Charity number: 313750 THE THOMSON FOUNDATION TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
THE THOMSON FOUNDATION CONTENTS Page Reference and administrative details of the charity. its Trustees and advisers Trustees. report Independent auditor's report on the financial statements Statement of financial activities 8-11 12 Balance sheet 13 Statement of cash flows 14 Notes to the financial statements 15-31
THE THOMSON FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021 Trustees Lord T Chandos, Chairman1 M Knight, Deputy Chairmani J Corbin T Joseph C Lanz Dr G Power Thomson Foundation ITrusteel Limited2 Sir C Jones Dame R Marsden J Gibson Indicates member of the Finance Committee See Note 27 to the financial stslemenls Charity registered number 313750 Principal office 46 Chanry Lane London WC2A 1JE Chief executive officer Nigel Baker Independent auditor Crowe U.K. LLP Fourth Floor St James House St James Square Chellenham 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 1 BE Investment Managers Smith & Williamson Investment Management LLP 25 Moorgale London EC2R 6AY Page 1
THE THOMSON FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 With effect from 26 January 2011 Thomson Media Foundation (Trusleel Limited became the sole Trustee of the charity, company number 07405128. From 22 May 2015 the name of that company changed to Thomson Foundation (Trusleel Limited. The directors of Thomson Foundation (Trusteel Limited listed on page 1 have 811 served in office throughout the year except where indicated. The directors of Thomson Foundation (Trusteel 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 I the Found8tion"I present their annual report along with the financial statements for the year ended 31 December 2021. The financial statements have been prepared on the basis of the accounting policies set out on pages 1 S to 18 and comply with the Foundation's Trust Deed and applieable18w. The financial statements have been prepared under the Ch8rilies Act 2011 and SORP IFRS 1021. Constitution The Foundation is constituted by Trust Deed dated 8 November 1962 and is registered with the Charity Commission for Eng18nd and Wales as registered charity number 313750. Organisational Structure The Foundation opeffitions are divided into Iwo areas". Media Industry (providing tfftining and consultancy for media organisationsl and Development Iproviding project management, media skills training and consultancy for media-related programmes funded by govemmenl81 and philanthropic donorsl. The day lo 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 (Trusleel Limited. The is no limit as to the number of Trustees. All the Trustees are entitled lo nominate potential future Trustees. All such nominees are considered at 8 full meeting of the Trustee board in which there must be majority board approval of their appointment. In making their detem)ination, it is the intention that the Trustee board should be a diverse group of individuals in terms of the skills and experience relevant lo the aims and objectives of the Foundation. The induction of 8 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", ils 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 eonslituling Trust Deed, the 18test statutory and internal management 8ccounls, 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 medi8 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 2021 approved il and recommended it to the B08rd of Trustees. The Trustees were satisfied that the systems are in place to manage exposu 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 br08dening ils 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 uneertainties in predicting ils income stream. However the large reserves held by the Foundation reduce any going concem risks lo a very low level. The Foundation's principal non-financial assets are its name and goodwill. The preservation land enhancemenll 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. RepuL9tional risk can 8rise if funders withdmw 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 awa of the updates lo the Charity Governance Code, made in December 2020. This is currenuy 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 gener81 and relevant sub-sector guidance concerning the operation of the Public Benefi't quirement under that Act. The Foundation provides support and training to journ81isls, focussing on journalistic integrity for both individual joumalists and media organisations built on fair, independent and trusted journalism. The Foundation in tent years has foeussed its attention on supporting medi8 in developing countries and emerging economies, giving journalists access to support and training. The Charity has set out ils charitable objectives and how il achieves these on page 4. Financial Review Even two years after the Coronavirus outbreak, the level of face-to-fa training and support, remained subdued during the full year of 2021. Regardless, the