Company numb¢r: 00383775 Registered charity number: 314210 THE HISPANIC AND LUSO BRAZILIAN COUNCIL (A Company Limited by Gu4rantee) AlNAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
THE HISPANIC AND LUSO BRAZILIAN COUNCIL ANNUAL REPORT AND FINANCIAL STATEMKNTS FOR THE YEAR ENDED 31 MARCH 2023 CONTENrs Page Administr8tive and statutory details Rewrt of the Trustees 2-12 Indewdeni Auditors, report 13- 15 A¢eounts comprising: Ststernent of financial activities 16 Balan¢¢ sheets 17 Statement of cashfiows 18 Notes to the accounts 19-29
THE HISPANIC AND LUSO BRAZILIAN COUNCIL AIYNUAL REPORT AND FIiYANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 ADMINISTRATIVE AND STATUTORY DETAIiS Board of Trustee5 Alan Charlton Marcia] Echenique Nicholas Mccall (Chair) Carla M¢Roberts Irene Mia Rodolfo Milesi Vitoria Nabas Ed Poulton Marcelo Scenna Hugo Shorter ui Silv& Cbief Executive Officer & Secretary Jeremy Browne Company registration number (K)383775 Charity registration Dumber 314210 R¢gi$t¢r¢d 01¢¢ 50 Broadway London SWIH OBL A¢¢ouDtsnts Simpson Wreford LLP Wellesley House Duke of Wellington Avenue Royal Arsenal London SEI8 6SS Auditors Dixon Wilson ALklit Services LLP 22 Chancery Lane London WC2A I LS Solicitors Collyer Bristow LLP 4 Bedford Row London WCIR4TF lllvegtment Managers Evelyn Partners 45 Gresham St London EC2V 7BG
THE HISPANIC AND LUSO BIL4ZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 The Trustees present their report and audited financial statements for the year ended 31 March 2023 which have been prepared in accordance with accounting policie5 set out in the notes lo ihe accounts and comply with the charity's governing document, the Charities Act ?01 I, the Companies Act 2006. the Memorandum and Articles of As$18110n and Accounting and Reporting by Charities.. Statement of Recommended Practice applic&ble lo charities preparing their accounts in accordance with the Financial Rep)rting Standard applicable in the UK and Republic of Ireland (PRS 102) {effective l January 2019). RefereDee and admiDi4trative infortnatlon The Hispanic and Luso Brazilian Council is a ¢haritsble ¢ompany, limid by guarant¢e, and was registered in May 1973 under company regiStr10n number 00383775 and charity registration number 314210. The organisaiion is an amalgamation of th¢ two original councils regist¢red in November 1943 as The Hispanic Council and the Luso Brazilian Council. The Hispanic and Luso Brazilian Council uses the working name Yanning House" and the principal operating address 15 FIIM)r 9, 50 Broadway, Londo SWIH OBL. The Trustees. who are a150 directors. who served in the period were.. Alan Chadton Nicholas Mccall (chair) Carla McRoberts Rodolfo Milesi Ed Poulion Hugo Shorter Marcial Echenique Ezequiel Weppler {resigned 0310512023) Irene Mia Vitoria Nab&% Marcelo Scenna Gui Silva The Charity is supported by a number of honordry non-executive appointrnents, as follows.. Honora President.. Lord Jeffrey Mountevans Honora Vice-Presid¢nls- Lord Bretu]an of Bibury, QC Jeremy Browne (Appointed CEO in July 2022) Chris Bryant, MP Prof Victor Bulmer-Thoma5, CMG OBE Lord Clarke, CH, QC, PC Dr Enrique Garcia Baroness Hooper, CMG Sir Mark Mo(M]y-Stuart, KCMG Néstor 0s0ri0 Londofio The Ri Hon Michael Portillo HE A Tnbassador Ivan Romero-martinez Hordcio Ros51 Sally Unwin, OBE FCIB The Board of Trustees oversee the Charity, which is tnanaged day to day by the Chief Executive Officer, Jer¢my Browne.
THE HISPANIC Af4D LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 Struelur¢y governance and management Governing document The Hispani¢ and Luso Brdzilian Council is a charitable company limited by guarantee and the governing document is the Memorandum and Articles of Association dated 9 November 1943. taken from The Hispanic Council, upon amalgamation. Prin¢ip#l #ctiviti& The mission of the Charity is io the UK'S leading forum for informed comment, contacts and debate on Latin American politics, economics and business. It also celebrates and promotes awareness in the UK of ihe languages. culture and history of Latin America, Spain and Portugal. This is achieved ihrough a comprehensive programme of corporate. current affairs and cultural evenls and publications. Governing body The governing body of the organisation is the Board of TrLLStees. The Ttwstees are elected at the Annual General Meeting (AGM) or in the interirn are appoinled to fill a C&SU vacancy and stand for election at the next AGM. One-third of the Trustees retire from office but are ¢ligibl¢ for re-¢l¢dion at th¢ AGM. Corporate goveman¢e structures and prwxdures are well established and were further improved through the addition of a Nominations Committee in November 2016 for consideration of future Trustees, honorary Vice- President5 and CEO appointtnents, and of a Remunerations Committee in July 2021 (see further below). Trustee traiDing Potential Trustees are identified by Membe of The Board and are considered first by the Nominations Committee against the criteria of eligibility, competence, experience, specialist skills and the obj¢¢live of achieving diversity and balance on The Board. New Trustees nomially familiar wih Canning House through their work in business or public service, but full training can be provided io all ix)ard members if requir¢d in order to &ssist them with their duties as Trus¢$. OrganisatlODal management The Board of Trustees are legally responsible for the overall strategic direction and control of the organisation. The Board meeis at leasi fourtiTnes ayearto track the perforniance of the organisation against the annual budget. which is agreed by the Trustees at the beginning of the financial year. The Board a]$0 regularly reviews p¢rforn)ance against the strategy, which focuses on the fflediuTn terni (5 years). The oveTsight of fiTwJcial i5sue5, risk govemance and regulatory compliance is the responsibility of the Finance and General Purposes (F&GP) CoTnmittee, which also tneets four times a year, prior to each board meetin& Tslee5 on the comTnittee include: Nick Mccall, Vitoria Nabas. Marcelo S¢¢nna and Gui SilY& The committee is chaired by lan PeIn. COO and Deputy CEO. The day-to-day running of the organisation is delegaied lo the Chief Executive Offirer. The CEO attends meetings of The Board of Truste, as well &s the Finance and General PutTJoses Committee and the Remunerations Comtnittee. Stsff remuneration The remuneration of the CEO is set by The Board of Trustees. the appropriateness of the remuneration is set at the beginning of the individual's contract (including reference to comparisons with other charities) and perfom)ance is reviewed annually ainSt pre-specified objectives and KPIS. 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 contributions to the Charity's success. Wlthin ihe litnits of the Charity's annually agreed budget. The Remunerations Committee also offers guidance and advice to the CEO on r¢munerntion policies such as overall team and pay struclure. the Ex)licies governed by the 5tsff guideb(K)L including staff benefiis (se&8on licket loans, health plans). and the learn bonus policy.
THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 MARCH 2023 Group structure Canning House Limited (CHL) was fornied in 1997 as a wholly owned trnding subsidiary of the charitable COTnpany. The activities of CHL are focused primarily on corporate activity, including the organisation of ¢onferences. seminars and evenis on the development of the economic and business environment of Latin America. These events are generally open to the public (subject to capacity constraints), with corporate memb¢rs and other notable or important guests typically being given priority access. The Head of Corporate Affairs and the Corwrate Affairs Assistant are principally dedicated io eorw>rnie activities, with ihe efforts of other team members divided to various extents between ¢orpornle and strictly charitable activities. An approximate allocation of nOn4ediCed staff lime is agreed annually with the auditors. The entire n¢t profit of CHL is donated annually to the parent company under a deed of ¢ovenant ¢ated Im I I December 2018. Conv¢rg¢ly, the event that CHL makes a financial loss, under the terms of an ongoing letter of supp)rt dated 26 October 2020. the HLBC Trustees undertake lo under-write CHL'S activities for the current financial year ending 31 March 2023, and for all futur¢ years thereafter necessary. Stakeholder reltioDships and charitable activities The organisation workg closely with the Latin American and Iberian Embassies and other UK, Latin American and multilateral organisations that ¢xist to prornote 5takehold¢r relationships and Telated activities between the UK and specific Latin American countries. The organisation Tegularly runs joint events with these organisations io showcase particular countries and issues. Representatives of th¢s¢ organisalions regularly attend and speak at Canning House events. The organisation also coll&borates with UK universities with inter¢sts in Latin American research and studies. and with other charities and NGOS. Rilk manggtment The Board of Trustees and the Finance and General Purposes Committee (F&GP) have, in Tent years. been focused on key financial risks to the organisation, and necessary miligalion measures. in response to the aftermath ofthe Covid-19 pandemic plus post-Brexit uncertainties on corpordte membership income. The F&GP has also initiated discussions with the investment portfolio managers regarding ESG-rel&ted issues pertaining to the portfolio. STIL4TEGIC REPORT Objectives of tbe Ch#rity The general aim of the organisation is the advancement of knowledge in the UK of th¢ ¢uliure. languages. history, politiC5. economics and business of the countries of Latin AmeTica while furthering the broad relationship between the UK and these countries. These objective5 are achi¢v¢d in a non-partisan manner. Mtsslon Dd strategie aim$ The mission of the organisation is to build understanding and relationships b¢twe¢n the UK and Latin America. Its goal is to the UK'S leadingforum forconta¢ts. thoughi leadership and pragmatic debate on Latin Atnerican political, economic, and social trends, current affairs, and business risks and opportunities. It also celebr*es and promotes awareness in the UK of the languages, culture and history of Latin America and Iberia. The strategT¢ aim is to do this in a financially sustainable manner. Public beneflt The Trustees confirrn that they have referred to the guidance contained in the Charity Commis5ion'5 revised genernl guidance on public benefit when reviewing ihe Charity's ain and objeciives as well as in planning future activities.
THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 MARCH 2023 Objectives lor the year and the future The OTgani5ation's objectives for the financia] year were lo: Support the mission by a full annual programme of events relevant to corpo¢ and individual members. as well as to partners and stakeholders,. Publish newsletters and in4lepth reports and undertake research on Latin America and Iberia. Maintain and seek to grow the organisation's membership and revenue from fees. sponsorship and donations to achieve finan¢ial sustainability, whil* fulfilling its mi55ion. The first two objectives have been mel in full. with excellent feedback from all stakeholders, as a result of which the organisaiion's public repuiation has been greatly enhanced. The achievement of the ihird obje]ve is more long-terni, a5 prOe&S Dn thss front has been seriously hampered by - inter a]ia - the impact of the CoYid-19 pandemic. However. since the arrival of the new CEO in June 2022, th¢ ¢otpordte progrdmme and offer h&% b¢en refreshed. in an attempt to halt the decline in cortKirate revenue seen during the previous CEO'S lenure. Impac¢ of Covid-19 Pandemic The organisation closed its offices in mid-march 2020 in Tesponse to the critical situation that w&s unfoldin and the entire team started working full-iime from home. No one was furloughed. The team continued to work remotely uniil (ktober 2021, when a phased return to the office was implemented. The team was split in two, with each half coming into the office for two days per week. However, by December 2021. a new variant of Covid-19 (omicron) emerged, and on the advice of the government. &ll members of staff returned to working from home full-lime, until February 2022, when the omicron wave had passed. At th¢ start ofihe pandemic. all the organisation's events were transferr¢d IOOfy/fy online. How¢v¢T. by Seplember 2021. when the infection rates had dropped to significantly low number4 and most people were fully vaccined. it w&8 d¢¢id¢d that the organisalion would host a pre-event dinner outside and in-per50n for the speakers of the 2021 UK-Brazil Conversa. This was the first tsme the organisation had arranged an in-person event since March 2020. The dinner was extremely well attended, with all those who accepted attending. Giv¢n that public confidence in attending in-person events had Teturned, the orgonis&lion siarted making plans for more in-peTson and hybrid events. tnoving away from hosting events exclusively online. Whilst hosting events online meant that our audienc¢ numbers increased dramatically and we were able to attract a significant number of new viewers from overseas, the downside was that the forn]er CEO took the decision to scrap events fees completely. This ultimat¢ly meant that r¢venue generated by event ii¢ket sales ¢eased. Activities of the Charity Coming out of the tail end of the COVID-19 pandemic, the Canning Hollse returned to its nornial programme of ¢40+¢orporate events (webinars, briefings and trade and investment conferences and round tables) and public eveTrts (cultural, geopolitical, ele¢lion analyses, so¢i¢>economic), all of which were free to attend. On the flagship side of things. Canning House welcomed the President of Uruguay, Luis Lacalle Pou, to London for a Canning Leclure in May 2022. Ihe UK-Brazil Conversa successfully continued apace in Rio de Janeiro in June 2022: the LatAm Outlook entered its fourth suc¢essful year to a packed audience in centra] London. and Cannin¥ House recolsed the outstanding coniributions made by its forlner Honorary PresidenL Barone5S Gloria Hooper CMG, for ¢oniributions made to enhancing UK-Latin American relatiotls, by awarding her with one of the prestigious Canning Medals. Achievements •nd Performanee Forthe financial year 2022-23, income from corporate membership decreayd from £74kio £64L d¢monslrating the difficult markei ¢onditions that the organization is facing.
THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR EIYDED 31 MARCH 2023 Income from corporate memberships of £64k accounted for c940/0 of annual gross non-investment income of £68k, with c£4k also coming from individua] membership subscriptions. No sponsorship was acquired during this period for any evenis, whilst the organisation did receive significant in-kind contributions from corpoTale tnetnbers, most notably AngloAmeriean. who hosted the "Evolution of Sustainable Mining in Latin America" conference in their London headquarters in December 2022. PromPeru, who covered the ¢05t5 of the 'Peru Economic Outlook and Inyesthient Opportunities" event in January 2023,. and ERG Iniemational who covered the ¢t5 of the'lnfrastructure: Building Latin Arnerican Sustainable Development" conference in March ?023. However, the change of CEO in June 2022 heralded a new era for Canning House, with the arrival of Jeremy Browne. former UK governmeni miniSr with responsibility for Latin America. Upon arrival, the CEO 8nd C(K> undertook & review of the activities and finan¢¢s of the organi5ation, and came up with a plan to ¢nsure that the organisation had a sounder financial fooling going foTward. Th¢ plan consisted of two main fronts. The fiT5t front was to implement strategic cost cutting rneasures across the board, to make sur¢ that no money w& spent on athivities that are not deemed a prioriiy or do not support ihe organisations mission. In light of this, the decision was taken by the CEO and board to end Canning House's funding of the LSE-Canning House Research Forum after ils third Yr. significantly reducing the organisations financial burden going forward. Additional cost cutting measures have been implemented on the events front, with any expenditure ihat wa5 deerned unnecessary, such as livestreaming and prowding simultaneous tTanslation as default for every event, b¢ing cut. The second front was to incre&s¢ r¢venues by revising the cortK)rate programme to attract rnore corpornie rnembers lo join Canning House, and pay a fairer price. Although not fully reflected in the above figures, owing to the fact that revenue from COOrate membership is a¢¢rued across the financial year, incorne from annualised cotporate membership has increased from c£30k when the previous CEO left, to over £1 Ook in the one year since the a1Val of the new CEO. The new CEO identified two further are15 for IprOVeent, relating to a new staff structure and a new office, that he deems integral to hi5 plan for the organisation. On the staff froffi. th¢ CEO has revis¢d the existing aff structure by promoling the Head of Finance and Operations to the p051tion of C(X) and Deputy CEO" alh)lishing the p05ilion of Head of Stak¢holder Relations and replacing it with a Head of Corporate Affairs; abolishing the K>Sitions of Global Affairs Officer and Poli and Researrh Officer, and replacing them with a Head of Policy and Public Affairs. This new staff structure nol only resulted in a mor¢ efficient team. with each staff member in positions that better reflect their skill set, it also resulted in saving a small arnount of money on wages as there was one legs team member. On the new office front. the CEO, c and lJ)ard were unanimous th when the lease for the protEty in 126 Wigtnore SÈreet expired, il was nol to be renewed, and that a new more modem office that is better fit for purpose be found. After an exhaustive search the COO found a property on 50 Broadway, London, opposite St James, Park Underground Station, which the CEO deemed ideal for his vision of the organisation going forward, in¢orporaiing modern facilities and a boardrix)m, so that Canning House can go back to hosting in-house events once again. The ¢ontra¢ts were signed for the lease in mch 2023, and th¢ fit-out work will be completed by June 2023. A nine-month rent-free period w&s negotiated in the first year of the conlract, and a furth¢r fiv¢-Jnonih renl-free period will implem¢nted after the third year of ihe contract has passed. Overall operatingexpenses on charitable activities and governance increased to £853k from £761 k last financial year. This was PriTnarily due to th¢ return of in-person flagship events without s)nsOrship noted aknve. as well the ongoing ¢osts associated with the Canning House-LSE Research Forum, which costs the organisalion upwards of £IOOk per annum. However. as already mentioned previoLLsly, since the arrival of the new CEO a series of measures aimed at Teducing expenditure on events and other initiatives deemed not to be a priority have been implemented or iniliaied, the iTnpact of which will be seen fully in future finan¢ial periods. In addition to operating in¢ome, the Charity's investment portfolio yielded gross dividend and interest income of £316L down from £344k in 2021-22. After deducting fund management fees, the net dividend and interest yield from the portfolio was £262k this year, COTnpared to £285k the previous year: a f1 of £2ik.
THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 The ioial operating loss before realised gainsllos5es for FY 2022-23 stood at a loss of £515k, as opposed to a loss of £319k the previous finan¢ial year. The rea]ised gains on investments lolaled £18k this year, compared to a loss of £l13k the previo financial year, meaning that the totsl operating loss including realised gainsllosses on inyesttnent std at a loss of £497k this financial year, compared with a loss of £433k for the previous financial year. Current Aff*irs, Culture & CornJnunifation$ Canning Hckuse continued to update and inforni its audiences about ihe most relevant current affairs ihrough seminars, webinars, weekly newsletters, Cannin8 Papers and other publications, including a newly launched blog. In M&y 2022, Canning House welcomed the President of Uruguay, Luis Lacalle Pou. to Goldsmiths. Hall in central London to deliver a Canning Le¢ture. Mr. Lacall¢ Pou's lecture. entitled'uruguay. a Reliable Gateway to South America- OptM)rtunities in Green Finance." was followed by words from Minister Azucena Arbeleche. Unjguay's Minister of Finance, and a roundtable with senior investors. Also in the delegation were Mini51¢rs Frdncisco Bustillo, of Foreign Relations, and Omar Paganini. of Industry, Energy and Mining. In Canning House's broader programme of Current Affairs events, numerous wide-ranging topics were addressed either via webinar, or through in-person event% including. in no particulax order, election briefings on Brdzil and Colombia. Trade Alliances 2023, with a fu$ on the trade bloc Mercosur; China and Russia's relations with Latin America- human rights in Vene7JJel4 cryptocurrency. mining and rights in Peru and sites of memory for Argeniina's civil-military dict&torship. Across these events, Canning House partnered with institutions and org8nisations including the Department for International Trade (now Department for Business and Trade). the Paddy Ashdown Forum. Grupo de Paises Produciores del Sw (GPS). Cafod. the Peru Supp)rt Group. the All-Party ParliaTnentary Group for Pen4 and the Emb&ssy of Argentin& A number of these events featwed senior figures from prominent organisations, such &8 Human Rights Watch. the United Nations, th¢ Royal United Services Institute, Ihe European Commis950n. UniveTsity College London (UCL), the World BanK government representatives from the UK and Latin AmericA and always with contributions from Canning House's extensive network of experts. Catming House's role as Secretariat of the All-Parfy Parliamentsry Groups (APPGS) for Latin Ameri Peru and Venezuela saw further collaboration on event5 and meetings, including Ambassadorial Briefings and country-specific u]xlates. with supwrt for Canning House events from the APPG in regular parliamentsry notices. In historic and cultural matters, Canning Hous¢ h¢ld another edition of its Forgotten Histories serie5, this year focusing on British ties io slavery in Latin Ameriea posi-British abolition. The event featured a panel of academic5 frotn UCL, the University of Binninghatn and Durham University. The board also made the decision to award Bar(>ness Gloria HIM)per CMG, fonner Honorary President of Canning House, with a prestigious Canning Medal, in recognition of her invaluable Contributions made to enhancing UK-Latin American relations. A stalwarr of the UK-Latin American community for decades, the reception well attended by the diplomatic community, and the Baroness was presented with her medal by Lord Browne of Madingley, with Professor Victor Bulmer-Thomas CMG OBE delivering closing remarkg.
THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 MARCH 2023 Thought Leadership? Policy *nd Research This year'5 UK-Brazil Conversa look place in June 2022 in Rio de Janeiro, and was extremely well attended. having been forced online for the two previous editions. A premium line-llp of panellists froTn across business, academi4 government, law, and many other fields. joined the speakers for a variety of bilateral discussions lookingal foreign policy. climate change. glean growth, natural resource extraction, levelling up. public security, environmental social and corporale governance, and inequality. Owing to its succesS> plans were afoot 500n after io host the 2023 edition at the University of Oxford. De¢ember saw Canning House's flagship publication - the LaM Outlook - conlinue to go from strength to strength. This year's edition included two new additional chapter5; the first assessing L1n America'5 place in the world, authored by the Financia] Times Latin American editor Michael Stott. and the se¢ond looking at Commerci opportunities in Latin Americ4 written by the tkpartment for Busine55 and Trade; alongside the regularchapters Iwking at the political, economie, social, environmental, and security Outlooks acrossthe region for the next 5 Yea and beyond. The launch event took place at th¢ Intercontinental Hotel on Park Lane, and despite rail strikes and a snow storni. over 130 people from government, business, academia and diploma¢y attended. The Canning House-KCL Library Visiting Fellowship programme Continued with the arrivals of four scholars. From Argentin4 Almendra Cremaschi's research examined glob open-source agriculture,. Isabel Madrazo. a Mexican academic, focused on gender-based violence and poli¢ing' Guilherme Bianchi fTOTll Brazil. who studied indigenous agency in FM)St-confli¢t Peru" and Roberto Uebel. also from Brazil, whose arrival was delayed by Covid-19, investigAted tnigralory pattems between Brazil, Portugal and the UK. The Canning House ReSeah Forum at the London Sehool of Economics and Political Science's Latin America and Cariban Centre saw the publicalion of its first Research Fellow, Dr Amir LetKlioui'& second report. which examined Latin AMerIrt trade and climate change. The report w&$ Ier publicised by Presideni Gustavo Petro of Colombia on Twitter. and Atnir has since pre5enled itto the Colotnbian govemtnent. The Programme's seeond Research Fellow, Dr Layla Zag]ul Ruiz. has begun her r¢se8rch project. 'Adding Yalue to coffee and Cacao in Latin Americ4. with a report due later irL 2023. Complementing th¢ Current affairs and corporate events prOammes, Canning Papers were published on Latin America's place in the changing geopolitieal climate, responsible mining in the Lithium triangle, the future of Mercosur. and th¢ sustainable development of transport infrdstructure. Canning House launched a new regular Blo& publishing short. ti]nely pieces by guesl contributors, in May 2022. It has since covered topics in¢luding Chile's constitutional referendum, military-political relalion5hips acros5 Latin Americ4 the attempted assassinaiion of Cristina Fernandez de Kirchner. Peru's political crisi5- Br1]ian politics and the 8 January riots in B1118. and Colombian President Gustavo Petro's rst 100 days in office. Contributors included Canning House Associate Fellow Jill Hedges, acadeTnics including Dr Julio ClOn and Dr Vinicius de Carvalho. and Mario Braga and Rodrigo Russo frorn Control Risks, a Cannit)g Hous¢ Corp)rate M¢mb¢r. Sincetaking over as CEO in June 2022. Jeremy Browne has penned opinion pieces on Brazil's election, and another on "Global Britsin" published in outlets including the IndependenL Conservative Home and La Tercera (Chile). Carming House ¢ontinued its support for the Foreign, Commonwealth. and Development Office {FCt)O)'s Chevening programme, hosting its Laiin American scholars at a nelworking reception in partnership with FCt)o in D¢cember 2022, and support for the Group of Latin American Embassie5 in the UK (GRULA) remained strong, with regular meetings between Canning House representatives and the Latin American Ambassadors held to dis¢uss key priority areas and w)tential collaboration.
THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 MARCH 2023 Corporate Events Since the arrival of the new CEO. Canning House has strengthened ils ¢orporate prograrnme lo continue championing trade and investment between the UK and Latin America. During the reporting period, Canning House organised ten corporate events in total. In April 2022. Canning House partnered with LatAm INVESTOR to conclude the inve5ting-in series" wilh a conference on Guatemala which yielded country-specific insights alld showcased current invtment opportunities. This was followed by a seminar in June on "The UK as a destinaiion for Latin American ¢nlrepreneurs- Opportunities and ¢hallenge5 ' held in partnership with Google and the Department for Iniernational Trade's (DIT) Global Entrepreneur Programme. In September. Canning House partnered with corporate member. Baker McKenzie to organise the'susiainable Agribusiness" conference with support fiotn rorporale eMber, GPS. Two ronferences and two roundtables were held in October, collaborating firsl with the Dominican Embassy in the UK and the British Chamber of Comtnerce of the Dotninican Republic to organise a conference on 'Yhe Dominican Republic= B Tinging Ihe Orange Economy to ihe Caribbean" to mark the ninth Dominican Week in London. The flagship "Energy and Renewables" conference in partnership with Eversheds Sutherland closely followed suit. The first roundtable in October welcomed the Chilean Minister of Economy to ihe London Stock Exchange. and later that month. the Chilean Mining Minister was received a roundiable meeting organised by Canning Hous¢ and hosted by Bloomberg. The calendar year concluded by partnering with corporate member. Anglo-American to host a ¢onferen¢e on"The Evolution of Sustainable Mining in Latin Atnerica" underscoring the strategic importance of Latin America as a provider of critical mineral5. At the request of new corporate member PromPeru, Canning House organised 2 conference on the "Peru Economi¢ Outlook and IrLvestrnent Opportunities" in January 2023. The event featured the in-person partieipation of the Peruvian Finance Minister, Alex Contrerds alOnlde panellists from Anglo American, J.P. Morgan. Mace, and Moody'5 Investors Services. January also saw the launch of Canning House's'sustainable Trade and Investment" series for ?02). These ¢ross-sectDral conferences will explore the opporhjnities (and hurdle5) for strengthening trade and investment between the UK and Latin Americi diversifying the organisation's portfolio of events io encompass not only extractiv¢ industries (such as mining and wiculture) but a150 value-added industrie5 (such as technology and infrastructure). The series was kickstarted with the conference "Infrastructure: Building Latin American Sustainable Development" in partnership with new corporate member, ERG Intemational. Around one hundred and twenty attendees spectated the two panels featuring influential players such as the Global Head of Infrastructure al KPMG and th¢ CEO of Crossrail International. FinaDCiO1 revlew The sTement of Financial Activities (on page 17) shows an overall fund surplLL8 of £13,615.641 ai the year- end which included £336,536 of restricted funds. The remaining funds are unrestricted and are &vailable for use by the Trustees at th¢ir dis¢retion. but in accordance with the Charity's aims and objectives. ans for future periods With the new office now secured, Canning House will be able to host in-house events once again. It 15 the CEO'S goal io host a number of breakfast meetings for high-profile guests throughout FY 2023-24, that will be of benefit to diplomats, business leaders, civil s(Kiety groups, and the public alike. The boardroom in the new office will also make it possible to host a plethora of roundtable meelings relating to Canning House's core areas of interest, such as current affatrs. culture, polili¢s, economics and business. In addition lo the new office, plans are a150 afoot to upgrade the organisation5 digital infrastructure, including the iTnpleTnentation of a CRM datsbase, and a refresh of the website. which w&8 last undertaken five years ago. A brand design refreshmeni is also planned for Ier in 2023.
THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 MARCH 2023 Canning House plans to overhaul its individual membership campaign with a new offer and pri¢ing structure later in 2023, in a similar way to how the corporate membership has been revised, offering existing individual members better value for money, whilst attracting more to join. The organisation's aswiation wiih the APPGs will also b¢ VIewed in the coming year, with the intention of scaling back commitments to the parliamentary groups, from three groups to just the one. Canning House will pass its 80th anniversary in November 2023, and plans are currently in developrnent for a c¢lebration to tnark th¢ occasion with a reception. There is a strong pipeline of public events planned, including the UK Brazil Conversa 2023. the LatAm Outlook 2024. the Trade Alliance5 event 20?4. which will likely focus on the UK'S accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. an ¢vent to mark the bi¢entenaries of some Latin American states- another China-LalAm seminar for 2024, and Canning House's usual election analysis for forthcoming elelOn5 in Paraguay. Guatemali and Argentina. Other smaller events. such as w¢binars. roundtsbles. and policy dialogues, that are in the pipeline include: a closed roundtable with the Governor of Rio de Janeiro Stste- an"Atnericas Policy Dialogue" held aloTgside the Education World FOnn taking place in London in May in partnership with the British Council and the Department for Business and Trade IDBT). a Toundtable on "Technolo.. Reshaping Latin American Technologies" in partnership with Google and the Department for Business and Trade, during London Tech Week 2023; a roundtable meeting with Graham Zebedee, Ihe lead negotiator for ihe UK'S accession to the CPTPP, a meeting with the Inter-American Development Bank (IDB) to present their 2023 Debt Report; and a webinar organisised in collaboration with Pogust Go(Klhead, assessing the impact of the 2015 Mariana Darn DisasteT, reflecting on the shared leamings for corporate governan¢e from ihe perspectives of COTporateslinv¢stOTS, academics, the medi4 and the legal sector. Corporate events planned include "New Pathways for Latin American Finance" ¢onferen¢e hosted by J.P. Morgan, which will explore the POTrntial for strengthening UK-Latin American collaboration in financial services and FinTech; "Pioneering Latin Atn¢rica's Sustainable Finance" in pannership with the London SttKk Exchange Group {LSEG)' a"Powering Net Zero- conference organised wilh Banco Santander, "Partnerships for Sustainability in Mining" conference, again with AngloAmeri¢an' and & new ¢onferetLce looking at "Cultivating the UK and Latin American Fixxl and Drinks Trnde" RislL8 and uneertAillties Giyen the organisation'5 dependence upon two principal income streams investment income - the principal financial risks facing the organi&ition are= Corporat¢ meTnbership numbers Stock market fluctuations impaeting the value andlor income stream of the investment portfolio. corporate membership and The uncertainties surrounding ihe speed and extenl of economi¢ recovery from the pandemic in Ix)th the UK and Latin America, added to those surrounding the impa¢l on UK companies of the final implementalion arrangemeDt5 for Brexit. have undoubtedly impacted corporate memberships. even those companies which have ren¢wed haye taken longer to decid¢ to do so- leading to several inslances in Ihe past of delayed renewals aT waived fees. However, upon arrival of the new CEO. after undertaking a review of the existing structure and pri¢ing, he implemented a on¢-lier membetship package coasling a flat fee of £12.000, Ihus removing the muddled multi-tiered system that had been implemented by his predecessor. Furthermore. the unprecedented Russian invasion of Ukraine in March 2022 caused jitters in financial markets, impacting the value of assets around ihe world. This had a significant impact on the value of the Canning House endowment portfolio. However, Ihe eurrent value of the portfolio of c£13m Still provides plenty of insLirance for Canning House to survive this period ev¢n if these un¢ertainties t*rsist into 2024. 10
THE HISPANICAND LUSO BRAZILIAN COUNCIL REPORT OF THE TRUSTEES FOR THE YEAR ENDED31 MARCH 2023 The continued gr0h this year in our reputation for serious and significant research. reports. cornmentary and events, the in¢reased re&h of those events to larger and more international audiences, and the publication of the fourth edition of our LatAm OutlooL have all greaily augmented our position not only as the leading UK forurn on uK-L1n American bilateral relations, but also as an internationally r¢cognised thought leader on Latin American developments in general. Reserves and investment policy Following the sale of No. 2 Belgrave Square. in 2013 the Board of Trustees invested the proceeds (c. £12m) in an investment portfolio managed by Evelyn Partners {fortnerly known Smith and Williamson Investment Management LLP}. The Board established a reserves policy which was iniended to m&intain the value of the Capital realised from the sale. after allowing for inflation (RPI+IYo). Initially, only income from the portfolio in th¢ fortn of dividends and interest has been drawn froTn the portfolio. with capital gains &s well as surplus income being reinvested. But as a result of the r¢cent economic turnioil. and owing to ongoing expenditure already comtnitted by the previous CEO. capital within the portfolio ha5 been drawn down on. Howev¢r, the new CEO has made it apriority io reverse this trend and cui profligate expenditure across ail aspects of the organi5ation's operations. In June 2019. the Board confirnied tha¢ the investsnenl portfolio is a strategi¢ fund to be applied to slrategi¢ and quality invesimenis in pursuit of the Charity's Mission and Objects and io the financing of appropriate loss- making charitable activities of Canning Hous¢- su¢h the LatAm Outlook - that cannol be covered by other income sources. It is to be deployed wisely and appropriately over time, in such a way as to pre5erYe Canning House's ability to ¢ontinue to fund such strategic opportunities not only in the short-lerni but also over the medium- and long-tem. The Board's Finance & General Purposes Committee {F&GP) has undertaken an in-depth 5trakgic review with the organisation's investtnenl portfolio advisors, Evelyn Partners and. in July 2021, subrnitted to the Board proposals lo alter the mandale lo recognise that it was no longer necessary to keep a more liquid £5m reserved for a potential property purrhase, and to invest ¢on5islenily with the board's ESG principles, whilst increasing the target return from RPI +IVo to CPl+20/o. Any shortfalls on operating costs will continue to be covered by income transfer lo the organisation to maintain activities at current levels. Ihis is expected to continue lo be met priTharily frotn interest and dividends. The Hispanic & Luso Brazilian Coun¢il investmeni portfolio delivered a ner total return of -2.6Yo for the trailing twelve months to 3 1st Maxch 2023. Although frustrating to s¢¢ a negative p¢rfomian¢¢ over th¢ period this should be viewed in ihe contexi of wider financial markets; over the same period global equities fell by -1.4Vo (MSCI All Country World Index GBP) whilst ¢onveniional UK Govemment Bonds, whi¢h typically exhibit more defensive characterislics versus equities, depreciated by -17.00/0 (Markit iBoxx GBP Gilts Index)- This shows the extent of the volatility acros5 both equities and bonds investors priced in the impact of rising interest rdtes and tighter credil conditions. Central banks have ¢ontinued in their effoffs to control inflation which remains elevated and significantly ab)v¢ target, putting further pressuTr on households and Corporations during an already fragile recovery. With this in mind, the Canning House p)rtfolio remains conservatively positioned with 60.OQ/o attributed ¢0 equities which is marginally overweight versus the long-term strategic benchmark. The focus continues to be on maintaining an appropriate level of diversification with a suitable balance across asset cl&8ses. sectors and styles to navigate Ihe challenging market environment. sIe inception the portfolio is showing a cumulative net tota] return of +28.70/0. The Trustees require the inwestment manager{s) to be sensitive to the underlying purws¢ and principles of the Charity and its partners. and to try to avoid any investments in contravention of these whilsi also highlighting areas of potenti0] sensitivity. Particular att¢ntiotl should be paid to Environmental, Social & Governance IESG) factors when selecting investments. Furthennore. the TrLLStee5 require the investment manager(s) lo apply an appropriate level of due diligence in terms of ESG analygis within the underlying investment process.
