Caseware UK (AP4) 2022.0.179 2022.0.179 Caseware UK (AP4) 2022.0.179 2022.0.179 2023-01-31The Foundation Foundation was established for the advancement of art for the public benefit by advancing education in the arts in particular but not exclusively through: The provision of grants and professional development to art students at college and university and to artists who have recently graduated from college or university. The provision of arts education and workshop facilities including studio space to art students at college and university and to artists who have recently graduated from college or university. After the death of Antony Gormley, the curation of the studios, archives, and works of art by Antony Gormley and Vicken Parsons (but not including works of art by Vicken Parsons during her lifetime) for the purposes of display, use, and research. In shaping the objectives and planning the Foundation's activities, Trustees have considered the Charity Commission's guidance on public benefit. The Foundation continued to draw on donations made in 2018/2019 (and income derived from them) to cover its running costs during the reporting period. Its activities are offered without charge to beneficiaries. The Foundation is registered as a charity (registration number 1180372) and is not liable to UK taxation as it has no taxable activities. In the exercise of their powers, the Trustees have paid due regard to the published guidance from the Charity Commission on the operation of the Public Benefit requirement under the Charities Act 2011. The following notes record the chief elements in the Foundation’s programme during the year with particular reference to the accompanying financial statements.1428240414127064142824042023-01-312023-01-312022-02-01falsenot blank55 08861248 2022-02-01 2023-01-31 08861248 2021-02-01 2022-01-31 08861248 2023-01-31 08861248 2022-01-31 08861248 2022-02-01 08861248 2021-02-01 08861248 c:RegisteredOffice 2022-02-01 2023-01-31 08861248 d:CurrentFinancialInstruments 2023-01-31 08861248 d:CurrentFinancialInstruments 2022-01-31 08861248 d:CurrentFinancialInstruments 1 2023-01-31 08861248 d:CurrentFinancialInstruments 1 2022-01-31 08861248 c:FRS102 2022-02-01 2023-01-31 08861248 c:Audited 2022-02-01 2023-01-31 08861248 c:PrivateLimitedCompanyLtd 2022-02-01 2023-01-31 08861248 b:Trustee1 2022-02-01 2023-01-31 08861248 b:Trustee2 2022-02-01 2023-01-31 08861248 b:Trustee3 2022-02-01 2023-01-31 08861248 b:Trustee4 2022-02-01 2023-01-31 08861248 b:Trustee5 2022-02-01 2023-01-31 08861248 b:UnrestrictedFundsGeneral 2022-02-01 2023-01-31 08861248 b:UnrestrictedFundsGeneral 2021-02-01 2022-01-31 08861248 b:UnrestrictedFundsGeneral 2023-01-31 08861248 b:UnrestrictedFundsGeneral 2022-01-31 08861248 c:ChiefExecutive 2022-02-01 2023-01-31 08861248 1 2023-01-31 08861248 1 2022-01-31 08861248 b:TotalUnrestrictedFunds 2023-01-31 08861248 b:TotalUnrestrictedFunds 2022-01-31 08861248 c:FullAccounts 2022-02-01 2023-01-31 iso4217:GBP xbrli:pure

Registered number: 08861248
Charity number: 1180372











THE FOUNDATION FOUNDATION
(A company limited by guarantee)










TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 

CONTENTS



Page
Reference and administrative details of the Company, its Trustees and advisers
 
 
1
Trustees' report
 
 
2 - 9
Independent auditors' report on the financial statements
 
 
10 - 13
Statement of financial activities
 
 
14
Balance sheet
 
 
15
Statement of cash flows
 
 
16
Notes to the financial statements
 
 
17 - 26

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 JANUARY 2023


Trustees
Sir Antony Gormley
Vicken Parsons
Marco Compagnoni
Richard Calvocoressi
Laura Stevenson

Company registered number
08861248

Charity registered number
1180372

Registered office
Antony Gormley Studio
15-23 Vale Royal
London
N7 9AP

Chief executive officer
Alice O'Reilly

Independent auditors
MHA
Maidstone
United Kingdom

Bankers
HSBC Private Bank
8 Cork Street
Mayfair
London
W1S 3LJ

Brown Advisory Investment Management
10 Bruton Street
Mayfair
London
W1J 6PX

Solicitors
Weil Gotshal & Manges (London) LLP
110 Fetter Lane
Holborn
London
EC4A 1AY

