Charity number: 313750
THE THOMSON FOUNDATION
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
THE THOMSON FOUNDATION
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Independent auditor's report on the financial statements | 7 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 - 29 |
THE THOMSON FOUNDATION
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020
| Trustees | Lord T Chandos, Chairman1 |
|---|---|
| M Knight, Deputy Chairman1 | |
| J Corbin | |
| T Joseph | |
| C Lanz | |
| Dr G Power | |
| Thomson Foundation (Trustee) Limited2 | |
| Sir C Jones | |
| Dame R Marsden (appointed 11 March 2020) | |
| J Gibson (appointed 11 March 2020) | |
| 1 Indicates member of the Finance Committee 2 See Note 27 to the financial statements Charity registered number 313750 Principal office 46 Chancery Lane London WC2A 1JE Chief executive officer Nigel Baker Independent auditor Crowe U.K. LLP Fourth Floor St James House St James Square Cheltenham GL50 3PR Solicitors Marriott Harrison Staple Court 11 Staple Inn Buildings London WC1V 7QH Scully Twiss 71-75 Shelton Street London WC2H 9JQ Bates Wells 10 Queen Street Place London EC4R 1BE Investment Managers Smith & Williamson Investment Management LLP 25 Moorgate London EC2R 6AY |
Page 1
THE THOMSON FOUNDATION
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
With effect from 26 January 2011 Thomson Media Foundation (Trustee) Limited became the sole Trustee of the charity, company number 07405128. From 22 May 2015 the name of that company changed to Thomson Foundation (Trustee) Limited.
The directors of Thomson Foundation (Trustee) Limited listed on page 1 have all served in office throughout the year except where indicated. The directors of Thomson Foundation (Trustee) Limited for the purposes of this report and the financial statements will be referred to as ‘Trustees’ of The Thomson Foundation.
The Trustees of The Thomson Foundation (“the Foundation”) present their annual report along with the financial statements for the year ended 31 December 2020.
The financial statements have been prepared on the basis of the accounting policies set out on pages 14 to 17 and comply with the Foundation’s Trust Deed and applicable law. The financial statements have been prepared under the Charities Act 2011 and SORP (FRS 102).
Constitution
The Foundation is constituted by Trust Deed dated 8 November 1962 and is registered with the Charity Commission for England and Wales as registered charity number 313750.
Organisational Structure
The Foundation operations are divided into two areas: Media Industry (providing training and consultancy for media organisations) and Development (providing project management, media skills training and consultancy for media-related programmes funded by governmental and philanthropic donors).
The day to day running of the Foundation has been delegated to the Chief Executive and the Senior Management Team.
Recruitment and Training of Trustees
The power of appointment of new or additional Trustees is vested in Thomson Foundation (Trustee) Limited. There is no limit as to the number of Trustees.
All the Trustees are entitled to nominate potential future Trustees. All such nominees are considered at a full meeting of the Trustee board in which there must be majority board approval of their appointment.
In making their determination, it is the intention that the Trustee board should be a diverse group of individuals in terms of the skills and experience relevant to the aims and objectives of the Foundation.
The induction of a new Trustee comprises meetings with the Chairman and the Chief Executive at which inter alia the following are discussed: the aims and strategy of the Foundation; its activities and operations; and the respective roles and responsibilities of the Trustees and of the executives. The new Trustee is also provided with copies of the following: the constituting Trust Deed, the latest statutory and internal management accounts, and the minutes of recent meetings of the Trustees.
Salaries and Benchmarks
The Foundation reviews the salaries of the Senior Management Team against similar charities within the media development sector.
Risk Management
The Trustees conduct an annual review of all types of risk to which the Foundation may be affected. The review was undertaken by the Chairman of the Finance Committee, Mark Knight, and the Head of Finance, Hans Boutier. Having gone through the risks, a paper was drafted for consideration by the Finance Committee who
Page 2
THE THOMSON FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
approved it and recommended it to the Board of Trustees. The Trustees were satisfied that the systems are in place to manage exposure to major risks.
The most critical risk to The Thomson Foundation is the loss of funding due to political or economic factors, from our donors and media partners, which support our projects. The Thomson Foundation is striving to keep broadening its list of donors and client base to avoid being too dependent on any one in particular.
