Company number.. 00383775 Registered charity number.. 314210 THE HISPANIC AND LUSO BRAZILIAN COUNCIL (A Cornpany Limited by Guaranttt) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 THE HISPANIC AND LUSO B114ZILIAN COUNCIL ANNUAL RKPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 21112 coNrENTS Administrative and statutory details Report of the T￿￿e5 2-13 Independent Auditors. report 14-16 Accounts eomprtslnz: Statem¢nt of financial activities 17 Balance Sheets 18 Ststemeni of ￿hflO￿S 19 Notes to th¢ a¢¢ount5 20-30 THE HISPANIC Af4D LUSO BRAZILIAN COUNCIL ANNUAL REPORT AF4D FINANCIAL STA TEMENTS FOR THE YEAR ENDED 31 MARCH 2022 ADMINISTRATIVE AND STATUTORY DETAILS Board of Trustees Alan Charlton Ma￿1&[ Edjenique Nicholas Mccall (Chair) Carla M¢Roberts Ir¢ne Mia Rodolfo Milesi VitOriE4 Nabas Ed Poulton Marcelo Scenna Hugo Shorter Gui Silva Ezequiel Weppler Chief Executive O(ficer & Secretary Jeremy Browne {apwJinted Ju]y 2022) Company registration number 00383775 Charity registrntion number 314210 Registered orriee 126 Wigmore Street London WIU3RZ Simpson Wr¢ford LLP Wellesley House Duke of Wellington Ayenue Royal Arsenal London SE186SS Auditor5 Dixon Wilson Audit Services LLP 22 Chancery Lane London WC2A ILS Solieitors Collyer Bristow LLP 4 Bedford Row London WCIR 4TF Investment M4D*g¢r$ Evelyn Partners 25 Moorgate London EC2R 6AY THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 The Trustees present their report and audited financial statements for the year ended 31 March 2022 which have been pr¢pared in accordance with accounting policies set out in the notes io the ac¢ounts and comply with the chaiity's governing document, the Charities Act 2011, the Companies Act 2006. the Memorandum and Articles of Association and A¢counting 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 #nd Republic of Ireland (FRS 10?) {effective l January 2019). Reference and administrative inforniation The Hispanic and Luso Brazilian Council is a charitable company. limiied by guardntee. and was registered in May 1973 under Company registration number 00383775 and chariry registration number 314210. The organisation is an amalgaTnation of the two original councils registered in November 1943 ps The Hispanic Council and the Lus0 Brazilian Council. The Hispanic amd Luso Brazilian Council uses the working name'canning House" and the principal operating address 15 126 Wigmore Streel London WIU 3RZ. The Trustees, who are a150 directors. who served in the period were.. Alan Charlton Cho Khong (resigned 27th July ?021) Carla McRoberts Rodolfo Mile51 Ed Poulton Hugo Shorter Ezequiel Weppler Marcial E¢h¢nique Nicholas McCa]l {chair) Irene Mia Vitoria Nabas Marcelo ScenTYd Gui Silva The Charity i% supported by a number of honorary non-executive appointments. as follows: Hontsr President: Jeffrey Lord Mounteyans Honor Vice-Presidents'. Lord Brennan of Bibury, QC Jeremy Browne (Appointed CEO in July 2022) Chris Bryant, MP Prof Vicior Bulmer-Thomas, CMG OBE The Rt Hon Ken Clarke, QC MP Dr Enrique Garcia Baroness Hooper. CMG Sir Mark Moody-Stuar¢ KCMG Ne5tOT Osorio The Rt Hon Michael Portillo Horacio Rossi Sally Unwin, OBE FCIB The Board of Trustees oversee the Charity, whieh is managed day to day by the Chief Executive Officer. During the year this role was held Cristina Cortes, who was appointed in April 2018. After the year end, she resi￿)ed and was succeeded by J¢r¢Tny Browne in July 202? THE HISPANICAND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 Strueturey governance and management Goverlllng doeument The Hispanic and Luso Brdzilian Council 15 a chariiable company limited by guarantee and the governing document is the MeTnof4ndum and Articles of Association dated 9 November 1943. taken frorn The Hispanic Council. upon amalgamation. PriDeipal Activities The mission of the Charity is to be the UK'S leading forum for informed comment, Contacts and debate on Laiin American politics, economics and business. It also ¢¢lebrntes and promotes awareness in the UK of the languages. culture 2nd history of Latin Ameri¢4 Spain and Portugal. This is achieved through a compreh¢nsive programme of cotporate, current affairs and cultural events and publications. Governlng th)dy The governing body of the organi$ation is the Board of Trustees. The Trustees are elected at the annual General Meeting (AGM) or in the interin] are appointed to fill a casual vacancy and stand for eleciion at the next AGM. One-third of the Trustees ￿tIre from office but are eligible for re-election at the AGM. co￿Orate govemanc¢ Stru¢￿Te5 and procedures are well established and were fLffther improyed through the addition of a Nominations COM￿lttee in November 2016 for Considerati￿ of futur¢ Trus*es, honorary Vice- Presidenis and CEO appointments. and of a Remunerdtion5 Committee in July 2021 (see Ojtther below). Trustet traiThing Potential Trustees are identtfied by members of The Board and ar¢ considered fi)* by the Nominations Committee against th¢ CTiteria of eligibility, competence, experience. specialist skills and ihe objective of chieving diversity and balance on The Board. New Trustees are nornially familiarwilh Canning House through their WO￿ in business or public seryice. but full training ¢an b¢ provided to all board members if required in order to assist them with their duties ps Trustees. Organi$*iiDn41 management The Board of Trustee5 are legally responsible for the overall strategic dirrftion and control of the organisation. The Board meets at least fourtimes ay¢arto track the perfomiance of the organisation againstthe annual budget. which is agreed by the Tru%tees at the beginning of the financial year. The Board also Tegularly reviews perfornian¢¢ against the strategy. which focuses on the medium terni <5 years). The oversight of financial issues, risk governance and regulatory compliance is the responsibility of the Finance and General Pujposes {F&GPI Committee. which also meets four lilnes a year, prior to each board tneeting. Trustees on the committee include.. Nick Mccall. Vitoria Nabas, Marcelo S¢¢nna, Gui Silva, and Ezequiel Weppler. The committee is chaired by lan Perrin, H¢ad of Polio Research & Operations (including Finance). The day-tfrday running of the organisation is delegated to the Chief Executive Offi￿. Th¢ CEO attends meetings of The Board of Trustees. as well ￿ the FiTh8n¢t and Genera] Purposes Comrnittee Ènd the Remunerations Committee. Staff rtmuneratioD Th¢ remuneration of the CEO is set by The Board of Trustees. the appTopriateness of the remunerdtion is set at Ihe beginning of the individual's contrdet (including reference io compansons with other charities) and perforniance is reviewed annually against pre-specified objrftives and KPIS. THE HISPANICAND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 MARCH 2022 The remuneration of other charity staff is delegated to the CEO with the objective that they are, in a fair and responsible manner. rewarded for their individual contribuiions io the Charity's success. within ihe limits of ihe Charity's annually agreed budgei. The Remunerations Committee also offers guidance and advice to the CEO on remuneration policies such as overall team and pay Structure. the policies governed by the ststT guidebwk. including Staff benefits (season licket loan5. health plans). and the team bonus p)licy. Group structure Canning House L2Tniied (CHLI wa5 fomied in 1997 as a wholly own¢d trading subsidiary of the charitable company. The activitles of CHL ar¢ focused primarily on corporate activity, including the organisation of conferences, seminars and events on the development of the poliiical, economic and business environment of Latin Arneriea (these events are free to corp(Trrate members)- albeit many of the events ar¢ sirnultsneously of interesi to a wider audience (who. unlik¢ QOTporate In¢￿bers. usually have to pay ¢0 att¢nd). The corpordte manager is principally dedicated to corporate activities. with the efforts of other team members divided to various extents between cOrpor￿e and strictly chariiable aciiviiies. An approximate allocation of non- dedicated Staff titne is agreed annually with the auditors. The ¢ntire n¢t profit of CHL is donated annually to the parent company under a deed of covenant created on I I December 2018. Conversely, in the event that CHL makes a financial loss, as in this financia] year, under the ternis of an ongoing letter of support dated 26, Cktober 2020. the HLBC TTUStees undertake to under-write CHL'S activities for the current financial year ending 31 March 2022, and for all futhre years thereafter as ne(e$5ary. Stskeholder relationships and ¢haritable activities The organisation works closely