Thomson Foundation has weathèred the global pandemic well and has kept delivering major projects, even when geo-polilieal events, like a coup in Sudan, made wotk difficult. Thanks to its resilience it was able to keep supporting and training joumalists across the globe, by building on previous years, investments of its e-learning capacity. Our training offering keeps widening with our 'blended' leaming model of online courses and workshops mainly virtual now firmly established. Online leaming Courses are now 177 in number and popular in combination with online webinars and workshops with trainers. Through Journalism Now we have developed an online community of more than 24,000 journalists who Can share their work and experiences and follow our18test innovations in online learning. Page 3
THE THOMSON FOUNDATION TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2021 Total income from charitable activities and donations was £2,414k in 2021 compared with £2,435k in 2020 and this, despite the end of our four-year project to strengthen independent medi8 in 17 neighbouring eounlries, funded by the European Union and which concluded in February 2021. Expenditure incurred on projects and overheads amounted to £2,623k, this resulting in a deficit for the year of £113k Compared with £42k in 2020. Investment Policy and Performance Under the tems of the Trust Deed, the Trustees have general powers of investment, subject lo the provisions of the Trustee Investment 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 8 total-return objective of RPI +4 % without specific focus on ineome-geneoting investments. The market V81ue of the Foundation's investments at the end of 2021 was £13,324k compared with £12,789k, in 2020, an increase of £535k after transfer of £150k worth of funds lo cover the charity's operations and investments over the year. Investment income slightly decreased lo £139k in 2021 from £164k in 2020. Because of the increase in inflation, the portfolio's total relurn16.40kn1 was under the RPI +4OA target, which was 11.SOA for the year. Fundraising The Foundation had no fundraising activities during 2021 that require disclosure under S162A of the Charities Act2011. Reserves Policy The F)olicy of the Trustees is lo main18in, as far as possible, the Foundation's funds in order to generate investment income and to fulfil their osponsibilities in supporting future projects. However, the Trustees have the power of discretion to convert the expendable endowed capital into unrestricted funds to support ch8rit8ble 8Ctivities as qUired. The balance of unrestricted funds at the ye8r-end was £1,174k12020". £1,094kl and the expendable endowment funds balance was £13,332k12020. £12,648kl. The Trustees do not have a formal policy for level of funds to be held, as thanks to its end()wmenl, the Foundation has significant headroom to meet ils funding requirements for al least the next five years. Charitable Objeets, Objectives & Activities The Foundation is an independent ch8rit8ble 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, leehnic81, and vocational training. The Foundation champions journalistic integrity supporting both individual joumalists and media organisations built on fair, independent and trusted journalism. The Foundation has concentrated its efforts on medi8 in developing countries and emerging eeonomies, providing expertise for journalists by joumalists, with training and digital solutions for business growth. Page 4
THE THOMSON FOUNDATION TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2021 Its primary activities ao". Training journalists using top experts in their field Creating e-learning courses hosted on the foundation's platform, Joumalism Now, mostly available free lo learners Supporting local news organisalions to maximize revenue by understsnding their audience, and working towards business SLJStainability Helping independent journalists and their news organisalions under Ihre8t from anti4emocmtic govemmenls to keep publishing Commissioning audience research in challenging markets to inform our network's business decisions The Foundats'on has two over-riding and continuing objectives.. To maintain and enhance the Foundation's leading international position in media development, training, and consultancy To secure and sustain the human and financial resources necessary to enable the Foundation lo achieve Ils goals. Prioritios for 2022 Successful implementation of large-seale projects already contracted most notably in the Western Balkans, Central Europe, Sudan and Tunisia Despite travel limitations caused by the Coronavirus pandemic in 2020 and 2021, the Foundation successfully continued implementation of projects by rapidly adapting them to digital leaming and using 8 blended approach lo leaching also involving in-person training sessions online. Despite political instability in Sud8n, the Foundation secured two large projects in that country which need careful