Due to the one-off nature of the majority of our projects the Foundation also faces uncertainties in predicting its income stream. However the large reserves held by the Foundation reduce any going concern risks to a very low level.
The Foundation’s principal non-financial assets are its name and goodwill. The preservation (and enhancement) of the value of these assets is a function of the reputation of the Foundation which in turn flows from the success and efficacy of the management and conduct of its business.
Reputational risk can arise if funders withdraw their support because they are not in sympathy with the Foundation engaging with certain regimes. This potential risk would be addressed by all the Trustees before any such engagement is made.
The Trustees are aware of the updates to the Charity Governance Code, made in December 2020. This is currently under review and any action points will be considered.
Public Benefit
The Trustees have complied with the duty in S.172 of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act.
The Charity has set out its charitable objects, objectives and how it achieves these on page 4.
Financial Review
Despite the Coronavirus outbreak and the worldwide lockdown, the Thomson Foundation, was able to keep supporting and training journalists across the globe. At the same time, we were able to honour commitments to deliver all our contracted programmes. It has required a large level of adaptation to allow team members to work from home and for consultants to provide training online.
As a result, total income from charitable activities and donations was £2,425k in 2020 compared with £2,535k in 2019.
The lower income also reflects the deceleration in the level of activities of our four-year project to strengthen independent media in 17 neighbouring countries, funded by the European Union and which ended in January 2021.
The ongoing investment in e-learning that started in 2017 has helped us compensate for the drastic reduction in face to face training (221 participants in 2020 compared with 1,348 in 2019), but greatly contributed to reaching more beneficiaries than even before the pandemic, with an additional 3,916 participants trained online this year.
Expenditure incurred on projects and overheads amounted to £2,641k, this resulting in a deficit, before gains on investments, for the year of £42k compared with £474k in 2019.
After a free-fall in the value of our investment during the first lockdown, the end of 2020 experienced a rally in our investment portfolio's valuation with a £538k gain compared to a larger gain of £1,494k attained in 2019.
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THE THOMSON FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Investment Policy and Performance
Under the terms of the Trust Deed, the Trustees have general powers of investment, subject to the provisions of the Trustee lnvestment Act.
The Foundation's investment policies are intended to provide long-term stability and liquidity sufficient for the financing of the Foundation's operations, while maintaining the real value of the endowment.
The Foundation's strategic asset allocation reflects a total-return objective of RPI +4% without specific focus on income-generating investments.
The market value of the Foundation's investments at the end of 2020 was £12,789k compared to £12,736k, in 2019, an increase of £53k after transfer of £450k worth of funds to cover the charity's operations and investments over the year.
Net investment income of £164k in 2020 remained at a similar level as in 2019 (£184k).
The Portfolio's total return was 5.5%, slightly over the RPI +4% target, which was 5.2% for the year.
Fundraising
The Foundation had no fundraising activities during 2020 that require disclosure under S162A of the Charities Act 2011.
Reserves Policy
The policy of the Trustees is to maintain, as far as possible, the Foundation's funds in order to generate investment income and to fulfil their responsibilities in supporting future projects. However, the Trustees have the power of discretion to convert the expendable endowed capital into unrestricted funds to support charitable activities as required.
The balance of unrestricted funds at the year-end was £1,094k (2019: £648k) and the expendable endowment funds balance was £12,648k (2019: £12,598k) .
The level of free reserves held at the year end amounted to £1,088k. The Trustees do not have a formal policy for level of funds to be held as thanks to its endowment, the Foundation has significant headroom to meeting its funding requirements for at least the next five years.
Charitable Objects, Objectives & Activities
The Foundation is an independent charitable trust, established in 1962 by the newspaper and television proprietor, the first Lord Thomson of Fleet, to provide facilities for, and the encouragement of, educational, technical and vocational training.
The Foundation has concentrated its efforts on the media with a particular emphasis on developing countries and emerging economies.
Its primary activities are concerned with training in skills for digital media, television, radio, newspaper, magazine and news agency personnel; the encouragement of good management practices; technical assistance in broadcasting, print and digital media; help and advice in the development of new outlets for journalists and broadcasters, and media work with partner organisations (UN Agencies and NGOs) to disseminate information on key global issues like the environment and health.