with the Latin Atnerican and Iberian Ernbassie5 and other UK, Latin Atnerican and multilateral organisations that exist to promote stakeholder relalionships and related activities between the UK and specific Latin American countries. The organisation regularly runs joint events with these organisations to showcase pwtieular eountrie5 and issues. Representatives of these organisations regularly attend and speak at Canning House ¢vent5. The organisation also collaborates wilh UK universities with interests in Latin American research and studies, and with other chaTitie5 and NGOS. Risk management The Board of Truslees and the Finance and General ￿￿rPoseS Committee (F&GP) have. over the cutTent year, been focused on key financial risks to the organisation, and ne¢essary mitigation measutt$. Particular atteniion has been paid to the ￿5h t]ow irnpact of th¢ Covid-19 pandemic plus post-Br¢xit i]n¢ertainties (Trn corporate membership income. The F&GP has also conducted and shared with the Board an in- depth review of the a55et portFolio and its ￿Sociated income stream. in the light of the Charity's future cash flow and investment needs. THE HISPANICAND LUSO BRAZILIAN COUNCIL REPORT OFTHE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 STRATEGIC REPORT Objectives of th¢ Chorily The general aim of the organisaiion is the advancemeni of knowledge in the UK of the culture. languages. history, politics, economics and business of the countrie5 Of Latin America while furthering the broad relationship between the UK and ¢hese countries. These objeciives are achieved in a non-partisan manner. Mission and strategie aim% The mission of the organisation is to build understanding and relationships between the UK and Latin America. Its goal is to be ihe UK's leading forum for contscts, thoughi leadership and pragmatic debate on Latin American political, economie, health, ¢nvironmental and social trends and issues, and business risks and opportunities. It also celebrates and promotes awareness in th¢ UK of th¢ languages, culiure and history of Latin America and Iberia. The strat¢gi¢ aim is to do this in a financially sustainable nianner. Public benefit The Tnjstees confirm that they have refeffed ￿ the guidance Contained in the Charity Commission's revised general guidance on public benefrt when reviewing the Chariry's aims and obj¢ctiv¢s &s well &s in plamiing future actiwties. Obj¢etiv¢s for the y¢ar and the futu The organisation's original objectives for the financial yearwere to-. Support the mission by a full annua] programme of events relevant to corporaie and individual members as well as to parners and stakeholders" Publish newsletters and in-depth rep)rts and undertake rese8xch on Latin America and Iberia. Maintsin and seek to grow the organisation's membership and revenue from fees. sponsorship and donations to achieve financial 5UStainability. whilst fulfilling its mission. The fi￿t two objectives have been met in ￿]], with ex¢elleni feedback from all the organisation's stkkeholders, as a result of which the organisation's public reputation has been greatly enhanced. However, achievement of the third objective ha5 been seriously hampered by the impact of the Covid-19 pandemic- see next section- coming on top of an already diminishing corporate membership amid the distractions in the cotporate world relating to the UK'S withdrawal from the European Union. Impact of Covid-19 Pandemie The organisation closed its offices in mid-march 2020 in response to the criti¢al situation that was unfolding. and the entire team started working full-time from home. No one was furloughed. The team continued to work remotely until October 2021, when a phased retttm io the office was irnpl¢rn¢nted. The team was split in tsvo. with each half ¢OTning into the office for two days per week. However. by December 2021, a new variant of Covid-19 lomicrtsn) emerged, and on the advice of the governmenl all members of staff returned to working from horne fvll-time, until February 2022, when the omicron wave had passed. At the start of the pandemic, all the organisation's events were transfeTred lO￿ts onSine. However, by September 2021, when the infection r￿eS had drop[￿ to significantly low numbers, and ]nost people were fully vaccIn￿ed. it was decided that the organisation would host a pre-even¢ dinner outside and ]n-p￿s0n for the speakers of the 2021 UK-Brazil Conversa. This was the first time the organisation had arranged an in-person event since March 2020. The dinner was extremely well attendcd, with all those who accepted attending. Given that public confidence in attending in-person events had ietluned, the organisation started making plans for more l￿-￿[SOn and hybrid events. moving away from hosting events exclusively online. Vlhilst hostingevents online meant that ouraudience number5 increased dramatically and we were able to attract a significant number of new viewers from ov¢rseas, the downside was ihat the CEO took the decision to s¢rdP events fees completely. This ￿ltImatelY meant that revenue generated by evenl ticket sales ceased. THE HISPANIC AIYD LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED JI MARCH 2022 A¢tivities of th¢ Charity This year, despite activities continuing to be disrupted by the pandemic. we continued to offer all our usual inforniaiion and report activities while still hostrng a varted, topical and relevant programme of events, some online and some in-person once again. Our c.40 events included corp)rate events {webinars. briefings and trad¢ and invtsttnent coDferen¢es and round tables) and public events (geopolitical, eledion analy5e5, SOCiO- economic). On the tlag5hip side of thing¥ we hosted three presidential Canning Lectures alongside the United Nations Climate Change Conference (COP261 Leadership Summii in Glasgow delivered by the President of Panam4 Ihe President of Cosla Rica. and the President of Ecuador. while the Canning House LatAm Outlook 20?? _ now in its third edition was taken on a roadshow to Latin ATneri¢a. where we hosted two very succc5sful conferences in Sao Paulo, Brazil, and Mexico City. Mexico. Aehievernents Perform4llce Forthe financial year 2021-22. income from corporate mernbeTship decreased from £12 Ik to£74k. The decrease in corporate membership income can be attributed to a fall in the nurnber of corporate rnembers, driven by two main factors. Firstly. the ongoing uncertainty caused by the Covid-19 pandemic resulied in the tightening of purse Strings 8mongst existing and prospeclive Corporate members. Secondly, Canning House wa5 without a ¢¢)Tporate manager for nine months ID 2020 owing to a sudden ons¢t ol chronic illness, which caused a knock-on effect the following yvdr when corporate members came to renew. Furthernjore, ongoing Brexit uncertainties undoubtedly continued to have a damp¢ning ¢ffed OD th¢ ¢orporat¢ response to th¢ organisation's membership drive. Income from corpordte memberships of £74k accounted for c.940/0 of annual gr05s non-investment income of £79k. with c£4k also coming frorn individual membership subscriptions. No sponsorship was acquired durn)g this period for any ¢v¢n¢s, whilst we did receive c£2k in ticket sales for the LatAm Outlook report laun¢h in London. Core operating expenditure such as building rental c05t5 and staff costs remained steady compared with the previous financial year. Despite the ongoing Covid-19 pandemi¢, renial discounts were r¢fitsed by the office landlord for a s¢cond year. Event costs in￿eaSed dramatically compared to the previous financial ye￿. which were unusually low because all events the previous year were held online. The total spend on event costs for the year was £74k &s a result of returning to in-person events once more. chiefly the three Presidential Lectures in Glasgow for COP26. and the LatAtn Outlook 2022 launch and roadthow. Overall operating expenses on charitable activities in¢rea5ed to £761k from £674k last financial year. This was prllnarily due to the return of in-person flagship events without sponsorship as noted aknve, as well as the ongoing costs associated with the Canning House-LSE Research Forum. which will cost the organisation up to £IOOk per annum {Albeit the board had authori5ed the% cost5, and the costs ft>r the LatAm Outlook to be met from the endowment portfolio). In addition to Oper￿1￿([ income, Canning House'5 investment portfolio yielded gross dividend and interest income of £344k, down from £358k in 2(r21￿21. After deducting fund management fees, the net dividend and interest yield from the portfolio was £285k this year, ¢ompaTed to £304k the pr¢vious year., a fall of £19k. The total operating loss before realised gainsllosses for FY 2021-22 stood at a loss of £395k, as opposed to a loss of £200k the previou% financial year. THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 The realised losse5 on investments iotaled £113k this year, compared to a105s of £45k the previous financial year. meanin¥ ihat th¢ total op¢rating loss including realised gain￿lOsseS on investment stood at a loss of £508k this financial year, compared wi1h a loss of £239k for the previous financial year. Corporate Events The corporate events progrdmme gained momentUTn throughout the year. Owing to the pandemic, all events continued online until the autumn of 2021, when it wa5 deemed safe to once aga5n stsrt hostsng in-person evet]ts. Th¢ first COTporate event of the reporting ￿riOd was the Canning COnVe￿atIon. 