managing and implementation as uncertainty over aspects of political and civic life continue. Similady, the project in Tunisia was delayed because of political uncertainly and is challenging because of on the ground events. To continue to increase capacity in digital learning, assessing the usability of our e-learning platform and ils ability to capture impact data The Foundation's investment in digital learning over the previous three years enabled it to adapt rapidly lo increased demands for digital learning caused by the pandemic. More than 909/0 of all activity now involves online conlenl. This shift from in-field activity to cenlralised creation of online content, prompted a re-alignment of staffi'ng resour, including the recruitment of more staff lo support key personnel. In addition, work is being done on what is required of Journalism Now in the future with ease of use and data capture, lop priorities lo inform our decision lo slick with the existing platform vendor or move to a new provider in Q12023. Moving the Foundation from 46 Chancery Lane lo 6 Greenland Place, Camden Town Moving the Foundation lo Camden gives il the opportunity for big savings over the next decade and the chance lo create a flexible working space on one floor- with a Iraininglmeeling room set-up for the future. To find philanthropic funding for the Foundation's 8ctivities in the US, Europe and UK The initiative got underway in Q4 2021, establishing a relationship with a New York based fund-raiser lo work with the Foundation for one year to find and lesl our ability to raise funds in the U.S. Work was done on positioning the Foundation, sharpening its message, introductions lo donor advisors and building alliances with partners lo jointly open doors with funders. Outreach is also being done to philanthropic donors in Europe, UK and Africa with small successes like the Africa No Filler project funded by the Rockefeller Foundation. Page 5
THE THOMSON FOUNDATION TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2021 Diversify inslitulional funding sources We are conslanuy looking at new alliances with partners to diversity funding sources among inslitulional donors. As part of this effort, we have sought legal assistance and made a proposal lo the Thomson Media gGmbH TM advisory board lo create a 'Verein' in Germany, which will allow TM lo apply for funding to the development arm of the German government- BMZ- for funding for media development. To re*nergise commercial opportunities as a funding stream Commercial work dropped off during the pandemic and much work is being done lo raise our profile al industry events, make new contacts and lind new commercial opportunities to raise revenue in future years al higher margins, to grow the Foundation and the important work that it does. Priorities for 2023 11 remains a strategic priority for the Foundation to deepen and expand its institutional and philanthropic funding based on ils long-term Ir8ek record of programming within Central Europe (Poland, Hungary, Slovakia, Slovenia, Croatia and Czech Republic) alongside its work in Eastern Europe (Bulgaria, Romania, Ukraine, Moldova, Georgia, Amienia and A2erbaijanl and the Westem Balkans (Serbia, Monlenegro, BIH, Kosovo, North Macedonia and Albanial. Consolidate and expand work on the African continent. Continue to innovate in digital learning, finalising vendor hosting the Foundation's platform and revamping of our e-learning platform Journalism Now. Establish monetisable impact measurement frameworks, using data from digital learning programmes, to ensure funders receive quantifiable results from training programmes. Continue lo monitor the balan of in-field and online resource required to ensure the most efficient sustsinability of operations as the pandemic develops. Keep re-energising commercial opportunities. Find new funding streams in the philanthropic landscape. Statement of Trustees. responsibilities The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Slandardsl. 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 stale of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial slatemenls, the Trustees are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles in the Charities SORP IFRS 1021., make judgments and estimates that are reasonable and prudent", Page 6
THE THOMSON FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 slate whether applicable UK accounting standards (FRS 1021 havg bean followed, subject lo any material departures disc105ed and axplained in th& financial statements., prepare the financial statements on the going concem basis unless it is inappropriate lo presume that The Thornn Foundation will continug in business. The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain the charity's transactions. disclose with reasonable accuracy at any lime the financial position of the charity and enable them lo ensure that the financial statements comply with the Charf(ies Act 2011, the Charities (Accounts and Reports) Regulations 2008 and tho provisions of the Charits conslilution. They are also responsible for safeguarding the assets of The Thom50n Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the board of Twstees on 14 June 2022 and signed on th8ir behalf by. Lord T Chandos Chaimian Page 7
