The Trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's memorandum and articles of association, the Companies Act 2006 and "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) (as amended for accounting periods commencing from 1 January 2019)".
The objects of the Charity are such charitable purposes as the trustees of the charity may in their absolute discretion determine.
The Charity is established as a grant-making charity which will continue to provide grants in furtherance of its exclusively charitable purposes. The trustees will make grants to be applied for exclusively charitable purposes in areas where people, in particular children and young people, are affected by ineffective infrastructure, environmental challenges and limited social support.
Policies and objectives for public benefit
The Charity will continue to provide benefit to the public through the making of grants in support of a charitable causes, including advancing healthcare and education, relieving need through disadvantage and supporting community development. Beneficiaries of the grant are likely to be wide ranging and would include hospital patients, healthcare workers, researchers, school children, teachers and the wider community, amongst others.
The Trustees will advertise any upcoming opportunities to apply for grants through appropriate methods, including the use of the Charity’s website: www.quercusfoundation.org and advertising in specialist press.
The objectives of the Foundation will be achieved through fundraising initiatives, private donations and bespoke events.
The Trustees are of the opinion that they have complied with their duties under section 17(5) of the 2011 Charities Act to have due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
On October 19, 2022, the Board of Trustees convened to re-initiate discussions around child sponsorship techniques and opportunities to support children in need. At that time, it was acknowledged that the ongoing cost-of-living crisis continued to put more children at risk of falling into poverty, with many unable to meet their basic needs.
Child sponsorship remains one of the most effective tools for long-term development, offering a positive and lasting impact on children’s lives. While trustees had begun exploring strategy, frameworks, timeline, location, and functionality, no further progress has been made on these discussions since the last update. Additionally, no trustee meetings have occurred in the past year to advance potential projects. The board remains committed to revisiting these efforts when circumstances allow, and once a clear strategy is defined, the search for aligned partners and relevant charitable initiatives will continue.
During the course of the year to 31 December 2023, the charity continued to look at future projects in line with its charitable objectives. As noted, the scope for future projects have been specifically refocused and so consequently, the current year’s results presently have little activity to report.
The total costs incurred by the Charity in the year are summarised in the attached accounts. The intention is to render the Foundation as efficient as possible and thereby maximise the amounts used for charitable purposes.
Once new projects are underway, it remains the intention of the Charity for unrestricted funds which have not been designated for a specific use, should be maintained at a level equivalent to between three- and six-month’s expenditure. The Trustees considers that reserves at this level will ensure that going forward, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised.
Going Concern
The charity since incorporation has met its working capital requirements through donations received. The charity has also received significant support from Quercus investment Partners Limited, a company which Mr. Diego Biasi, a trustee is the managing director. Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and consider it appropriate to prepare the accounts on a going concern basis.
Risk Management
The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to governance, operations and finance of the company. Trustees have also considered external factors where joint venture activities are concerned. The Board are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
The Quercus Foundation hopes to start up again soon. It will continue to focus specifically on supporting charitable purposes in areas where people, in particular children and young people, are affected by ineffective infrastructure, environmental challenges and limited social support.
Constitution
The Charity is a company limited by guarantee and not having a share capital, with a registered charity number 1160720. The Foundation’s governing document is the memorandum and articles of association.
The principal object of the Foundation is set out in the ‘Objects’ section.
The Trustees, who are also the directors for the purpose of company law, and who served during the year were:
Method of appointment or election of Trustees
Trustees are invited to join the board on the basis of their knowledge, and association with Quercus Foundation, or for their technical expertise in fields which will assist in the furtherance of the objectives of the charity. Quercus Foundation leverages its significant investment and fundraising expertise to improve the lives of children and young people living in extreme poverty. With a focus on health, education and infrastructure, we identify and invest in projects that make the most significant improvement to children’s lives in the long term. Quercus Foundation believes that diversity is an important factor for accountability and public confidence and takes this into consideration when choosing its board of trustees.
Trustees are responsible for controlling a charity’s management and administration.
They are responsible for ensuring that a charity’s income and property are used only for the purposes set out in the charity’s governing document and for no other purpose.
Trustees have a responsibility to act reasonably and prudently in all matters relating to the charity and have a responsibility to act in the best interests of the charity.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Organisational structure and decision making
The Charity is governed by a Board of Trustees who are responsible for setting the strategic direction of the Quercus Foundation and for establishing policy. The Trustees meet every 6 months to one year depending on the activity of the Foundation.
Policies Adopted for the induction and training of Trustees
The Quercus Foundation seeks to achieve continuous improvement in the service it provides to beneficiaries and continues to adopt current good practice in relation to trustee recruitment and induction. It has developed a robust induction that provides new trustees with information, both about their role and responsibility as trustees as well as about the charity, its purpose, financial position and current issues.
When recruiting new members to the board, the charity’s existing trustee board are fully aware of the need to check that new candidates for trusteeship are legally eligible and have the necessary skills, knowledge and experience their board requires. This ensures that the charity is well governed, and run effectively, economically, and appropriately to its size and complexity.
Existing trustees have access to the Charity Commission’s “Responsibilities of Charity Trustees (CC3)” and have read and understood the contents. Trustees are clear about the charity’s purpose and aims and understand their broader duties and responsibilities as trustees is to ensure both that they are acting in the best interests of the charity, and that they are in a position to explain to new trustees what is required of them.
Existing trustees have a clear role to play in overseeing the effective management of an open and efficient process.
Trustees ensure that they, rather than staff, retain overall responsibility and control of the trustee recruitment, selection and induction process.
The Trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of Quercus Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these accounts, 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 estimates that are reasonable and prudent; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees' report has been prepared in accordance with the provisions applicable to companies subject to the small companies' regime in section 419(2) of the Companies Act 2006.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Quercus Foundation for the year ended 31 December 2023, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at https://www.accaglobal.com/gb/en/member/standards/rules-and-standards/rulebook.html.
This report is made to the charity's Trustees, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Quercus Foundation and state those matters that we have agreed to state to the charity's Trustees, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at https://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Quercus Foundation and the charity's Trustees as a body, for our work or for this report.
It is your duty to ensure that Quercus Foundation has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of Quercus Foundation. You consider that Quercus Foundation is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of Quercus Foundation. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Cost of raising funds
All income and expenditure derive from continuing activities.
Quercus Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 11 Albemarle Street, London, England, W1S 4HH.
The financial statements have been prepared in accordance with the Charity's memorandum and articles of association, the Companies Act 2006 and "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 Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The Charity since incorporation has met it's working capital requirements through donations received. The charity has also received continuing support from Quercus Investment Holding Limited, a company in which Mr Diego Biasi, a Trustee is the managing Director. The trustees are also seeking to create a fund to provide sufficient working capital to cover at least twelve months of unrestricted expenditure and on this basis, the Trustees consider it appropriate to prepare the accounts on the going concern basis.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
All resources expended are inclusive of irrecoverable VAT.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
Company status
The charity is a company limited by guarantee. The members of the company are the Trustees named on page 4. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
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 charity and which have not been designated for other purposes.
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
None of the Trustees (or any persons connected with them) received any remuneration during the year.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1990 to the extent that these are applied to its charitable objects.
The surplus on the restricted fund in the current period amounted to £8,075.
During the year the Charity entered into the following transactions with related parties:
During the year an amount of £2,500 (2022:£2,500) was pledged towards the running costs of the charity from Quercus Investment Holding Ltd. Mr D Biasi is a director of Quercus Investment Holding Ltd.