vulneroble side. Her ottendonce ondpurticipotion to Homework club Is 100%. Here she hos the space, time ondsupport to help her wlth Homework (English as an Addltlonol Languogej. Despite the chollenges ot home, she has made good progress Fn Readlng16 pointsj, Writing18 points) and Moths 17 polntsj. She is getting emotional support/counselling vit7 onother externologen(y.- Our grant to Ullan Baylls Technology School's Earfy Inter¥enllon project enabled them to work wilh 'K' -K concern5.' Home i55ue5 schoolrefv5er and low nKJod. Working within o lorgefy tosk orientoted li opprot7ch the mentor completed direct work with K on the highlighted oreas of need which were ottendonce and homellfe. Within her init￿1 sessions, the mentor wos oble to Identlfy the rootCQU5es off5 onxieties related to attendlng school and how these onxieties could be best mana9ed through o number of te¢hnlques ond ochlevoble goats. The mentor wos able to link K s chootlcrelatlonshlp with her515ter to some OA the issues thatshe wosfocin9 atschool. The mentor notonly worked wlth K but olso n￿de contatt wlthln thefomily home asshe believed thot a difAerent approachfrom murn ond sister would helpsupporther work with K. Over thefollowlng weeks ond months the school notlceda real lfflprovementln both fs emotlonol wellbelng ondher ottend¢7nGe, to the point where she now has 95% attenduncefor the summer terms compgred wlth 60%for the uutumn te￿.- Our grant to Toucan Employmenvs Lambeth NEET Prolert enabled them to work with 'N' "N was referred by the homele55 teom ot the St71vtttion Army In Lambeth becouse of herleurning dlfficulty. She olsofound herseyon the street uftera Jollout wlth herfomily. Toucan creotedan ACt￿n Plan to oddress herimmediate ond long-term needs. The Toucon odviser lffjised with the housing option team to secure o stifr occommodotlonfor N ond supported wlth her benefit opplicotion. N referred to her locolfood bonkso she could have o stock ojfvod ondpersonol hyglene Itemsfmm a locol chority whlle woltlngfor her applic17tion to be processed. Euch week with her Toucan odviser. W5 confidence andself-esteem grew ondshe was uble to communicate much better with her udvlser ond expressed herp05sion ond long-term dream to get o coreerln modelling/Aoshlon. Mth her TouconAdvlsorfssUPPOrt N createda CV gnd ottended workshop5 and job 5eorch/training sessions. With her odvtserfs help. N applledfvr a mentoring ond work placementscheme with Gucci ¢7nd wos shortlistedforon Interview. N wos referred by her adviser to Smt7rt Works, an organisation whlch support unemployed women with smL7rt clothesforintetview." in oddition, she underttx)k on interniew skllls workshop wlth her adv15er which gave hermore knt￿ledge ondconfidence to succeed at interwew. As o resul¢ N was offered o mentoring /placement wlth Guccl. os well as 5UPPOrt to creote her own portfvlio. She has been $0 delighted with herjourneyfrom being homeless to now o promtsinqfuture in her long-term dreom career." Our grant to fund Christ Clwrth Streatham Primary School's Access lo Llteracy {A2L) Project enabled them to work wtth 'Z' -ChildZ is a Yeor 3 glrl who was glven a diognosis of dyslexio ond then receivedsupport through the A2L progromme. Her reading andspelling skills were very low at thot time. She was rettdin9 Ot the (7ge of a year I child, 2 yeors behlnd heroge-reloted expectatlon& She h05 since received 8 months oAliteracysupport tsnd Isstarting to moke realty goodpmgress with her reoding ond writing skills. She hos improved 4 book bondsfor reodlng In thls time. She 15 now oble to both reod ondspellall ILKI of her highfrequency words. She met5/6 of her torgets thut hod been set. In the Inltlal diognostlc 05sessmen¢ lonouage dlfficulties were observed ond these have been ulso noted in the l.'I teoching sesslons. particulorty in relt7tlon to understandlng of a text, generol understonding of language ond instructions ond olso through her use of grammar in her writing. The school hove now ￿ferredz to thespeech ond Longuage Therapyservlcefor an 055e55ment. Her teocher notes tho¢ 'Zhas become more Independentin her literary leaming ond Is uble to construrt51mple sentences. She hos storted to write longer pleces ond will Sometimes use o conjunrtion to make longersentences.'Z willtontinue to hove speclallstllteroLysUPPOrtnextyeorln order to bulldon hersuccess thls year." For more examples vt5it w•lcoifoundation.or8.uk 12 FINANCIAL REVIEW 2022/23 We are a permanentty endowed Foundation. Most of our income is generated by historlc assets. We are required io preserve the capltal value and to ensure rt grows to protect it against the effect of Inflatlon. In this way the charty can assist todavs beneficlarles ond those of the future. INCOME Our Income In 2022123 amounted to £3,806,34712021122: £3,041,760) a 25.1% Increase. Income from our investments, Including directly held property, continues to be our primary income source. 2022123 Income compared wlth prforyear £2000k £1800k £1600k £14Wk £12CKlk £IOOOk • 2022123 • 202V22 £600k £400k £200k £k Oonztions & Charltable Le8acles actlvlties Rents Llsted Investments Investsnent Interest Other Donatlons Donations form a small element of our Income and vary year by year. This year we recelved £96,198. £79,674 of thls Came from Walcot Projects Llmlted's Glft Ald1202112022: £103.1011. Charftable activities The Foundatlon received £902,10712021122: £212,656) from external funders for agreed joint fundlng of speciflc proJert5. Rental Income Our largest source of Income Is in the form of rents from our properties on the Walcot Estate. This year. these amounted to £1,789.96412021122 £1,420,368). Usted investments lequltles and stocks) We received £990,605 in dlvldend Income from Ilsted Investments (2021122 £1.298,1551. Investment Interest Investment Interest in 2022/23 amounted to £24.202. Other income £3,271 was received as bank interest and other ineome. 13 EXPENDITURE Total expendlture wa5 £S￿l2,7421202v22 £4.182,894: 31.8% increasel. We spent £4.044,444 in grants 12021122 £2,821,503: 43.2% Increase). This Included £857,107 recelved from Gu(s & St Thomas, Charlty, and £45,(W from Winn & Coale5 IDensol Ltd. Our expendrture on generating income was £1,112.83912021122 £1,042,397: 6.8% Increase). Thls includes the full cost of mana8in8 our financial investments and property Portfollo. The Increase over the prevlous year reflects heightened infiation and its effect5 on property and other costs. Support costs, which Include the cost of governance, salarles and other running rost5, were£355,460 12021122 £318,994: 11.4% increase). FUND BALANCES At the end of the year. our total funds stood at £122,39027612021122: £127.043.332: 3.7% decrease). This figure includes the Foundation's investments, the Foundatlon's tsn8lble ftxed assets and the 5hort-term osh at the bank. INVESTMENTS At 31 March 2023, the Foundation's investments {property. stocks and lon8-term cash at the bank) were valued at £121,241,156 1202ty22'. £125,569,530: 3.4% decrease). 60% of Investments is In property, specrfkally, the Walcot Estate, which includes around 115 mostty residential properties in and around Walcot Square. London SEII. The remaining 40% was represented by a mixture of financial investments made on the a(fvice of the Foundation's investment manè8ers Baillie Glfford and CCLA. The asset allocation Is shown below. Asset allocation at 31 March 2023 Infr•stru¢tyre f22m _ IIA%i Private e41ilies. £0.7m10.6Y61 Other. £tX5m IOAXI Flx•d Int41me Elm 11.6%) Cash£2.7rn112%1 UK e4uitie$£2Sm {2.4%1 . Propvty £n8m 160.9Y61 Cknneo5 WJitK5 £36.5rn 14 Monitorln8 investment perfomiance The Investment Commlttee reviews the performance ofthe p)rtfolro every quarter and reports to the Board. Financial investments are benthmarked agalnst the FTSE All Share Index IUK Equitlesl. FTSE All Gilts Index (Fixed Interest). aftd MSCI All Countries World Index (Overseas Equities). Our property Investments are hLstorlcal and specialised, and we have not found a sultable Index agalnst whkh to benchmark them. although we do review the in¢ome and ylelds informally agaln5t Internet rental Income Indlces such as lendlnvest.com and londonpropertywatch.co.uk. Acr055 all investments and property, the total return (income plus capital Erowthl forthe yearwas -£141.890 1-0.12%) and the yield, as measured by income for the past ￿e1ve months dlvlded by valuatlon at 31 March 2023, was 2.31%. Our practice is to undertake a full valuatlon of our property p)rtfolio every five years. a desktop valuatlon annualty. and IndlvSdual 'tOP-up' valuation5 as needed (for example, Whe￿ resldential propertles revert from reglstered rent status and are significantly refurbished and then let at market rents), The lastfullvaluation was as at 31 Marth 2021 and the next will be In 2026. Theyield on the property portfolio las measured by rental inrome for the year dlvlded by valuatlon at 31 March 20231 was 2.4%, the relatively low ylekl being a functlon of the relatlvely hlgh value of London property and of the number of re8lstered rent tenancies. Our flnancial investments were valued at £48.202,599 (2021122: £52,686,543>. The decrease In value Is rn05tly attrlbutable to the fall in equity markets. The total return for the year on flnanclal Investments was - 4% and the yleld on the portFolio was 2.1%. LONG-TERM INVESTMENT POUCY Our Investment goals are- to Eenerate enough Income from our investments to meet the needs of current beneflclarles to ensure our investment5 grow in value to meet the needs of future beneficiaries to malntain the Inte8rf(y of the Walcot Estate and to maxlmise rental income to allgn our investment strategy to our values. Thi5 mean5- belng as rlgorous In our selectlon of investment prodLKts as we are In ourgrant-makln& and not to invest In any products or funds that we do not understand inve5tlng responslbly providing a high-quallty seNlce to reliable tenants. so maximislng rental income in the h)ng tem by brln8in8 the beneflt of well-malntalned property, low tenant turnover and a minimum of volds. The portfolio Is currently dlvlded as Inditated in column 2 below, the target range of minimum and maximum values of each class of ass￿ bein8 as Shown In columns 3 and 4. ASSET PORTFOLIO MIN MAX Property Equitle5 Alternatives and fixeLI Income 60.9% 32.5% 4.4% 0% Cash and short-term Investn)ents 2.2% 0% Total 15 RISK We keep under review the rtsks faclng the Foundatlon, These are Set out In a Rlsk Register which adopts measured approach and identwles materlal rlsks, conslders thelr severlty and probability and identities the measures needed to limit oravoid them. The Foundation is less vulnerable to many of the risks faced by other third sector Icharityl bodles. Our income is more secure and we do not provide seNices that carry Inherently higher risk levels (for example, direct services to vulnerable groups or runnin8 charity retail outlets). The Governors collertivety use thelr expertise and skill to help us contlnually revlew thls posltlon. We see the prlncipal rSsk faclng the Foundatlon as belng loss of Income land the eroslon of spending ￿Wer s inflation rises) and the consequent effect on our ability to fulfil our present charitable goals. Our pollcy Is to review our Investment Policy Iwhich applies to both linanclal Investment and mana8ement of our property Portfollol as needed and at least biennlally keep the nature and amount of grants under review dlver51fy our115ted investments-geographicalty, by asset type, and between investment managers pro-actively manage our properties to minimise voids have an active Investment Commlttee wlth governor-members who embody a range of relevant skills take professlonal speclalist advlce as required RESERVES POLICY At 31 March 2023. Ihe Foundatlon's funds were- Endowment Funds £ 97.466,144 8,760,852 1,496,012 107,723.008 Restrirfed Funds £ 5.742.150 Unrestricted Funds £ 7,505,516 1,254,695 164,907 8.915,118 Totsl £ Walcot EdUcat￿nal Foundation Ha le's Charity The Lady C nthia Charlty 110.713,811 10,015,547 1,660,918 122390,276 5,742,150 The unrestrlcted funds represent our avallable re5er¥e5. Our pollcy had been to hold reserves sufflclenl to ensure the full contlnulty of our operatlons for up to 15 months lequal to £4,661,710). We explaln the need for reserves in these terms- to stabilise8rant-makln8 at tlmes when investment income 15 below expectation,. to set aside suffitient funds for future property maintenance and development; and to relain capacity to respond to unexpected opportunilies. Liquidity and cash needs are reviewed every quarter and reserves every six months. 16 OTHER ACTIVITY Durln8 the year, Marcia A5are took up the post of Director in April 2022 Honorary Advlsers We appoint Honorary Advisers to gbve a perspective from their area of experttse. They attend meeting5 of the commbttees to which they are appolnted. During this year one Honorary Advlser. Rowena Whtte. was appointed to the Investment Committee. PLANS 2023/2024 To launch an organisational place-based strntegy. To develop a financial Strategy. To ensure the effectlve Implementstbn of the thlrd and final Year of the BounceBack programme. To obtain an acceptable planning decision on the Btshop's Terrace development. To run a sucwsful Governor recrultment campalgn. To undertake a comprehenslve revlew of the Foundatlon'5 Structure and framework for its property management. To revlew and further bulld the operatlonal capaclty of the team, to successfully dellver against the Foundatlon's alms. To condurt a biennial review of our Strategic Investment PoliLy. To appoint and successfully Induct two new Governors. To successfulty induct a new Chair (from July 20231. STRUCTURE. GOVERNANCE AND MANAGEMENT CONsrrFUENT CHARITIES We have four constituent charities.. The Wakot Ed￿atIonal Foundatlon 1312800). The HaW¥s Charlty I3128￿-11, The Walcot Non-Edu¢atl¢)nal Charity1312800-21 and The Lady Cynthla Charlty131280>31- formerly the Cynthia Mosley Memorlal Fund. renamed durin8 the year. Our charltles, notabty the Haylé$ Charity, subsumed numerous other smaller charltles over the years Includlng those of Roger Je5ton116221. Noel Caron116231, Allce Easton116401, William Hind116551. Margaret Oakley116721. Thomas Rlch116721, John Scaldwell116781, Thomas Cooper116951. Jacob Vandertin117041, Ralph Snow117071, Bryan Turberville 117181, counte￿ of Gower117211, Hayes Fortee117831. Jane Wakeling117861, John Course117861, Richard Robert118071, Mary Oakley118121. Elizabeth Lambert118141. john Pickton118211, Grace Fenner118281, Mary Chapman 118311. Eleanor Dodson 118471, Elizabeth Edrldge118481, Robert Frost 118601 and Harry Clapham119481- TRUSTEE BODY The Walcot & Hayle's Trustee Ire81stered at Companles House as 61338491 is recognlsed by the Charlty Commission as the sole trustee of our four constltuent charitles. 