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 'charily'l for the year ended 31 December 2021 which comprise the Slalement 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 Apted Accounting Practi}. In our opinion the financial statements.. give a true and fair view of the stste of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources for the year then ended., have been propedy prepared in accordan with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordan with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorfs 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 eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concorn In auditing the financial slalements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial slalemenls 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 doubl on the charity's ability lo continue as a going concem for a period of at least Ie1ve months trom when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees wth respect lo going COnM are described in the relevant sections of this report. Page 8
THE THOMSON FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMSON FOUNDATION ICONTINUEDI 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 Ihereon. Our opinion on the financial statements does not cover the other information and we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is lo 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 lo be materially misslaled. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misslatemenl in the financial statements or a material misslalement of the other information. If, based on the wort( we have performed, we conclude that there is a material misstalemenl of this other information, we are required to report that fact. We have nothing lo report in this regard. Matters on which are required to report by exception We have nothing lo report in respect of the following mallers where the Charities {Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Trustees, report is inconsistent in any material respect with the financial slalements., or sufficient accounting records have not been kept,. or the financial statements are not in agreement with the accounting records and returns., or we have not received all the information and explanations we require for our audit. Responsibilities of trustegs As explained more fully in the Trustees, responsibilities ststemenl, 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 neSSary lo enable the preparation of financial stslements that are free from material misstatement, whether due lo fraud or error. In preparing the financial stslements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going conrn and using the going COnM basis of accounting unless the Trustees either intend lo Iiquidale the charity or to ase operations, or have no realistic altemalive bul to do so. Page 9
THE THOMSON FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMSON FOUNDATION ICONTINUEDI Auditorfs 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 Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalement, whether due to fraud or error, and to issue an Audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslatemenl 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 lo influence the economic decisions of users taken on the basis of these financial stalemenls. Irregularities, including fraud, are InStanS of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delect material misstalemenls in respect of irregularities, including fraud. The exlenl lo which our prOdureS are capable of delecling 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 delerminalion of material amounts and disclosures in the financial slatemenls. The laws and regulations we considered in this context were the Charities Act 2011 and Charities SORP IFRS 1021. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial slalemenls but compliance with which might be fundamental lo the charity's ability to operate or lo avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context were General Data Protection Regulation and health and safety legislation. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, lo be the override of controls by management and the recognition of project income. Our audit procedures lo respond lo these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample lesling on the posting of journals, designing audit procedures for the recognition and classification of project 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. In accordance with International Auditing Standards, we planned our audit so that we have a reasonable expectation of delecling material misslalements in the financial statements or accounting records including any material misstalemenls resulting from fraud, error or non-compliance with law or regulations. However, owing lo the inherent limitations of an audit, there is an unavoidable risk that some material misslatemenls of the financial statements may not be detected even though the audit is properly planned and performed in accordan with the ISAS IUKI. No internal control structure, no matter how effective, can eliminate the possibility that errors or irregularities may occur and remain undetected. In addition, because we use selective lesling in our audit, we cannot guarantee that errors or irregularities, if present, will be detected. Accordingly, our audit should not be relied upon lo disclose all such misstatements or frauds, errors or instances of non-compliance as may exist. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. www.frc.or .uklauditorsres onsibililies. This description forms part of our Auditor's report. Page 10
THE THOMSON FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE THOMSON FOUNDATION ICONTINUEDI Use of our report This report is made solely lo the charity's Iruslees, 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 stale lo the charity's Iruslees those matters we are required lo stale lo them in an Auditor's report and for no other purpose. To the fullest extent permilled 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. UL ILR Crowe U.K. LLP Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR Dale: 17 October 2022 Page11
THE THOMSON FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 Unrestricted funds 2021 £000 Restricted Endowment funds funds 2021 2021 £000 £000 Total funds 2021 £000 Total funds 2020 £000 Note Income and endowments from". Donations and Grants Charitable activities Investments 961 961 1.453 139 736 2,299 164 1.453 139 Total income 1,592 961 2,553 2,599 Expenditure on: Raising funds Charitsble activities 43 43 2,623 38 2,603 1,662 961 Total expenditure 1.662 961 43 2,666 2,641 Net expendlture before net galns on Investments 1701 1431 (42) Nel gains on Investments 877 877 Net lexpenditure}lincome Transfers beeen funds 1701 834 764 496 19 150 11501 Net movement in fund$ Reconciliation of funds: 80 764 496 Totsl funds brought forward Nel movement in funds 1,094 80 12,648 13,742 764 13,246 496 Total funds carried fovlvard 1,174 13,332 14,506 13,742 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 15 to 31 form part of these financial statements. Page 12
THE THOMSON FOUNDATION BALANCE SHEET ASAT 31 DECEMBER 2021 2021 £000 2020 £OL Note Flxgd a$$ots Intangible assets Tangible assets Investments 13 14 15 13.324 t2.789 13,330 t2,795 Current assets Debtor5 Cash at bank and in hand 16 1,341 510 1.189 1.579 1.851 Creditors.. amounts falling due wthin one year 17 (4031 (904) Net current assets 1,176 Total assets less current 1labll1es 14,506 13,742 Tolal n¢t assets 14,606 13,742 Gharlty funds Endowment funds R¥¥(iibted fuTiTJb Unrestricted funds 19 19 13,332 12,648 1,174 1.094 Total funds 14.506 13, 742 The financial slalements were approved aulhorised for issue by the Truslees on 14 June 2022 and signed on their behaf by.. Lord Chandos, Chalrnian The notss on pages 15 10 31 fomi part of these financial statements. Page 13
THE THOMSON FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 2021 £000 2020 £000 Note Cash flows from operating activities Nel cash provided byllused inl operating activities 21 198 (912) Cash flows from investing activities Dividends and interests from investments Proceeds from sale of investments Purchase of investments Transfer of cash held for investments 139 164 1.124 {633} {149} 3,085 (2,668) 68 Net cash provided by investing activities 481 649 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 679 12631 773 510 Cash and cash equivalents at the end ofthe year 22 1.189 510 The notes on pages 15 to 31 form part of these financial statements Page 14
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 General information The Thomson Foundation was registered with the Charity Commission for England and Wales on 8 November 1962 Iregistered number 3137501. Its registered address and principal office is 46 Chancery Lane, London WC2A 1JE. Accounting policies 2.1 Basis of preparation of financial ststements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities". Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 JanLJary 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 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 olhenNise slated in the relevant accoLJnting 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 resoLJrces, 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 al least twelve months from the dale 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 Stslement of Financial Activities only if received, or declared and receivable. Income from overseas training and consultancy projects is induded in the Statement of Financial Activities when the charity becomes entitled lo the income, when the provision of services is imminent and the corresponding costs have been incurred. Income from donations is credited lo the Statement of Financial Aclivib'es on a receivable basis. Donations receivable for the general purpose of the charity are credited to unrestricted fLJnds. Donations for purposes restricted by the wishes of the donor are taken lo restricted funds where those wishes are legally binding on the Trustees. Page 15