'Remittances Life. Livelihoods and Liberty,, mlxlerated by Christopher Gamett, Principal Adviser to the Banco Centroamericano de Iniegracion Economica (CABEI). which took place in April 2021.This was followed by a further two online event5 in May. the firsi being 'Fintrch in Central America, in parlnership with LatAm Inyestor, and the second (part of the Sustainable Development Serie5> entitled 'Biodiversiry as a Catalyst for a Green and Fair Recovery in Latin America and ihe Caribbean, in partnership with the UN Economic Comrnission for Latin Atnerica and the Caribbean, the International Labour Organisation and the UN Environmental Programrne. The series continued in June with our flagship ttvo4ay onlin¢ Su*ainable Agribusines5 conference in partnership wilh Baker McKenzie. W¢ a150 held a vinual address with the Chilean MinisteT for Mining and Ener¥y. In July, we parnnered with LatAm Investor again, thi5 time beginning a new"Investing in... cvents series airned ai providing trade and investment analyses and cOuntry-s￿¢7rIC insights into priorty wtors and current investment opportunities. The series kicked off with 'lnvesting in Ecuador, and wa5 lat¢r followed by 'lnvesting in Panama. and then 'Investing in Guaiemala, (this ti]ne an in-per50n event) the following year in February and April 2022 respectively. Sep¢¢mb¢r 2021 saw ihe virtual roundtabl¢ on ESQ in parhiership with the UK-based Brazilian ¢onsultancy fimi Lide UK. and with participation from upwards of seven UK companies with an interest or foothold in Latin America. By theautumn, once it Was deemed safe to hold inyrson events again. th¢ ¢ntir¢ Canning House team, including our Honorary President. ChaTr and CEO traveled to Glasgow in November and organized a series of high-profile events alongside the United Nations Climate Change Conference ICOP26) Leadership Summit. The series of events in¢lud¢d hybrid Canntng Lectures d¢liv¢r¢d by th¢ President of Panama, HE Laurentino Cortizo {'Panama: A Gateway to Latin Arneri¢a'). the President of Cosia Ric4 HE Carlos Alvarado Quesada ('Costa Rica'% Ambition for a Grc¢n Global Coniract.) alld the President of Ecuador, HE Guillemo Las50 ('More Ecuador in thE World and More of th¢ World in Ecuador.). In addition to the leetures, the President of Ecuador also co-hosted with the Canning House a Presidential Investment Roundtable with over twenty Senior investors from major international companies drawn from the finance, mining and energy sectors. In the $ame sitting we also convened a Glasgow roundtable with the First Lady of Argentina and the UN Envirifftment Programme. in partnership with the Arg¢ntin¢ Embassy entitled 'Diversity and Jnclusion as a Catalysi for Environrnental Action,. All the forementioned activities were covered widely in Latin American press and featured on a major newswire, Ageneia EFE. These lectures also rtteiyed substantial attention in official Presidential and government communications. and on 50cial rn¢dia plarfomis. In the some month, to mark the end of COP26 and a pathway forward, we organized an in-person event with LatAm Invesior and BancTrust entitled 'The Glasgow A8fEement and Latin America, analysing the investor itnpact of COP26 in the region. THE H15PAf4ic AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 The calendar year strong fwstly with an event on the Mexican energy sector with Hogan Lovells, followed later Ihai month by Lhe last of our 20?1 Sustainable Development Series event named 'EducatioTr and the Digital Divide, in partnership with CAF Development Bank of Latin America. In the fir￿ quarter of 2022, time wa5 rategically dedicated to actively engage with key stakeholders across all Sectors, which helped Canning House se¢ur¢ a much-coveied swt in the official agenda of the President of Uruguay set to arrive in the UK in May of 20L?. The May event included a I Presideniial Canning Lecwre. entitled .Urug￿ay. a Reliable Gatrway to Souih America- Opportunitie5 in Green Finance, followed by a closed-doors Investors Roundtable, in partnership with Ihe Lord Mayor of London and with participation from the Uruguayan Ministers of Forei￿ Affairs, Economy and Environment. Current Arrairs. Culture & Communieations Canning House continued to update and infomi its audiences about the most relevant current affairs through events. webinars. weekly newsletters, Canning Papers and oth¢r publi¢ations. In our Current Affairs progratnrne, we a150 covered wide ranging issues including, no particular order. elections in Chile. Petu. Haiti. Honduras and Nicaragua. poliiics and the rnilitsry. women in foreign poli¢y, climate change. Covid-19. finance and 50Uth-south cooperation. The Can￿l￿g CO￿er.￿arE0￿S event fonnat ontinued, with sessions on Remittances, Life. Livelihoods and Lilty, chaired by Christopher Garnett (as mentioned above),. and Latin America and Asi4 chaired by Michael Stott of the Financial Tllnes. A number of these events featured senior figures from PTominent organisations. such as the World Bank and Inter-Am¢ri¢an D¢Yelopm¢nt Bank. government representatives from the UK and Latin America. and always with contiibutlOn5 from Canning House s extensive netw(Th￿- of experts. In March 2022, Estela de Carlotto. p￿sident of the Argentine Abu¢las de Plaza de Mayo Associaiiow spoke ai Canning House on her work to defend and promote human rights worldwide. Canning House's role as Secretsriai of the All Party Parliamentary Groups (APPGS) for Latin America. Peru and Venezuela saw further Collat￿ratIon on events and meetings. including Ambassadorial Briefings and ¢ounty-Sp￿iri¢ UFthtes, with support for Canning House evenis from the APPG in regular pariiamentsry notices. CaT￿]n¥ House's 20?1 Culthral Lecture was held in collaboration with the London Design Biennale, hearing from L*in American designer5. including the Chilean and Venezuelan enmes which went on to win the Overall and Thetne meda]s reSPECtiv¢ly for th¢ir outstanding work. In September 2021. Elissa Pereira dos Santos from Brazil. the third Canning House-KCL Library Visiting Fellow, delivered a presentation on her Fellowship research into th¢ r(Trle of Rio de Janeiro'5 New Christiar15 in th¢ transatlantic trnde in enslaved Africans. Wiilsi Elissa's access io the library collection was somewhat limited by Covid-19 restrictions, her project included the development of an innovative Portuguese transcription solhvare using Al technology. The fourth Visiting Fellow. Dr Roberto ue￿I, ftlso from Brn2il, whose Fellowship period has been ￿rther delayed due lo Covid-19 and other hurdles. will begin his programme later in 2022. Three additional scholars have been offered F¢llow5hips for the period from September 2022. THE HISPANICAND LUSO BiL4ZILIAP4 COUNCIL REPORTOF THE TRUSTEES FOR THE YEAR ENDED31 MARCH 2022 Cotnplementing our ¢UTreni affairs and corporate events. Canning Papers were published on Biodiversity. Agribusiness. and Educaiion and the pandemic. The wider publications schedule also included The Cartning Brief, which covered Cuba's July 2021 proresis and La(in America's reaction to the Russian invasion of Ukraine; Special Report5 from LatinNew5 on Covid-19 and 2022's ele¢tioo cycle- weekly blog posts from Andrew 11)OTnpson; and others. Canning House a150 published another edition of its Forgotten Histories" publication series, this time recounting the 1870s story of the ill-faied 'Lincolnshire Farmers. of Paraguay, whose journey as pawns to'b￿m, a phoney loan led to tragic loss ofiife. Canning House'5 Individual Membership remained steady compared to ihe previous year. ai 76 members as of March 20L?. While Canning House events remained mostly free to attend, limiting a key advantage previously offered by individual membership, other benefit5 such as Spanish and Portuguese class discount5, through new institutional pathers, have been introduced, and members continued to receive a tailored newsl¢tter and access to our