17 WALCOT PROJEcfs LIMITED This is a company lim￿ed by guarantee and registered in 2018. It is owned bywalcot Educational Foundatlon and manages the d￿elopment of new property holdings. Its profits are gifted to the Foundation. POLICY ON GOVERNOR EXPENSES There is a policy on Governor expenses which was adopted by the Board on 17 November 2015. GOVERNORS. OFFICE HOLDERS AND MEETINGS The followlng served as GoverTr)r5 of the Foundation during 202212023. GOVERNOR YEAR AppoIFifED 2015 2013 2020 2020 2022 2020 NOTES Mlthelle A￿Offlar RSthard Ailnutt Thomas Andeison Donatus Anyanwu Angu5 Boa Mithelle Bogle Grants Committee. On leave from December 2022. Investment Commlttee- F&GP Committee. Formerly Hon Adviser. Investmènt & F&GP Commlttee& Lambeth Council nominee. Appolnted 15 March 2022. F&GP Commlttee. ÈIE- All￿ Chapple Rezina Chowdhu Teresa Clay Helen Geor¥e Frances Greenbur Andrien Meyers Michael Marshall Glentofa Senlor Stmon Taylor 2016 2018 2013 2016 2013 2020 2022 2016 2016 F&GP cornm￿ee (Lead GovernorAuditl,' Grants Committee. Lambeth Council nominee. Chair of Governors,. Investment, F&GP Ichairl & Grants Committee. Grants Committee Ichalrl. Grants Committee. Investment Committee. Appointed 15 Marth 2022. Investment Commlttee Ichalrl: F&GP Committee. Investment Commlttee. Governors serve a term of three years and. subject to re*lection, may sèThe a maximum of three such terms. Governors a8reed that Richard Allnutt, Teresa Clay and Frances Greenburgh should extend thelr service tor one year as provided for in the Articles, in order to provide contlnutty In a tlme of transition. Fltness to seNe. trustee dlsqualrflcatlon. third-party links and artual or potential confilct of Interest declarallons were made by Governors and key staff and the results reported to the Board. Thi5 15 an annual exercise. Meetings.. Botsrdond Committees In 2022-2023 the followin8 met- Board Flnan¢e & General Purposes Commlttee Grants Commlttee In¥estm4nt Commjtt SIX meetings Three meetin85 FNe meetings Four meeting5 During the year Teresa Clay served as Chair of the Governors: Helen George sebved as Chair of the Grènts Commlttee. Glencora Senlor seNed as Chalr of the Investment Cornmittee. Alice Chapple continued to serye as Lead Governor on audit matters and MKhelle Bogle continued to serve as Lead Governor on rlsk matters. RECRUITMENT, APPOINTMENT AND INDiICTION OF NEW GOVERNORS We have in place established method5 of supportlng the Induction of new Governors. These include strLbCtured meetings With staff, a Governors. Handbook and brlefings on key aspects of the role and the Foundatlon, a55ets, flnanclal systems and controls$ 8rnnt-makin8 practices. wllcies& governance structures and other relevant Infomiation. 18 STAFF PAY For all staff except the Dlrector, pay Is dlrectfy Ilnked to an external salary structure, one used by many charitles and elements of the publlc sector. Each role (Finance Mana8er. Grants Administrator, Grants Manager. Grants Officer and Property and Estate Manager) is linked to a range of incremental splnal polnts on that scale. Staff may progress one spinal point on each annlversary of thelr appointment subjert to a positive appraisal, until the top of thelr range is reached. C05t of living increases, when adopted by the external inde& are pald by the Foundatlon to all staff. In 2014115 the Direetorfs pay was unhltched from thls arran8ement and is reviewed annually by the Chair of the Governors and everyfNe year5 by the Finance and General Purp05e5 Commlttee IF&GPI. For all staff, the Foundation contributes IO% of gross pay to a recognised pension scheme chosen by the employee Ile8acy percentages apply to some staff). ADMINISTRATIVE REGISTERED ADDRESS AND WWW DOMAIN 127 Kennin8ton Road London SEII 6SF l l￿w.WalCotI￿nd￿tlOn.Qrs.uk STAFF As at 31 March 2023 we employed seven membets of staff of whom six were full time and one part-tlme (full time equivalent: 6.61: Marcia A%are Techia Braveboy ' Danlel Chapman Daniel Hogan Lèlgh 08den Davld Paterson Djilali Toffah ExecutNe Dirertor Grants Admlni5trator Grants Manager Grant5 Offi￿r Grants OffI￿r Property and Estate Manager Flnance Manager •Port-tlme PUBLIC BENEFIT We are required to show that the Foundation's tharitable objert5 or aims ore for the public benefL known as the 'publlc benefft requlrement.. Ours fall wlthln the first two de5crlptlons set out In the Charrtles Act 2011: lal the prevention or relief of poverty, and Ibl the advancement of education. We confimi that In exerclslnE our powers we have complied with the duty to have due regard to the guidan on public benefit published bythe Charltycommlsslon. The Identrfiable pvbllc benefft provlded bythe Walcot Foundation is in the maklng of grants for the rellef of poverty amongst those residents wtthln our èrea of benefit who meet our eli8iblllty crTteria. The focus of awards made from the Wakot Educational Foundation is that of advanclngthe education (broadly defined) of benefSclarles In such ways as are likely to pernianent Improve their prospects of employment and to break cycles of deprlvation. Statement of the Board'5 ReSpO￿lbIllI1es The Board Is responslblefor preparln8the Governors, Report and thefinancial statements In atcord4ncÈwith applicable law and United Klngdom Accountlng Stsndards (United Kingdom Generally Accepted Accountlng Prattlcel Includlng FR5102 The Financlal Reportlng Standard appllcable In the UK and Republlc of Ireland.. 19 The law applicable to charltles In England & Wales requires the Governors to prepare financial statement5 for each flnanclal year which 8ive a true and fair view of the state of the affairs of the charity and of the incomlng resources and application of ￿$oUrceS of the charity for that period. In preparin8 these fSnancial statements. the Governors are required to: select sultable accountlng pollcles and then appty them consistentty; observe the methods and principles in the Charitles SORP: make judgement5 and estimates that are reasonable and prudent- state whether applicable accounting standards, includin8 FRS 102, have been followed, subject to any material departure5 disclosed and explained In the financial statements; state whether a Statement of Recommended Practlce ISORPI applie5 and has been folkiwed, sublert to any materlal departures whlch are explalned In the financial statement5: prepare the financial statements on the goin8 concern bèsis unless It Is inapproprlate to presume that the charity will contlnue In operation. The Governors are responsible for keeplng proper accountlng records that disclose with reasonable accuracy at any tlme the flnanclal posttlon of the charltles and enable them to ensure that the flnanclal ststements comply wlth the char￿leS Art 2011, the Charity (Accounts and Reports) Regulation$ 2Ci18 and the provisions of the charlty's governlng Instrument. The Governors are abo responsible for safeguardlngthe as5etsof the charity and hence fortaklng reasonable steps for the prevention and deteCt￿n of fraud and other irregularitles. The Governors Approved byThe Walcot & Hawe's Tr￿￿ee Board on 15 Ni>vember 2023 and signed on tts behalf by Chair Cose5tyd1¢5 arerhed wth the (oftsent oAbentfici¢7ries. Initsvlsare ￿edIn￿l￿¢t0ffiomes. 20 WALCOT FOUNDATION INDEPENDENT AUDITOR'S REPORT YEAR ENDED 31 MARCH 2023 Independent Audltor's Report to the Trustees of Walcot Foundation Oplnion W8 havg audited the finartial statements of Walcot Foundation for tha year ended 31 March 2023, vthlch comprise the Slalement of FinancAal Acti￿ties. the Summary Income and Expenditure AccounL the Balance Sheet, the Cash Flow Statement and notes lo the financial statements, induding 51gnrf￿anI accounting policies. The financl81 reporting framework thal has been applied in their preparation is applicable law and Unlled Klngdom Accounling Standards. including FRS 102 The Financial Reporting Standard Applrable in the UK and R8publlc of Ireland, (Unrted Kingdom Generally Accepted Accounting PractKel. In our opinion Ihg financial statements- give a true and fair wew of th8 State of the ch8rtys affairs as at 31 M8rch 2023, and of its in￿nIng resources and applcalion of resourees. for the year then ended,. have been properfy prepared in accordance United Kingdom Generally Attepbj Aceountkng Practice. and have been F*ep8red in accc*dance wllh the requlrements ofthe Charfties Act 2011. Basls for oplnlon We conducted our al￿11 In 8ccord8rte with Intemali¢Jnal Standards on Auditing (UK) IISAS IUK}l and appllc8ble law. Our respon5ibililies under Iho¥e standards are further described in the Auditor's Responsibilities for the audit of the fnancial statements section of our report. We 8re in¢Jep8ntlent of the charity in accordance wfth the ethical requirements that are relevant to our audit of the fmancial statements in the UK. including the FRC'S Ethical Standard, and we have futhlled our other ethical responsibilities in accordance ￿th these requirements. We b&li8V8 that Ih8 8udit evidence we have obtained is su1￿"8n1 and appropriate to prowde a b8s¢s for our opinion. Concluslons relatlng to golng concqrn In audlllng ihe financlal statements. we have concluded that the trustee's use of the going concem basis of accountlro In the preparation of the financial ststemenls is #ppropriate. Based on the I￿rk we have parfomied, we have nol identified Bny materfal uncertalnllgs relating to events or conditions that, indNidualty or ￿llectivelY. may cast $1gnff￿anI doubl on the Charity's abiltyto continue as a going concem for a pencé of ot least tMElve months from when the fin8nci81 slalemenls are authorised for issue. Our responsibllilies ond the ￿spons￿bIlItIeS of the trustee ￿th respect to going CAThcem ere describ￿ in th8 relgyanl sections of Ihls reporL Oth•r Infornijtlon The other informallon comprisès the InfO￿nall0n induded in Ihe annual report. olherth8n th8 financlal statements and our audilorfs report Ihereon. Th8 trustee is responsible for the other information conlalned wtthin the annual report. Our opinion on the finanGial statements does not cover Ihe other informalh)n and, except lo tho extent otherwse explicilly stated in our r8por( we do not express any fcffii of assurance conclusion thereon. Our reSpor￿1b￿1ty Is lo re8d Ihe other Snfomiath)n and. in doSng 80, consider whether the other information 18 materially incon￿stent wilh the financSal statements or wr kn￿￿edge obtsined in the cours8 of the audit or otherwise appears to bg materially mlsstaled. If we Idenltfy such materK41 inconsis18n¢ies or apparent mateTi misstat8mants. we ara requirgd to d81gm)ine wh8th8r there is a m818rial misslalgmenl in th8 ffnancFal statements themsdves. If, based on the work w8 have perfomed. w8 condude ihat there Is a malerial misstslwnent of Ihls other infomi8tion. we are required lo reFrfJrt that fact. We have nolhiry to report In thls regard. 21 WALCOT FOUNDATION INDEPENDE￿ AUDITOR'S REPORT (Contlnued) Year Ended 31 MARCH 2023 Matt•rs on which w• ar• r•quir•d to r•port by •xceptlon We have nothing lo in respect of the fcllowing matt8r8 where the Charltl88 Act 2011 requires us to report to you if. in our opinion.. the Infom)allon glven In the Trusteg's Annual Rewt is irKonsisterrt in any material respect the finanual ststements., or the ch8rity has not kept adequate &counting records; or the financial statements are not in a￿eement wth the accounting recor(Is and returns" or we have not recelved all the infomatK*n and exFdanations required for cAJr audit. Responslblllllos of trust A8 exPl￿ned more fvliy in the trustee's responsibilities statsment sel out on page 19. the Iruslee Is r8sF4)nsible for Ihe preparatlon of the finandal slalements and for being satisfied that they give a true and f8ir view, and for such intemal control as the trustee d818mines is necessary to 8nable th8 preparation of finana81 ststements that 8re free from materi81 misststement, whether due to or error. In prèparing tha financial statements, th8 truste8 is resp{￿81b10 for assessing the charitls abiltyto continue as a going eoneern. disclosing, as applicable, matters related to golng concem and using the gryng conGem basis of aceounth'ng unless the trustee either inl8nds to liquidate the charity or to Ce8s8 operations. or have rKJ realistic altemative but to do 50. Audltorf$ Responslbllltlos for the audlt of th• financlal sts¢emgnts We have been appolnled 8$ audltor under secllon 144 of the Charities Act 2011 and rewrt in &cord8nce vlth regulallon8 made under sectlon 164 of that Act. Our obje¢*ves are to obtain reasonable assurance about ￿ether the financial $tatem8nts as a whc4e are free frerfn material misstatement, whetherdue lo frsud orerror and to issue an auditorfs reportthat includes our opinion. Reasonable assurance is a high level of assurance. bul Is not a guarantee that an au¢Jf( conducted in ar£ordance ith ISAS {UKI will atways detect a material misstslement vthen11 exlsts. Misstslements con orise from fraud or eiror and are considered materi81 if. individually or in aggregate. they could reason8bly be expecled to In￿ue￿O the eCor￿mI¢ doclslons of usgts lak8n on the basis of these finanrial statements. As p8rt of an audit in accor¢l8nce vAth ISAS {UKI we exerttise professional judgement and maintaln professional scepticlsm throughr)ut the aud￿. We also.. Ident￿ and assess the risks of material mlsstatement of the finw¢il statements. wh&ther due to fraud or error. design and perfom) audit procedwes responsive lo those risks. and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a malerlal mlsslatsmenl resulting from fraud is higher than for one resulting from error. a5 fraud may involve colluslon. forgery. Intentlona omlsslorts. mi5represenlations, or the override of intemal contrcA. Obtain an understsnding of inlemol contrd rèlevant to the audit in order to de￿9￿ audit procedures that are appropriate in the c1￿uMStances. but not for the purposes of expressing an opinion on the effeclivengss of the charitys internal control. Evalu8t8 the appropriateness of accounting polcles used and the reason8bl8ness ol acco￿ling estimates and relatsd disclosures made by the IAusl8e. Conclude on thè appropriateness of thètrustee's of the going concern basis of a￿Oun11n9 and. based on the audit evidence obtained, whether a material unc8rtainly exists related to events or condlllons that may cast significant doubt on Ihe charitls ability lo continue as a going concern. If we conclude that materlal uncertalnty exists. w6 are required to draw attention in our auditorfs report to the related 22 WALCOT FOUNDATION INDEPENDENT AUDITORS REPORT (Continued) Year Ended 31 MARCH 2023 dsclosures in Ihe financial statements ￿. if such discl(Air8s are inadwuote, lo modrfy our opinion. Our nclusions are based on the audll evKlence obtained up to the dale of our auditorfs report. However. futu￿ events or conditions may cause the charity to cease to continue as a going con￿rn. Evaluate the overall presenlgtion, stnjcture and contenl of the financial ststements, includlng the disck)sur6s, and whether thè financlal statements represent the urKlerlying transactions and evenl8 in a manner that achieves fair prasentalion. We communicate wilh those charged with governan￿ regarding. amorvJ other matters. the planned scope and timirg of the audit and significant audlt flndlng8, Induding any 8lgnlflc8nt delklencie8 In intemal control that we identify durfng our audit. Explanatlon a¥ to what •xt•nt th• auditwas considgred capable of dotecting irr•gularili•s. Includlng fraud Irregularitles. i￿luding fraud. are instances of nonld Street London EC2A 2AP )ore lfjngston Smth LLP 1$ ellgible to act as 8uditor In terffls of Section 1212 of the Compani9s 2006. 