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinuedl 2.4 Expenditure Expenditure in the year is allocated as follows.. Raising funds represents fees incurred in connection with investment management advi and bank charges in connection with the custody and transactions of the investment portfolio. Charitable activities relates lo expenditure incurred in providing courses. This represents direct costs in connection with the implemenlalion of courses and consultant assignments and the expenditure in relation lo the management of these courses. Support costs have been allocated beeen charitable activities and governance costs on the basis of staff lime. 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. Governan costs are those associated with the constilulional and statutory requirements of the charity and are included within support costs. 2.5 Government grants Government grants are credited to the Statement of financial activities when there is evidence of entitlement, receipt is probable and the amount can be measured reliably. 2.6 Foreign currencies Transactions in foreign currencies are recorded using the rale of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rale of exchange ruling al the Balance Sheet date and the gain or loss on transaction is included in the Statement of Financial Aclivilies. 2.7 Taxation As a registered charity, The Thomson Foundation is entitled to tax exemptions on all ils income and gains, properly applied for its charitable purposes. 2.8 Intangible assets and amortisation Intangible assets costing £1,000 or more are capilalised 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 al cost and are subsequently measured at cost nel of amortisalion and any provision for impairment. The eslimaled useful lives are as follows.. Amortisalion is provided on intangible fixed assets al 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 Page 16
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinuedl 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 staled 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 25Q/o slraighl line 2.10 Investments Fixed asset investments are included al market value at the Balance Sheet date. Investment gains and losses arising during the year are included within the Statement of Financial Aclivilies. 2.11 Debtors Trade debtors, accrued income and other debtors are recognised al the settlement amount due and prepayments are valued al 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 inslitulions. 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 lo settle the obligation can be measured or estimated reliably. Creditors are recognised al their selllement 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 slraighl line basis over the lease term. Page 17
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies Icontinuedl 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 accordan with the rules of the Scheme. 2.17 Fund accounting Unreslricled 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 lo the charity. The purposes and uses of the endowed funds are sel out in the notes lo the financial stalemenls. 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 stalemenls. 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 tsngible fixed assets are sensitive lo changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when neTrssary to reflect current estimates, economic ulilisation 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 experien. Page 18
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Income from donations and legacies Unrestricted Restricted funds funds 2021 2021 £000 £000 Total funds 2021 £000 Total funds 2020 £000 Government grants 961 961 736 Total 2020 70 726 136 Unrestricted Government grant income during the prior year included £10k to a Covid-19 discretionary grant. There was no such income in 2021. Reslricled Government grant income during the current year and prior year 1£126kl relates to Grant funding received for Media and Journalism training. Income from charltable actlvltles Unrestrlcted funds 2021 £000 Total funds 2021 £000 Total funds 2020 £000 Income from charitable 8elivities - Medi8 2nd Joumalism Training 1,453 1,453 2,299 Total 2020 2,299 2,299 Investmgnt income Unrestricted funds 2021 £000 Total funds 2021 £000 Total funds 2020 £000 Income from listed investments 139 139 164 Total 2020 164 164 Page 19