exclusiv¢ publications. The Canning House w¢b51te has seen continuous improvements. including a new Languages ￿¢, launched in February 2022 to promote the aforementioned institutional partner5hip5 Wlth Instituto Cervantes and the King's Colle¥e London Modern Languages Centre. Canning House continlled its supp)rt for the Foreign, Commonwealth, and Development Office's (FCDO's} Chevening programme, hosting its Lalin American scholars at a networking reception in partnership with FCDO in March 2022. Canning House's support for the Group of Latin American Embassies in the UK {GRULA) and its Dean T¢Tnained strong, with regular meetings ￿tween Canning House representatives and the L￿l￿ American Arnbassadon held to dis¢uss key priority areas and potential collaboration. Where possible. Cam]ing House continued to support the Embassies, national celebrations, including with online cornm¢rnor4tions and promotion of their events. In July 2021, in its pr0￿MMe of charity-tfrcharity giving, Canning House donated £l.000 in support of the Elnbassy of Peru, UCL and the Internarional Mediral Education Tru5t'5 fundraiser for the production in PeTU of effective. easy-to-use and Iow-oos1 respiratory devices known as FYÉTyrachi. helping to keep Covid-19 patients of inten$iye care. Thought Leadershi￿ Poliey and Researeh Cat￿1￿¥ House's Thought Leadership, Policy and Research work continued apace in 2021-22. Progress was made on the Canning Hous¢ Research Forum, a project centered around wblitical, environmental, s(Kia], econotnic and busines5 policy in collatrK*ration with the Latin America and Caribbean C¢ntr¢ at th¢ London School of Economics. Canning House Research Fellow Dr Amir Lebdioui authored two research papeTS, the first of which. looking ai Inequality and Trade Diver5ifi¢ation in Latin America. was launched via webinar on 19 January 2022. The second paper focusing on Trade in the Age of Clim*e Change was published on 25 May 2022. Dr Lebdioui's time the Canning Fellow will sadly be ending in coming months as he COTnTnences a Professorship at the School of Oriental and African Studies (SOAS). LSE are in the process of selecting the next Fellow. THE HISPANIC AND LUSO BK4ZILIAN COUiYCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 The UK-Brazil Conversa took place in SepteM￿r ?021. The continuation of the pandemic forced Canning House to hold the event online once again. although parti¢ipaTits were invited to a pre-event dinner&s Mentioned previously. Being online, the event was extremely well attended with a premium line-up of paneli5ts from acr055 business. academia. government, law, and Tnany other fields. Plans were subsequently put in place to travel to Brazil for the next iteration of the Conversa in June 2022. Canning House continued to adyance its work on trade policy. For the second year running it held an event focusing on Trade Alliances in Latin Americi chaired by Andres Velasco of LS& with a panel of trade poli eKperts including Jonathan Knott, HM Trdde Commissioner for Lalin America. The event discussed the various trading blocs and agreements in place throughout the region such as Mercosur, the Pacific Alliance, and their prospects going forward. 2021-22 saw the continuation of the LatAm OUt1￿k going from Strength to strength. with numerous events taking place. In June 2021 Canning House held two online events, the LatAm Outlook Brazil and LatArn Outlook Colombia, focusing in dthil on those two countries, with the same pan¢1 of experts that ¢ontribute lo the annual LatAm Out14)ok report. D￿ember 20?1 saw the launch of the 2022 Ouil(Mik reporL which was held at the Four Seasons Hotel in London. This featured presentation5 from the six authors of the report (due to the ontinuation of the pandemic, some of these were given via video link), with a ￿1[ room of attendees featuring key figures from govenun¢ni busin¢ss. ￿ademia and diplomacy. MaTch 2022 saw the expansion of the Outlook into Latin Arn¢riw with Canning House officially hosting its first m¢¢ting in the region fortwo decades. The Outlook was presented fir&t in Sao Paulo, Brazil, then in Mexico City, Mexico. Several of the report's Authors also trydvelled with the team, although where possible local representatives of the partn¢ring organisations presented their respective Chap￿rS. As in London. att¢nd¢¢s were mainly from business, government and academic circles. Bi)th events were eomplemented by a number of high-level meetings. In Mexico, the team met with the Committee of Foreign Affairs in the Mexican National Congress, as well as with a numberof prominentthink tanks includingCOMEX and Ethos. In Bwil, the team met with senior representatives from Fund¥ao Fernando Henrique Cardow, and Fun*ao Getulio Varg&% to discuss Potential for future collaboTation. In January 2022. Canning House held an event looking at the influence of th¢ Military in Politics in Latin America. Bringing together a panel of expens. including a fornier military general of Brazil, the dis¢ussion focused around the resurgence of military influence in political life throughout the region, as well as the military's prominent role in dealing with the pandemic. The event was held online and was attended by over 100 people. mainly from business, araderni¢ and government circles. FlnADel#l review The Statement of Financial Activities (on pa8e 17) shows an overall fund 5urplLL5 of £14,758,430 at the year- end, which includ¢d £366,287 of restricted funds. The remaining funds are unres(ricied and are availabl¢ for use by the Trustees at their discretion. but in accordance with the Charity'5 aims and objectives. PlaDs for fut￿re periods FY 2019-20 saw the implementation of strniegie plans foT Step-changes in actiVTlies including the signature of 8gre¢menlS Wlth ihe London School of Economics for the hosiing of Canning Lecture5 and to fund the Canning Forutn Research Progrdtnme. and the launch of the Canning House LatAm Outlook in March 2020- j￿t prior to th¢ first UK I￿kdown. In reCo￿lt10n of the slaws of the Forum and The Outlook as strdtegic investments for Canning House. the board authorised the associated expenditures lo be met from the endowment portfolio. However, owingtothe unprecedented nature and duration of the pandernic, ¢ombined with the scale of its impact on the revenues of the organisation, the long-term Cosl-effectiveness of these iniuatives will be review¢d upon the a￿l￿al of the new CEO. 10 THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 The pandemic necessbtated acomplete ¢hang¢ in our business operating mLNJel and methods ofdelivering ¢v¢nts. However, the easing of restrictions for in person events has meant that ihe organisation is now trnnsitioning back to hosting many events in-person. whilst corttinuino to appeal to audiences fither afield, especially in Latin America with a variety of webinars and hybrid events. Plans for 2022-23 and for future periods include.. Hosting a Canning Lecture with President Lacalle Pou of Uruguay. Expanding our Sustainabl¢ Development programme, with events themed around A￿1busInesS Energy and Renewables. Minin& and Infra5truaure and the Blue Economy. Continuing with the third year of the Canning House LSE Research forutn. Hosting the LatAm Outlook 2023. Identifying a new office as the board have made a decision not to renew the lease on our CUTrent prernise5 in Wiwore Street. which is expiring early in 2023. Rhsks #Dd uncertainties Given the organisation's dependence upon two principal income streams investment income- the principal financial risks facing the organisation are.. Corpornte membership numbers Stock market fluctiiations irnp&cting the value and]or income stream of the investment portfolio. corporate membership and The uncenainties surrounding the speed and extent of economic recovery from the pandemic in EK)th the UK and Latin America, added to those sum)unding the impact QD UK companies of the final implementation arrdngements for Brexit, have undoubtedly iTnpact¢d corporate memberships- even those companies which have renewed have taken longer lo decide to do so - leading io several instances of delayed renewals and waived fees. In recognition of the current realities, the organisation updated its cotporate packages last year to mak¢ them more Competitive and rnore appealing to both UK and Latin American companles. This corporate offer and pricing structure is likely to be reviewed again now that the new CEO has aTrive(L and although events remain free for all participants for the moment, we anticipate Tetuming to charging at some point in the neor futur¢, at the discretion of the new CEO. Furthern)ore. the unpreeedented Russian invasion of Ukraine in March 2022 