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THE THOMSON FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
The Foundation has two over-riding and continuing objectives:
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To maintain and enhance the Foundation's leading international position in media development, training and consultancy; and
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To secure and sustain the human and financial resources necessary to enable the Foundation to achieve its goals.
Priorities for 2020:
- To focus on securing projects to offset the impact of the end of the organisation's largest programme – the European Union's Open Media Hub which is due to conclude operational activities during the course of the year.
The Foundation was successful in securing significant new projects funded by the UK’s Foreign Commonwealth and Development Office (FCDO) to support independent media in Belarus and Hungary, as well as access to information for journalists in Rwanda. Together with projects directly for media organizations, this enabled the Foundation to avoid a dip in revenues at the end of the Open Media Hub project.
- Successful implementation of large-scale projects already contracted, most notably in the Western Balkans and Sudan.
Despite the travel limitations caused by the coronavirus pandemic, the Foundation successfully continued implementation of both projects by rapidly adapting them to digital learning. In the case of Sudan this involved the innovative use of messaging apps for digital learning. In the case of the Western Balkans, we supported a network of local trainers and consultants with digital learning resources.
- To "test market" philanthropic funding for the Foundation's activities with foundations in the US and UK.
The initiative got underway in Q1, establishing a series of connections and meetings in the United States. However, the initiative was paused when the pandemic restricted relationship-building meetings. It is hoped to resume this initiative when conditions allow.
- To continue to increase capacity in digital learning, with the aim of incorporating it in all programmes.
The Foundation’s investment in digital learning over the previous three years enabled it to adapt rapidly to increased demands for digital learning caused by the pandemic. An estimated 95% of operational activity was carried out online from Q2 onwards. This shift from in-field activity to centralised creation of online content, prompted a re-alignment of staffing resource, including the recruitment of more staff to support key personnel.
Priorities for 2021:
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Expand project work, through third-party funding, in Central and Eastern Europe to support independent news media which face growing existential pressures.
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Continue to innovate in digital learning techniques to ensure the Foundation retains, and consolidates, its leadership position in the use of virtual learning in international media development.
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Establish monetizable impact measurement frameworks, using data from digital learning programmes, to ensure funders receive quantifiable results from training programmes.
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Continue to monitor the balance of in-field and online resource required to ensure the most efficient sustainability of operations as the pandemic develops.
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THE THOMSON FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 statement of Trustees. responsibilities The Trustees are responsible for preparing the Trustees, Annual Report and the flnancial slalemenls in accordance wlh applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). The law applicable lo charities In England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial slaternents. the Trustees are required to-. select sultsble accountlng po16cies and then apply them consistently- observe the methods and principles in the Charities SORP {FRS 102).. make judgments and estlmates that are asonable and prudent., state whether applicable UK accounting stsndards IFRS 1021 have been foll)wed, subject lo any material departures disclosed and explained in the financial stslemenls., ppare the financial statements on ihe going concern basis unless il is inappropriate lo presLtme that The Thom50n Foundation wll continue in busirbess. The Trustees are responslble for keeplng adequate accounting reCoS that are sufficient lo show and explain the charitys Iransaclions, disclose with reasonable ac¢ura¢y at any lime the financial po811ion of the ¢harity and enable them to ensure that the financial stalemenis comply wlh the Charities Act 2011. the Charitles (Accounts and Reports) Regulations 2008 and the provision5 of the charity's conslilulion. They are also responsible for safeguarding the assets of The Thomson Foundation and hence for taking reasonable steps for the prevention and detectton ol fraud and other irregularities. Approved by order of the members of the board of Trustees on and signed on their behall by.. Lord Chandos Chairman Page 6
THE THOMSON FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMSON FOUNDATION
Opinion
We have audited the financial statements of The Thomson Foundation (the 'charity') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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THE THOMSON FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMSON FOUNDATION (CONTINUED)
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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THE THOMSON FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMSON FOUNDATION (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 and Charities SORP (FRS 102).