Page 1

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 
  
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The Trustees present their annual report together with the audited financial statements of the company for the year 1st February 2022 - 31st January 2023. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
 
 
Aims, Objectives and Activities
 

The Foundation Foundation was established for the advancement of art for the public benefit by advancing education in the arts in particular but not exclusively through:
 
The provision of grants and professional development to art students at college and university and to artists who have recently graduated from college or university.
The provision of arts education and workshop facilities including studio space to art students at college and university and to artists who have recently graduated from college or university.
After the death of Antony Gormley, the curation of the studios, archives, and works of art by Antony Gormley and Vicken Parsons (but not including works of art by Vicken Parsons during her lifetime) for the purposes of display, use, and research.

In shaping the objectives and planning the Foundation's activities, Trustees have considered the Charity Commission's guidance on public benefit. The Foundation continued to draw on donations made in 2018/2019 (and income derived from them) to cover its running costs during the reporting period. Its activities are offered without charge to beneficiaries.
The Foundation is registered as a charity (registration number 1180372) and is not liable to UK taxation as it has no taxable activities. In the exercise of their powers, the Trustees have paid due regard to the published guidance from the Charity Commission on the operation of the Public Benefit requirement under the Charities Act 2011.
The following notes record the chief elements in the Foundation’s programme during the year with particular reference to the accompanying financial statements.
 

Page 2

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 
Aims, Objectives and Activities (continued)

 Review of Activities
 

During this reporting period the charity welcomed fifteen artists to the residency programme at High House, providing them with studio space, time, and beautiful surroundings in which to develop their work. The charity’s new grantmaking programme, the Emerging Artists Exhibition Fund, has also gone from strength to strength, helping to fund original new artwork from talented emerging artists across the U.K.
The Foundation Foundation once more hosted two graduates of Norwich University of the Arts’ Fine Art BA programme at High House Studios in the summer of 2022. Each 2022 graduate received a £500 bursary to cover living expenses and materials during their stay. Selected by staff at Norwich University of the Arts, the young artists spent a month of their post-graduation summer away from the demands of their everyday lives to develop their practice at this crucial moment in their careers. At the end of the month, Antony Gormley and Vicken Parsons joined members of the NUA faculty to discuss the artists’ progress and the next steps in their development. Gormley and Parsons offered advice and guidance drawn from their own rich experience of making and exhibiting their own work over the past 40 years.
The thirteen other residents that the charity welcomed across the year were supported with travel grants of £100 and weekly subsistence grants for food and materials of £50 each. The board have been pleased and inspired by the work created as part of these residencies. Artists have responded to the remarkable landscape around High House as well as using the time and space of the residency to prepare work for exhibition or push their practice forward. We have seen painting, sculpture, ceramics, film and collage emerge from the energetic, concentrated, and immensely fruitful weeks that artists have spent with us during the year.
With the hope of offering the residency opportunity to a wider circle of artists this year the Trustees have created a new website to showcase the unique character of the High House residency and the work of past residents. By listing our previous residents, linking to their own websites, and displaying their work online we hope to be at the centre of a growing community of High House alumni.
The feedback we have received from artist residents over the year has been enormously positive:
 
“I believe that I achieved much more than I set out to. Norfolk is an incredible place, rich in written history, ecology, community and material. I had no idea just how crucial this place would become to my practice. I came to this residency to make work for a show, but unexpectedly, I also found a deep relationship with the land itself, and became ever more inspired and activated to continue my practice in more experimental ways.” – Julia Bennett
“The studios are incredible spaces perfectly designed for artists, better than any studio I’ve ever had including those at BA and MA. Working on the grounds a little bit each morning was a really healthy routine setter and helped me feel situated and settled in quickly. Everyone was really friendly but respectful of privacy. It’s so rare to find that supportive environment that allows you time and space that is no-strings-attached.” – Samuel Hanner
This year the Trustees have watched their Emerging Artists Exhibition Fund’s impact with a growing sense of satisfaction. The fund is open to applications from museums and galleries hosting exhibitions from artists enjoying their first solo show at a public gallery in the UK. The awards made in 2021 supported shows across the country in 2022, as far north as Gateshead’s Baltic and as far south as Towner in Eastbourne. Rita Evans, Nikita Gale, Alice Theobold, Moi Tran, Jala Wahid and Angharad Williams all used the £10,000 production grants to make important new work for these milestone exhibitions in their careers. This work, of ambition and excellence, has been seen by thousands of members of the public and at a time when museums and galleries have been struggling with budgets stretched by energy costs, the charity has been pleased to award grants with purely artistic aims. Artists have commented on the opportunities that the grants have given them: to experiment with new materials, learn new methods, and use the significant opportunity that the exhibitions have represented to show work at the limit of their ambition to the public, fellow artists, potential collaborators, and important curators. As a result of the obvious success of the programme the Trustees awarded another six grants, totalling £53,500, in the autumn of 2022. Seeking to maximise the impact of available funds the Trustees have also decided to open the programme to another eight institutions in 2023, taking the number of museums and galleries invited to apply to twenty. We look forward with anticipation to the exhibitions to come in 2023.
 