24 WALCOT FOUNDATION GLOSSARY YEAR ENDED 31 MARCH 2023 Tomi Dellnltion WEF Walcot Eduoalonal Foundatlon WNEC Walcot Non.Education81 Charty TLCC The Lady Cynthia Charity 25 WALCOT FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023 Unrnstv R•$t- Endow- rlcted rlctsd m•nt Totsl rfGt•d rlctad mont Noteg Funds Funds Funds 2022123 Fund• Funds Fund• 2021r22 £000 £000 £000 £000 £000 £000 INCOME AND ENDOWMENTS FROM: Donations and leg8CiaS 103 103 Charltable aclivltles 0 902 902 213 213 Investments 2.786 22 21 TOTAL 924 EXPENDITURE ON: Raising Funds Investsnenl manggement ￿$ts 61 275 320 442 Propety costs 378 335 18 731 337 263 424 396 293 1113 Charitable Activities Grants payable 19 4.035 4.044 2.806 15 1821 Grant-makiNJ SuppC￿ C08ts 356 319 319 15 TOTAL 4 814 405 293 5513 3 17 Net gains on inslrnents (321) 1206) (2,419) {2,947) 15501 175 NET INCOME (2353) 313 (2.713) {4.653) {1,259) 378 185} 1986) TRANSFER BETWEEN FUNDS 897 1897) 668 (868) Net movement In fvnds (1,3551 1S85) (2.713) {4.853) ($91) (290) (85) (988) RecA)ncilialion of I￿)dS.. TOTAL FUNDS brought forward at l April 2022 10281 6,327 110,436 127,043 10I71 6,617 110,FA1 128.009 TOTAL FUND8 Gwrl8d forward at 31 March 2023 8.925 5.742 107,7Z3 122,390 IQAQ1 6A27 110,436 127043 26 WALCOT FOUNDATION BALANCE SHEET YEAR ENDED 31 MARCH 2023 Not 2023 £000 2022 £000 FIXED ASSETS Tangfole assets Investments 10 1.617 121.241 122.858 1.569 125.569 127.138 11 CURRENT ASSETS Debtors 12 324 335 Cash at bank and in hand 673 965 CREDrroRS: Omounts falling duo within one y•ar 13 1.432 1,103 NET CURRENT LIABILMES TOTAL ASSEfs LESS CURRENT UABIUTIES 122.390 127,043 FUNDS ENDOWMETrrr FUNDS 107.723 1IOA36 RESTRICTED FUNDS 5,742 UNRESTRICTED FUNDS 8.925 10,281 122,390 127,043 Th888 $tatgnents wor& appmed bythe Board of TnK81888 on 15 November 2023 and Sign￿ on Ns b8haW by.. Chalr Date.. 27 WALCOT FOUNDATION STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2023 2022r23 2021122 £000 £000 Cash flows from oporatlng aetlvltles: N•t cash used In opernllng actlvltles 3,751 Cash flows from Inv0811ng actlvlllo8: Diwdands, intarnst and rants frcffl investments Purth8se of property. plant and equipment Prlxeeds from sale of inveslments 2.808 2.726 2,000 11,166) 123 Purchase of Investments Inve$lmenl management fees paid Nfrt cash prnvlded by Invostlng actlvldes (2,160) 156 3.519 410 Incygaso In cash and cash oqulvalgnts 232 3.471 Change in cash and cash equwaknfs in the reporting period Cash and cash equlvalents at the beglnnlrwj of th8 reporting nod (2321 13,471) 5.475 2.004 Co8h and Cash equiv8lent$ at the end of Ihe ￿portIng perlod Reconciliation of net incomel(oxponditure) to not ca8h Ilow from 0￿ratIng actlvltles Notjnoome for tho reportlng porfod (as tho $tat•m•nt of Ilnandal a¢dvitlesJ Adjustrnents for: Depredallon charges Investment manager faes paid MOvem￿t in Ihe martet V8lue of invesknents 4.653 123 156 1751 12,726) 61 Dmdends. interest and ￿nIS fr(xn investments Ilncreaseydecrea5e in debtor5 In￿ga$0/(decre0sQ) In crodltors Net cash used In operntlng actlvlues 12.808) 11 329 233 ANALYSIS OF CASH AND CASH EQUIVALENTS Cash in hand Cash held as Investrnents 673 1,000 131 1,200 131 2,004 Notice deposlls {less than 30 days} Total cash and cash equivalents 28 WALCOT FOUNDATION ANALYSIS OF CHANGES IN NET CASH YEAR ENDED 31 MARCH 2023 stsrt of y•ar Cashflow• At end of year £000 £000 £000 Cash 873 {32) 641 Cash held as investments 1.200 {2001 1.c￿0 Cash held with notKg bss than 30 days 131 131 TOTAL 2.004 (2321 1.772 29 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 I CHARrrY INFORMATION The charities are re8lStered with The Chartty Commission (registration numbers 3128(M). 3128fJ)-1, 3128Crf>2, 312800-31, are domlciled in the UK and are publlc beneflt entities. The address of the registered Offi￿ Is 127 Kennington Road, London SEII 6SF. Further information is 8Nen in the a¢countlng policles below. 2 ACCOUNTING POLiaES a) Goln8 concern The Govemors have assessed whether the use of the golng concern basis is approprote and have consKlered Ible events or conditions that ml8hi cast sb8nlficant doubt on the abS11ty of the Foundation to continue as goingconcem. They have madethls assessmentfora period of at least one yearfrom the date of approval of these flnanclal statements. In particular, the Governors have considered the Foundation'5 forecasts and proiertions and have taken account of pressures on property values and investment income, especlally in the light of the impatt of the COVID-19 pandemlc. After making enquirles they have conduded that there 15 a reasonable expectation th￿ the Foundation ha5 adequate resources to continue In operatlonal existence for the foreseeable fuwre. The Foundatlon therefore continues to adopt the going concem basis in preparfng its financial statements. bl Basls of preparatlon Wakot Foundation is the working name for the group of four charities administered by the Walcot and Hayle's Trustee Company, whlch Isthe corporate trustee foreach of the four charitie5. Three of the charitles: the Walcot Educatlonal Foundation IWEFI, the Walcot Non-Educational Charity IWNECI and the Hayle's Charity. were unlted by a Charlty Commlsslon unlting order daled 26 March 2LK17. A fourth charlty, The Lady Cynthia Charrty ITCLLII Joined the group when its trusteeship was transferred to the Walcot & Hayle's Trustee Company by Charity Commission Scheme on 23 June 2009. These flnanclal staternents are the aggre8ated accounts for the four separate charities and include all the funds of the four charltles. The funds of the Walcot Educatlonal Foundation IWEFI afe regulated by the Scheme of 6th February 1991, as amended by the Order of 24 August 2004, by the Resolulion of 5 Ottober 2LIM, by the Scheme dated 26 March 2CK17, and by the Scheme dated 14 October 2015. The funds of the Hayle's Charity are regulated bythe Scheme of 31 January 1990, as amended by the Scheme of 26 March 2007. The funds of the Walcot Non-Educational Charity IWNECI are ￿gUlated by a Scheme of 1974, as amended by the Scheme 0126 March 2007. The funds of The Lady Cynthia Charlty ITCLLI are regulated by the Declaration of Trust dated l January 1936. as amended by $d￿Me$ of 23 January 1951, 6 December 1965, 27 September 1995, and 23 June 2￿9. The accounts Ifinanclal statements) have been prepared to give a 'true and fairf vlew and have departed from the Charltles (Accounts and Reports) Regulations 2008 onty to the extent requlred to provide 4 'true and fair, view. This departure has involved following the Statement of Recommended Prattice applicable to charities preparing their a¢count5 in accordance wlth the Flnanclal Reporting Standard appllcable in the UK and Republlc of Ireland IFRS 1021 Issued on 16 July 2014. The accounts have been prepared under the historical cost conventlon, except for Investments and property fixed assets which are at market value at the balance sheet date, and in accordance with applicable accountln8 standards and the Statement of Recommended Practice 'Accounting and Reporting by Charftles: Statement of Recommended Practice applicable to charitles preparlng their accounts In accordance with the Financtal Reportlng Standard applicable in the UK and Republlc of Ireland. IFRS 1021 leffertive l January 20151, and the Charities Art 2011. 30 WALCOT FOUNDATION NOTES TO THE Accoumrs YEAR ENDED 31 MARCH 2023 The Walcot Foundation's subsldiary. Walcot Projects Llmrted, has been excluded from consolldallon 95 its Incluslon Is not materlal forthe purpose5 of 8Nln8 a true and fair vlew. The Walcot Educationèl Foundation, the Hayle's Charity and The Lady Cynthia Charlty have pemianent endowments, whlch they must retaln intact as thecharities. capital. These permanent endowments are Invested in fixed assets either used by the charltles or to provlde Income for the charltles, actlvhles. After maklng enqulries, the Governor5 have a reasonable expertatlon that the Walcot Foundation has adequate resources to contlnue its actNities for the foreseeable future. Accordingly, they continue to adopt the 8oln8 concern basis in preparin8 the financial statements as outlined in the Statement of Governors. Responsibilities above. The financial statements are prepared in sterlin& which is the functional currency of the charity. Monetary amount5 In these financlal statements are rounded to the nearest thousand pounds. cl Invertments Investment assets are stated at their market value at the balance sheet date. Gains and losses on revaluations and on Investment asset d15posals are taken to the accounts in which the investments are held, as dlsclosed In the statement of flnanclal actlvltles. Investment propertles desktop valuatlon takes place every year as per the new requlrement and a full external re-valuation 15 condurted every fNe years. When governors belleve there has been a 518nificant change in the property market value, a new external valuation can be conducted. The last external desktop valuation was carried out on 31 March 2023 and the last external full valuation wa5 carried out on 31 March 2021, both by Cluttons LLP. The results have been reflected in these financlal statements and the Governots are of the opinion that thls method of valuation Is approprlate forthe PLrrp)se of these ftnanclal ststements. dl Tan8ible FThed A55et5 and Depreciation Operational property assets are part of the endowment of the Walcot Educatlonal Foundatlon IWEFI and are Included In tangible fixed ass￿5 of the charity and shown at their current value at the balance sheet date, wlth regular revaluatlons. They are malntalned in such a conditlon that thelr resldual value Is at least equal to their carrylng value and the Govemors carry out an annual Impalm)ent revlew to ensure that thls Is so. As a result, no depreciation is charged on them. Computers and equlpment COStlng more than £2,0￿ are capitalised and included at cost, and a￿ written off over the estlmated useful Ilfe of three years through the Statement of Financlal Activities. el Fund Attountln8 Endowment funds The Walcot Educatlonal Foundatlon IWEFI, the Hayle's Charty and The Lady Cynthla Charfty have permanent Èndowed assets, which provlde unrestricted income to the WEF General Fund, the Hayle's General Fund and The Lady Cynthia Charity General Fund respertively. Reslrlctsd lunds The application of WEF'S incomels 8ovemed bythe Charlty Commlsslon Scheme, which permits WEF to allocate up to 18% of its income to a Rebullding and Repalrs Fund IR&R fundl. This fund Is treated as a restrfrted fund and has its own investment assets. but Income generated from Its assets is now credited to the WEF General Fund. as permltted by the Scheme. as the R&R fund Is judged to be large enough forthe charltVs present needs. 31 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 In addition, WEF has the St Thomas, Fund, and the Townsend fund, restricted capital funds artsing from gifts to WEF in 1995 and 2015 respectlvely. Both The St Thomas, fund and the Townsend Fund have thelr own Investment aSsetS, the incomefrom whith is credited to the StThomas' Income Fund. and theTownsend Income Fund respectively. Unrestrlcted funds All four ¢horilies have their own general funds. whlch are applied accordlng to ihe Schemes 8ovemlng the charities. fj Income Income from listed investments. unlt trusts and common Investment funds15 accounted for by reference to the date on which distributions are receivable. Investment Interest and iental income ￿ attounted for on an accruals basis. Oonatlons and voluntary Income are applled to the purposes expressed by the donor. ff app1kab￿, and are accounted for when receivable. gl Resources Expended Cost5 incurred by each charity directly are as5i8ned to that charity and all expendr¢ure is atcounted for on an accruals basls. Almost all the operational costs of the four d)arities, Including the employment of all staff are bome by the Walcot Eduotional Foundation IWEF) unless otherwise stited. Apart from grants pakl, the Hayle'5 Charty and The lady Cynthla Charlty Incur dlrertty only investment management fees and some other small costs. Eath pays an annual seNke charge to the Walcot Educational Foundation IWEFI as a contributSon towards the costs of 8rant-maklng and 8overnance. The Walcot Non- Educational Charity IWNEC} inturs no direct costs, other than grants paid. The followlng headln85 are used for the analysis of expenditure- Cost ol Ralslnq Funds - C05ts relating to the management of Investments e.g. valuatlon fees. Investment mana8ers' and surveyors, fees, managemenl, maintenance and improvement of investment properties. Chorftuble Expendlture- Grants are reco8nised when conditions attaching to their payment have been fulfilled. Grants for which Governors still have further actlons to take before releasinE thèm for payment are not recognised In the flnanclal statements but the totsl value of such grant51s disclosed in note 14. h) Allocatlon of Support Costs Support costs are allocated to the two areas above on the basis of stsff tlme spent on work in these areas. Included In support costs are the stsff costs for those staff who work across the dffferent areas together with Ihe costs of runnin8 the office, and Bovernance. Support costs are all¢xated as follows: C05t of generating funds Charitable expenditure 11 Penslons The penslon charge represents contributions payable by the Foundatlon on behalf of employeesto Independent money purchase pension schemes. WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 J) Slgnfficant Judiements and Estirn•te5 The key sources of estlmatlon uncertainty that have a SiBnificant effect on the amounts reco8nised In the flnancial statements are described In the accounting FKJlicies and are summarised below.. Valuation of land and buildlngs and valuatlon of Investment propertles. The Char￿leS, land and bulldln85. whether held as investment propertles or as tangible fixed a55ets, a￿ stated at their estiM￿ed fair value based on pn)fesslonal valuations as disclosed in Note 11. The latest professional valuation was carried out in March 2021. kl Financial instruments The Wakot Foundatlon has flnancial assets and financial liabilities of a kind that quallfy as bèslc flnanclal Instruments. Basic flnancial ifi5truments are initially recognised at tran50Ction value and subsequently meaSu￿d at the present value of future cash flows lamortised c05tl. Flnanclal assets held * amortlsed cost comprise cash at bank and in hand, short tem) cash deposlts and the group's debtors excludlng prepayments. Financial liabilrties held at amortised cost comprise the group's short term creditors excludln8 deferred Income and taxation payable. No discountinB has been applled to these flnancial instruments on the basls that the periods over which amounts will be settled are such that any discountin8 would be immaterfal. 