The Trustees present their annual report and financial statements for the year ended 31 March 2024.
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 governing document, 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's objects are specifically restricted to, in each case for the public benefit, the advancement of religion, science, literature or education, and the prevention of cruelty to children or animals, or such other exclusively charitable purposes as the Trustees may in their absolute discretion determined.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
During the year, the charity did not make donations to various institutions as in prior year, primarily with focus on: Arts £Nil (2023 - £52,650), health £Nil (2023 - £17,000) and £Nil (2023 - £477,567) to a foundation focused on improving lives.
During the year the charity had net outgoings of £Nil (2023 - £561,642 ), income included income from investments of £Nil (2023 - £31,961). There were no donations received in the year. The charity made donations of £Nil (2023 - £547,217) to various organisations.
Going Concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
Reserves policy
It is the policy of the charity that sufficient unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to cover future commitments. The Trustees considers that reserves at this level will ensure that, 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. This level of reserves has been maintained throughout the year.
Principal funding
During the year the charity did not hold any fundraising activities and no income was generated from voluntary donations.
Investment policy
The Trustees retain the power to invest in such assets as they see fit.
Risk management
The Trustees has assessed the major risks to which the charity is exposed, in particular those related to operations and finances of the charity, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Trustees will continue to support organisations in line with the charity's objectives. The intention is that Richard Hayden, a Trustee of the company, will make additional gifts to the Foundation in the year ended 31 March 2025. The funds to be gifted are currently being invested by the Trustee personally in US Treasury Bills, which will then give ability to make larger grants in the future.
The charity is a charitable company limited by guarantee and was set up by a Memorandum of Association on 31 March 2017 and is a registered charity number 1181341.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.
The Trustees report was approved by the Board of Trustees.
The Trustees, who are also the directors of Family Philanthropy Limited for the purpose 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 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 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 estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements 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 financial statements 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.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Family Philanthropy Limited for the year ended 31 March 2024, 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 Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made to the charity's Trustees, as a body, in accordance with the terms of our engagement letter dated 9 July 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Family Philanthropy Limited and state those matters that we have agreed to state to the charity's Trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Family Philanthropy Limited and the charity's Trustees as a body, for our work or for this report.
It is your duty to ensure that Family Philanthropy Limited 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 deficit of Family Philanthropy Limited. You consider that Family Philanthropy Limited 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 Family Philanthropy Limited. 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.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Family Philanthropy Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 17 Kensington Park Gardens, London, W11 3HD.
The financial statements have been prepared in accordance with the charity's governing document, 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.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit and can be measured reliably.
Support costs are those costs incurred directly in support of expenditure of the objects of the Charitable company.
Governance costs are incurred in connection with the administration of the Charitable company and compliance with constitutional and statutory requirements.
Charitable activities and governance costs incurred on the Charitable company operations, including support costs are apportioned to charitable 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.
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 are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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 1992 to the extent that these are applied to its charitable objects.
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.
The investment held at Wells Fargo was disposed of during the year ended 31 March 2023.
Bank charges
Accountancy fees
The average monthly number of employees (including directors and trustees) during the year was:
In the previous year the charitable company took the decision to transfer its USA share and cash investment holdings to The Hayden Family Foundation, a USA charitable Foundation in which Susan Hayden is also a director. The charitable foundation has the same charitable purpose of improving lives through charitable, educational and scientific endeavours. The value of the investment and cash transferred was £nil (2023: £477,567).