caused jitteT5 in financial markets, imparting the value of assets around the world. However, the ¢ndowtnent portfolio in excess of £14m contsnues io provide insurance for Canning House to survive this period even if these uncertaimies persist into 2023. The continued growth this year in our reputation for serious and significant resea￿￿, reports and events, the in¢r¢asedreach of those events to larger andmore international audiences. and the publication ofthe third edition of our La￿rn Outlook. have all ￿eallY augmented our position not only as the leading UK forum on UK-Latin American bilateral relat10115, but also as an internationally recognised thought leader on Latin ATn¢fiwL dev¢lopm¢nt5 in genera]. Resetrryes and investment policy Following the sale of No. 2 Belgrave Square, in 2013 the Board of Trustees invested the proceeds le. £12ml in an investment portfolio managed by Evelyn Partners {fomerly known as Smith and Williamson Investment Management LLP}. The Board established a reserves policy which was intended to maintain the Yalue of the capital realised from the sale, after allowing for inflation (RPl+lO/o). Over the course of the subsequent years, only in¢ome from the POTtfolio in the folln of dividends and interest has been drdwn from the portfolio. with capital gains a5 well as surplus incotne being reinvested., as a result. the value of the investmen¢ as at i l Mar¢h 2022, had grown to a total value of £14.25m with the und¢rlying investtnents spread across a broad range of asset classes. sectors and geographies. THE HISPANIC AND LUSO BiL4ZILIAf4 COUNCIL REPORTOFTHE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 In June 2019. the Board confirnied that the investment portfolio is a strategic fund to be applied to strategi¢ and quality investrnents in pursuit of the Charity 5 Mission and Objects and to the financing of appropriate loss- making charitable activities of Canning House that cannot be covered by oiher income sources. It is to be deployed wisely and appropriately over time. in such a way as to preserve Canning House's ability to continue to fund such strategic opportunities not only in the short-tem) but also over ihe medium- and lon¥-terni. Examples of the application of these principle5 to date Include stepout inve51Jnents in the research programme with the LSE and the launch of the LatAm Outlook. The Board's Finance & General Purposes Committee (F&GP) has undertaken an in-depth 5trdtegic review with the organisation's invesunenr portfolio advisors. Evelyn Partners and, in July 2021, submitted to the Board proposals to alt¢r the mandate to recognise that it was no longer Decessary to keep a more liquid £5m reserved for a potential property purchase, and to invest consistently with the board's ESG principle%. whilst increasing the target return from RPI +IYo to CPI+2Yo. Any shortfalls on operating costs will continue to be covered by income transfer io the or8anisaÈion to maintain activities ai current l¢v¢ls- this is ¢xp¢ct¢d to ¢optinu¢ to be mel primarily from interest and dividends. The Hispanic & Luso Brazilian Council invesknent EK)rtfolio prodwed a net tothl return of +2.P/o forthe tr4iling twelve tnonths to 3 1st March 2022. Thi5 is a reassuring outcome given the volatility experienced in both equity and tond rnarkets during the first quarter of 2022. This volatility hag been partly driven by the geo-political and economic instability ¢allsed by Russia's invasion of UkTaine. as investors reacted to the impact of sanctions and rising energy prices. Simultsneously, con¢¢rns over rising levels of intlation. and the implementation of more hawkish monetary policy by eentrnl banks via higher interest rates, has resulted in a rea5se55meni of equity valuations and a sharp rotation between sectors. Despite these influential dynamics. the Canning House tnvesttnent portfolio has deliv¢r¢d a positiv¢ re￿rn alb¢it behind th¢ inflation-linked ben¢hmark of cpl +20/•. Importantly. this has been achieved with less risk than both globa] equities and UK Government Gilt5. Since inception (3 Isi May 2014) the portfolio is showing a ¢umulative net total return of +32.10/0 which is in line with the long-tern target return. Statetnent of re5poD$ibilities of the Trustees The Trustee5 (who are also Direciors of the charity for the purtK)ses of company law) are responsible for preparing the Trllstee5' Annual Report and the financial ￿ateMentS in a¢¢ordan¢¢ with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Acc¢pted Accounting Practice). Company law requires the Twstees to prepare financial statements for each financial year which give a tnte and fair view of the stat¢ of Y4ffairs of th¢ charilable company and the group and of the incoming resources and application of resi)urces. including the income and expenditure, of the chaTitablecompany and the group for that period. In preparing these financial statements. the Trustees are required to.. 5¢1ect suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP- make judgments and estimates that are re￿Onable and prudent.. slate whether app1]￿ble UK Accounting Standards haye been followe(L subject to any malerial deparnres disclosed and explained in the financial statements- and prepare the financial statements on the going concem basis unless it is inappropriate io presume that the charitable company will continue in busin¢55. 12 THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 The Tru5t¢¢s are reswnsible for keeping proper ac¢ounting record5 that disclose with r￿SOnable accuracy at any lime the financial position of thc chariÉable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the chariiabl¢ company and hen¢e for taking reasonable steps for the prevention and detection of fraud and other i￿egUla￿tIes. Auditors Dixon Wilson Audii Services LLP, Chartered A￿ountants are auditors to the charitable company for 2021-22. In accordance with scction 485 of the Companies Act, a resolution on the appointment of auditors for 2022-2) will bc put at a Generdl Meeting. Ststernent of disclosure to gudltor In so far as the Truste¢s ar¢ aware.. there is no relevani audit infoTmalion of which the charitsble company's auditor is unaware. and the Trustee5 have taken all steps that they ought to hay¢ taken to make themselves aware of any relevant audit inforniation arld to cslablish that the aL￿110r is aware of that infortnation. The Trustees are respc>nsible for Ihe maint¢nance and integrity of the corpornte and financial infonnation included on the charitable cornpany's website. Legislation in the United KingdoTn governing the preparation and dissemin&tion of financial statements may differ from legislation in other jurisdictions. The aboY¢ report has been prepard in accordance with the sE￿la1 provisions of Section 419(2) of the Companies A¢1 21K)6 relating to small companies. Approved by the Board of Trustees on25 Oclobor 20kd signed on their behalf by: Nlcholas McC&ll Cb41 13 INDEPENDENT AUDITORS. REPORT TO THETRUSTEES OFTHE HISPAP41C AND LUSO B114ZILIAN COUNCIL Opinion We have audiled the financial statements of The Hispanic and Luso Brazilian Council (the 'charitable parent ompany,) and its subsidiary (th¢ '¢haritable group) for the y¢ar ¢nd¢d i l March 2022 which COTnprise th¢ onsolidated statement of financial ￿tIVItI¢$, consolidated balanr¢ sh¢¢t, charitabl¢ parent coTrpany balance sheet, consolidated statement of cashflows and notes to the financial statements, including a summary of signifi¢anl a¢¢ounling policies. The financial Teporting fram¢work thai has iren appli¢d in their prepar&ion is applieable law and United Kingdom Accounting Sthndard5, including Financial R¢portin¥ Standard 102 The Financial Rewrting Standayd applicable im th¢ UK and Republic of Ireland (United Kingdom Genera]ly Accepted Accounting Prdctice). In our opinion, the financial stat¢Tnents'. give a true and fair view of the state of the charitable group's and of the charitable parent company's affairs as at i l March 2022 and of the charitable group's incoming resources and application of resources. for the year then ¢nded. have been properly pr¢par¢d in a¢coTdanc¢ with Unita Kingdom Generally Acc¢ptd A￿OUntIng have been prepared in accordance wilh the requirements of the Charrities A¢t 2011. Basis for opinion We condwted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) pplicable law. Our responsibilities undeT those standards are further described in the Auditor's responsibilities for the audkt of the financial Statern￿t5 5￿tion of our r¢port. W¢ ￿ ind¢p¢ndenl of th¢ charitabl¢ company in accordance with the ethical requirements that are relevani to our audit of the financial statements in the U including thE FRC'S