33 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Not• 3. DONATION AND LEGACIES 2022123 2022123 202W23 Unr•8tr1Ct￿ RostrIct￿ TOTAL Funds Funds £000 £000 2021122 TOTAL £000 £000 Wakot Educatlonal Foundatlon Donallons Gift aid from Wal￿1 Projects Limilod 14 14 94 101 Hayle s Charty Grant rotal Donadons and L¢gacle$ 103 Not• 4. INCOME FROM CHAR￿ABLE ACTivmES 2022123 2022123 2022123 Unr•strithd R•strl¢lod TOTAL Funds Funds £000 £000 2021122 TOTAL £000 Walcot Educational Foundation Grants 902 902 213 213 Not• * INVESThIENT INCOME 2022123 2022123 2022123 2021122 Unrostrl¢tod R•strbctod TOTAL TOTAL Funds Funds £000 £000 WaI￿t Educatlonal Foundation Invostment In¢omo Rents Listed invesknents Investment interest Bank deposit interest 1.790 1,790 777 25 1,420 1.090 21 24 2,573 2.595 2,517 Hayle s Charlty Investment Income 180 Th• Lady Cynth1• Chorfty Invgstment Incom• 29 Total Investment Incom• 2.786 Restricaed income refers to irKome from the T¢Jvmsend F￿d 8ThJ Ihe St T￿)ma3, Fund. WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Nots 8 EXPENDITURE ON RAISING FUNDS Unr•Btrlcted Rethetsd Endowrngnt Total Totsl Funds Fund• Furtd• 2022R3 2021122 £000 £000 £0 £000 £000 Walcot Educatlonal Foundatlon (WEF) Expendlture on Ralslng Funds WEF P1vpe￿ Invostment EXp￿dItUrn Staff costs Property costs (inc. Insurance & Utilitlesl Surveyors, Fees Other Professional Fees Routine Walcol Estste maintenance Improvement of PrOpe￿e$ 83 80 18 136 136 147 165 335 18 518 213 409 Supp)rt Expenditure {see Note 81 213 191 Tot41 I*EF Property Inveslm•ntExpendltur• 378 335 18 731 800 WEF Inveslment Managgment Foes forFlnanclal Investknents 39 60 198 297 345 WEF Total Expenditure on RalslnB Funds 417 396 216 1,028 HaylgS Ch*ity Inv•stm8nt Manag•mentF8es 86 73 Th• L*dy Cynthla Chahty Invgstment Managemont 11 11 13 Total E¥pOndftu￿ on Ralslng Funds 424 293 1113 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Note 7. CHARrrABLE EXPENDITURE 2022123 Number 2022123 £000 2021122 Numb•r 2021r22 £000 Walcot Educatlonal Foundatlon (WEFJ Grants Awarded Grants to Indmduals Grants to institutions WEF total grants Jwordfjd 201 210 411 275 159 114 2n 231 1068 2.299 3,570 Hayle's Ch8rlty Grnnt8 Awarded Grants to individuals Grants to ins11￿110￿$ Hayl•'s Charity total grants award•d 50 50 50 Walcot Non-Educatlonal Ch8rtly (WNECJ Grants Awarded Grants to in(Jivi(Juals Grants to instttutions WNEC tolal grants award•d 105 319 424 81 23 112 110 472 The Lady Cynthia Cherity (fLCC) Grnnts Award•d Grants to individuals Grants lo inslilutior CMMF total grants award•d Totsl grants awarded 527 4,044 2.821 Grnntrymaklng support Costs Unr•strtci•d R•strlct¢d End(MTm•nt Funds Funds Fund$ £000 £000 £000 Total 2022123 £000 Total 2021122 £000 Direct grant-making staff o)sts Other direGt r￿sts 207 207 179 12 213 142 213 142 191 128 Support costs (see Note 8) 355 355 319 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Nots 8. SUPPORT COSTS Cost of G•n•ratlng Charllable Funds A¢tivitie$ £000 2022123 2021122 TOTAL £000 TOTAL £000 £000 man￿eMeN & ￿nance Staff costs Premises costs Office expenses Legal & Profegslonal Irr8coverable VAT Audlt fees Govemance & Annual Rewew 157 105 261 251 14 17 22 14 20 13 18 213 143 319 Not• g. STAFF COSTS 2022f23 TOTAL £000 2021r22 TOTAL Wages & salaries Nalional insurance costs Accnjed holwjay pay Pension & Llfe Insurance costs Recrulm8nt & Stsff expenses 379 342 35 41 23 471 The average number of employees employed throughout the year was 8. Two 8mploye8s work part-thn8, and the full-time equN8lent basis (￿E}IS 7.4. {2021-22- average 7. FfE 6.6>. The key management of the charTty are the Dirgclor. Finance Manager, Grants Manager and Eslate & Property Manager. Thelr total remuneraoon (gross pay. employer Nl. employer pension arKJ benefitsnlfe Insurance) was £307.545 12021-22.. £262.1681 The￿ ￿tre employees ￿Ose salary plus penslon contribution fell in the £60.001-£70,000 band {2021-22.' 2}. no employee whose salary plus payment in 118u of an employer pension contribuUon fell In the £80.001Q￿.o0O b8nd {2021-22= 01 and one em￿0ye8 bthose salary plus payment in lieu of an employer penslon o)n1rib￿lon fell in th8 £90.001 Q1fK).000 band {2021-22'.1). No other staff exceeded eamings of £60,000. Pension payable lo these means all employees amounted lo £21.986 (2021-22.. £12.5321 37 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Note 10. TANGIBLE FIXED ASSETS Walcot Educa¢lonal Foundatlon IWEF) Tangible FixedAssets Fumiturn Fraohold Prop•rty Equipm•nt £000 £000 Total Cost or Valuatlon As al 1 Aprll 2022 Additions Ravaluation Disposal At 31 March 2023 1,565 41 1.615 32 1,647 DepreCI￿On As al 1 Awil 2022 Charge for period Disposal Ai 31 Marth 2023 {371 {21 (37) (2) 30 Nel Ix•ok valu At 31 Marth 2023 1.615 1.617 As al 1 April 2022 1,￿5 1.569 Historic cost of propety (stated as valuation at l January 1980, se& nots 11) 116 Investrnent Pfopety held within with the W8lcol Foundation at 1Jt January 1980 Is Induded in ¢￿$1 al the valuation at that date, and was revalued in March 2023 by Cluttons LLP. All valuations ar& on an open market basis in accordance with the Roya Instilulion of Chartered SuNeyors' VakMtion- Professional Standards. 2014 Edition. 38 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Noto 11. INVESTMEiffs Ar VALUATION Unrestricted Restrlcted Endowment Funds Funds Fund8 Totsl Funds 2022123 £(K)o Total Funds 2021122 £000 £000 £000 £(￿0 Market value at 1 Aprll 2022 (Restated) 10.332 6,341 108.897 124569 125.534 Addllions at cost 1.1fj6 1,160 2,160 rthskK)sal$ al m8rf(el value (1,034) 11,166} (2.200) {22001 Inveslmenl m8nagematt fees deducted from portfoTho {231 1671 12071 1298) 1327) Net Ioss on revaluation 13211 12061 12.469) (2,9971 502 Movement in Invoslmenl As8ets allocation bett•￿en furKIs 397 319 78 Marf(•t valu• at 31 March 2023 121241 12 Analysis of Invgstmonts held at 31 March 1023 Direclly held freehold land & bulldings 73.038 73.038 72.883 UK equlles 508 2,009 2,866 Overseas equitles 6.473 4.433 25.587 36,493 40,355 Fix8d income 247 1.424 2,031 743 Altematives 733 2.897 4132 4332 Cash Investment man8ger8 275 1.087 2.562 Cash on deposit as investment 1,002 30 1J31 TOTAL 9.351 106.142 121.241 125,$69 Freeh)kl prop•ty hdd ￿1th1n %•th the W81tr&t Foundatlon at 11f January 1980 15 induded in C￿$t at the vauatH)n at that dat8. 8nd ￿a$ m8lued in MaY¢h 2023 by Cluitons LLP. All valuatTons are cffl an op8n rnark￿ basls In aco)rdanc8 bv6th th8 Royal Insb"tution of Chartered Surveyots, Valuation- Professicffial Stsndard8, 2014 Ed￿On. Inveslments hald by the charlty Indude a £100 inves1M￿LI2O22.' £1001 in thè substdiary rA)mpany. Wacol pro1￿ Llmltod, and reprts5ents 100% of the Lssued sham capital. Projects LSmlted vos in¢J)rporated on 2 ALWUSt 2018 Ireglstratton number 11497131 and Its reglst8r8d is at 127 KennI￿tOn Road, London, United Kingdom, SE11 6SF. Thè prkndpal activity of Wa￿t Pro1￿1$ Limited Is the provision of d&sign aThJ buikl servlces to thewalcot Educational F￿ndatIOn. At 31 MBrch 2023 W8kot Projects Lkn)rted nts fixed a95ets, nel curr•nt èss•ts of £1C4) 8rKI sh8relK)kJerfg funds of £100. its tUrnOV8r lor the year was £210.10712021122 £1,e70.7921 and it made 8 profrt of £79,67412W21r22 £93,835) prior to gn accrueil Gift Aid dLstrftrrtJtb)n of t79.67412021r22 £93,835} to thè W¥l¢>)t Educational Foundation. Net losses on revaluatSon for 202212023, as shown above. are different to the totsl in the SOFA because the SOFA Include5 a £50,CrfJO revaluatlon ol freehold property which rs included in tsn8ible flxed assets. See Note 10 for details. 39 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Not• 12. DEBTORS 2023 £000 2022 Walcol EdUcat￿n￿l Foundafm Debtors Rentsl debtors Walcot Projects debt￿5 Prepayments Accrued income 16 199 23 335 Not• 13. CREDrroRS Credttors: amounts falling due ￿thin one year 2023 £000 2022 £000 Walcot EduCat￿n91 Foundatti)n Craditors andAccru81s Trade oreditors Deférred ineome Def¢￿ed rental income Accruals Accrued grants Other Cfedilors 179 135 92 85 872 20 76 21 713 980 H8fv 8 CharityAccru8ts WNEC Accrnals 178 116 The Lody Cynthia ChwityAccrnals 1.432 1,103 Note 14. GRANT COMMITMEiirs 2023 £oiJo 2022 Due for posTrent in 2022-23 Due for poyment In 202>24 Due for p0￿ent in 202*25 716 1,633 649 2.998 1.109 2.477 The amounts above have beèn provisionally approved as grants to be made by the Governors up to the 31 March 2023. As the Govemors have fijrther action5 to take on them {mostly carrying out progress remews on each one against P8rformanc8 conditions) before releasing them for payment, they have not beon r￿ognI5ed in this yearfs acc¢)unts. No discounting has been applied to grant commilments due in more than one year on the basis that the period over which amounts will be settled are such that any discOun￿n9 would be immateriol. 40 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Nots 16. ANALYSIS OF FUNDS MOVEMENTS Balance B•l•n 1Th￿me Expenditurn Galnsl Transf•rs 31 Mar22 (losmsl botwo•n 31 Mar 23 Fund8 £000 £000 £000 Unrestrlcted Funds WEF G8neral FLsnd Ha￿e'S Goner81 Fund WNEC Gener81 Fund Thg Lady C￿thia Charity Su&total unr•$trl¢tod Funds 8,980 1.165 2,867 186 (4.358) {57) 13991 1286) (35) 7.&J6 1,255 {41 136 29 2,882 165 10.281 {4,8141 {321) 897 8,925 R•strkted Funds WEFR&RFund WEF St Thomay, Income Fund WEF Sl Thomas, Capltal Fund WEF T0￿Send Income Fund WEF Townsend Capital Fund WNEC W&C & Guy's & St Thom85 5.188 115 1389) 11711 4,￿28 132 17 16) 19) {1} (311 178 141 172 Subtotal rgstrlctedFunds 6,327 924 {405) 1206) 1897) 5.742 EndowmentFunds WEF Endowmonl fund He￿8,$ Endo￿lent fund Tha Lady Cynlhla Charity Su&total •ndowmen¢ Funds 99.880 (216> (66> {2.1981 (156) 65 97,466 8.761 1.496 107,723 1,573 110,436 1293} 12.419) Tofal Funds 127,043 3.806 5.513 2,947 122,390 Thewalcot EducatSonal Foundation IWEFI Schomedirects the all¢xalion of WEF'S income.. Ihis include5 payrnenl of be￿en 100/0 and 20VA of net Income after management expenses to the Walcot Non-Educalional Charity. In 2022123, a lot81 of £399.23912021122 £259.627} was transferred WEF Gener81 Fund for thls purwse. H8yI8's Charity IHayl8's} and The Lady Cynthla Cherfty Fund ITLCCI pay an annual seNce charge to WEF tr) reflect a contribution to costs of grant-maknng and office administration. The service tharge is based on proporlion of grants each chadty pays. In 2022123 Hayle'¥ paid £4,421 (2021r22 £5,684} and TLCC paid £012021122 £01. 41 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Nol• l61Gontlnu￿). ANALYSIS OF FUNDS MOVEMENTS 2021122 Balanc• B&lane• Income Expondltur• Gain￿ Tran8fern 110￿¢1) betw••n 31 Mar 22 Funds £000 31 Mar 21 £000 £000 £000 £000 £000 UnTrstrictgd Funds WEF General Fund 9.714 1.050 2,598 182 12.987) {58) (472) 1547) {3) 202 (6) 472 8,980 1,165 Ha￿e'S G￿er81 Fund WNEC General Fund Th& Lady Cynthla Charity Su&total unrnstTiCt•d Funds 107 10.871 28 136 {3,517} 1550) 10.281 Res(rfcled Funds WEFR&RFund WEF St Thomas. Income Fund 5,510 99 (322> {466} 5,188 115 WEF Sl Thomas, Capitsl Fund WEF Townsend IrK¥Jme Fund 17) <15) (2) 10 WEF Townsend Capitsl Fund WNEC Trust For London & Battersea Power StalSon 165 14 178 213 213 Sutstotal rnstiictedFunds 6.617 233 13461 490 {8681 6,327 Endowment Funds WEF Endowment fund 99,970 8.948 1.603 110,521 12301 (76> 14 141 99,880 8,984 Ha￿e'S Endovffient fuThJ The Lady Cynthla Charity sU￿tOtal endowmènt Funds 112 18 235 13201 110.436 TotalFunds 128.009 175 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Notg 17. ANALYSIS OF NET AssEfs BEfwEEN FUNDS Un- rgstrlctsd En. Un trlcted dowm•nt TOTAL r•¥trfctgd trIGt•d dovmi•nt TOTAL Funds Funds Funds FUNDS Fund8 Funds Funds FUNDS IR••tst•dl 2021r22 2022123 £000 Funds balances At 31 March 2023 as rgpros•nt•d by: £000 £000 £000 £000 £000 Tangible fixed 8ssets 1.615 1.617 1.565 1,569 Inveslment assets 9.351 5,748 106.142 121,241 10R32 6,341 108,897 125,569 Debtors 324 324 335 Other current 8ssets 841 673 673 Current liabilities 1.392 1.432 1.063 14 1.103 8.925 5,742 107,723 122.390 127,043 Note 18 RELATED PARTY TRANSACTIONS The four ch8rf1ies fomilng th8Walcot Foundation are related p8rttes. being a118dministered bythe same oorporate tnJstee- The Walcol & Ha￿a'S Tru51ee Compony. The granl-making. govemance and support oosls for the frAJr charities are boma by th8 Waknl Educational Foundation. HaWe*'$ Charity and The Lady Cynlhla Charity Fund paid an annual serV￿e charge lo rellect these costs. In 2022123 HaWe'$ paid £4.421 12021122 - £5,684), and The Lady Cynthia Charity paid £012021122 - £01. Eight claims for expenses y certaln Governots of a total £414 were reimlxjrsed to them in 2022r23. No Govemor or any person connected wlh a Governor received any remuneration or 8ny benefit from any of the four Char￿8$ {2021122. none). Where a Trustee has an Intsts51 in a grant ben￿ciary, Ihal Trustee VAII excuse hersewlhlmself from the decbsion making process. In 2022-23. W81¢01 ProSects knmlted d￿rged É210,107 {2021r22 £1.670.7921 to the WBlcot Ethc*tion FOur￿*t10n in respect of ¢Jesign and bulld seMc88 and made prOwS￿n for Gift Aid payments lo the ch8rity of £79.674. The n&t balance owed lo thè Walcot Ed￿ation Foundation at 31st March 2023 was £79,674. WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Note 19 Grants of £10.000 or morg awarded lo institution• worklry wllh flnoncially disadvantagqd Lamb•th t•sid•nt8 Name of Institution Ch•rtty Descriptlon £000 Grounsthwrk London WEF BounceB8ck to RwAryk 61 Cèntré 70 Advicé Cèntrè WNEC W81tt)t Adv￿ Worker 57 Wdo)t Student Adv8nce Programme- P￿rf2 Aspire Biidging th• gap to C￿StrUction empknyment C￿t of Liwng Crisis Grant- Emerg Vouch8rs for Foodbonk cal￿ts WEF 53 Constructbn Youth Trust WEF 50 NoNLY)d And Brixion Food￿￿}k WNEC 50 Plaianos Coll&J8 WEF Platanos Healthy Sthooj Grant Rathbone Ed￿ation and ErnF4oymont Programme SI*￿￿ of Harfl Kn¢xks- At Prir Community Lambeth PLgy and Early Y8or5 Traning for ernF40ym￿1 Stirol skil￿ BounceB&k prowamme Road To SuLf8S8 Waknrth Gardan L$¥el 2 WO￿ BawJ Horbculture Boun￿* Tu186 Hill Rathbone Sctlety WEF Sthcd of Hard l(JKY*¥ WEF Slade Gardens Commwity A65wation Spiral SkJlls CIC Stre#tham Youth and CornmunÉly Tru WEF WEF WEF ￿?j￿)rth Gard?n H*3h Tr885 C(￿mUnty D•v8k)pm8nt Trust WEF WEF Rlpe LeamlNJ WEF Better Sklls, B&terJob8 Unity Work8 SOCI￿ Entsrprisa8 WEF Unity Lambeth Thè FÈctory'. Fost Forward Inb the Creallvg ¥nd CU￿1 Induslrias 198 ConternwraryAts aNJ Lg8min WEF Creative Sparkwrjrks WEF Steps and Sparks towork Motivat• and L8ad.' Empbyment R•adlness SupFQrt for 18 to 20 y$8r olds Ml Communty Enterprfse Llmlted Indo￿arican R•fug8e and Oo8ni8atknn IRMO WEF WEF b)Un￿ IRMO Larkhall Primary S¢h(d ond Childrpn's Centre Llllan Ba￿1$ TechTh)bgy S¢￿xI1 WEF WEF Larkhall Heatthy School Grant Lilian Bayli8 Hearthy Sthod Grant LOUght￿OUgh Prfmary sch￿)1 Tou(*n Employrn& Rkging St*¥ SupFrf)rt WEF WEF WEF Loughborough Heahhy School Gr8nl Toucan Hosptaity Proj8L* Flght For Your Futurè IBounceBacal 37 Allen Etthvards Prirnary Sch￿1 WEF AIKen Eoknrd8 Heahhy S¢h)ol Gront hxchbishop Ton1K￿,$ H￿lIhY School G￿t Ark Evelyn GreKe Heahhy School GrAnt Archbi¥fv)p T8nison's£chty)I Ark Evelyn Grdce Academy WEF WEF WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Notg 191contlnuad) Grnnts of £10.000 or moro awardod to In$tltutlons worklng with financl¥lly di$advantsg•d Lambeth resldents Namo of In$titutk•n Chartly D•s¢rlptlon £000 OUTSIDE THE BOX- Creatrve Entre￿en￿rS Project Brlght Lfve and Leam Well prole( LAmbÈth DooF5tsp Libr8ry projeds F8n$tsnton He8lthy School Grant Granton Healthy SchcKJl Grant Henry Fawc8tt Heatthy S¢￿1 Grant L￿￿eth Peer Athon Colleetlve Hill M8ad Heallhy Schcol Grant Larnbeth Diqital HeroeB IntoUnivgr5ity Kennington Engage & DIVERT Oasis Healthy S¢hool Grant Trfnity H•althy Schoc4 Grant Van Gogh Hoothy S¢hrx)l GMI WYMI Heathy SCI￿ Grant Moving On Year 2 The OntrStopShop.' Tad(Ihg root causes of lood ￿)￿rtY and insgwrity A￿&98 to Aorstep Ltrjrary Fenstanton Prfm8ry Sch))I Grnnton Primary Sthool Henry Fawt6tt Prtrnary Sthool Hlgh Tr88s Comrnunty Deveknpment Tn￿t Hill Mead Prfmary Sch￿1 Institute Of ImaginatK)n IntoUnNersity Juvgni$ Oas(g AcAikny South Bank A¢ademy Van Groh Prfmary School Wyvil Primgry Sthool St Matthèws PrOj￿t WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF WEF 30 30 30 30 30 30 atak8ts sabllty Advk8 S8M¢g Larr*>eth WNEC WNEC A Safg Dcme8ti¢ En￿roThMent for Portuguese- speaking Famllies In Lambeth 'Behlnd The Sc•nes'. Famlly Interventh)n Project Young ca￿r$ Project Virtuèl Comrnunity After-￿￿1 Study Supp)rt Club R8speJto WEF Code 7 Ltd C8reTS Hub Lambeth WEF WEF CEF- C¢mrnunty Educatkjn Foundation & LynGX WEF 25 Secondary Transition EmPu￿rn￿lt Programme ISTEPI Athice for Lambeth Crisis NavKJatK)n S8rKe Chief Operatin9 Officer Dgvd0p￿￿nt Programrne Holy Trinity Heatthy SclKJol Grent Iqra Healthy Schc4)l GMt On the rfght tr&k Earfrlntsrvention L•ad Dramath8rapy.' CrBatiThJ W8llbOFro Togeth•r in Schoo19 