THE HISPANIC AND LUSO BRAZILIAN COUNCIL REPORT OFTHE TRUSTEES FOR THE YEAR ENDED31 MARCH 2023 ststement of responsibilities oftbe Trustees Th¢ Trust¢es {who are also Directors of the charity for the purposes of company law) are responsible for preparing the Trustees. Annual Report and the financial stalements in accordance with applicable law and United Kingdom Accounting Stsndardg (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the ste of affairs of the charitable company and the group and of the incoming reSoUeS and application of resowces, includingthe income 8nd expenditure, of the charitable company and the group for that period. In preparing these financia] statements, the Tnjstees ar¢ required to.. select suitable accounting policie5 and then apply them consistently; observe the methods and prinriples in the Charities SORP,. make judgments and estimates thar are reasonable and prudent,. state wheth¢r applicable UK Accounting Standards have been followed subject to any material depthures disclosed and explained in the financial statements. and prepare the financial statements on the going ¢on¢¢rn basis unless it 15 inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable aceuracy al any time the financial position of ihe charitable ¢ompany and enable them to ensure that the financial statements cotnply with the Companies Act 2(K)6. They are also responsible for safeguarding the assds of the charitable company and hence for taking re&sonable st¢ps for the prevention and detection of fraud and other irregularities. Auditors Dixon Wi150n Audil Services LLP, Chartered Accountants are auditors to the ¢hariiable ¢ompany for 2022-23. In aecordan¢e with section 485 of the Companies Ac( a resolution on the appointment of auditors for 2023-24 will be put at a General Meeting. StstemeDt of disclosure to lluditor In so far as the Trustees are aware: there is no relevant audit inforn)ation of which the charitable company's auditor is unaware., and the Trustees have taken aIl steps that they ought to have taken to make themselves aware of any relevant audit inforniation and lo establish that the auditor is awar¢ of that inforniation. The Truslees are responsible for ihe maintenance and integrity of the corporale and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The aEx)ve report has been prepared in accordan¢e with the spe¢ia] provisions of Section 419(2) of the Companies Act 2006 relating to Stnall coJnpanies. Approved by the Board of stees on and sI¢d on their behalf by: N Mccall Chair 12
INDEPEf4DENT AUDITORS. REPORT TO THE TRUSTEES OF THE HISPANIC AiYD LUSO BRAZILIAN COUNCIL Opinion We have audited the financial srai¢ments of The Hispanic and Luso Brazilian Council (the 'charitable parent company.) and its subsidiary (the 'chariiable wup} for the year ended 31 March 2023 which comprise ihe consolidated statement of financial activities, consolidated baiance sheeL consolidated statetnent of cashflows and notes to the financial statements, in¢lllding a Summary of significant accounting policies. The financial r¢porting 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 tn the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the finan¢ia] statements: give a true and fair view of the stale of the charitable group's and of the charitable parent company's affairs at 31 March 2023 and of the charitable group's in¢oming resour¢es and application of resources, for the year then ended. have been properly prepared in accordance wilh United Kingdom Generally Accepted Accounting have been prepared in accordance with the requiretnent5 of the Charities Act 2011. Basis for opinio We conducted our audit in acCOrdae with International Standards on Auditing (UK) (ISA5 (UK)) and applicable law. Our responsibilities under those stsndards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the chariiable company in accordance with the ethical requirements that are relevanl to our audit of the financial 51atemenls in the UK. including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with thes¢ trquirements. Wc believe that the audit evidence we have obtained is suifi¢ien( and appropriate to provid¢ a basis for our opinion. Collelusions relating to going conee In auditing th¢ finan¢ial stat¢m¢nts. we hav¢ ¢on¢lud¢d ihat the directoes use of the going concern basis of accounting in the prepardtion of the financial statements is appropri. Based on Ihe work we have performed, we have not identified any material uncertainties r¢latin£ to events or conditions thaL individually or collectively, may cast significant doubt on the ¢ornpany's ability to continue &8 a going concern for a peri(xl of at le&8t twelve months from when Ihe financial stateTnents aTe authorised for issue. Our responsibilities and the responsibilities of the dirtOrS With respect to going c¢)ncern are described in the relevant sections of this rep)rt. Other information The other infomiation comprises the inforn)ation included in the annual retK)rt, other than the financial ements and our audiior's report iherer)n. The Trustees Are responsible for the other inforniation. Our opinion on the financial siatements do¢s not cover the oth¢r Inforntion and we do nol express any forni of assurance onclusion Ih¢r¢on. Ill connection with OUT audit of the financial ststements. our responsibility is to read the other inforniation an(L in doing so, consider whether the other inforniaiion is materially inconsistent with the financial statements. or our knowledge obtained in the audit or othenvise appears to be materially misstated. If we idenlify such material inconssst¢n¢ies or appareni material Thisstat¢ments, we ar¢ r¢quir¢d to deterniine whether there is a material misststem¢nt in the finan¢iai stat¢ments or a mat¢riaI misstatement of the other information. If, based on the work we have perfornied, we ¢on¢lude that there is a material misstatement of this other inforniation. we are required io report that fact. We have nothing to report in this regard. 13
INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE HISPANIC AND LUSO BRAZILIAN couf4CIL Mtter$ ort which Jve are required to report by tseeption We have nothing to report in reset of the following rnatt¢rs in relation to which the Charitie5 (Accounts and R¢ports) Regulation5 2008 requires us to report to you if, in our opinion: the inforniation given in the financial statements is inconsistent in any material respect with th¢ Trustees Report., or suffi¢ienl a¢¢ounting records have not been kept. or the charitable parent company's financial statements are not in agreement with the accounting records- or we have not r¢¢¢ived all the inforniation and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Tnjstees, responsibilities staternent set out on page 8, the Trustees (who are also direclors of the charitable company for tlie purposes of company law) are responsible for the preparation of the financial 5tatemenls and for being saiisfied that they give a true and fair view, and for such internal control as the Trusiees deterniine is necessary to enable the preparation of financial statements that are free from marIal missiateTnent. whdher due to fraud or error. In preparing the financial statements, the Trn$t¢ are rpOlI51ble for assessing the charitable group's and the charitable partnt company'5 ability to continue as a going concern. disclosing. as applicable, matters related to going ¢oncern and using the going con¢¢m basis of accounling unless the Trustees either intend to liquidate the charitable group or the charitable parent company or to ¢eas¢ operations, or have realistic allemative but to do so. Auditor's responsibilitiei for tbe audit of the finDcial statements We hav¢ b¢¢n appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with th¢ Act and relevant regulation5 made or having effect thereunder. Our objectives are to obtain reasonable assurance aEout whether the financial ststemenis as a whole a free from material mi55tatement, whether due to frdud or eTror. amd to issue an auditor's report that includes our opinion. Reasonable assurance is a high l¢v¢l of assurance but is not a guarantee that an audit conducl¢d in a¢¢ordance with ISAS (UK) will always dele¢1 a Mtrial misstaternent when it exists. Misstaternents can arise from fraud or error and are considered material if, individually or in aggregate, they could re&sonably be expected to influence the economic decisions of users taken on the basis of these financial staternents. Irregularities, including fraud. are instances of non-complianc¢ with laws and