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the recognition of income. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures for the recognition and classification of income, reviewing accounting estimates for biases, reviewing regulatory correspondence including that with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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THE THOMSON FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMSON FOUNDATION (CONTINUED)
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Crowe U.K. LLP Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR
Date: 15 July 2021
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THE THOMSON FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Note Income and endowments from: Donations and Grants 4 Charitable activities 5 Investments 6 Total income Expenditure on: Raising funds 7 Charitable activities 8 Total expenditure Net expenditure before net gains on investments Net gains on investments Net (expenditure)/income Transfers between funds 19 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2020 £000 10 2,299 164 2,473 - 2,477 2,477 (4) - (4) 450 446 648 446 1,094 |
Restricted funds 2020 £000 126 - - 126 - 126 126 - - - - - - - - |
Endowment funds 2020 £000 - - - - 38 - 38 (38) 538 500 (450) 50 12,598 50 12,648 |
Total funds 2020 £000 136 2,299 164 2,599 38 2,603 2,641 (42) 538 496 - 496 13,246 496 13,742 |
Total funds 2019 £000 4 2,535 184 2,723 40 3,157 3,197 (474) 1,494 1,020 - 1,020 12,226 1,020 13,246 |
|---|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 14 to 29 form part of these financial statements.
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THE THOMSON FOUNDATION BALANCE SHEET AS AT 31 DECEMBER 2020 2020 £000 2019 Nots Flxed a5S0ts Intangible assets Tangible assets Investments 13 14 15 12.789 12, 736 12,795 12, 777 Curr•nt assots Debtors 16 1.341 510 257 Cash at bank and In hand 773 1,851 1,030 Creditors: amounts falling due vAthin one 17 19041 (561) Not ¢urrnnt assats 947 469 Totsl a$$ets l•ss eurr•nt liabilitios 13.742 13,246 Total net assets 13,742 13.246 Ch•rlty funds Endowment fvnds R931ricled funds Uni•strictsd fvnd¥ 19 19 19 12.648 12.598 1.094 Totsl fund5 13.742 13,246 Th? ffinancial 8tatem•nts were approved and aulhorised for issue by the Trustees and signed On their beha by.. Lord Chandos, Chalnn•n M Knlgh( Deputy alrnian The notes on pages 14 to 29 fomi part ofthg$e financlal statements. Page 12
THE THOMSON FOUNDATION
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020
| Note Cash flows from operating activities Net cash used in operating activities 21 Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments Transfer of cash held for investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 22 |
2020 £000 (912) 164 - 3,085 (2,668) 68 649 (263) 773 510 |
2019 £000 (736) 186 (9) 1,145 (676) 163 809 73 700 773 |
|---|---|---|
The notes on pages 14 to 29 form part of these financial statements
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1. General information
The Thomson Foundation was registered with the Charity Commission for England and Wales on 8 November 1962 (registered number 313750). Its registered address and principal office is 46 Chancery Lane, London WC2A 1JE.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Thomson Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The Trustees have undertaken planning and forecasting and continue to closely monitor Covid-19 and the developing situation. Despite the current circumstances the Trustees believe that the Foundation's financial resources, including the endowment, and contingency planning is sufficient to ensure the ability of the Foundation to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.
2.3 Income
Income from investments is included in the Statement of Financial Activities only if received, or declared and receivable.
Income from overseas training and consultancy projects is included in the Statement of Financial Activities when the charity becomes entitled to the income, when the provision of services is imminent and the corresponding costs have been incurred.
Income from donations is credited to the Statement of Financial Activities on a receivable basis.
Donations receivable for the general purpose of the charity are credited to unrestricted funds. Donations for purposes restricted by the wishes of the donor are taken to restricted funds where those wishes are legally binding on the Trustees.
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
2. Accounting policies (continued)
2.4 Expenditure
Expenditure in the year is allocated as follows:
Raising funds represents fees incurred in connection with investment management advice and bank charges in connection with the custody and transactions of the investment portfolio.
Charitable activities relates to expenditure incurred in providing courses. This represents direct costs in connection with the implementation of courses and consultant assignments and the expenditure in relation to the management of these courses.
Support costs have been allocated between charitable activities and governance costs on the basis of staff time.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters.
Governance costs are those associated with the constitutional and statutory requirements of the charity and are included within support costs.
2.5 Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.
2.6 Foreign currencies
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the Balance Sheet date and the gain or loss on transaction is included in the Statement of Financial Activities.