Ethical Standard, and we have fulfilled our other ethica] responsibilities in accordance with these requirements. We beli¢v¢ ihat the audii ¢viden¢e we have obfained is sutricient and appropriate to provide a basis for our opinion. Conclusions relating to going eoncer In audiling the financial statements. we have concluded that the diyectorfs use of the going concern basis of accounting in the preyaration of the financial statements is appropriate. Based on th¢ work we have F*rfOrme￿ we have not identified any material uncertainties relating to events or onditions thaL individually or collectively. may cLst significant doubt on the company's ability to continue as a going concern for a periid of at le￿t tsvelve months from whert the financial ststemenis are authorised for issue. Our responsibilities and the res￿nsibIlitIeS of the dir¢¢tors with ffspe¢t lo going ¢on¢¢rn a￿ des¢rib¢d in the relevant sections of this report. Other loformatlon The other infonnation ¢omprises the inforniation included in the annual repor4 other than the finan¢iai statetnents and our auditor's report thereon. The Trustees are responsible for the 01her infomiation. opinion the financial slatements does not cover the other inforniation and we do not express any forni of assurdnce conclusion ther¢on. In connection with our audit of the financi81 stat¢m¢nts. our ￿sPOnSibl11ty is to rrad th¢ oÉh¢r inforniation and, in doing so, consider whether the other inforniation is materially inconsistent with the financial statements, or our knowl¢dge obtsined in the audit or otherwise appears to be materially tnisstated. If we identify such material inconsistenci¢s or apparent Tnaterih] wnisstatements, we are required to determine whether there is a materia] misstatement in Ihe financial gtatemenrs or & Materi￿ TnisstateTnent of the other infomjation. If, ba5¢d on the work we have ￿rforme(L we conclude that there is a material misststement of this other inforniation, we are required to report that f&¢t. We have nothing to r¢port in this regard. 14 INDEPET4DENT AUDITORS, REPORT TO THE TRUSTEES OF THE HISPANIC AND LL'SO BRAZILIAN COUNCIL Matters on Ivhich we are required to report by exetptlon We have nothing to report in respect of the followintw Tnatters in relaiion io which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our OPiTbiOn'. the inforniation given in the financial statements is inconsistent in any tnaterial respect with the Trustees Report; or suffscient accounting record5 have not been kept: or the charitable parent company's financial statements are not in agreement with the accounting records. or we have nor received all the information and explanations we require for our audit. Responsibilities of Trustee$ As explained more fully in the TTUStees' responsibilities statement set out on page 8, the Trustees (who are also dire¢tor5 of the charitable company for the purposes of company law) are reswnsible for the preparation of the rinancial statements and for being satisfied that they give a true and fair view, and for such iniemal control as the Trustee% d¢t¢rtnine 15 necessary to enable the preparation of financial statements that are free from material misstatement, wh¢th¢r du¢ to fraud or etTOr. In preparing the financial statements. the Trustees are responsible for assessing the charitable group's and the haritable parent company's ability to continue as a going con¢ern, disclosing. as app5icable. matters related io going concern and using the going concern basis of accounting unl¢ss th¢ Trustees either intend to liquidate the charitable group or the charitable parent company or to cease operdtions, or have no realisiic alternative but to do so. Auditor's responsibilities for the audit of the finanelal statements We have beEn appginted ￿ auditor under section 144 of th¢ Charities Act 201 l and rwrt in accordance with the Act and relevant regulations made or having effect th¢reund¢T. Our objecliyes are to obtain reasonable assurance ai)oui whether the finan¢ial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditor's report thac includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misststem¢nts can arise from fraud or error and are considered material if. individually or in aggregate, they ¢ould reasonably be expected to influ¢n¢e the econon)ic decisions of users taken on the b￿lS of these financial staternents. Irregularities. in¢luding fraud. are instances of non-compliance with laws and regulations. We design pro¢edures in line with our responsibilit1¢5, Outlined above. to delect material misstat¢m¢nts IT) respect of itTegularities, including fraud. The extent to which our procedures are capable of detttting irr¢gularities, including fraud is detailed below.. We gained an understanding of the legal and regulatory frarnewO￿ applicable to the charitable cotnpany by considering, amongst other things, the Sector. and jurisdictions in which it operates, and considered the risk of acts by the charitabl¢ company and the group that were contrary to applicable laws and regulatiorts, including fraud. We designed audit procedures to respond to the &ssessed level of risk but recognised that the risk of not detecting a material misstaiernent du¢ to fraud is higher than the risk of not dete¢ting on¢ resulting from em)r. &$ fraud may involve deliberdte concealment by, for example. forgery or intentional misrepresentations. or through collusion. We fo¢u5ed on laws and regulations which could give rise to a material Tnisstatement in the fJnaDcial statetnellts, including. but not limited to. UK Cottipany Law, UK tax legislation, UK Charity Law as well a5 UK financial reporting standards applicable for UK charitable companies. Our tests included agreeing the financial staiem¢nt dis¢losures to underlying supporting documentation, enquiries with management and enquiri¢s of consultants used for accounting outsourcing. 15 INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE HISPANIC AND LUSO BRAZILIAN COUNCIL As in all our audits. we also addressed the risk of management override of internal controls. including testing journals and evaluatinu whether there was evidence of bias by mapagement thai represented a risk of TnateTial misststement due lo fraud. Thtte are inherent limitation5 in th¢ audit pro¢edur¢s des¢ribed above and, the further ￿mOVed non-compliance with laws and regulations i5 from the events and trdn5actiOll5 reflected in the financial statements, the less likely we would becorne aware of it. We did not identify any key audit matters relating to irregularit1¢5, including fraud. A further de5CriPtion of our responsibilities for the audit of the financial stsiements is located on the Financial Reporting Council's website al: www.frc.org.uklaudi(orsresponsibilities. This descrip(ion lomis part of OUT auditor's report. Use of our report This report is made solely to the charitable company's Trustees, as a bcdy. in accordance with Part 4 of the Charit1¢5 (Accounts and Reports) Regulations 2008. Our audit Work has been undertaken so that we might s￿e to the charitable company's Trustees those matter5 ive are requiiEd to stste tD them in an auditor's report and for no other purpose. To the fullest extent pem)itted by law, we do not accept or assume responsibility io anyone other than the charitable company and the chariiable company's T￿￿teeS as a body. for our audit Work. for this report, or for the opinions we have fornied. i_ è.Li O- LLI, Dixon Wilson Audit Serviee5 LLP, Statutory Auditor 22 Chancery Lane London WC2A ILS 20 Dè¢ember 2022 Dat¢.. Dixon Wilson is eligible io act as an auditor in t¢TmS of section 1212 of the Companies Act 2006. 16 THE HISPANIC AND LUSO BIIAZILIAN COUNCIL CONSOLIDATED STATEMENTOF FINANCIAL ACTJVITJES lincluding sts¢¢mtnt of income expenditure) FOR THE YEAR ENDED 31 MARCH 2022 2022 2022 2022 Unrestritted Rtstricted Tot41 Note5 funds fthnds 2021 2021 2021 Unrestricted Re5trieted Total fuDd5 fund5 runds Income and endowments from: Donaiions and lega¢ie5 Other trading ￿tI¥ltIeS Invesmients ?1,291 1 ?2,528 i57 8)9 ?4,852 46.143 122.5?8 359 776 79,422 343 885 79.4?? 345 i95 Total Income 423,307 I,sio 424817 501.678 26.769 52&447 Exp¢nditure on: Raising fund5 Charitable actiyiiies Governance costs (58,964) (58.964) 7 (744,866) (1.170) (746.036) 153,7381 (53,738) (617,6731 142,674) (660.347) 13 872) Tot¥1 expenditure 1818J69) (1,1711) (819.539) (685283> {42,674) {727.957) Net gahns on investrn¢nts Ne¢ movement in funds 1069?8 28 134 14J? 879 143? 879 287 794 Reconciliatioll of fund$ Balance at l April 2021 14 80 ?77 365 947 15 046 ??4 li43100 38185? 