regulations. We dest procedures in line with our responsibilities. outlined above, to detect material misstAtements in Tespect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, in¢luding fraud is detailed below.. We gained an understanding of the legal and regulatory framework applicable to the ¢haritable cotnpany by considering. amongst other things, the SeOr, ar jurisdictions in which it operates, and considered the risk of acts by the ¢haritable company and the group that were contrary to appli¢able laws and regulations, including fraud. We d¢signed audit procedures to respond to the assessed level of risk recognised that the risk of not deleciing a malerial misstatement due to fraud is higher than the risk of not detecting one resulting from error. as frnud may involve delib¢rate con¢ealm¢nt by. for exaTnple, forgery or inlenlional misrepreseniations. or through collusion. We focus¢d on laws and regulati(ms which could giv¢ rise to amaterial misstatement in the financial statemenl including, but not limited to, UK Company Law. UK tax legislation. UK Charity Law as w¢ll a5 UK financial reporting standards applicable for UK ¢haritsble companies. Our tests included agreeing the financial statement disclosures to underlying supporting documenlation, enquiries wilh management and enquiries of consuliants used for accounting outsourcing. 14
INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OFTHE HISPANIC AND LUSO BRAZILIAN COUNCIL As in all our audits, we also addressed the risk of management override of interna] controls, including testing journals and evaluaiing whether there was evidence of bias by managetnent that represented a risk of material misstatement due to fraud. There are inhereni limiiations in the audit proceduTes described above and, the fiffther removed non4ompliance with laws and regulations is from the events and transactions reflected in the financial Statemen the le55 likely we would become aware of it. We did not identify any key audit matters relating lo iThegularilies. including fraud. A further description of our responsibilities for the audit of the financial siatemenis is I{ated on the Financial Reporting Council's webslte at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charilable company's Truste¢& as a b(Kly, in accordance with Part 4 of the Charities IA¢¢ounts and Reports) Regulations 2008. Our audit work has been undenaken so that we mighi state to the charitable company's Trustees those tnatters we are required to state lo thetn in an auditor's report and for no other purpose. To the fullest extent pemiitted by law, we do noi accepi or assume responsibility ro anyone other than the charitable eompany and the eharitable cotnpany's Trustees as a IK>dy, for our audit worl for this rewrt, or for the opinions w¢ hav¢ formed. Dixon Wilson Audit Services LLP, Statutory Auditor 22 Chancery Lane London WC2A ILS 8 Novombèr 2023 Date.. Dixon Wilson is eligible to act as an auditor in tenns of section 1212 of the Companies Acl 2(K16. 15
THE HISPANIC AND LUSO BRAZILIAN COUNCIL CONSOLIDATED STATEMENT OF FINAIYCIAL ACTIVITIES (including statement ofincome and expenditure) FOR THE VEAR ENDED 31 MARCH 2023 2023 2023 2023 Unres¢rieted Restrieted Totsl Notes funds funds fuDds Income And endowments from: Other trading activities Investm¢nls 2022 2022 2022 Unrestricted Restrieted Total fuDd5 runds rmnds 68,794 318.689 68.794 79.49* 343.885 79.412 34) 885 Total incorne 387,483 5.069 392,552 4?i.307 1.510 424,817 Expenditure oll: Raising funds Charitable activities Governance costs (53,895) (53,895) 6 (804,382) (34,820) (839,202} (58.964} (58,964) (744.866) (1.170) (746.036) Total expelldilure (875,052) (34,820} (909,872) (818,369) (1,170) (819,539) N¢t gains on investments Net movement fund8 627 542 627 542 1069?8 (1,115,111) (29,751) (1.144.862) (288.134) 106978 340 (287,794) ReeoDeili#¢ion of funds Balance l April 2022 14 391 143 366.?87 14.758.430 14.680 ?77 365 947 15 046 ?24 Balance at 31 March 2023 20 ILILQ22 3613 568 14 39? 143 366 ?8 The note5 on pages 19 10 29 forni part of these financial statements. 16
THE HISPANIC AND LUSO BRAZILIAN COUNCIL CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2023 Group Ch4rlty Notes 2023 2022 2023 2022 Fixed assets Tangible fixed assets Iniangible assets Investments 43.361 3,000 13033013 13,079,374 6.781 6,000 14.251.683 14.264.464 43.361 3,000 13033 014 13,079.375 6.781 6.000 14?51.683 14 ry64.464 12 CurTeDt asset5 Stocks Debtors and prepayments Cash at bank and in hand 14 15 16 3.498 81.410 648351 3,498 557,694 4.198 416.146 476.121 896.465 113,0?2 533 709 050.9?9 1,103.188 Creditors: amounts failing due within one year 17 199075 156.963 120 889 137338 Net eurrellt ets 534 194 759 127 Tot*1 #ets 14 LL74 15 023 592 Futtds represeL¢ed by: Restricted funds UnTestri¢ted funds 336,536 13 277032 366,287 14 392 143 336,536 13 725 138 366.287 14657305 Totsl funds 20 The Trustees xknowledge their responsibilities for ensuring that the Charity keeps a¢counling r¢¢ords whi¢h ctsmply with the Ad and for preparing financial stafrments which give a true and fair view ofihe state of affairs of the ¢hatity as at lh¢ end of the financia] year and of its Siaiement (>f Financia] AtTaits for the financial year. The a[Ual a¢counts have been produced in accordance with the Statement of RecommerKled Pra¢tire (SORP).. Accounting and Reporting by Charities. appli¢able to charities preparing their aoUnts in accordance with th¢ Financial Reporting Standard 102. and the Charitie5 Act 2011 and applicable regulations. These finan¢ial stalernents have en prepared in a¢cordan¢e with the special provisions of Part 15 of the Companies Act 2006. For the year ended 31 March 2023, the Charity was eniitled tc> exeTnption from audil under Section 477 of ihe Compani¢s Act 21X)6 relating to small companies. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with Section 476. The fitydncial statements have been audiied under the requirements of Section 144 of ihe Charities Act 2011. The financiat ststements on pages 16 to 29 weTe approved by the Trustees on behalf by.. li N Mrcall - Chair Company registration numb¢r- 00383775 Charity registration number 314210 17
THE HISPANIC AND LUSO BRAZILIAN COUNCIL CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED31 MARCH 2023 Group Cbarity Notes 2023 2022 2023 2022 Casb flows from opernting
ctivities
22 (29,976) (1,236,61 S) (78,743) (1,164,064) Cash flows from investing activities Dividend income Interest income Proceeds fmTn ihe sale of investments Purchase of investments PuTchase of tsngible fixed assets Net cash {used in) provided by investlllg aettyities 288,701 35,057 3.020,683 (3.160.919) 38.904) 300,417 44.978 4,216.060 {3.434.827) 1.339 288,701 35,057 3,020,683 (3,160,919) 300,417 M,978 4,216,060 (3,434.827) 1.339) 144.618 1125 289 144.618 Change in casb and eAsh equlvaleDts iti the year 114,642 (111,326) 65075 (3&775) Cash and cash equivalents at the beginning of the year 533 709 476 121 514896 Cash and cash equfvAleDts at the eud of Ihe ye4T 18
THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 l. Ae¢ounting policie5 a) Company informatioD The Hispanic and Lu50 Br¥2ilian Council is a ¢ompany limited by guarantee, in¢orwrated in England and Wales and registered as a Charity with the Charitie5 Cornmission. The principal address and regisiered office is 50 Browjway, London SWI H OBL. b) Basis of prep8r&tlOD of annknal a¢¢ounts The fitwicial statemenls have been prepared in accordance with accounting policies set out in the notes to the accounts and comply with the charity's governing document. the Charilies Act 2011 and Accounting and Rep)rting by Chariiies: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2(K)6. The Hispanic and Luso Brazilian Coun¢il meets the definition of a public benefit entity under FRSIO2. The financiat statem¢nls are prepared in sierlin& which is the functionat currency of the company. Monetary amounts in the financial statements are murKied to the nearest £. The fin8n¢ial statements have been prepared under the historiral cosl Conventio wilh items recognis¢d at cost or transaction value unless oiherwise stated in the rel¢vant notes lo the accounts. The principal accounting policies are set out below. The effects of events relating to the year ended 31 Marrh 2023 which occurred before the date of approval of the financial stsiemenls by the Truslees have been included in the financial statements to rhe extent r¢quired io show a true and fair view of the stat¢ of affairs as 31 March 2023 and the results for the year ended