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Investment management costs Endowment funds 2021 £000 Total funds 2021 £000 Total funds 2020 £000 Investment management fees 43 38 Total 2020 38 38 Anatysis of expenditure on charitable activities Summary by fund type Unrestricted Restrieted funds funds 2021 2021 £000 £000 Total funds 2021 £000 Total funds 2020 £000 Media and Journalism Training 1,662 961 2.623 2,603 Tol812020 2.477 326 2.603 Analysis of expenditure by activities Activities undertaken directly 2021 £000 Support costs 2021 £000 Total funds 2021 £000 Total funds 2020 £000 Media and Journalism Training 1,432 2,623 2,603 Total 2020 1,523 1,080 2,603 Page 20
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Analysis of expenditure by activities Icontinuedl Analysis of support costs Media and Journalism Training 2021 £000 Total funds 2021 £000 Total funds 2020 £000 Staff costs Depreciation and Amortisation Premises Travel & meetings Communication General office costs Legal and professional Information technology Market research 751 751 609 35 212 212 182 30 30 51 25 41 12 40 17 17 Advertising Storage Audit fees 65 65 94 16 16 13 Bank charges LossesllG8insl on foreign exchange Trustees, fees and expenses 13 (11) 43 1,191 1,080 Total 2020 1,080 1,080 10. Audltovs remuneratlon 2021 £000 2020 £000 Fees payable to The Thomson Foundation's auditor in respect of". Auditors, fees - audit Auditors, fees - non-audil services 10 f o 18 Page 21
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 11. Staff costs 2021 £000 2020 £000 Wages and salaries Social security costs Contribution lo defined contribution pension schemes 647 60 518 41 751 609 The average number of persons employed by the Charity during the year was as follows.. 2021 No. 2020 No. Employees 12 12 The average headcounl expressed as full-lime equivalents was.. 2021 No. 2020 No. Employees 12 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2021 No. 2020 No. In the band £60,001- £70,000 In the band £70,001- £80,000 In the band £100,001- £110,000 The remuneration of key m8n8gement personnel was £440,252 (2020." £390,391J. 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, nation81 insurance contributions and employers, pension costs. Included within wages and salaries in the above note is Costs of contractors totalling £92,890 {2020." £18,047). Page 22
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 12. Trustees. remuneration and expenses During the year, no Trustees reiVed any remuneration or other benefits (2020- £NIL). During the year ended 31 December 2021, no Trustee expenses have been incurred (2020- £NILJ. 13. Intangible assets Computer software £000 Cost At 1 January 2021 96 At 31 December 2021 96 Amortisation At 1 January 2021 Charge for the year 95 At 31 December 2021 96 Net book value At 31 December 2021 At 31 Dember 2020 Page 23
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 14. Tangible fixed assets Long-term leasehold property £000 Computer equipment £000 Total £000 Cost At 1 January 2021 Additions 117 25 142 At 31 December 2021 117 30 147 Depreciation At 1 January 2021 Charge for the year 21 137 At 31 December 2021 116 24 140 Net book value At 31 December 2021 At 31 Dernber 2020 15. Fixed asset investments Listed investments £000 Valuatlon At 1 January 2021 Additions 12,789 633 Disposals Revaluations Movement in cash 11.1241 877 149 At 31 December 2021 13.324 Barclays Bank has a charge over the Investment assets of the Charity which is given by The Thomson Foundation and ils corporate Trustee, The Thomson Foundation ITrusleel Limited. Page 24
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 16. Debtors 2021 £000 2020 £000 Due within one year Trade debtors Other debtors Prepayments and accrued income 78 340 311 999 390 1.341 17. Creditors: Amounts falling due within one year 2021 £000 2020 £000 Trade creditors other laxalion and social security Other creditors Accruals and deferred income 171 21 252 42 f O 600 171 403 904 2021 £000 2020 £000 Deferred income at 1 January Resour5 deferred during the year Amounts released from previous periods 151 713 {113) (151) Deferred income at 31 December 113 The deferred income balan relates lo Income received in advanTr for services, which relate to the next period. 18. Financial instruments 2021 £000 2020 £000 Flnanclal assets Financial assets measLJred at fair value through income and expenditure 13,324 72,789 Financial assets measured at fair value comprise the investment portfolios. Page 25
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 19. Statement of funds statement of funds - current year Balance at 31 December 2021 £000 Balance at 1 January 2021 £000 Transfers inlout £000 Income Expenditure £000 £000 Gains £000 Unrestricted funds General Funds 1,094 1,592 11,662) 150 1,174 Endowment funds Endowment Funds 12.648 143} 11501 877 13,332 Restricted funds Deepening Digital - Hungary Belarus crisis coverage Digital Strategies - Hungary Access lo Information Law - Rwanda Empowering quality Kyrgyzstan Resilience for independent media - Belarus 251 {251} 214 {214) 57 57) 39 139} 41 141} 359 {359) 961 {961} Total of funds 13.742 2,553 12,666) 877 14,506 Page 26