1381?855 Balance at 31 March 202? The notes on pages 20 to 30 forn) part of these fi[￿LC1aI stal¢m¢ntS. 17 THE HISPANIC AND LUSO BRAZILIAN COUNCIL CONSOLIDATED BALANCESHEET FOR THE YEAR ENDED31 MARCH 2022 Group Charity Notes 2022 21121 2022 2021 Flxed assets Tangible fixed assets Intangible assets Investments 6.781 6,000 14?51.683 14,264,464 1.859 9,000 14.38? 188 14J99,047 6.781 6,0 14.?51.684 14261465 7.859 9,(X)O 14 38? 189 14J99,048 13 14 Current assets Swcks Debtors and prepaymenls Cash at bank and in hand 15 16 17 4.198 113.022 533 709 650.929 4.198 163.010 4.198 416.146 476.1?1 896.465 4.198 396,484 514.896 915.578 812343 Creditors: amounts falling due wilhin one year 18 156963 137338 134 892) Net eurrent gssets 493.966 647 177 759 127 Total assets Funds represented by: Restricted funds Unrestricted funds 366,287 1439? 14j 365.947 14680 ?77 366,287 14 657 i05 365,947 1481i 787 Total funds 21 The Tru5tee$ acknowledge their responsibilities for ensuring that the Charity keep5 accounting records which comply with the Act and for preparing financial statements whith give a true and fair Yiew of ihe state of affairs of the chaTity as at the end of the financial year and of its Statement of Financial Affairs for the financial year. The annual accounts have ken PTodu¢ed in a¢cordan¢e with the Statement of Re¢ornmended Practice ISORP).. Accounting and Reporting by Charities, applicable to chariiies preparing their accounts in accordance wyth the Financial Reportin8 Stsndard 10? and the Charitie5 Act 2011 and applicabl¢ regulations. These finan¢ial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006. For the year ended 31 March 20?? the Charity was entitled to exemption from audit under Se¢tion 477 of the Companies Act 2006 relating to small companie5. The members have not required the company to obtain an audit of its accounts for the year in question in a¢¢ordon¢¢ with S¢¢tion 476. Th¢ finan¢ial 5tat¢ments have been audited under the requirements of Section 144 of the Charities Act 2011. The finaTJ¢ial 5tateTn¢nts on page5 17 10 30 were approved by the Trustse5 on behalf by.. 25 October 2022 and signed on their N Mccall . Chair Company registration number- 00383775 Charity registrydtion number 314210 18 THE HISPANIC AND LUSO BRAZILIAN COUNCIL CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2022 Group Charity Notes 2022 2021 2022 2021 Cash nows from operAtlng #ctiyities 24 (1,236,615) 599.244 (1.164,0641 590.493 Cash flows from investlng activities Divydend it]come Interest income Proceeds from the sale of investhients Purchase of investtnents Purchase of tangible fixed ￿$¢t9 Net cash (u$ed in) provided by investing aetivities JOO,417 44,978 4,216,060 {3,434.8271 1.339 275,018 300,417 84,758 44.978 1,929.812 4.2 16.060 (2.884.156) (3,434.827) 275,018 84,740 1,929,812 (2,884.156) 125 596.9(K) Change eash and cash equivalents in the year (I I lJ26) 2J62 (3&775) {6,407) Cash and cash equivalents at the beginning of th¢ year 514.896 521303 Cash and cash equiv¥lents at the ¢nd of she year 19 THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2022 l. Aeeounting p)li¢ies a) Company informalio The Hispanic and Luso Brazilian Council is a company limited by guardntee, incorporated in England and Wales and registered as a charity with the Charities Commission. The principal address and registered office is 126 Wigmore Street, London WIU 3RZ. b) Basis of prepardtion of annual accounts The financial statements have be¢n prepared in accordance with a¢¢ounting p)lici¢s set out in the notes to the accounis and comply with the ehariry's govemin(F d￿]Ment, the Charities Act ?01 l and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in th¢ UK and Republic of Ireland (FRS 1021 (effective l January 2019) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) and the Cornpanie5 Act 2006. The Hispani¢ and Lus0 Brazilian Council meets the definition of a public benefit entity under FRS102. The financial statements are prepared in sterling. which is the functional currency of the company. Monetary amounts in the financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. with items recognised at cost or transaction value unless otherwise stated in the relevant note5 to the accounts. The principa] accounting policies are 5¢t out below. The effects of events relating to the year ended 31 March 2022 which occurred before the date of approval of the financial statemenis by the Trnstees have b¢en included Kn th¢ financial statements to the extent required to show & true and fair view of the state of affairs as at 31 March 2022 and the results for ihe year ended on that date. ¢) Fund hceountiryg Unrestricted ￿ndS are available for use at the discretion of the Trustees in firtherance of the general objective5 of the Charity and which have not ken designated for other purpose%. Designated funds cornprise of unrestricted funds that have been set aside by the Trustees for particular purpose5. The aim and use of each designated fund is s¢t out in the notes to the financial stslement5. Restricted funds are funds which ar¢ to be used in ac¢ordance with specific restrictions imposed by the donors or which have been raised by the chariry for particular purpos¢s. The aiTn and u5¢ of ¢￿h restri¢t¢d fund is set Out in the noies to the financial staiernents. d) IncomiThg resources All incoming resources are in¢luded in the Statement of Financial Activities when the charity has entitlement to the fvnds, receipt is probable. and the atnount can tn¢asur¢d with suffici¢nt reliability. Annual membership subscriptions are recogni5ed in equal monthly instalments over the period of rnelnbership. Donations and sponsorship are recognised when the ¢harity has ¢ntitlement to the fund& receipt is probable. and the ami)unt can be measured with sufficient reliability. Event fees and room hire are re¢orded when the setvices are provided. Dividend and interest income are recognised when the Charity has th¢ right to receive payment. 20 THE HISPAt+41C AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 l. Ac¢ountit)g policies (eontinued) t) Re50urees expended All expendiiure is accounted for on an acc￿a]S basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannoi be directly attributed to particular activities. they have been all(K4ted on a basis consistent with the use of the resources. Costs of generating funds comprise the costs associated with attr￿ting volunlary income and costs for trading for fundraising purposes. Charitable expenditure comprises of th05¢ Costs incurred by the Charity in the delivery of its activities and services for beneficiaries. It includes ￿th costs that can be allocated diredly to such aciivities and those costs of an indirect nature necessary to support them. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements. All costs are allocated be￿ten the expendi￿re categories of the SOFA on a basis designed to refle￿ the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned. Tangible fixed assets and depreeiation All tangible fixed assets are initially recorded at ¢osi. Depreciation is calculated so as to writ¢ off the cost of an assei. less its estimated residual value. over the usefvl economic life of that asset as follows-. Computer equipment 20% straight line Ftxtures and fittings 2￿/0 straight line Plant and machinery 5trdight line g) Inlangible assets and arnortisation Intangible assets acquired ar¢ initially recorded at cosi and are 5ubs¢quently measured at cost less accllmulated amortisation and impairnent losses over the use￿7 econoTnic life of that asset as follows= Website development 2￿/ts straight line h) Basic financial instrumellts Trade other debtorsleredltors Trnde and oth¢r debtor5 are recognised initially at transaction cost. Trade and other ereditors aTe reCO￿lis¢d initially attrdnsaction price plus attributable transaction costs. Subsequent to initial recognition they are tneasur¢d at amortised cost using the ¢ff¢¢tive interest method. less any irnpairment losses in the case of trade debtors. If the aJTangement ¢onstitu¢es a financing transaction, for example if paynent is deferred beyond nQTTnal business ternis, then it is measured a¢ the present value of future payments discounted at a tnark¢t rale of interest for a similar debt instrument. IDvestments in equity instruments Investments in equity instnjmenis are Tneasured initially ￿ fair value, which i$ nonnally the transaction price. Transa¢tion costs are excluded if the investtnents are subsequently measured at fair value through the SOFA. Subsequent to initial recognition, inve5tmenis that can be measured reliably are measured at fait value with changes recognised in the SOFA. Other inveskn)ents are measured at cost less impairnient in the SOFA. i) Stoeks Stocks are valued at the lower of cost and