Page 3

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 
Aims, Objectives and Activities (continued)


In these ways the charity continued to fulfil its aims through its activities: nurturing talented artists when they graduate, offering studio space to artists seeking to develop their work, and encouraging emerging artists’ ambitions as they plan their first major presentation at one of the U.K.’s leading ‘producing house’ museums and galleries.
As the charity’s activities continue, the Foundation will assess the success of the residency programme by archiving images of work created at High House Studios and collecting feedback from residents as well as NUA faculty staff on the programme. The charity seeks to maintain contact with all residents and intends to follow their careers with interest in the future. The Foundation Foundation collects feedback from the Emerging Artists Exhibition Fund recipient institutions and artists to understand the programme’s effect and hopes to build a longer-term picture of the grants’ impact as the programme continues. Images and materials will also be collected to record the supported artworks and their exhibition. The comments, thoughts and suggestions of all beneficiaries will be used by the Trustees to develop the charity’s work so that it always responds to the needs of those it seeks to assist.
The Trustees are satisfied with the progress made by the charity in achieving its activities during and subsequent to the reporting period.
Executive Officer
The Foundation is grateful for the assistance of Alice O’Reilly. Alice is also Executive Assistant to Antony Gormley, and her time provided to the Charity is remunerated under those separate arrangements. Consequently there is no payroll cost to the Charity. 201 hours were provided by Alice during the year.
Grant Making Policy
The Foundation Foundation makes grants available to artists at important stages of their careers. The overall intention is to use the monies of the Foundation to promote innovation, ambition, collaboration, education, and the extension of an ever-widening field of practice in sculpture, painting, performance and time based media. The Trustees wish to use their expertise in the field and the expertise of others to identify individuals and areas of practice that would benefit from support. This will always be done in line with the objects of the charity to advance education in the arts.
Whilst final responsibility for grant-making lies with the board of Trustees, decisions to offer grants to particular recipients are made by designated persons and board members, and with the participation of staff from Norwich University of the Arts (in the case of the residencies for BA Fine Art graduates).





Financial Analysis
At year end the Foundation holds total funds of £7,063,532 of which:
 
£6,830,408 is held in investments
£233,124 is in net current assets

The total incoming resources for the year were £96,120 (2022 - £84,205). Total resources expended were £92,910 (2022 - £147,421). At 31 January 2023, the charity held fund balances of £7,063,532 (2022 - £7,141,202) of which unrestricted funds was £7,063,532 (2022 - £7,141,202). There were no restricted or
Page 4

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 
Aims, Objectives and Activities (continued)