Chance UK Citizen$ Advlce Merton And Lamb*h Commons Law CIC Communty TechAld Future Men Hoty Trfnity CE Prfmary $th￿l Iqra Primary School fek>ng Family Link8 Llllan Baylis Te￿I￿rogY Schcd WEF He￿85 WNEC WNEC WEF WEF WEF WEF WEF 25 25 25 25 25 25 Mlndhewt creats.ve Thora￿￿5 CIC WEF 25 Nor4%wd And &lxton Foodbank Options 4 Charge Orchard Primary R¢ay Primary Sch¢) Saint Gabriels coll￿]8 WNEC WEF WEF WEF WEF El￿triC Delivery Van for ￿)r￿)¢)d FIKAlb8nk Famlly W811are The (Trthard Hedthy Sthoc4 Grant Mlnd the knrd, gap,. ReM￿ng Barrfers in Education 25 25 25 25 25 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Noto 191continugd) Grants of £10.000 or mor• awarded to Instltutlons worklng whh finanGlally dlsadvantaged Lamb*th rosbdwts Name of Instftutlon Chathy Dgscripti¢ st Mark's CE Pthiary Schojl St SteF*en'8 CE Pn'mary WEF SI IAark's Heatthy Sthool ¢>ant WEF St step￿n$ Heathy sChc￿l Grant 20 WEF Lambeth Connedng forCharYJo 20 V3uxhall Primary Sdwl Yourstory WEF Vauxhall Hedthy Sc*ool Grart WEF Llving LO￿ T8m) Hèallh Condltlons 20 19 Young Futur8S Thg Childrgn'$ Litaf4Cy Charity Larnbeth Nurnory *h￿l8 Fed8ratK*n WEF Therapy for youTrJ fern￿￿ care leav•rs at Y¥onne Howe 19 WEF Ey4J•rt Lab Prograrnm8 in Lamt4th 19 WEF Music Thtrnpy ac¥oss 5 nuTsery sthD)l$- Exkensbjn 18 Lambelh Somall Community A85￿#tIOn WEF Leamlng 8ftw cO￿￿-19 IL4CI Pm1￿l Building Young Aspirations 18 AIFord Fbu8e Rth8rd Athins Primary Sthwl WEF 18 Creativè Thewy & NOPA.. a prrfjrdfflm8 of rnentsl heaw) gJH>ort at R[Cha￿ Atklns Prim8ry Therapy and Outraach Support to txkle Pupl Premium WEF CNldw'¥ M8ntsl Hedth. WEF 16 Storknwll Prtmary Sch￿1 16 Upgrad8 Yoursdf tutoring prvgrwnrne. WEF Ck)strng the att￿nment gap n Street Centrtr TrL*t 15 Hwon Acedemy WEF Th8 Mth881 Tippètt Hgathy Sthoc4 Grant 15 PwJasLts Opara Company South LorwYJn AB#ociatitsn WEF Opera Mentorfng Prowamrne Lambeth youth club and $upport for vuknwabl• young refugees nd oswum 88eker8 15 WEF 16 The Li￿ty School WEF The Li￿Y H8aMhy School G￿￿t 15 Chrf9t Church Streatham irnBry Ilenlal hgdth & wollbdng. a trdistlcaFproath to $upputing WEF dsadvanlapj pupi18 15 Art4Sp* hbiBhop Sumner C.E. prtrnary School WEF Cr•atlve Arts Preparation ForAdulthoLKI and Empk)ym• 15 WEF Child PSYL4V)tr￿raPy. Rwrnving barri￿ in gducati?n. 14 St•p Now Gkjbal CIC St Saviours CE Prlmary WEF Inspirg to Aspire Piogramme 14 WEF Creative Awts Thèr8py s￿lee& 14 Supporung dtsadvwt8ged purrfls from Lamboth to fu￿1 WEF the¥ potential 8t Sthoul and btyoNI Impmwng orooy sk1116 in MAGT puplls & Ernotiwal WEF wdfare supp￿* for PP puplls Future F￿tièrS 14 l ￿lMary School 13 WALCOT FOUNDATION NOTES TO THE ACCOUNTS YEAR ENDED 31 PIIARCH 2023 Not• 19 l¢onllnued) Grnnts of £10.000 or m￿0 awardod to institutions working with flnanclally dis#dvanlaged Lambeth Nam• of Institutlon Charfty De8¢rlptlon £000 Leadershlp ThrO￿h SkffiArd Buwrths WEF Morè Th8n An Apprèntice. Lambeth Closlng tha gmp.. A¢￿8 2 Utè prL¥ramme Héalth M•ntor 12 St Jude's CE Prfmary Scaool Sunnyhill Primary School WEF WEF 12 11 Haffts At￿￿Y CL4pham Héalthy School Grant Oa￿$ Johanna Hoolthy Sthool Gr8nt Tumey Heathy School Grdnt ABC- AChi￿r￿J Beyond CapabS11I89 R8rLJvery ThrO￿3h GardenSng the Great Outtho Harris Acaderny Clapham Oasis Awlemy Johanrta T(mey SL*ocl Exee8d Re8dlTrJ Stsr5 Ltd WEF WEF WEF WEF 20 20 15 10 HNh$rf￿d Prirnary sChc￿l WEF 10 Brixton Youth TheatrB- Young Refug Elm Court Heathy Scho(A Gr8nt Kennington HèBlthy Sthcx)l Grant Brixton Comrnurity Base Elm Court Sthool Kgnnir￿tOn Pa￿ Aeadamy Lanbgth Lgrd?r CGThrnunlty Fc￿￿ R8sourr* cic Lansdowne Sthoc4 WEF WEF WEF 10 10 10 WNEC WEF Pap8r Directory of S8rvK8s 202&25 Lansdowna H•8lthy s¢￿￿1 Grant Plaffom Café Empby¥l*lity Programme Lambeth Book c￿tion aub Earfy InteNenlon Thernpyfor Vulnarabla ChiTdrgn Subtolal ofGrants U•tsd Abo 10 10 LoughboTough Junctbn Aeuon Group Station Hall Heme Hlll WEF WEF 10 10 Wolnut Tw Wdk Prfmary S¢hts)I 10 Smaller grants to organl8aUons working With financlalty dIgadVant￿0d L*nb•lh rnsld•nts (Aot Iljtod abw•) Grants to Indfvldual• 381 T¢tsl Grants P•Sd In Yoar 47 Walcot Foundation Post-Audit Management Report Year Ended 31 March 2023 ## Post-Audit Management Report We have completed the audit of Walcot Foundation for the year ended 31 March 2023 and we expect to issue an unqualified audit opinion. This report covers the findings from our audit, the scope of which was communicated to you prior to commencing the work. It includes some recommendations for improving the accounting and internal control systems as well as highlighting some future developments that may be of interest to the board. We hope that the recommendations are practical and are able to be implemented. We would be grateful if you could discuss the points as a board and will welcome a written response. Please extend our thanks to Marcia and Djilali for all their help with the audit. If you have any concerns or questions arising from this report, please contact Neil Finlayson or Samir Chandoo. Yours faithfully, Moore Kingston Smith LLP Date: 20 November 2023 2 ## Contents |Contents|| |---|---| |Audit Approach|4| |Significant findings from the Audit|8| |Operation of the Accounting and Internal Control Systems|9| |Corrected material misstatements|12| |Client corrected material misstatements|13| |Sector updates|14| |Other matters|36| This report has been prepared for the sole use of the board of Walcot Foundation and must not be shown to any third parties without our prior consent. No responsibility is accepted by Moore Kingston Smith LLP towards any third party acting or refraining from action as a result of this report. 3 ## Audit Approach - Risks As outlined in our audit scoping report dated 15 May 2023 our audit approach is based on an assessment of the audit risk relevant to the individual financial statement areas. Areas of risk are categorised according to their susceptibility to material misstatement, whether through complexity of transactions or accounting treatment. For each area we calculated a level of testing and review sufficient to give comfort that the financial statements are free from material misstatement. The following table lists any risks identified at the planning stage and during the course of the audit, our approach to mitigate the risk and our conclusions from completing this work. 4 ## Audit approach – Risks (continued) |**Risk**|**Audit Approach**|**Conclusion**| |---|---|---| |**Revenue recognition**|• We will review any last-minute adjustments|From the sample testing completed, revenue has| |There is a risk that revenue is recognised in the|to revenue|been recognised correctly.| |wrong period.|• We will review books and records for any|| ||unsupported or unauthorised adjustment to|| ||sales|| ||• We will review sales cut off|| ||• We will review credit notes issued after the|| ||year end|| ||• Obtain and review the deferred/accrued|| ||revenue reconciliations for any significant|| ||unexplained items.|| ||• Perform detailed AR on income to see|| ||whether there are any unusual trends.|| |**Segregation of duties & Management**|We will include sample testing of the following:|From a sample review of the journal transactions| |**Override**||and miscellaneous payments samples we| |The size of the finance team means there is a|• Reviewing unusual transactions and|reviewed, no instances of management override| |presumed inherent risk that an individual could|balances, journal entries and miscellaneous|were identified.| |override control systems in place. This is|payments.|| |required to be treated as a significant risk|• Testing and reviewing journal entries|| |under ISAs.|• Performing miscellaneous payments testing.|| 5 ## Audit approach – Risks (continued) |**Risk**||**Audit Approach**|**Conclusion**| |---|---|---|---| |**Valuation of the Investment Properties**|•|Review and validate third party report on|During the course of the audit, a number of| |There is a risk that the value of both the||valuation of Investment properties.|changes and adjustments were made to ensure| |commercial and residential properties held is|•|Analytically review valuations of properties|the fair value of the investment properties was| |materially misstated and requires impairment.||and investigate any significant differences|accurately reflected in the financial statements,| |||from prior year.|and that disclosures in Notes 11, 16 and 17 were| ||•|Verify historic cost to purchase|consistent in regard to the allocation between the| |||agreements.|various funds/schemes in use by the charity.| ||•|Discuss with Cluttons with respect to the|| |||assumptions used in the valuation report|We have also gained reasonable assurance that| ||||the properties are disclosed at fair value.| |**Operation of the various schemes and**|We will:||Following our review on reserves, and sample| |**Funds in use**|||testing undertaken, income (including gains) and| |Linked to the above, there is a risk that|•|Perform testing to gain assurance that|expenditure (including losses), and transfers are| |conditions of the various schemes/funds are||income and expenditure (including|being allocated to the various funds/schemes in| |not being met.||investments and investment gains and|accordance with the various scheme rules.| |||losses) are being allocated to the correct|| |||scheme/fund and transfers from one fund|| |||to another are being done correctly.|| 6 ## Audit approach – Risks (continued) As [outlined in our audit scoping letter dated [date]/ [discussed at the planning **Risk** ## **Audit Approach** ~~stage of the audit] our audit approach is based on an assessment of the audit~~ **Going Concern** We will: risk relevant to the individual financial statement areas. Areas of risk are There is a risk that impairment of the properties • categorised according to their susceptibility to material misstatement, whether coupled with voids and decreasing rental yields through complexity of transactions or accounting treatment. For each area we will have a material negative impact on the calculatrevenu **e** d a level of testing and review suffic, surplus and cash flows of the char ty, **i** ent to give comfort that the financial and pos **s** tatements are free fribly on its ability to c **o** ntinue as a going m material misstatement.living crisis. concern. • In order that we were able to perform an appropriate level of audit testing, a - Review forecasts and other information produced by Management to confirm the going concern status of the entity after the assessment of the impact of the cost-ofliving crisis. - Review investment property valuation documentations for signs of impairment. ## **Conclusion** From work performed, and from communications with management, we are satisfied that there are no material uncertainties relating to going concern. - figure of £X was calculated at the planning stage for materiality. [We did not • Consider the potential impact on revenue, expenses, supply chains and funding needs - need to revise this as a result of any of our findings from the audit. / This was and consider what measures management - revised to £Y as a result of adjustments identified during the audit]. (section have taken to mitigate any impacts and how - can be deleted as it is optional) successful these measures are likely to be. The following table lists any risks identified at the planning stage and during the course of the audit, our approach to mitigate the risk and our conclusions from completing this work. 7 ## Significant findings from the audit We are required under International Standards on Auditing to request you to correct all misstatements identified during our audit, with the exception of those that are clearly trivial. seek the Governors’ formal confirmation are in respect of routine matters, except paragraph 13 regarding the non depreciation of property. ## **Corrected misstatements and reclassifications** Included on page 12 are the corrected misstatements identified from our audit work and on page 13 is the adjustment made by management. ## **Uncorrected immaterial misstatements and reclassifications** There were no uncorrected misstatements identified by us during the course of our audit work. ## **Observations concerning the operation of the accounting and control systems** On page 9, we have included details of other matters concerning the operation of the accounting and control systems that should be brought to your attention, along with management’s responses to these matters. We have also provide an assessment of how our previous recommendations have been dealt with. Due to the nature of an audit, we may not have identified all weaknesses within the accounting and internal control systems which may exist, and the contents of this section of our letter and any items disclosed in this report should not therefore be taken as a comprehensive list of such weaknesses. ## **Management representation letter** A draft of our proposed management representation letter has been sent to you under separate cover. All of the matters included in this letter on which we 8 ## Operating of the accounting and internal control system We are required to report to you, in writing, significant deficiencies in the internal control environment that we have identified during the course of our audit. These matters are limited to those which we have concluded are of sufficient importance to be reported to you. Our audit cannot necessarily be expected to disclose all matters that may be of interest to you and, as a result, the matters reported may not be the only ones which exist. As part of our work, we considered internal controls relevant to the preparation of the financial statements such that we were able to design appropriate audit procedures. This work was not for the purpose of expressing an opinion on the effectiveness of internal control. We have categorised the internal deficiencies noted via a colour-scale rating system. The key to which follows: We consider this to be of critical importance and would recommend that it is addressed as a matter of urgent priority The control should be strengthened to enhance operational efficiency but we do not consider this to be an urgent priority This is provided for either information only or we do not consider there to be a risk of material loss 9 ## Operating of the accounting and internal control system |**Current year observation**|**Recommendation**|**Management response**| |---|---|---| |We noted a difference between the Aged||| |Debtors Report and the balance in the financial
statements of £12K. This was due to amounts
having been received from debtors during the|Receipts should be allocated as soon as
possible, once received.|| |year not allocated until post year end.||| 10 ## Operating of the accounting and internal control system **Prior year observation Recommendation Implementation response** During the course of our testing, we noticed No such instance occurred during this year’s that the Aged Debtors report did not agree to It is important to ensure that the opening ledger audit. prior year signed Accounts by an amount of balances tally back to the prior year signed £4,608. An opening balance adjusting journal accounts. **This point has been satisfied.** has been put through. 11 ## Corrected misstatements and reclassifications |||**Balance Sheet**|**Balance Sheet**||**SOFA**|**SOFA**| |---|---|---|---|---|---|---| |||**DR**|**CR**||**DR**|**CR**| |||**£**|**£**||**£**|**£**| |WEF Freehold Properties; Unrealised
Gains|||900,000|||| |WEF Endow. Fund Mvt on Unreal.