2.7 Taxation
As a registered charity, The Thomson Foundation is entitled to tax exemptions on all its income and gains, properly applied for its charitable purposes.
2.8 Intangible assets and amortisation
Intangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment.
The estimated useful lives are as follows:
Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset, less their estimated residual value, over their expected useful lives on the following bases:
eLearning initiative
3 years straight line
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
2. Accounting policies (continued)
2.9 Tangible fixed assets and depreciation
All assets costing more than £1,000 are capitalised.
The cost of tangible fixed assets is their purchase cost, together with any incidental costs of acquisition.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold improvements - over the term of the lease - Computer and other equipment 25% straight line
2.10 Investments
Fixed asset investments are included at market value at the Balance Sheet date. Investment gains and losses arising during the year are included within the Statement of Financial Activities.
2.11 Debtors
Trade debtors, accrued income and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid. Known bad debts are written off and specific provision is made for any debts considered to be doubtful, if appropriate.
2.12 Cash at bank and in hand
Cash is represented by cash in hand and deposits with financial institutions. Cash equivalents and current investments are highly liquid and mature in no more than 3 months.
2.13 Liabilities and provisions
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement value.
2.14 Financial instruments
The Thomson Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2.15 Operating leases
Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the lease term.
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
2. Accounting policies (continued)
2.16 Pensions
The charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the Scheme.
2.17 Fund accounting
Unrestricted funds are those funds available for use by the charity for any charitable purposes at the direction of the Trustees.
The expendable endowment fund was created when the charity was formed as a result of shares being donated to the charity. The purposes and uses of the endowed funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
3. Critical accounting estimates and areas of judgement
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
Useful economic lives of tangible assets
The annual depreciation charges for the tangible fixed assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when necessary to reflect current estimates, economic utilisation and the physical condition of the assets. See Note 14 for the carrying amount of the tangible assets and Note 2.9 for the useful lives for each class of asset.
Impairment of debtors
The charity makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors including the current credit rating of the debtors, the ageing profile of debtors and historical experience.
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
4. Income from donations and legacies
| Unrestricted funds 2020 £000 Donations - Government grants 10 10 Total 2019 - |
Restricted funds 2020 £000 - 126 126 4 |
Total funds 2020 £000 - 136 136 4 |
Total funds 2019 £000 4 - |
|---|---|---|---|
| 4 | |||
Unrestricted Government grant income during the year relates to a Covid-19 discretionary grant.
Restricted Government grant income during the year relates to Grant funding received for Media and Journalism training
5. Income from charitable activities
| Unrestricted funds 2020 £000 Income from charitable activities - Media and Journalism Training 2,299 Total 2019 2,535 |
Total funds 2020 £000 2,299 2,535 |
Total funds 2019 £000 2,535 |
|---|---|---|
6. Investment income
| Unrestricted funds 2020 £000 Income from listed investments 164 Total 2019 184 |
Total funds 2020 £000 164 184 |
Total funds 2019 £000 184 |
|---|---|---|
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
7. Investment management costs
| Investment management fees Total 2019 |
Endowment funds 2020 £000 38 40 |
Total funds 2020 £000 38 40 |
Total funds 2019 £000 40 |
|---|---|---|---|
8. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2020 £000 Media and Journalism Training 2,477 Total 2019 3,153 Analysis of expenditure by activities Activities undertaken directly 2020 £000 Media and Journalism Training 1,523 Total 2019 2,036 |
Restricted funds 2020 £000 126 4 Support costs 2020 £000 1,080 1,122 |
Total funds 2020 £000 2,603 3,157 Total funds 2020 £000 2,603 3,158 |
Total funds 2019 £000 3,157 |
|---|---|---|---|
| Total funds 2019 £000 3,158 |
|||
9. Analysis of expenditure by activities
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
9. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff costs Depreciation and Amortisation Premises Travel & meetings Communication General office costs Legal and professional Information technology Market research Advertising Storage Audit fees Bank charges Restricted expenditure (Losses)/Gains on foreign exchange Trustees' fees and expenses Total 2019 10. Auditor's remuneration Fees payable to The Thomson Foundation's auditor in respect Auditors' fees - audit Auditors' fees - non-audit services |
Media and Journalism Training 2020 £000 609 35 182 3 9 51 25 41 12 94 3 13 13 - (11) 1 1,080 1,122 of: |
Total funds 2020 £000 609 35 182 3 9 51 25 41 12 94 3 13 13 - (11) 1 1,080 1,122 2020 £000 10 18 |
Total funds 2019 £000 577 38 160 13 11 15 12 38 19 115 3 14 31 4 72 - |
|---|---|---|---|
| 1,122 | |||
| 2019 £000 10 11 |
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
11. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2020 £000 518 50 41 609 |
2019 £000 488 50 39 |
|---|---|---|
| 577 |
The average number of persons employed by the Charity during the year was as follows:
| Employees The average headcount expressed as full-time equivalents was: Employees |
2020 No. 12 2020 No. 9 |
2019 No. 10 |
|---|---|---|
| 2019 No. 8 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2020 | 2019 | |
|---|---|---|
| No. | No. | |
| In the band £60,001 - £70,000 | 1 | 1 |
| In the band £70,001 - £80,000 | 2 | 2 |
| In the band £100,001 - £110,000 | 1 | - |
| In the band £120,001 - £130,000 | - | 1 |
The remuneration of key management personnel was £390,391 (2019: £351,847) . The key management personnel of the Foundation are the Chief Executive, Head of Finance, Director Innovation & Learning and the Director of Training & Communication. This figure included salary, benefits, employers' national insurance contributions and employers' pension costs.
Included within wages and salaries in the above note is costs of contractors totalling £18,047 (2019: £31,600) .
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
12. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2019 - £NIL) .
During the year ended 31 December 2020, expenses totalling £ NIL were reimbursed or paid directly to Trustee (2019 : £NIL ).
13. Intangible assets
| Cost At 1 January 2020 At 31 December 2020 Amortisation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
eLearning Initiative £000 96 |
|---|---|
| 96 | |
| 63 32 |
|
| 95 | |
| 1 | |
| 33 |
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
14. Tangible fixed assets
| Cost At 1 January 2020 At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 15. Fixed asset investments Valuation At 1 January 2020 Additions Disposals Revaluations Movement in cash At 31 December 2020 |
Long-term leasehold property £000 117 117 116 - 116 1 - |
Computer equipment £000 25 25 18 3 21 4 8 |
Total £000 142 142 134 3 137 5 8 Listed investments £000 12,736 2,668 (3,085) 538 (68) 12,789 |
|---|---|---|---|
Barclays Bank has a charge over the Investment assets of the Charity which is given by The Thomson Foundation and its corporate Trustee, The Thomson Foundation (Trustee) Limited.
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
16. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
2020 £000 340 2 999 1,341 |
2019 £000 131 16 110 |
|---|---|---|
| 257 |
17. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 January 2020 Resources deferred during the year Amounts released from previous periods Deferred income at 31 December 2020 |
2020 £000 252 42 10 600 904 2020 £000 151 113 (151) 113 |
2019 £000 180 15 10 356 |
|---|---|---|
| 561 | ||
| 2019 £000 896 151 (896) |
||
| 151 |
The deferred income balance relates to income received in advance for services, which relate to the next period.
18. Financial instruments
| 2020 | 2019 | |
|---|---|---|
| £000 | £000 | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 12,789 | 12,736 |
Financial assets measured at fair value comprise the investment portfolios.
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
19. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Endowment funds Endowment Funds Restricted funds Deepening Digital - Hungary Belarus crisis coverage Total of funds |
Balance at 1 January 2020 £000 648 12,598 - - - 13,246 |
Income £000 2,473 - 85 41 126 2,599 |
Expenditure £000 (2,477) (38) (85) (41) (126) (2,641) |
Transfers in/out £000 450 (450) - - - - |
Gains £000 - 538 - - - 538 |
Balance at 31 December 2020 £000 1,094 |
|---|---|---|---|---|---|---|
| 12,648 | ||||||
| - - |
||||||
| - | ||||||
| 13,742 |
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
19. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Funds Endowment funds Endowment Funds Restricted funds Restricted donations Total of funds |
Balance at 1 January 2019 £000 482 11,744 - 12,226 |
Income £000 2,719 - 4 2,723 |
Expenditure £000 (3,153) (40) (4) (3,197) |
Transfers in/out £000 600 (600) - - |
Gains £000 - 1,494 - 1,494 |
Balance at 31 December 2019 £000 648 |
|---|---|---|---|---|---|---|
| 12,598 | ||||||
| - | ||||||
| 13,246 |
The endowment fund is an expendable endowment fund and was created when the charity was formed as a result of shares being donated to the charity.