designated funds in either 2022 or 2023. The Trustees have decided to treat their investments for operational purposes as an expendable endowment in order to fund the current and future activities of The Foundation Foundation.
Investments
This year has undoubtedly been a challenging one for the charity’s investment portfolio. Volatility in financial markets due to concerns over the global economic outlook, the impact of the war in Ukraine, anxiety about potential supply shocks and inflationary pressures all contributed to a very difficult start to the year. The board have, however, been pleased that losses sustained early in 2022 have steadied and there has been a return to growth in the value of their investments towards year end, with the portfolio performing satisfactorily against benchmark funds throughout 2022/2023.
The investment aims of the charity are long term and its investment policy is therefore steered toward growth and protection against the threat of inflation.
The investments of the Foundation are managed by Brown Advisory and the Trustees maintain a diversified portfolio so as not to expose the Foundation to undue risk. The Foundation’s investment policy is reviewed annually to ensure its continued efficacy and relevance. Income from investments is disbursed as part of the Foundation’s work and/or reinvested at the discretion of the Trustees.
The Trustees expect the fund managers with whom the Foundation's assets are invested to behave with integrity, to be fully compliant with all regulatory requirements and to meet relevant codes of practice. In addition, investment managers are expected to take account in their decision-making of environmental, social and governance issues.
Although the charitable objects of the Foundation do not require the automatic avoidance of investment in any particular geography, sector or corporation the Trustees have decided to adopt an investment policy that prohibits exposure to those equities, bonds and other asset classes that might open the Foundation to criticism on ethical or environmental grounds. They recognise that this policy may impact the growth potential of their investments – and indeed in 2022/23 the Trustees saw their prohibition of any exposure to fossil fuels reduce their investment returns at the beginning of the year – but they have decided that this risk is acceptable to protect the Foundation’s reputation and are confident that their positioning on renewable energy sources represents a sensible, long-term investment.
The Foundation’s long-term investment objective is to achieve CPI +3% per annum (over rolling three year periods). The strategic asset allocation targets are currently: equities 80%, fixed interest assets 20%.


Reserves Policy
The Trustees aim to maintain general funds at a level and with such liquidity as to enable twelve to eighteen months of unrestricted charitable expenditure to be undertaken at any time.
At the end of the reporting period the charity had £243,187 in available cash.
The Trustees recognise that they are still developing their long terms plans and therefore they have decided to continue to keep their reserves at a higher level than required by their reserves policy in order to provide for potential feasibility studies relating to possible building works and consultancy fees associated with investigating new avenues of grant making activity.
The Trustees will regularly review their reserves policy to ensure it remains appropriate in the context of their evolving range of activities.
 
Page 5

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 
Aims, Objectives and Activities (continued)

Risk Management
The Trustees review the major financial and non-financial risks to the Foundation in order to ensure that steps have been taken to minimise risk and to take action to mitigate the impact of any unavoidable risks. Risk is reviewed at least annually with action resulting from this analysis represented in the Foundation’s Risk Policy.
One of the principal risks to the charity’s funds is inflation which has the potential to threaten the value of the Foundation’s investments. This is particularly challenging when political and economic uncertainty in the wider world may cause volatility in the markets. Trustees have sought to minimise this risk by spreading the Foundation's investments over a broad strategic asset base and across global markets.
A key reputational risk has been identified by the Trustees in the types of equities and bonds to be invested in by the Foundation. Seeking to minimise this risk, the Trustees have devised a stringent investment plan for their investment manager (Brown Advisory) which proscribes classes of investments, for example equities in fossil fuels, tobacco and defence.
The trustees continue to be conscious of the risk associated with the Emerging Artists Exhibition Fund that money given by the charity to institutions could be used for purposes other than those intended. As a result, the board have ensured that the terms and conditions of the grants allow for them to be repaid if this is found to be the case. Considering the charitable status and excellent reputations of the institutions that the charity is working with the board also consider this risk to be remote.
Information on Fundraising Practices
The Foundation does not currently rely on fundraising as a major source of income nor does it employ or engage professional fundraisers. The Foundation does not currently receive funding from the public or make applications to other trusts and foundations. As a result, the Foundation is not registered with the Fundraising Regulator, however, should fundraising activities take place in the future the Foundation will review this. The Foundation is committed to avoiding any intrusive fundraising approaches and will never apply undue pressure to donate.
 
 

 

 Going concern
 

The Foundation has substantial resources to continue in operational existence for the foreseeable future. For this reason the Trustees continue to adopt the going concern basis in preparing the financial statements.
 

Page 6

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 
 (continued)

 Strategic Review and Future Plans
 

The charity is committed to continuing the Emerging Artists Exhibition Fund and its relationship with NUA in 2023/4.
Towards the end of the reporting period the Trustees decided - and agreed with staff at NUA - that in 2023 (and future years) the two residencies for their students will be offered to graduates of their MA rather than BA programme. The Trustees are keen to assess whether a residency at this moment in a young artist’s career has more impact and can be used more fruitfully than after the completion of an undergraduate degree.
As already described, the Emerging Artist’s Exhibition Fund invitation list has been expanded from twelve to twenty in 2023, with the Trustees ready to distribute proportionally more funds in 2023.
The charity’s Trustees have continued to consider the possibility of a capital project in the medium term and also the possibility of additions to the charity’s programme that complement the support currently offered to artists through the Foundation’s residencies and Emerging Artists Exhibition Fund. With the charity now anticipating taking responsibility for the artistic estates of Antony Gormley and Vicken Parsons the Trustees continue to carefully evaluate the long term vision for the charity, ensuring that all programmes can grow into the future.
During the reporting period the charity’s activity was funded from the income of 1.6% of the value (calculated over a defined prior period) of the Foundation’s investment portfolio. The charity intends to continue to fund the charity’s activity in this sustainable way – that continues to allow for long term growth – for the foreseeable future.
The strategic priorities of the Foundation will always be towards the charity’s aim of advancing art for the public benefit by supporting education in the arts, recognising and fostering the potential of artists and thereby supporting a thriving, creative society in the UK.