Inv.|||||900,000|| |**_Being the unwinding of the revaluation that was put through in May-22 but should have been reversed following the March_**
**_2023 revaluation (for Mews)_**||||||| |||||||| |WEF Freehold Properties; Unrealised
Gains|||1,670,792|||| |WEF Endow. Fund Mvt on Unreal.
Inv.|||||1,670,792|| |**_To reduce the revaluation surplus by the construction amount capitalized following the March 2021 revaluation to align the_**
**_Fair Value to the Cluttons March 2023 Fair Value Report_**||||||| 12 ## Client corrected misstatements and reclassifications |||**Balance Sheet**|**Balance Sheet**||**SOFA**|**SOFA**| |---|---|---|---|---|---|---| |||**DR**|**CR**||**DR**|**CR**| |||**£**|**£**||**£**|**£**| |Net gain on Investment properties|||||1,054,899|| |
Investment property|||1,054,899|||| |
**_Being an adjustment to reconcile the accounts value to the external property valuation_**||||||| |||||||| 13 ## Sector Updates ## **CHARITIES ACT REFORM** Through the Queen’s speech on the 11th of May 2021, the government announced reforms to the Charities Bill that will have the effect of reducing the amount of bureaucracy faced by charities. This became law on 24th February 2022 and the Charities Act 2011 is now the Charities Act 2022. The provisions will be implemented on a staggered basis to allow time for the Charity Commission to update its guidance – see the last page of this sector update point. The main elements of the Charities Bill, which covers charities in England and Wales, will include: **Financial Thresholds -** Charity reporting requirements vary according to thresholds that currently exist. It is proposed that these should be reviewed regularly to reflect inflation. This would prevent an increasing number of smaller charities becoming subject to stricter requirements, or acquiring powers, which are not appropriate to their size. The Charity Commission aim to review these in 2022 and every 10 years thereafter. **Changing purposes and amending governing documents** - Charities should be able to make changes as quickly and efficiently as possible, whilst retaining safeguards to ensure that any amendments are in the best interests of the charity and its beneficiaries. The processes for amending a charity’s governing document vary according to the charity’s legal form. The Law Commission’s recommendations would simplify those processes and align them across the different types of charity. They would also simplify the criteria which the Charity Commission considers when agreeing significant changes. donation if a fundraising appeal does not achieve its target. The effort to do this can be disproportionate to the size of the individual donations. A £120 threshold (per donor) has been recommended to strike a fair balance between protecting the donors and reducing the administrative burden on a charity. **Acquisitions, disposals and mortgages of charity land** - The law governing how charities dispose of land requires charities to follow certain rules when they sell, let or mortgage their land. They have agreed to simplify these including how certain universities and colleges dispose of land, aligning it with broader charity and trust law. This includes extending the range of specialist advisers able to provide advice. **Permanent Endowment** – In an effort to reduce bureaucracy and costs the definition of a permanent endowment is to be reformulated to remove its inconsistencies and lack of clarity. The move to a £25,000 threshold to enable more endowments to be released will be welcomed and the power to spend 25% of the endowment with a 20-year repayment period (without approaching the Charity Commission first) will serve as valuable tools for Trustees. ## **Remuneration for the supply of goods and the power to award equitable** **allowances** - The Act should be updated to allow Trustees to be remunerated for services and goods (currently they can only be remunerated for services). The Charity Commission should have a statutory power to award equitable allowances in situations where charity trustees must account for a benefit that they have received in breach of fiduciary duty. **Cy-près schemes and the proceeds of fundraising appeals** - Some charity fundraising appeals raise too much, or too little, money to achieve the appeal’s aim. The current law requires charities to contact donors to offer to return their 14 ## Sector Updates **Non-Statutory Ex gratia payments out of charity funds -** The introduction of a new statutory power allowing trustees to make small ex gratia payments without having to obtain the prior authorisation of the Charity Commission, the Attorney General or the court; this will apply to ex gratia payments of up to:- (a) £1,000, in the case of a charity with a gross income in its last financial year of up to £25,000; (b) £2,500, in the case of a charity with a gross income in its last financial year of more than £25,000 and up to £250,000; (c) £10,000, in the case of a charity with a gross income in its last financial year of more than £250,000 and up to £1 million; and (d) £20,000, in the case of a charity with a gross income in its last financial year of more than £1 million. **Charity and Trustee Insolvency -** Managing a Charity’s finances (CC12) should be revised. There are recommendations to provide more clarity over the availability of trust property. Property included within permanent endowments, special trusts or restricted funds, which can meet the liabilities of an insolvent trustee, is no different whether the trustee is an individual or a charitable company. power to make “authorised costs orders” in respect of proposed or ongoing Tribunal proceedings that would provide charity trustees with advance assurance that 1) costs already incurred or proposed to be incurred; and 2) costs ordered to be paid if the litigation is unsuccessful; can properly be paid from the charity’s funds. This review was to address the issues raised by Lord Hodgson in 2012 and is considered by some as long overdue. Whilst we welcome these changes they will only be implemented if Parliamentary time allows for it. The full government response to the Law Commission review of the Charities Bill can be found here: https://www.gov.uk/government/publications/governmentresponse-to-law-commission-report-on-technical-issues-in-charity-law/governmentresponse-to-the-law-commission-report-technical-issues-in-charity-law The Charities Act 2022 can be viewed here: https://bills.parliament.uk/bills/2877 **Note: Phase 2 of the reforms comes into play on Wednesday 14 June 2023** . **Charity Names –** The Charity Commission already has a framework that enables it to take steps to protect charities from confusion arising from other charities with duplicated or very similar names. This would be extended to cover “working names” of charities as well as the main name of the charity and would extend the Charity Commission’s powers to issue directions on charity names to unregistered and exempt charities. **The identity of a charity’s trustees** - The Charity Commission is to be given the power to ratify retrospectively the appointment or election of a person to a charity trustee role. **The Charity Tribunal and the courts -** The Charity Tribunal should be given the 15 ## Sector Updates ## **Charities Act 2022 implementation plan** _This plan explains how the Department for Digital, Culture, Media and Sport will implement the Charities Act 2022_ **----- Start of picture text -----**
Provisions of the Act expected to come into force
Provisions of the Act expected to come into force Provisions of the Act expected to come into force
Autumn 2022
Spring 2023 Autumn 2023
Section 4: Power to amend Royal Charters Sections 9-14 and 35a: Permanent endowment Section 1-3: Charity constitutions
Section 5: Orders under section 73 of the Charities Act Sections 17-23: Charity land Section 29: Powers relating to appointments of trustees
2011
Sections 6 and 7: Cy-près powers Section 24 and Sch 1: and College Estates Act 1925Amendments of the Universities Section 31: Remuneration etc of charity trustees etc
Section 8 : Power of the court and the Commission to
make schemes Sections 25-28: Charity names Sections 33-35: Charity mergers
Sections 15 and 16: Ex gratia payments Section 38 and 39: Connected persons Section 37: For remaining purposes
Section 30: Remuneration of charity trustees etc providing Part of Section 40 and Schedule 2: Minor and Section 40 and Schedule 2: For remaining purposes
goods or services to charity consequential amendments
Section 32: Trustee of charitable trust: status as trust
corporation
Section 36: Costs incurred in relation to Tribunal
proceedings etc
Part of Section 37: Public notice as regards Commission
orders etc.
Part of Section 40 and Schedule 2: Minor and
consequential amendments
**----- End of picture text -----**
## SECTOR UPDATES ## **THE CHARITY SORP** Following the delay to the triennial review of FRS 102 and FRS 105, the next iteration of the Charities Statement of Recommended Practice (SORP) is expected to be implemented from 1 January 2026 (for Walcot, this will be applicable for the first time in the year ended 31 March 2027). Feels like a long way away, but when a new SORP is applied for the first time it is “retrospectively applied” so this will require restatements for the comparative period and an opening balance sheet as at the start of the prior year (so, 1 pril 2025). Suddenly, not so far away. Back in January 2022, the SORP Committee (the body responsible for developing the next iteration) issued an overview document that introduced four drafting aims as “themes” for the next SORP, as follows: - Considering key readers and explaining social purpose - Compliance with FRC requirements and changes since the last SORP - Promoting consistency across the Sector - Relevant to charities and their socioeconomic context and then provided more detailed context on eight drafting principles to underpin the next SORP:- Principle 1 - the majority of preparers using the SORP are volunteers, advisors or practitioners assisting smaller charities and so in writing the SORP we will keep the needs of smaller charities in mind and seek to provide clarity to enable practitioners to understand the requirements of, and good practice recommendations made by, the SORP. As far as practicable and to the extent that accounting standards permit the SORP will be written with language and terminology that is clear and not overly technical to a practitioner who is otherwise familiar with basic accounting concepts and terms. Principle 2 - to provide guidance to assist practitioners to prepare accounts that give a ‘true and fair’ view in accordance with current GAAP including addressing any charity specific matters not addressed by GAAP. Principle 3 - when making changes to the reporting and accounting requirements to have regard to the potential impact of those changes on the public’s continuing support for the legitimate charitable endeavour and to the practical challenges of addressing public perception of charities’ reporting and accounting practices. Principle 4 – to ensure that the narrative reporting requirements address the interests of the main users of the report and accounts. Principle 5 - to innovate by introducing or changing reporting requirements where this is necessary to either assist practitioners or meet the needs of the main users of the report and accounts and to reduce the need for additional bespoke requirements by any charity law jurisdiction adopting the SORP. Principle 6 - to disseminate good practice reporting where the SORP Committee recommends that this is in the best interests of the sector as a means of helping the wider charity sector and practitioners to meet the needs of the main users of the report and accounts. Principle 7- to reflect the requirements of charity law and company law as they apply to reporting and accounting by charities in those jurisdictions adopting the SORP. 17 31 ## SECTOR UPDATES Principle 8 - to take account in our decision-making on any changes to the reporting and accounting requirements and recommendations of the SORP of both the potential value of the information to the user and the demands placed on the preparer of making those changes or recommendations. As we move into the period of time where a new draft SORP will be issued for consultation it appears areas such as “a further tiering of charitable organisations by size for reporting” (where smaller Charities could see reduced disclosure, whilst larger entities could experience more PLC type reporting requirements), “future proofing the SORP for ESG, sustainability and digital innovations” and considering “comparability” (will the discussions around a “one page key facts statement for all charities” remain) will all need to come to the forefront and be concluded upon. ## **FRS 102 and FRED 82** The financial reporting exposure draft (“FRED”) 82 from the FRC has now completed its consultation period, having closed on 30 April 2023, in relation to its proposed changes to the UK accounting framework including FRS 102. Underlying the Charities SORP is the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The SORP provides guidance for charities on how to apply FRS 102 in order to ensure that charity accounts are ‘true and fair’. FRS 102 also takes precedence over the Charity SORP. requirements of IFRS 15 'Revenue from Contracts with Customers', but with simplifications aimed at ensuring the requirements remain cost-effective to apply. Many charities have diverse sources of funding, including income from charitable activities, donations and legacies, where funds are given freely. However, some transactions such as contracts and sales in the financial statements could be impacted by the FRED 82 updates. It is hoped that any update here will be accompanied with sector specific guidance for Charities, alongside the SORP. •Leases - Leasing requirements in FRS 102 are set to change significantly. An IFRS 16 'leases'-based model has been proposed, requiring lessees to recognise all leases on the balance sheet, subject to limited exemptions. This change could be very onerous, with an on-balance sheet “right to use asset” which will then be amortised over the length of the operating lease being the likely outcome here for all Charities to consider. •Other feedback - The FRED 82 consultation also notes that there may be changes to the length, complexity and detailed nature of the notes to the financial statements (further exemptions may be provided from drafting comparative notes in certain areas for example). This would be welcome news for many Charities (including conversations we have had with many clients regarding the ever increasing length of the financial statements) and particularly those with complex fund structures including unrestricted, designated, restricted and endowment funds. In relation to Charities, it appears the proposed changes will have three key considerations for the future of the annual Financial Statements:- •Incoming resources - FRED 82 proposes the introduction of a five-step model for revenue recognition in FRS 102. The model will be based on the 18 32 ## SECTOR UPDATES ## **FUNDRAISING AND GOVERNANCE UPDATES Gift acceptance issues for fundraising charities** Charities are obliged to accept donations unless they have a very strong reason not to. This was an issue with the President’s Club furore, where it was difficult for some of the charities involved to return donations, even when public opinion believed they should do so. This can be an issue with ESG considerations in fundraising. A number of Trusts and Foundations have chosen to declare a climate emergency, which will have implications for the types of organisations they will accept donations from and additionally provide donations and grants to. This list of exclusions moves beyond previous exemptions of tobacco and the arms industry. If an oil or gas giant, for example, wished to make a sizeable donation with naming rights, how would the charity deal with the issue? These and other issues relating to gift acceptance can be picked up during one of our Code of Fundraising Practice compliance reviews. We can also work with you to resolve the governance challenges these issues create. ## **Addressing ESG challenges** “ESG”, Environment Social and Governance, are three letters with growing significance for the corporate sector and this is starting to be seen across the statutory and nonprofit sectors too. Consumers and employees are increasingly expecting that companies consider purpose as well as profit. These same individuals may be donors of charities and will start to apply the same views to their giving. The Social Value Act already imposes ESG principles into how statutory commissioners contract with providers, so many charities who may also look to provide services under these agreements will already be thinking about ESG matters. Charities also need to start to consider their greenhouse gas emissions in more detail beyond SECR, including scope 3 emissions that are created through third parties as a result of charitable activities, such as donors driving to a fundraising event, rather than using public transport or cycling. ## **Next Steps for the Charity Governance Code (“CGC”)** The Charity Governance Code is a practical tool to help charities and their trustees develop high standards of governance and we, at Moore Kingston Smith, have worked with a number of Charities in order to use this Code as a framework for a full external governance review of the organisation. The Charity Governance Code steering group has had a new Chair since the middle of 2022, Radjoka Miljevic. She has recently shared her first blog, where she reflected on the future of the Code. In the blog, she talks about the importance of frameworks, and the value of hearing from a wide range of voices. Radojka also looks at the future of the Code, which will be reviewed in 2023. She shares her thoughts on key governance challenges, including: - •digital and cyber concerns - •our wider environment - •our engagement with nature and the climate - •social changes from power dynamics to wellbeing. It would be an excellent governance development if more charities in the sector embraced the CGC and referring to their work (and any changes as a result of the reviews completed) in their trustees annual report. 