on that date. c) Fund accounting Unrestricted funds are available for us¢ al the dis¢retion of the Trustee5 in furtherance of the general objectives of the Charity and which have not been desip)ated for other purposes. Designated funds comprise of unrestricted funds that have been set aside by the Tnjstees for particular Purposes. The aim and w of each deSIated futld 15 set out in the notes to the financiat ststements. Restricted funds are funds which are to be used in accordance with spe¢ific restrictions imposed by the donors or which have been raised by the ¢harity for particular purposes. The aim and w of ¢a¢h restricted fund is set out in the notes to the financial $teMents. d) IDeoming resources All incotning resources ar¢ included in the Staiement of Financial Activities when Ihe charity has entitlement to the fund& receipl is probable, and the amount can be measured with sufficient reliability. Annual membership subscriptions are recognised in equal monthly instairnents over the period of mernbership. Donation5 sponsorship are recognised when the charity has entitlement to the funds. receipt is probable, and the amount can be measured with sufficient reliability- Ew¢nt fees and room hire ore recorded when the services are provided. Dividend and interesi income are reco]sed when the Charity has the right to receive payment. 19
THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMEIYTS FOR THE YEAR ENDED31 MARCH 2023 l. Acco11ng polieies (continued) e) Resources expended All expenditure is accounted for on an accruals basis and has been included under expense ¢ategories thai aege all costs for alli)cation to activities. Where Costs cannot be directly attributed w particular Ctivities. they have been all(Kated on a basis consistent wilh ihe use of ihe resources. Costs of generdling funds comprise the costs associaled with attracting voluntary income and costs for trading for fundraising purtx)5es. Charitabl¢ expenditure comprises of those costs incurred by th¢ Charity in th¢ delivery of ils a¢tivities aThJ s¢rvi¢es for beneficiles. It includes both costs that can be allo¢aled ditE¢tly lo such activities and those costs of an indirect nature necessary to supwrt them. Governance costs are those incurred in connection with administration of the Charity and compliance with onstitutional and statutory r¢quir¢m¢nts. All costs are allocated between th¢ eXnditUre categories of the SOFA on a basis designed to reflect th¢ use of the Tesource. Costs relating to a particular activity are allo¢at¢d directly. others are apportioned. D Tangible fixed a58ets and depreciatlon All tangible fixed ass¢ts ar¢ initially recorded at Cost. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of thal assel as follows- Compuier equiprnent 20D/o Straight line Fixtures and fitting5 20% strdighi lin¢ Plant and ma¢hinery 200/0 Straight line Offi¢¢ fil out not currently depreciated as not in use g) IDtangible assets and amortisotio Intangible ets acquir¢d are initially recorded at cost and 5ub5equendy measured at cost less accumulated amortisation and impairnient losses over the useful economic life of that asset as follows.. Websiie developrnent 20Yo Straight line b) B*$it financial iDStruments Trade 2nd otber debtor51creditors Trad¢ and other debtors are recognised initially al transaction ¢ost. Trade and other creditors are recognised initially at transaction price plus attributsble Irdnsaction costs. Subsequent to initial re¢ognilion they are measured at amortised cost using the effective interesl method, less any imp&irnient losses in the case of irade debiors. If ihe arrangement constitutes a financing transaction, for example if payment is deferred beyond nonnal business terms, then il is measured at the present value of future payrnents discount¢d at a tnarket rale of interest for a Similar debt instrum¢nl. Invutmettts In equity iDStruments Investments in equily instruments are measured initially at fair value, which 15 normally Éhe transaction price. Transa¢lion costs are excluded if the investments are subs¢quenily ffteasured at fair value through the SOFA. Subsequent to initial re¢ognition. inveslmenrs that Can be measured reliably are measured at fair value with changes recognised in the SOFA. Thher investments are measured at cosi less impairnient in the SOFA. i) Stocks Stocks are valued at the loweT of cost and net realisable value. j) Cash And cash eqvivalents Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Charity's cash management are included as a cotnponent of cash and cash equivalents for the purposes only of ihe ch flow statement. C&qh balances held &$ part of a fixed asset investment portfolio ar¢ presenfrd as part of fixed asset investments. 20
THE HISPANIC AND LUSO BtL4ZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 21123 l. Ae¢ouo¢lng poll¢les (eolltinued) k) Opergtlng l¢as¢ agreements Rentals in respe¢t of operating leases where substantially all the benefits and risks of ownership remain with th¢ lessors are Charged to the Statement of Financial A¢tiviti¢s SOFA on a strnight-line basis over the period of the lease. l) Pension costs The charity operdtes a defined ¢ontribution scheme for employees. The assets of the schemes are held separately from those of the charity. The annual contributions are charged to ihe SOFA as they fall due. m) TatIOn The Hispani¢ and Luso Brazilian Council 15 considered to pass l¢sts set out in Paragraph I Schedule 6 of th¢ Finance Act 2010 and therefore it meets the definition of A chariiabl¢ company for UK corporation tax purposes. Accordingly. the charity 15 POtentia]ly exempt from iaxation in respect of income and Capital gain5 received wiihin categories covered by Chapter 3 Part I l of the CorpDfdtion Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income and gains ar¢ applied exclustvely to charitable purposes. n) Grallts Grants are a¢¢ounred for under the accruals model of accounting &s pern)itted by FRS102. Grants of a revenue nature are r¢¢ognised in the SOFA in the same period &s the relat ¢xp¢nditure. o) Going concern There are no material uncertainlies about the Charity's ability to continue in operhiional exisienee for the foreseeable future. The Charity holds sufficient liquid reserves to meet its financial obligations as they currently fall due. and for the foreseeable future. 2. FIanCIal perforrnance of the Charlty The ¢onsolidated statement of financial activity in¢ludes the results of the Charity's wholly owned subsidiary. The summary financia] perforniance of the Charity alone is: 2023 2022 Income 3?7 846 327.846 350 699 350,699 Expenditure on charitable activities {608,327) (613,769) Net gains on investments 681437 1069?8 Net (expenditureyincotThe {961,918) (156,142) Funds brought fonvard 150?3 59? 15 179.7)4 Totals funds carried forward R¢pr¢seDted by: Restricted funds Unrestricted funds 336.i36 13.715.138 14.061.674 366.287 14 657.305 21
THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMEIYTS FOR THE YEAR ENDED 31 MARCH 2023 3. Other trading aetivities Unrestricted Restrieted funds funds 2023 Total 2022 Totsl meMbehIp and events Corpordte sponsorships 68,794 68.794 79.422 4. Investments Ullrestrieted funds Restricted fuDds 2023 Total 2022 Total Dividends & interest from investments 288,701 Bond interest accrued 27.667 Bank inter¢st received 288,701 27,667 300.417 43.360 323 758 59.77 5. Expenditure on r•isillg funds Unrestri¢ted funds Restricted runds 21)23 Total 2022 Total Investmeni Manager's fee 6. Costs of ¢h4ritsble aetiyities Uore5tri¢ted Restricted funds funds 2023 Total 2022 Tot21 Direct costs Support costs 15.109 589.73 804 38• 34.820 249.9?9 589 ?73 8 j9 ?Q? •39.378 5116.658 Included within direct costs are donations made to the following institutions.. UDrestricted Restricted funds fud$ 2023 Total 2022 Total UK ConSule Rio de Janeiro LA TA Foundation The Anglo-Argentine Society 1,500 1,500 6,000 30.674 22
THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 7. Support eost$ Unrestricted fuuds Restricted ds 2023 Total 2022 Total Staff ¢osts Building costs Other costs 439.585 60.7 439.58) 60.641 39i.05? 59.534 8. Governance costs Unrestrieted rullds Restrirted funds 2023 Totsl 2022 Total Audit and accountancy fees 14 9. Net incomillg(outgoimg) raources for the year This is stated after charging.. 2023 2022 Depreciation Amortisation Auditors remuneration.. Audit of the financial ststements 2J24 3.000 2.417 3.(K)O 10. Staff eosts and remunergtiOD Total staff cosls were &8 follows.. 21)23 21122 Wages and salaries Social security cost Other pension costs Other costs 354,123 35J44 23,164 332,991 30,650 18,891 The average nutnber of staff eTnployed during the year. based on a full time equivalent. was 8 (2022- 9)- All staff were employed by the Charity and Staff were recharged to Canning House Limited bas¢d on lime spent. The total recharge for the year amounted to £220.628 (2022 - £193,423). There was l ernployee whose total emoluments for the year fell between £90,000 and £IOO,O(K) (21)22 bdween £90,000 and £lOO,000- I ). The total amount of employee benefits received by the charity'5 key management personnel was £90,654 {2022 - £91,463). The members of ihe Board of Trustees did not receive any remunerations, nor any reimbursed expenses during the year (2022 £Nil). 23
THE HISPANIC AND LUSO BRAZILIAIY COUNCIL NOTES TOTHE FINANCIAL STATEMEi¥rs FOR THE YEAR ENDED 31 MARCH 2023 11. Tangible assets- Charlty (also eomprising that of the group) Fixtur Computer Plant & rittings equipmeTrt & machinery Office ritout Total Cost At l April 2022 Additions 34,661 13.024 251 1,339 49.0?4 31 March 2023 339 Depreciation At l April 2022 Charge for the year 33,408 456 268 268 At 31 March 2023 536 Net iM)ok value At 31 March 2023 At 31 March 2022 12. Intartgible assets- Charity (also WmPTi5ing tbat of the group} WebsiÉe development Total Cost At l April 2022 & 31 March 2023 Depreeixtiott At l April 2022 Charg¢ for the year 9,000 9.000 Ai 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 24
THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FIIYANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2023 13. Investments Croup Charity 2023 2022 2023 2022 Subsidiary undertaking UK and overseas equities: Market value at l April 2022 Acquistions at cost Disposals market value Unrealised {Ios5esygains on revaluation 645615 Market value at 31 Mareh 2023 1 ?.998,384 Cash balance (held by brokers) Investments under manAgement 13,503,763 3.160,919 {3,020,683) 14,064,829 3.434.827 (4,216,060) 13,503,763 3,160,919 (3,020,683) 14,064,829 3,434.827 (4.216.060) ??(1.167 13,5D3,763 747.9?0 220.167 13,503,763 747 9?0 1 ?,998.384 The market value of £12,998.384 (2022 - £13.503.763) aErf)ve represents investments quoted on a recognised securities exchange. 2023 2022 UK equity Overse&s equity UK bonds Alt¢rnative inv¢stmenls 2.873,396 5,034,265 3.185.417 1.905.J06 3,032.764 5.175,400 3,356.739 1938 860 Subsidiary undertaking The charity has a wholly owned trading subsidiary. Canning House Limited {company registration nUTnber O)J17927}, whi¢h is incorporated in England and Wales. The subsidiary's prin¢ipal activity is to run services for corporate members and relevant COFnmercial activities including the running of conference5. All profits are donaied to the Charity under gift aid. Summiry of profrt and loss for Canning House L4mited 21123 2022 Turnover Cost of sales and expenses Net loss 64.706 247 650 74,118 205 770 131652 The asseis and liabilities of the subsidiary were- Current assets Current liabilities Total net liabilities 143.155 571 ti60 333.3991 Awegate Share ¢apital and reserves 25
THE HISPANIC AND LUSO BK4ZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2023 l& Stocks- Cbarity (also comprising that ofthe group) 2023 2022 Stwk of medals 15. Debtors Group Charity 2023 2022 2023 2022 Trade debtors Prepayments and accrll¢d income Other debtor5 Amount5 owed by group undertakings 16,800 35,795 28.825 77.268 35.754 35.795 71,818 493 074 557 694 313.774 16. ADatysts of eash and cash equivalents Group Charity 2023 2022 2023 2022 Cash at bank i41.99 17. CreditOTS Group Charity 21123 2022 2023 2022 Trdde cr¢ditors Taxation and s(Kial security Accruals and deferred income 14,997 338 11.637 2.109 196.6•8 19 11844? 125 701 156963 26
THE HISPANIC AIYD LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 18. Fln#n¢ial ins¢rumentS Group Charity 2023 2022 2023 2022 FinAneial asset5 Financial assets measured fair value through the SOFA Financial &ssets me&sured a1 amortised cost 13.681,364 14.785.392 13,575,009 14.727,804 45.625 61.586 521.900 Finanei41 liabilities Finan¢ia] liabilities measured at amortised cost 137.1701 Financial &ssets measured at fair value through the SOFA compTise of bank and balances a5 well as investments carried at market value. Accounting policies adopted are included within note I to these financial statements. Financial assets measured at amortised cost comprise of investments held at cost, trade debtors. other debtors and amounts owed by group undertakings. Further details in respect of these ba]ances can be found in note 17 to these financial statements and the accounting policies adopted are included within riote I to these financial statements. Financia] liabilitie5 me&sured at amortised cost ¢omprise of trade crediior5, Other creditors and a¢cruais. Further details in respect of these balances can be found in note 19 10 these financial statements and the accounting policies adopted are included within note I to these financial slaiements. 19. Penslolls The charitable ¢ompany operates a defiwl contribution pension scheme for the benefit of its ernployees. The assets of the s¢hem¢ ar¢ held separately from those of the Charity in an independently administered fund. The pensions cost represents contributions payable by the Chariry during the year and amounts to £11.162 (2022 - £8,956) and by the Group £23,164 {2022 - £18,891). At the year-end there was £2,109 payable by the Charity included in other crediiors (2022- £168 receivable included within other debtors). 27
THE HISPANIC AND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEDJI MARCH 2023 20. Statement of fuDds A¢ l Aprll 2022 Incoming resources Resources pended At 31 March 2023 Restricted funds: Canning House Library Appeal Anglo Portugese Society Fund UK-Brazil Conversa Fund British and Colornbian Chamber of ComTnerce Fund 287,709 32,977 24.858 4,245 506 {12,555) 279,399 33,483 2,593 (22,265) 20.743 366.?87 318 5.069 134.8?01 336,536 Unrestricted funds: General funds 14.39? 143 387 483 150? 594 13279 105 Totsl fun 17fi 3..56 Details of the funds ar¢ listed below.. Canning House Library Appeal- sd up in 2004 for new library facilities. Anglo accounts- deposits made for future charitable artivities in fftulual agreement with the Anglo Portuguese Society, and the British and Colombian Chamber of Commerce for ¢harit&ble, cullura] and educations purposes. The atrf)ve funds were set &side in conjunction with the sale of 2 Belgrave Square. The UK-Brazil Conversa - an annual forum for dialogue between policymakers and influ¢n¢¢rs. busin5 leader5. acad¢mi¢s, diplomats and governments. to help build closer relations and COTrtacls between Brazil and the UK. It wa8 founded in 2014 by fortner UK Ambassador to BraziS. Alan Charlton. now a Trustee of Canning House, and Canning House became the Secretariat in 2018. 21. ADatysis of Det assets betwetD funds Unrestricted nds Restrlct¢d funds 2023 Total 2022 Total Fixed ets Current &ss¢ts 13,079.374 197658 13,079.374 5)4 194 14.264.464 493 966 28
THE HISPANIC AIND LUSO BRAZILIAN COUNCIL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2023 22. Reconciliation of net movement in funds to net cash flows from operotlng a¢tivl¢A Croup Chgrlty 2023 2022 2023 2022 Net movetnenl in funds Adjustments for.. Depreciation AmortiS&lion Unrealised10sgesl{gains) on revaluation DecTea5e/{increa5e) in ¢ash balances held in investments Decrease in StkS Decreasel{increase) in debtors 1ncreasel(decre) in creditors Dividend income Interest income CAsh flow5 from operating ge¢lvi¢es (1.144,862) (287,794) (961,918) (156.142) 2,324 3,000 2,417 3,0 2.324 3.000 2.417 3,000 645,615 (220,167) 645.615 1220,167) 713.291 700 31,602 42,112 (288,701) (430,561) 713,291 700 (141,548) (16,449) (288,701) {430,561) 49.988 18,IlJ31 liOO.417} 119,66•1 ?.446 I3.4]7) 64 23. FinaDcial comml¢meDts Ai 31 March 2023. the Charity had the following commitmenls under nonwcancellable operating leases.. 2023 2022 14Dd aDd buildings Falling due within one year Falling due between two and five years 96.600 386 400 49.167 Other Falling due within one year Falling due between two and five years 1,233 1.183 Totsl fiDlln¢lal commitments 24. Relatsd p*rty transactions Wheneverappropriat¢, the entire net profit of the subsidiary company, Canning House Limited, is donated annually by deed io the parent charitable company under gift aid and amounted to £Nil {2022 - £Nil) inclusive of the t&x credit. 25. Ultimate controlling party In the opinion of the Truslees. there 15 no ultimate controlling party other than the Board of Trustees thetnselves. 29