 
 

Structure, Governance and Management
 

 Constitution
 

The Foundation is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association. It is a registered charity number 1180372.
 

Page 7

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 
Structure, Governance and Management (continued)

 Organisation
 

The Board of Trustees is appointed by majority agreement of the Charity’s membership and meets regularly to review and make decisions by majority vote on the Foundation's activities and strategy. Day-to-day management of the Foundation is undertaken by Alice O’Reilly.
The Board of Trustees keeps under review the skills required of the Board. When necessary the Board will seek new Trustees in order to ensure that the Board has a relevant and appropriate mix of skills for the activities and plans of the Foundation.
The induction of new Trustees is designed to give them a proper understanding of all aspects of the work of the Foundation. On their appointment new trustees are given a copy of the Memorandum and Articles of Association, previous Trustee reports and accounts and copies of all charity policies.
 

Statement of Trustees' responsibilities
 

The Trustees (who are also the directors of the Foundation Foundation for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).


Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.


The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.


Disclosure of information to auditors
 

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
 

 

Approved by order of the members of the board of Trustees on 24 July 2023 and signed on their behalf by:
 

Page 8

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
 



Antony Gormley
Page 9

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  THE FOUNDATION FOUNDATION
 

Opinion


We have audited the financial statements of The Foundation Foundation (the 'charitable company') for the year ended 31 January 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 January 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.


Page 10

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  THE FOUNDATION FOUNDATION (CONTINUED)


Other information


The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
the Trustees' report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception


In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.


We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.


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THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  THE FOUNDATION FOUNDATION (CONTINUED)


Responsibilities of trustees


As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
 

Auditors' responsibilities for the audit of the financial statements


Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Performing audit work over the risk of management override of controls, including evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing minutes of meetings of those charged with governance; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


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THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  THE FOUNDATION FOUNDATION (CONTINUED)


Use of our report
 

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.





David Boosey BA(Hons) BFP ACA (Senior statutory auditor)
for and on behalf of
MHA
Statutory Auditor
Maidstone
United Kingdom

Date: 17 October 2023
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (OC312313)
Page 13

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)

 
 
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 JANUARY 2023


Unrestricted funds
2023
Total
funds
2023
Total
funds
2022
Note
        £
        £
        £

Income from:






Donations and legacies

3

6,610

6,610

5,148
 
Investments

4

89,510

89,510

79,057
 
Total income
96,120
96,120
84,205
Expenditure on:






Raising funds

5

55,874

55,874

56,927
 
Charitable activities

7

37,036

37,036

90,494
 
Total expenditure
92,910
92,910
147,421

Net income/(expenditure) before net (losses)/gains on investments

  

3,210

3,210

(63,216)
 
Net (losses)/gains on investments

  

(80,880)

(80,880)

517,356
 
Net movement in funds
  
(77,670)
(77,670)
454,140

Reconciliation of funds:

  




Total funds brought forward

  

7,141,202

7,141,202

6,687,062
 
Net movement in funds

  

(77,670)

(77,670)

454,140
 
Total funds carried forward
  
7,063,532
7,063,532
7,141,202

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 17 to 26 form part of these financial statements.

Page 14

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)
REGISTERED NUMBER: 08861248

 
 
BALANCE SHEET
AS AT 31 JANUARY 2023


2023
2022
Note
£
£

Fixed assets
  

Investments
 12 
6,830,408
7,057,691

  
6,830,408
7,057,691

Current assets
  

Investments
 13 
157,584
99,771

Cash at bank and in hand
  
85,603
20,904

  
243,187
120,675

Creditors: amounts falling due within one year
 14 
(10,063)
(37,164)

Net current assets 
  
 
 
233,124
 
 
83,511

Total net assets 
  
7,063,532
7,141,202


Charity funds
  

Unrestricted funds
 15 
7,063,532
7,141,202

Total funds
  
7,063,532
7,141,202

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:




Vicken Parsons
Date: 24 July 2023

The notes on pages 17 to 26 form part of these financial statements.