19 33 ## Regulatory Updates ## **Minimum standard for Audit Committees Published** **T** he FRC has published a minimum standard for Audit Committees and the External Audit. The need for a standard was highlighted through the Government’s Restoring Trust in Audit and Corporate Governance. When the FRC becomes ARGA (Audit, Reporting and Governance Authority), they will be given the statutory powers to mandate minimum standards for audit committees. Whilst the standard will apply to FTSE 350 companies we would recommend that Audit Committees should refer to the guidelines, consider if they should adopt any or a modified form of any of the requirements, as examples of good governance. The standard will be voluntary until ARGA has been established. The standard can be found Audit Committee Minimum Standard (frc.org.uk) ## **FRC launched a consultation on revisions to the UK Corporate Governance Code** The FRC launched a consultation covering its review of the UK Corporate Governance code. Here are five priority areas of focus: - Aligning the code with the changes to the legal and regulatory requirements, including strengthening reporting on directors’ remuneration on malus and clawback arrangements. - Revising the parts of the Code which cover the framework for prudent and effective controls to provide a stronger basis for reporting and evidencing their effectiveness. - Including responsibilities for sustainability and ESG reporting and appropriate assurance. - Reflecting the Minimum Standard for Audit Committees. - Improving comply or explain functioning where reporting is currently weaker. The consultation closed on 13 September. The paper can be downloaded from Consultations | Financial Reporting Council (frc.org.uk) 20 ## Regulatory Updates ## **The Economic Crime and Corporate Transparency Act 2023 (ECCT Act)** Having received Royal Assent on 26 October 2023, the Act will introduce a transformation of Companies House’s role from registrar to regulator. This will impact any charitable company or a charity that has a trading subsidiary or a charity that has a corporate director. The Act includes provision for: Further information about the Act can be found the following series of factsheets produced by the government: Economic Crime and Corporate Transparency Bill 2022: Factsheets - GOV.UK (www.gov.uk). Significant parts of the ECCT Act are targeted at Companies House reform which will include: (1) Undertake identity verification for all new and existing company directors, PSCs and those filing documents at Companies House (i) **New company directors** will need to have their identity verified before notifying Companies House of their appointment as a director. During a transitional period, existing directors will be required to have their identify verified before the company files its next confirmation statement after the new rules take effect. (ii) **People with significant control** (“PSCs”) will also need to be verified on becoming a PSC. Where a PSC is a company or other entity, one of its officers will need to be verified. (iii) **Anyone who is delivering documents to Companies House** either on their own behalf or on behalf of another party, will need to have their identity verified unless they are an employee of an Authorised Corporate Service Provider (“ACSP”) acting in the course of their employment. It is likely that professional firms such as accountancy firms and law firms will apply to become ACSPs. When an individual’s identity has been verified, that individual will be allocated a unique identifier allowing Companies House to maintain a database of verified individuals. Provided individuals maintain their verified status, they will not need to have their identity re-checked each time they make a Companies House filing. . 21 ## Regulatory Updates - (2) Having wider powers to check, remove, challenge and decline information submitted or already available on the register - (3) Having a wider investigatory and enforcement power to cross-check data with both public and private databases. Companies House has announced that the wider powers will not be introduced straight away and further notice and guidance will be released in due course. However, some measures are likely to come into forced in early 2024 and this may include questioning over information filed with them, stronger checks on company names, new rules for registered office addresses (no ability to use a PO Box), requirement to confirm the company is being formed for lawful purposes on incorporation (every year thereafter, companies will be required to confirm that their future activities will be lawful), sharing data with other government departments and law enforcement agencies and the requirement to supply a registered email address. Requirements for companies accounts and filing will change, with the introduction of: - The abridged accounts filing option will be removed. - All companies will have to file their profit and loss account and Directors' Report. Micro-entities will only need to file a profit and loss account. - Directors who use the audit exemption rules, including dormant companies, will have to file an exemption statement, identifying the exemption being relied on and to confirm that the company qualifies for the exemption. - Mandating digital filing and full tagging of financial information in iXBRL format (as noted above), and a reduction of the number of times a company can shorten its Accounting Reference Period. Other changes being introduced by the ECCT Act include the new criminal offence of failure to prevent fraud. A large (by the Companies Act definition) organisation would be liable where a fraud offence is committed by an employee or agent, for the organisation's benefit, and the organisation did not have reasonable fraud prevention procedures in place. 22 ## Regulatory Updates ## **FRC publishes outcome of FRS 101 2022/23 Annual Review** The Financial Reporting Council (FRC) has published the outcome of the 2022/23 Annual Review into FRS 101 Reduced Disclosure Framework. The good news is that no amendments were identified as being required. The FRC’s notification can be found 01 Amends to FRS 101-title 1..2 (frc.org.uk) 23 ## Sector Updates ## **CC8 – Internal Controls** The Charity Commission has recently updated its guidance on internal controls, known as CC8. This is a longstanding piece of guidance which had not been updated since it was first published in 2012. It provides invaluable guidance to trustees and senior management teams around the operation of a charity’s internal controls. Whilst the existing guidance covered many relevant areas, the regulator has acknowledged that there are a number of new issues and threats which were not relevant when the previous guidance was published. The guidance also includes a refreshed checklist which can be used to benchmark systems and processes. ## What has changed? The guidance includes a new section on donations of cryptoassets, such as bitcoin and NFTs. It sets out a number of risks associated with cryptocurrencies, and emphasises the importance of charities understanding those risks before accepting donations of cryptoassets. If such donations are accepted, there are a range of recommendations including having a policy in place on the acceptance of cryptoassets, the need to ensure that any platform used is compliant with UK regulations, the requirement to keep accurate records of donations and the importance of following HMRC guidance around the taxation of cryptoassets. The guidance has also been updated for other areas which have become relevant since 2012, such as the use of mobile payment systems (for example Google Pay or Apple Pay). In addition to the new areas, the guidance also includes a refresh on advice for more traditional risks – for example, those around fundraising and holding public collections, making payments to related parties and operating internationally. A number of these have been recent areas of focus for the Charity Commission. ## What should you do? We recommend that relevant individuals utilise CC8 to assess how your charity’s policies, systems and processes compare to the guidance. The guidance is most relevant for senior members of the finance team and the charity’s treasurer, but an awareness of the guidance will be helpful for a range of individuals involved in charity finance. The guidance can also form helpful reading as part of an induction pack. We suggest using the internal controls checklist to benchmark processes at least annually. Completing the checklist periodically can be a helpful way of focusing on systems and processes; but note the checklist does not assess the underlying quality of the controls in place. However, it is a helpful way to review the core controls in place and an excellent starting point to benchmark what is in place. A further new area addressed is around the risk of cybercrime, an area which become significantly more prominent in recent years. The guidance focuses on the need to ensure there are suitable policies in place, for example in relation to storage and processing of electronic data. As in a number of areas, it cross-refers to more detailed guidance on this topic issued by the Charity Commission. 24 ## Sector Updates ## **Investment Guidance** The Charity Commission has been reviewing the way it encourages charities to invest in a responsible way. How charities weigh up the need for financial return vs investing ethically and reducing carbon emissions is tricky and Charities have been awaiting updated Guidance from the Charity Commission (following its CC14 consultation and feedback in late 2021 and then a delay to its proposed updates) alongside ESG concepts developing in the NonProfit sector. In the absence of anything forthcoming, the High Court ruling with the Ashden Trust and The Mark Leonard Trust has confirmed that climate change can be prioritised even if it risks the financial return. In the Butler-Sloss & Others v Charity Commission (2022) case, the judgement handed down provided clarity in relation to the extent to which charity trustees can permit their objects and wider moral considerations to influence their investment policy. As a result, charities can exclude investments that conflict with their objects – proving the decision is entered into in a proper manner. However, the judge advised against making decisions purely on moral grounds. ## investment portfolio. Further information regarding CC14 can be found overleaf. ## **Property** Sustainability is on the agenda and charities should be reviewing their estates and planning for steps that will make properties more sustainable, so that your Energy Performance Certificate (EPC) ratings are as good as they can be. Below par EPCs will restrict what you can do with your property and advice should be sought on how to improve EPC ratings – especially if your property is listed. The Building Safety Act has brought in some new and strengthened safety measures in response to the Grenfell Tower fire. There are new rules on carbon monoxide alarms in relation to tenancies. The MKS Property team can provide further assistance in these areas if you require. Trustees of charities have, in most instances, always tried to review their investment decisions in conjunction with their charitable aims and continue to manage the balancing act with the need to produce investment returns. Whilst most charities will await the revised guidance from the Charities Commission (and we expect the consultation feedback exercise to restart shortly),Trustees must remember that they are required to act in the best interests of the charity and they should formulate an appropriate investment policy which should deal with direct and indirect conflicts within their 25 ## Sector Updates ## **Investing Charity Money CC14 (revised)** On the 1[st] of August 2023, following a consultation exercise, and the ButlerSloss & Others case, the Charity Commission updated its guidance on how trustees can invest their charity’s cash resources. In the Butler-Sloss & Others v Charity Commission (2022) case, the judgement handed down provided clarity in relation to the extent to which charity trustees can permit their objects and wider moral considerations to influence their investment policy. As a result, charities can exclude investments that conflict with their objects – providing the decision is entered into in a proper manner. However, the judge advised against making decisions purely on moral grounds.​ The revised guidance also makes clear that any charity that invests its available resources must also have a written investment policy in place and that this policy is reviewed on a regular basis to ensure it is being adhered to. A more detailed read of the new guidance is encouraged, and this can be found here: Investing charity money: guidance for trustees (CC14) - GOV.UK (www.gov.uk) Overall, the guidance hasn’t detracted from the advice that was previously provided, in that trustees must make investment decisions that further the charity’s purposes and that these decisions should be kept under continuous review. However, with emerging ESG concepts trustees are now being encouraged to think about ethical investing alongside the desire to enhance the financial returns generated. The revised guidance dispenses with the words “ethical investing” or “responsible investments” or “programme investments” as these terms have often been confusing, and unclear. Instead, the guidance refers to: Financial Investments – which are made simply to obtain the most bang for your buck but allowing you to take sustainability and impact into your decisionmaking processes. Social Investments – which are those investment primarily designed to further the charity’s purposes (and, to a lesser extent, making a financial return). 26 ## Sector Updates ## **Cyber Defences for Charities – Cyber Essentials accreditation** Confidentiality of information in Charities has always been of paramount importance. A breach affecting records of its data which could involve donors, children, ethic and religious categories is typically very serious and would invite increased regulatory and public scrutiny with potential severe financial penalties. Uncontrolled disclosure of any sensitive information could severely undermine the trust and confidence of the public engaged with them, as well as compliance issues within the governing structure. Furthermore, reflecting the general pervasiveness of technology in our lives, charities are much more reliant on IT to both process data, marketing and financial information. An IT outage affecting the computer system may, within quite a short time frame, affect the charity to operate. The security threat from the simple use of e-mail and the web is very real, with phishing and ransomware attacks commonplace in today’s internetconnected world. Successful cyberattacks range from the theft of sensitive information to long-term disruption to the operation of IT systems. Maintaining a minimum level of cyber compliance across a Charity’s IT infrastructure is therefore absolutely key to not falling victim to a cyberattack. As technology constantly evolves becoming more ingrained into daily life, it is often difficult to know what this minimum level looks like in practice. The technical capabilities to strengthen cyber security defences is not always internally available within the Charity. For Trust Governors, it can be challenging to determine whether the Charities its infrastructure is adequately protected against the omnipresent threat of a cyberattack. designed to protect organisations against 80% of the most common cyberattacks which can impact businesses of all sizes, industries, and sectors. The 5 controls within the Cyber Essentials scheme are designed to protect your organisation against these types of cyber-attacks and guard your internet connection, devices, data and services. The government overview: https://www.gov.uk/government/publications/cyberessentials-scheme-overview Basic Level Cyber Essentials is a self-assessment and provides a basic level of assurance that the controls have been implemented correctly by the organisation. Cyber Essentials Plus covers the same requirements but is based on an on-site audit and therefore provides independent assurance of the effectiveness of these controls. ## **How can Moore Kingston Smith help you?** Moore Kingston Smith offer Cyber Security and Data Protection solutions which includes Cyber Essentials, Penetration Testing and Auditing along with GDPR and outsourced Data Protection Officer Solutions to ensure that your charity can demonstrate compliance. This issue facing the sector and other organisations across the country led to the UK Government introducing the Cyber Essentials scheme. The scheme is 27 ## Sector Updates ## **Fraud in the Charity Sector** Fraud in the charity sector is unfortunately at an all-time high, with recent estimations being a loss of £2.3bn annually to the UK Not for Profit sector (an increase of some £400m from estimates shared in 2016). Alongside our own Moore Kingston Smith specialists in this area, the sector is beginning to develop a suite of tools, guides and blogs which are worth a visit to ensure your Charity is aware of the key fraud considerations, potential pitfalls and suggested controls: The Fraud Advisory Panel (a registered charity and independent voice of the anti-fraud community) - https://www.fraudadvisorypanel.org/ 10 questions every Trustee should ask about Fraud and suggested policies - https://www.gov.uk/guidance/protect-your-charity-from-fraud The National Cyber Security Centre - https://www.ncsc.gov.uk/news/advicethwart-devastating-cyber-attacks-small-charities changes and calls to confirm BEFORE updates processed. ## **“Batch supplier duplication”** An example of an internal fraud – the details of a supplier are duplicated onto the system and the duplicate given the fraudulent parties bank details. “Real invoices” are paid twice, hidden in the batch run, once real and once fraudulent. _Controls to mitigate the risk_ – Approval of new suppliers and monthly management accounts reviews. The additional payment debit will need to be either to a balance sheet code or will be seen through an inflated expense code on the SOFA. ## **“Fraudulent staff/temp staff costs”** The fraudulent party continues to pay staff after they have left (using updated fraudulent bank details), enrols ghost employees for payment or processes fake invoices through “busy” nominal codes such as temp staff costs. Action Fraud for reporting - https://www.actionfraud.police.uk/ This area is notoriously fast moving, with new areas of attempted fraud arising daily, but some of the prevalent current frauds and potential controls to protect your charity from these, include: _Controls to mitigate the risk_ - This fraud is almost always discovered through a review of management accounts vs budgets. Preventive controls would include approval of staff detail changes and “lock down” on leavers details in a timely fashion. ## **“Supplier mandate fraud”** Contact is made from a “supplier” employee who is noting (either by phone or official headed notepaper) a change of bank details. The bank details are