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 19. Statement of funds (continued) statement of funds - prior year Balance at 31 December 2020 £000 5alance al l January 2020 £000 Transfers in/out £000 Income Expenditure £000 £000 Gains £000 Unrestricted funds General Funds- all funds 648 2,473 (2,477) 450 1,094 Endowment funds Endowment Funds all funds 12,598 (38) (450) 538 12,648 Restricted funds Deepening Digital - Hungary Belarus crisis coverage 85 (85J 41 (41J 126 11261 Total of funds 13,246 2,599 (2,641) 538 13,742 Page 27
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 19. Statement of funds (continued) The endowment fund is an expendable endowment fund and was created when the charity was formed as a result of shares being donated lo the charity. Reslricled income for Deepening Digital - Hungary relates lo funds to be spent lo implement digital growth strategies for local media in Hungary. Reslricled income for the Belarus Crisis coverage is lo support the professional media coverage. Reslricled income for Digital Strategies- Hungary is to support digital growth for local media in Hungary. Reslricled income for Access lo Information Law - Rwanda is lo support the implementation of access to information law in Rwanda. Reslricled income for Empowering quality- Kyrgyzstan relates lo empowering quality reporting producers in Kyrgyzstan to wilhsland growing pressure and threats. Reslricled income for Resilience for independent media - Belarus relates lo funds lo be spent supporting professional media coverage of the crisis in Belarus. The transfer of £150,000 from expendable endowment fvnds 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. 20. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted Endowment funds funds 2021 2021 £000 £000 Total funds 2021 £000 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 13,324 13,324 1,579 14031 1,571 14031 Totsl 1,174 13,332 14,506 Page 28
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 20. Analysis of net assets between funds {continuedl Analysis of net assets between funds - prior year Unrestricted Endowment funds funds 2020 2020 £000 £000 Total funds 2020 £000 Tangible fixed assets Intangible fixed assets Fixed asset investments Current assets Creditors due within one year 12,789 12,789 1.851 (904) 1,851 17631 11411 Total 1,094 12,648 13,742 21. Reconciliation of net movement in funds to net cash flow from operating activities 2021 £000 2020 £000 Nel income for the year las per Statement of Financial Acliviliesl 764 496 Adjustmonts for: Depreciation charges Amortisation charges IGainsl on investments Dividends and interests from investments Decreaselllncreasel in debtors IDecreaselllncrease in creditors 32 (877) {139} 949 (538) (164) (1,085) 344 {503} Net cash provided byllused inl operating activities 198 (912) 22. Analysis of cash and cash equivalents 2021 £000 1,189 2020 £000 510 Cash in h8nd Page 29
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 23. Analysis of changes in net debt At1 January 2021 Cash flows £000 At31 Oecember 2021 £000 £000 510 Cash al bank and in hand 679 1.189 510 679 1,189 24. Pension commitments The total pension cost included in the Statement of Financial Activities was £43.923 (2020.. £47,422) in relation lo defined contribution pension plans. All pension costs are charged to the unrestrirted funds. this is the fund from which wages and salaries are paid. At the year end the pension creditor totalled £2,557 (2020.. £29,248). 25. Operating lease commitments At 31 December 2021 the Charity had commitments to make future minimum lease payments under non- cancellable operating leases as follows". 2021 £000 2020 £000 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years 100 401 67 100 401 167 568 668 The following lease payments have been recognised as an expense in the Statement of financial activities.. 2021 £000 2020 £000 Operating lease rentals 104 103 Page 30
THE THOMSON FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 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 (Trusleel Ltd, company number 07405128. In accordan with the Trust Deed, £NIL (2020.. £NIL) has been accrued al the year end for an honorarium. However, one honorarium was paid in the year of £959 (2020.. £960). During the year, no Trustees reiVed any remuneration (2020.. £NIL). During the year The Thomson Foundation paid a total of £20,508 (2020.. £65, 809) and received a total of £12,551 (2020.. £68.346J on behalf of Thomson Media gGmbH - this included grants and overheads. Thomson gGmbH is a connected Charity. At the year end there was a nel outstanding position of £3,652 owed to Thomson Media gGmbH (2020.. £4,416). 27. Controlling party Thomson Foundation ITrusteel 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 31