Page 15

 
THE FOUNDATION FOUNDATION
 
(A company limited by guarantee)

 
 
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
£
£

Cash flows from operating activities

Net cash used in operating activities

(113,401)
(120,804)

Cash flows from investing activities

Dividends, interests and rents from investments
89,510
79,030

Proceeds from sale of investments
1,222,391
1,432,118

Purchase of investments
(1,075,988)
(1,708,760)

Net cash provided by/(used in) investing activities

235,913
(197,612)

Change in cash and cash equivalents in the year
 
122,512
 
(318,416)

Cash and cash equivalents at the beginning of the year
120,675
439,091

Cash and cash equivalents at the end of the year
243,187
120,675

The notes on pages 17 to 26 form part of these financial statements

Page 16

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


General information

The Foundation Foundation is a charitable company limited by guarantee and incorporated in the United Kingdom.
The aims of the charity are for the public benefit, the advancement of art and the advancement of education in the arts, in particular but not exclusively by: A. the provision of grants and professional development to students at college and university and to artists who have recently graduated from college or university; B. the provision of arts education and workshop facilities including studio space to art students at college and university and to artists who have recently graduated from college or university; C. after the death of Antony Gormley the curation of the studios, archives and works of art by Antony Gormley and Vicken Parsons (but not including works of art by Vicken Parsons during her lifetime) for the purposes of display, use, and research.
The charitable company's functional and presentational currency is GBP, presented rounded to the nearest £1.


2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Foundation Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

  
2.2

Going concern

The financial statements have been prepared on a going concern basis. The Trustees have
considered relevant information, including the annual budget, forecast future cash flows and the
impact of subsequent events in making their assessment.
Based on these assessments and having regard to the resources available to the entity, the
Trustees have concluded that there is no material uncertainty and that they can continue to adopt
the going concern basis in preparing the annual report and accounts.

  
2.3

Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Investment income is recognised in the period to which it relates. Donated professional services and facilities are recognised on receipt on the basis of the value of the gift to the Company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Page 17

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

  
2.4

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. The Company has taken the exemption under subsection (1) of the Charities Act 2011 not to disclose the identities of recipients of grants made out of the funds of the charity, or the amounts of any individual grants so made, if the disclosure would fall to be made at a time when the settlor or any spouse or civil partner of the settlor was still alive.

All expenditure is inclusive of irrecoverable VAT.

  
2.5

Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

  
2.6

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 18

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)


2.7

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

  
2.8

Financial instruments

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

  
2.9

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Investment income, gains and losses are allocated to the appropriate fund.


3.

Income from donations and legacies




Unrestricted funds
2023
Total
funds
2023
Total
funds
2022
        £
        £
        £
 


 
Donated administrator time

6,610

6,610

5,148
 
Total 2022


5,148
5,148

Page 19

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

4.

Investment income




Unrestricted funds
2023
Total
funds
2023
Total
funds
2022
        £
        £
        £




Dividends accumulated

89,510

89,510

79,030
 
Other interest received

-

-

27
 


89,510
89,510
79,057
Total 2022


79,057
79,057



5.

Investment management costs




Unrestricted funds
2023
Total
funds
2023
Total
funds
2022
        £
        £
        £




Investment management fees

55,874

55,874

56,927
 
Total 2022


56,927
56,927


6.

Analysis of grants




Grants to Individuals
2023
Total
funds
2023
Total
funds
2022
        £
        £
        £




Grant making

19,780

19,780

61,000
 
Total 2022


61,000
61,000

Page 20

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

7.

Analysis of expenditure on charitable activities


Summary by fund type




Unrestricted funds
2023
Total
2023
Total
2022
        £
        £
        £




Charitable activities

37,036

37,036

90,494
 
Total 2022


90,494
90,494


8.