Restricted income for Deepening Digital - Hungary relates to funds to be spent to implement digital growth strategies for local media in Hungary.
Restricted income for the Belarus Crisis coverage is to support the professional media coverage.
The restricted donations received to fund students attending courses is a regular donation from the Jean Rich Foundation. This is to fund a placement for an overseas student to attend one of the summer courses which is run by The Thomson Foundation.
The transfer of £450,000 from expendable endowment funds to unrestricted funds in the year is the conversion of expendable endowment capital in order to cover cash flow shortfalls on the charity's activities during the year.
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
20. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Unrestricted funds 2020 £000 Tangible fixed assets 5 Intangible fixed assets 1 Fixed asset investments - Current assets 1,851 Creditors due within one year (763) Total 1,094 |
Endowment funds 2020 £000 - - 12,789 - (141) 12,648 |
Total funds 2020 £000 5 1 12,789 1,851 (904) 13,742 |
|---|---|---|
Analysis of net assets between funds - prior period
| Tangible fixed assets Intangible fixed assets Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2019 £000 8 33 - 1,030 (423) 648 |
Endowment funds 2019 £000 - - 12,736 - (138) 12,598 |
Total funds 2019 £000 8 33 12,736 1,030 (561) 13,246 |
|---|---|---|---|
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
21. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Amortisation charges (Gains) on investments Dividends, interests and rents from investments (Increase)/Decrease in debtors Increase/(Decrease) in creditors Net cash used in operating activities |
2020 £000 496 3 32 (538) (164) (1,085) 344 (912) |
2019 £000 1,020 |
|---|---|---|
| 6 32 (1,494) (186) 1,069 (1,183) |
||
| (736) |
22. Analysis of cash and cash equivalents
| 2020 | 2019 | |
|---|---|---|
| £000 | £000 | |
| Cash in hand | 510 | 773 |
23. Analysis of changes in net debt
| Cash at bank and in hand | At 1 January 2020 £000 773 773 |
Cash flows £000 (263) (263) |
At 31 December 2020 £000 510 |
|---|---|---|---|
| 510 |
24. Pension commitments
The total pension cost included in the Statement of Financial Activities was £41,422 (2019: £38,836) in relation to defined contribution pension plans. All pension costs are charged to the unrestricted funds, this is the fund from which wages and salaries are paid. At the year end the pension creditor totalled £29,248 ( 2019: £26, 274).
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THE THOMSON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
25. Operating lease commitments
At 31 December 2020 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2020 £000 100 401 167 668 |
2019 £000 100 401 267 |
|---|---|---|
| 768 |
The following lease payments have been recognised as an expense in the Statement of financial activities:
| 2020 | 2019 | |
|---|---|---|
| £000 | £000 | |
| Operating lease rentals | 103 | 103 |
26. Related party transactions
The Trustees referred to in these Financial Statements are the Directors of the Corporate Trustee of The Thomson Foundation, being The Thomson Foundation (Trustee) Ltd, company number 07405128.
In accordance with the Trust Deed, £NIL (2019: £NIL) has been accrued at the year end for an honorarium. However, one honorarium was paid in the year of £960 (2019: £746) .
During the year, no Trustees received any remuneration (2019: £NIL) .
During the year The Thomson Foundation paid a total of £65,809 and received a total of £68,346 on behalf of Thomson Media gGmbH - this included grants and overheads. Thomson gGmbH is a connected Charity. At the year end there was a net outstanding position of £4,416 owed to Thomson Media gGmbH (2019: £NIL) .
27. Controlling party
Thomson Foundation (Trustee) Limited is the ultimate controlling party by virtue of its position as sole Trustee of The Thomson Foundation. A copy of that company's financial statements is available from Companies House.
Page 29