nel reali5able value. j) Casb and eash equivalents Cash and cash equivalents comprise cash balances and Call deposits. Bank overthafts that are rEpayable on demand and fotm an integral part of the Chariry's cash management are included as a component of ash and cash equivalEnts for the pu￿Ose$ only of the cash flow 51atement. Cash balances h¢ld as part of a fixed asset investment portf(Trlio are presented as part of fixed asset investments. THE HISPANIC AND LUSO BRAZILIAIY COUIYCIL OTESTO THE FJNANCIALSTATEMENTS FOR THE YEAR ENDED31 MARCH 2022 l. ACCOU￿ting policies (eontiThued) k) Operating lease agreements Rentals in respect of operating leases where substantially all the benefits and risks of ownership remain with the lessors are charged to the Siatemeni of Financial Activities SOFA on a straight-line ba515 over the period of the lease. l) Pension tosts The charity operates a defined contribution scheme for employees. The &%sets of the schemes are held separately from those of the charity. The annual contribution5 are charged to the SOFA as they fall due. m)Taxatlon The Hispanic and Luso Brazilian Council is considered to pass tesis set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a chariiable company for UK cotporation tax purposes. Aecordingly. the charity is poieThiially exempt from iaxation in respect of income and capital gains received within categories tovered by Chapter 3 Part I l of the Corporation Tax Aci 2010 or Seciion 256 of the Taxation of Charg¢abl¢ Gains A¢1 1992, to the exient thai such income and gains are applied exelusively io charitable purposes. ) Grants Grants a￿ accouDt¢d for und¢r th¢ arKrllals Tnodel of accounting ls pertnitted by FRS102. Grdnts of a revenue natur¢ ar¢ r¢cogni5¢d in th¢ SOFA in th¢ saTn¢ pertod &s th¢ related expenditure. o) Going concern There are no material Lme¢rtaintieg a￿￿)ut the Charity's ability to continue in tsperntion21 existence for the foreseeable fijture. The charity holds sufficient liquid Teseryes to meet its financial obligations as they currently fall due, and for the foreseeable future. 2. Flnanelal performance of the Charlty The consolidated sthtrment of financial activity includes the results of the Chariry's wholly owned S￿b$Idlary. The summary financial p¢rfornan¢e of th¢ Charity alone is.. 2(122 2021 Income 350.699 399.498 Expenditure on charitable activities (613.769) 1534.159) Net gains on snvestrnenls 1(16 9?8 14j? 879 N¢t (¢xpeDditureyiDcome (156,142) 1,298,218 Funds broughi foThvard 15 179734 13 Totals lunds carried lorward Represented by: Restricted ￿ndS Unrestricted fun4ts 366.287 14657 305 365,947 4813787 ?? THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2022 3. Donation$ #nd leg&eies Unrestricted funds Restricted fund5 2022 Total 21121 Total Donaiions. grants and sp)nsorship 4. Oth¢r trading activities Unrestrieted funds Restricted fund$ 2022 Total 2021 Total Membership and event 5. Investments Unre$trict￿ Restricted funds funds 2022 Total 21)21 Total Dividertd% & interest from investments 3(MJ,417 Bond interest accrued 43.360 Bank interest received 108 300,417 43.360 275.018 82,737 6. Expenditure OTh rai5iThg fund5 UDrestricted fuDds Restricted funds 2022 Total 2021 Total Tnvestmeni Manag¢r'5 fre 7. Costs of charitable #ftivities Unrestrlcted funds Restricted fund$ 2022 Total 2021 Total Direct cost5 Support ¢ost5 238,208 1.170 239.378 506.658 176.245 484 10? 744 ?3 THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE VEAR ENDED31 MARCH 202Z 7. {Continuedl Included within direct costs are donations made to the following institutions.. Unrestricted funds Restricted funds 2022 Total 2021 Total LATA Foundation The Anglo-Argentine Society 6.000 8. Sllpport ¢osts Unrestricted funds Restricted funds 2022 Total 2021 Total Staff Costs Building costs Other ¢osts 393.052 59.534 393,052 59.534 360,859 58.337 9. GovernaTree Costs Unrestrieted fulld5 Restrieted fulld$ 2022 Total 2021 Tot41 Audit and accountancy fees 14 14 10. Net incomingl(outgoing) rttources for the year Thi5 IS Stated after charging,. 2022 2021 rkpreciation Amortisation Auditors remunerntion: Audit of the fiMan¢ial statements 2,417 i,000 2.050 3,000 I l. Staff tosts •thd r¢muner&tion Tota5 staff costs were as follows.. 2022 2021 Wages and salarie5 Social security c05t Other pension cost5 Other costs 332.991 30,650 18,891 308,173 27,780 21,158 ?4 THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR INDED 31 MARCH 2022 I I. Icontinuedl The average number of staff employed during the year, ba5¢d on a full time equivalenL was 91?021- 9). All staff were employed by the Charity and staff were re¢harged to Canning House Limited based on lime spent. The total recharge for the year amounted to £193,4?3 {?021- £172,335). TheTe wa5 1 employee whose total ernoluments for the year fell between £90,000 and £100.0￿ (20?] between £90,000 and £ l 00.000- I I. The tolal amount of employee benefits received by the charity's key rnanagement personn¢l was £91.463 12021 £90,201). The rnembers of the Board of Twstees did not receive any remunerdtions, Dor any reimbursed exp¢n5es during the year {20? I - £Nil). IL Tangibk assets- Charity (also eornpri5ing that of the group) Fixtures Computer Plant & rittings equipment & machinery Total Cost At l April 2021 Addiuons 34.661 13,024 47,685 J l March 2022 Deprecsatio At l April 2021 Charge for the year 32.953 455 6,873 39.826 268 At 31 March 2022 42 Net book val￿¢ At 31 Mar¢h 2022 At 31 March 2021 1708 25 THE HISPANIC AND LUSO BRAZILIAf4 COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2022 13. Intangible assets- Charity (also eomprlsing that of the group) Webslte development Total Cost At l April 2021 & 31 March 2022 000 Depreciation At l April ?021 Charge for the year 6,000 3.(M)O 6,000 3,￿0 At 31 March 2022 Net I)(￿k value Ai 31 March 2022 At 31 March 2021 Investments Group Charity 2022 2021 2022 2021 Subsidiary undertaking UK and overseas equitie5: Market value at l April 2021 Acquistions at cost Disposals al market value Unrealised gains on revaluation 22 Market value At 31 MÈreh 2022 13,5&3,763 Cash balance (held by brokers) 747 9?0 Investments under management IliSI 14.064.8?9 3.434,827 {4216.0601 11.632.123 2.884.156 (1.9?9.812) 14.064.829 3,434,827 (4,216,(￿o> 1.632.123 2,884,156 (1,929,812) 1.478 36? 14,064,829 317359 220 167 13,S03,763 747 920 1478 36? 14,064,829 317i59 The market value of £13,503.763 {2021 £14,064,829) a￿ve represents investments quoted on a recognised securities exchange. 2022 2021 UK equity Overseas equity UK bonds Alternative invesknenis 3,032.764 5.175.400 3,356,739 1938 860 2,561,629 4.087.006 6,376,719 1039 475 26 THE HISPANICAND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STA TEMENTS FOR THE YEAR ENDED 31 MARCH 2022 14. (Continued) Sub5idtary undertaking The charity has a wholly owned trading subsidiary, Canning House Limited (company registration number 03J17927). which 15 incorporated in England and Wales. The siibsidiary's principal activiry is to run services for ¢OTporate members and releyant commercial activitie5 including the running of conferences. All profits are donated to the Charity under gift aid. Summary of profit and loss for Canning House Limited 2022 2021 Turnover Cosi of sales and expenses Net Loss 74.118 205 770 128,949 119) 798 The assets and liabilities of ihe subsidiary W¢Te.' Current assets Current liabilities Total net Liabilities 139,639 177i 1481 333 399 Aggregate shar¢ capital and reserves 15. St￿kS- Charity (also eomprising tb*t of the group) 2022 2021 Stock of medals 16. Debtors Group Charity 2022 2021 2022 2021 Trade debtors Prepayments and acerued ineome Other debtors Atnounts owed by group undertakings 29,000 109,219 24,791 20,000 108,719 24,791 242 974 77,268 35,754 71,818 30,554 Ili774 17. Analysis of cash And eash equivalents Group Charity 2022 2021 2022 2021 Cash at bank 27 THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL 5TATEMEP4TS FOR THE YEAR ENDED 31 MARCH 2022 18. Creditors Croup Charity 2022 2021 2022 2021 Trade creditors Taxation and social security Accruals and defrrred incorne 14.997 1,637 1,974 5.780 1?7 138 5,780 15707? 141966 125 701 19. Financial instruments Croup Charity 2022 2021 2022 2021 Financial assets Financial assets measured at fair value through the SOFA Financial a55ets measured at amortised cost 14.785.392 15,0?7,223 14,7?7.804 14,897,084 Financial liabilities Financial liabilitie5 ￿e￿ured at amortised cost 795 Financial pssets measured at fair value through the SOFA comprise of bank and cash balances os well as investments carried at market value. Accounting p(>li¢ies adopted ar¢ included within note I to these financial statements. Financial asset% measLred at am