fraudulent. _Control to mitigate the risk_ – review and approval of all standing data supplier 28 ## Sector Updates ## **“Email takeover”** An internet based fraud that is expanding rapidly (and becoming more sophisticated). The finance team receive an email “from” the FD/CEO usually late afternoon, indicating they have forgotten to pay a key supplier and it should be paid immediately. The email is fraudulent and so are the bank details given. _Controls to mitigate the risk_ – Communication by phone or face to face to confirm details. Do not allow payments to supplier details that do not match those saved on the standing data. 29 ## Sector Updates ## **CORPORATE CRIMINAL OFFENCE - FAILURE TO PREVENT THE FACILITATION OF TAX EVASION** ## **Your legal obligation** All corporate bodies (including charitable companies), regardless of size, have a legal obligation to ensure that ‘reasonable prevention measures’ are in place to prevent employees and other associates (for example, sub- contractors) criminally facilitating tax evasion while acting on behalf of the organisation. If an associate is discovered to have criminally facilitated another’s tax evasion while acting on behalf of the company, the company is criminally liable to unlimited penalties unless the defence can be mounted that reasonable procedures were in place to prevent the criminal facilitation from occurring. due diligence process in sales transactions. Governance boards and nonexecutive directors are also requiring assurance on compliance as part of their work. Therefore, it is essential that companies adopt a proactive approach to risk management and employee communication. It is worth noting that the new remote way of working could give rise to an increased opportunity for associates to facilitate tax evasion. ## **Our pragmatic approach** We can assist the company with a bespoke, and cost effective risk assessment in order to comply with the legislation. Should this be of interest, please contact Andrew Stickland. ## **Obtain peace of mind and undertake a risk assessment** A risk assessment is fundamental to responding to the legislation. If the risk of criminal facilitation of tax evasion is assessed to be low, it may be that no significant additional measures are required. However, without having undertaken and documented a risk review or notified employees of what constitutes criminal facilitation, companies may struggle to mount such a defence. HMRC has the power to issue unlimited fines for companies that fail to prevent the facilitation of tax evasion. ## **Compliance is key** Although company directors should naturally be focused on the potential for any form of criminal prosecution as a matter of course, simply being able to demonstrate awareness of and compliance with the regime is becoming increasingly important, with this now being routinely examined as part of the 30 ## Sector Updates ## **Employment Sector Updates** 2023 / 2024 look set to be important years for employment law, with many developments on the horizon. ## **Holiday Pay** The landmark Supreme Court case of Brazel v Harpur Trust meant that part-year workers on permanent contracts must receive the full 5.6 weeks of paid annual leave per year regardless of the number of weeks they have worked in the leave year and that holiday pay for workers on irregular hours must be calculated using an average of their ordinary remuneration over a 52-week reference period. The Government, concerned that holiday entitlement should be proportionate to hours worked, opened a consultation and proposed that holiday pay should be calculated at the beginning of each leave year using a fixed reference period of the previous 52 weeks and that the multiplier of 12.07% should be restored as a method of calculating holiday entitlement and pay. The consultation has now closed and we await the outcome, though we are cautiously optimistic of good news for employers on the horizon. We also await the outcome of the Supreme Court case of the Chief Constable of Northern Ireland v Agnew and Others, which was heard in December 2023. This is an appeal against a decision of the Northern Ireland Court of Appeal, which ruled that a correct holiday payment does not break a series of unauthorised deductions. Depending on how the court rules, this may mean that making correct payments going forward but not making backdated payments in the hope that the employee does not bring any claim or does not do so in time may no longer be a valid means of reducing the risk of claims. We will update you as soon as possible. ## **National Minimum Wage** The National Minimum Wage is calculated using a worker’s basic hours over a reference period. But what are a worker’s basic hours? In the case of Lloyd v Elmhurst School Limited, the Employment Appeal Tribunal ruled that a part year worker’s basic hours should be calculated on the basis of the hours set out in her contract and not hours worked. Because her contract entitled her to ‘the normal school holidays’ as ‘holidays with pay’ the calculation had to be performed using 52 weeks and not the 40 weeks she actually worked. Employers should review their contracts to ensure the wording does not expose them to National Minimum Wage claims. ## **The UK’s withdrawal from the European Union** The Retained EU Law (Revocation and Reform) Bill 2022-2023 was introduced into the House of Commons in late 2022. It aims to change the expected approach of reviewing and amending retained EU law slowly via legislation or case law deviating from EU rulings, allowing the UK to enact laws that best fit the country and its economy. The Bill, as originally proposed, provided that, by default, all retained EU laws would sunset on 31 December 2023. However, the government has reversed that position. The current position is that retained EU laws will remain in place after that date unless they are added to the Bill by way of a list. EU laws that remain in place after that date may be revoked, amended or replaced after proper consideration. At time of writing, none of the major pieces of employment legislation have made it to the list. 31 ## Sector Updates ## **Employment Bill 2022 – Private Members’ Bills** Although the Employment Bill did not make it to the Queen’s Speech, private members’ bills were introduced in Parliament, which aim to implement parts of the Employment Bill. These private members bills all received government backing and are at various stages of the legislative process. - Legislation to require employers to pass on all tips and gratuities to workers and to ensure that these were distributed on a fair and transparent basis, supported by a statutory Code of Practice. This Bill received Royal Assent on 2 May 2023, and we would expect this to become law in 2024; - A new right for workers to request a more predictable contract after 26 weeks’ service. This Bill has its third reading in the House of Lords on 18 September 2023, so still making its way through the legislative process but we would expect this to receive Royal Assent in 2023 or 2024. We will monitor progress and keep you updated; - The Worker Protection (Amendment of Equality Act 2010) Bill proposed amendments to the Equality Act 2010. One of the key amendments proposed is to require employers to take all reasonable steps to prevent sexual harassment of their employees and make employers liable for third party harassment with a potential uplift in compensation for failure to comply with the duty to take all reasonable attempts to prevent harassment. The most recent development is that the House of Lords has amended the Bill and removed the third-party harassment provisions. The Bill is now back with the House of Commons and will move forward without any express reference to third-party harassment, so we now need to wait and see whether the House of Commons re-introduces those provisions as the Bill progresses, although commentators seem to believe that this is unlikely. We will keep you updated. - An extension to the period of redundancy protection for pregnant workers from the point when an employee notifies their employee of their pregnancy until 6 months after the end of their maternity leave. This Bill received Royal Assent on 24 May 2023. No date has been announced for implementation but judging by the progress of similar private members bills, we would expect this to be in force in 2024 or 2025. - New rights to neonatal leave and pay and a week’s leave for unpaid carers. This Bill received Royal Assent on 24 May 2023. It is expected that this will be in force by April 2025. - Making flexible working a day one right instead of having to wait 26 weeks to be able to request it, introducing a new obligation for employers to consult with employees regarding flexible working requests, reducing the decision period from 3 to 2 months, allowing two requests per annum instead of just one and reducing the requirement for employees to explain to employers the potential impact on the business of a flexible working request. This Bill received Royal Assent on 20 July 2023 and is expected to become law in July 2024. ## **Proposals** The Government is consulting about reducing Working Time Regulations burdens on business, in particular: - Allowing employers to include an amount for holiday pay in an employee’s hourly rate rather than having to pay it each time the employee takes leave, which is known as rolled up holiday pay; - Removing the requirement for employers to keep adequate records to ensure that its employees to not exceed the 48-hour working week; - Merging but not reducing the EU entitlement to 4 weeks’ annual leave with the additional 1.6 weeks provided by UK law to create a single statutory leave entitlement; 32 ## Sector Updates The Government is also consulting about making TUPE less burdensome on small businesses by allowing employers with less than 50 employees to consult directly with employees rather than having to elect reps (at the moment this option is only available to employers with less than 10 employees). The Government has also announced plans to limit the use of non-compete clauses to 3 months post-employment. Whilst this would obviously boost competitiveness and therefore the economy, if this is passed as a blanket provision, employers’ protections could be significantly weakened. We will monitor this and update you if there are any developments. ## **Will there be a new protected characteristic for menopause?** The government has said that it does not plan to make menopause a specific protected characteristic because their view is that it is already covered by sex, age and disability discrimination. However, a July 2022 report by the House of Commons Women and Equalities Committee has recommended that it become a protected characteristic, so we will watch out for any further developments in this area. Employers may however wish to consider drawing up menopause policies if they do not already have one. ## **Diversity and Inclusion** Efforts to improve diversity and inclusion are very much on the corporate agenda and are expected to remain so in 2023 and 2024. Balancing the legal rights between employees’ freedom to express opinions that may be offensive with diversity and inclusion is an extremely difficult exercise and we expect cases like this to be a growth area in employment disputes in the coming years. ## **Employment Tribunal Claims** Tribunal statistics have not been published for some time because the data is being migrated onto a new system. However, it is now reported that cases are taking an average of 49 weeks from the date an employee brings a claim to get to their first hearing, which suggests that cases are very much on the rise. We would expect that trend to continue. ## **Ethnicity Pay Gap Reporting** The Government had considered making ethnicity pay gap reporting compulsory in the same way as gender pay gap reporting is. It ultimately decided not to make this compulsory but to allow employers instead to publish details of their ethnicity pay gap voluntarily. The long-awaited official guidance has now been published by the Government to enable employers to report their ethnicity pay gap should they choose to do so. The guidance can be found at https://www.gov.uk/government/publications/ethnicity-payreporting-guidance-for-employers/collecting-ethnicity-data for any employer considering whether they might wish to consider reporting this. In the case of Forstater v CGD Europe, the Supreme Court decided that an employer discriminated against an employee by not renewing her fixed term contract because she had expressed her belief that individuals cannot change their biological sex. However, in the case of Makareth v DWP, it was decided that there was no discrimination where an employee was dismissed for expressing similar views because he had indicated that he did not intend to use peoples’ preferred pronouns, thus showing that he had an intention to discriminate. 33 ## Sector Updates ## **Does your Charity have a bullying and harassment policy?** The Charity Commission published new guidance for Charities on 11 August 2022, clarifying the roles and responsibilities of charity trustees in in relation to tackling bullying and harassment within Charities. The Commission’s guidelines included a specific recommendation that charities have welfare, discipline and whistleblowing policies for staff, including clear policies and procedures on bullying and harassment. Bullying and harassment in the workplace can affect staff morale, allow unacceptable behaviours to take place and ultimately expose charities to the risk of employment tribunal claims. Specific claims risks to charities for not taking appropriate action to eliminate bullying and harassment include: - Employees resigning and claiming constructive unfair dismissal on the basis of the bullying and harassment and any failure by the charity to deal with it appropriately - Discrimination claims if the bullying and harassment is on account of any characteristic that is protected by the Equality Act 2010 e.g., race, gender, disability, religious and philosophical beliefs - Civil claims for personal injury (stress at work) and/or under the Protection from the Harassment Act 1997 There is a risk that any failure by charities to implement the Charity Commission’s guidance could in itself be relied upon by employees to bolster any claims they may bring. Charities should ensure that they have the recommended policies and procedures in place and provide regular training to staff about their obligations under these policies. This will help eliminate bullying, demonstrate commitment to doing so and also reduce any risk of claims and regulatory issues. The policy should, at a minimum, set out the types of behaviour that could be bullying and harassment, explaining clearly the process for making allegations of such behaviour, the process that the company will follow upon receipt of such allegations and the potential consequences for workplace bullies. ## **What other policies should charities have in place?** There are other key policies and procedures that charities can implement in order to demonstrate their commitment to treating employees fairly and tackling bullying and harassment. For example: - A welfare policy - A grievance policy - A raising concerns policy relating to specific types of complaints that have a wider public interest - A disciplinary policy. 34 ## Sector Updates - An equality and diversity policy These policies, if well drafted, give both parties valuable information about their rights and responsibilities and also give a charity a useful action plan for how to handle any issues that might arise and any timescales that they need to comply with. In addition, having these policies in place and ensuring that staff receive training on them may give the charity a defence to a claim that they are liable for the acts or omissions of an employee who ‘goes rogue’ and bullies or discriminates against an employee against company instructions. These do not have to be standalone policies - they can be included in a Staff Handbook. It is recommended that you do not make them contractual to eliminate the risk of employees claiming that technical breaches of the policies e.g., a missed deadline for responding to a letter, is a breach of contract. We recommend that charities audit their policies and procedures to ensure that all of the required and helpful policies are in place and updated regularly to comply with the most relevant legal developments. Should you require any assistance with reviewing, drafting or updating your policies to help you eliminate bullying and harassment and reduce your claims risk, please contact your Audit Engagement Partner. 35 ## Other matters ## **Engagement & Independence** ## **Matters specifically required by other Auditing Standards to be communicated to those charged with governance** Our engagement objective was the audit of Walcot Foundation. We have implemented policies and procedures to meet the requirements of the Financial Reporting Council’s (FRC) Ethical Standards. To this end we considered our independence and objectivity in respect of the audit for the period under review before commencing planning our audit and communicated with you on these matters in our audit scoping report dated 15 May 2023. Other than as already explained in our Engagement Letter, Audit Scoping Report and this Post-Audit Management Report, there are no other specific matters to communicate as a result of our audit of the financial statements under review. No other matters have come to our attention during the audit which we are required to communicate to you and the safeguards adopted were as described in our audit scoping report. ## **Qualitative aspects of accounting practices, accounting policies and financial reporting** Based on our audit work performed, we believe that the Trustees’ Report and financial statements for the period under review comply with United Kingdom Accounting Standards (FRS 102 SORP) and the Charities Act 2011. During the course of our audit of the financial statements for the period under review, we did not identify any inappropriate accounting policies or practices. 36 ## CONTACT US ## City 6[th] Floor 9 Appold Street London EC2A 2AP t: (0)20 4582 1000 ## **Heathrow** The Shipping Building The Old Vinyl Factory Blyth Road, Hayes Middlesex UB3 1HA t: (0)20 4582 1000 ## **St Albans** 4 Victoria Square St Albans Hertfordshire AL1 3TF t: (0)20 4582 1000 Visit us at mooreks.co.uk Join us on LinkedIn Follow us @mooreks ## **Romford** Orbital House 20 Eastern Road Romford, Essex RM1 3PJ t: (0)20 4582 1000 ## **Redhill** Betchworth House 57-65 Station Road Redhill, Surrey RH1 1DL t: (0)20 4582 1000 ## **West End** Charlotte Building 17 Gresse Street London W1T 1QL t: (0)20 4582 1000