Analysis of expenditure by activities





Grant funding of activities
2023
Support costs
2023
Total
funds
2023
Total
funds
2022
        £
        £
        £
        £





Charitable activities

19,780

17,256

37,036

90,494
 
Total 2022


61,000
29,494
90,494


Page 21

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

8.Analysis of expenditure by activities (continued)

Analysis of support costs




Activities
2023
Total
funds
2023
Total
funds
2022
        £
        £
        £




Audit fees

4,894

4,894

3,157
 
Accountancy fees

3,060

3,060

3,268
 
Professional fees

384

384

15,715
 
Bank charges

32

32

36
 
Trustee expenses

(131)

(131)

1,267
 
Insurance

475

475

678
 
Listed investment foreign exchange rate loss

1,909

1,909

225
 
Donated administrator time - charge

6,633

6,633

5,148
 


17,256
17,256
29,494
Total 2022


29,494
29,494


9.

Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's annual accounts
4,894
3,157

Fees payable to the Company's auditor in respect of:

All non-audit services not included above
3,060
3,268


10.


Staff costs

During the year the charitable company employed No staff (2022: Nil). As a result, no employees received any remuneration in either year.


11.


Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

Page 22

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

11.Trustees' remuneration and expenses (continued)

During the year ended 31 January 2023, expenses totalling £-131 were reimbursed or paid directly to  Trustees (2022 - £1,267). This is made up of an £18 payment in respect of meeting expenses and a reversal of a 2021 accrual for £150, relating to a fine that was later rescinded.

At the year end, £2,167 (2022 - £1,255) was due to Antony Gormley and is shown as Other loans in Note 14. There were no other transactions with related parties during the current of prior year.


12.


Fixed asset investments





Listed investments

£



Cost or valuation



At 1 February 2022
7,057,691


Additions
1,075,988


Disposals
(1,188,188)


Revaluations
(115,083)



At 31 January 2023

6,830,408




Net book value




At 31 January 2023
6,830,408



At 31 January 2022
7,057,691


13.



Current asset investments


2023
2022
£
£

Investments - Cash deposits
157,584
99,771

Page 23

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

14.



Creditors: Amounts falling due within one year


2023
2022
£
£


Other loans
2,167
1,255

Trade creditors
372
12,000

Other creditors
-
3,750

Accruals and deferred income
7,524
20,159

10,063
37,164


15.

Statement of funds


Statement of funds - current year

Balance at 1 February 2022
£
Income
£
Expenditure
£
Gains/
(Losses)
£
Balance at 31 January 2023
£

Unrestricted funds






General Funds - all funds

7,141,202

96,120

(92,910)

(80,880)

7,063,532
 



Statement of funds - prior year

Balance at
1 February 2021
£
Income
£
Expenditure
£
Gains/
(Losses)
£
Balance at
31 January 2022
£

Unrestricted funds






General Funds - all funds

6,687,062

84,205

(147,421)

517,356

7,141,202
 




Page 24

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

16.

Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds
2023
Total
funds
2023
        £
        £


Fixed asset investments

6,830,408

6,830,408

Current assets

243,187

243,187

Creditors due within one year

(10,063)

(10,063)

Total 


7,063,532
7,063,532



Analysis of net assets between funds - prior year

Unrestricted funds
2022
Total
funds
2022
        £
        £


Fixed asset investments

7,057,691

7,057,691

Current assets

120,675

120,675

Creditors due within one year

(37,164)

(37,164)

Total 

7,141,202
7,141,202


17.



Reconciliation of net movement in funds to net cash flow from operating activities


2023
2022
£
£

Net income/expenditure for the year (as per Statement of Financial Activities)



(77,670)

454,140

Adjustments for:

Gains/(losses) on investments
80,880
(517,356)

Dividends, interests and rents from investments
(89,510)
(79,030)

Decrease in debtors
-
4,759

Increase/(decrease) in creditors
(27,101)
16,683

Net cash used in operating activities
(113,401)
(120,804)

Page 25

 
THE FOUNDATION FOUNDATION

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023


18.



Analysis of cash and cash equivalents


2023
2022
£
£

Cash in hand
243,187
120,675

Total cash and cash equivalents
243,187
120,675


19.



Analysis of changes in net debt






At 1 February 2022
Cash flows
Changes in market value and exchange rate movements
At 31 January 2023
£
£

£

£

Cash at bank and in hand

20,904

64,699

-

85,603

Debt due within 1 year

(1,255)

(912)

-

(2,167)

Liquid investments

99,771

59,722

(1,909)

157,584


119,420
123,509
(1,909)
241,020

Page 26