Greggs Foundation Annual Report: Strengthening Communities with Charity and Partnerships, Slides of Accounting

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Charity Registration No. 296590

THE GREGGS FOUNDATION

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2020

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A Davison aBE (Chair) K Bradley R Currie S Haines R Hutton J Irving F Nicholson T Rowson S Singh M Thompson K Wilkinson-Bell

Charity number 296590

Principal address Greggs House Quorum Business Park Newcastle upon Tyne NE12 BBU

Website www.greggsfoundation.org.uk

Auditor RSM UK Audit LLP

Chartered Accountants 1 St. James' Gate Newcastle upon Tyne NE14AD

Bankers National Westminster Bank pic

149 High Street Gosforth Newcastle upon Tyne NE31HA

Investment advisors Brewin Dolphin TIme Central Gallowgate Newcastle upon Tyne NE14SR

TRUSTEES' REPORT (CONTINUED)

FORTHEYEARENDED31DECEMBER

North East Core Fund - makes grants of up to £45,000 to support the core costs of charitable organisations in the North East of England who are supporting their communities.

Our core activities in 2020 also induded our COVID-19 emergency response and recovery support which built on the work that we were already doing through our principal grant programmes. Through all of these programmes we aim to build stronger, healthier communities. Our trustees have had due regard to the guidance issued by the Charity Commission on public benefit when reviewing the Foundation's aim and objectives, in ensuring that these are met through these core activities.

Chair & Manager's report Who could have foreseen how our purpose of building stronger, healthier communities would come to be so acutely relevant in 2020 and how the communities we have supported for over 30 years would need our help more than ever? Our team's dedication and our longstanding networks and partnerships have been vital to enable us to step up and meet this challenge.

Our 2020 achievements

Our year started with plans to grow our reach and impact in the communities we support. However, as March came, we quiddy realised that 2020 was going to be a very different year. We hadn't planned for a pandemic.

Emergency Food Parcels to support Breakfast club schools

Our first response was to recognise the huge change taking place, to identify the areas of greatest need in our communities and to adjust our priorities to enable us best to meet those emerging needs. Having 550 breakfast clubs in primary schools at that time (all in severely deprived areas), providing 36,000 children with a free breakfast every moming was an obvious issue as the first nationallockdown dosed schools from the 20th March. We immediately gave all our breakfast dub schools the opportunity to receive a £500 grant to help make up food parcels which they could send home to their most vulnerable families. This decision was made on the Monday the 9th March. By Thursday the 12th March, we had assessed and awarded grants to over 450 schools.

And we continued to work during the initiallockdown, supporting families and children through our network of breakfast dub schools. In total over £247k was awarded through our school network during those first eight weeks, helped by invaluable support from some of our great partners.

Introduction of Shopping Vouchers

During March the Greggs Foundation team, like so many others, had to adapt to working from home. We watched Greggs pic close its shop doors towards the end of March and knew that this would have an impact on our income, but watched in admiration as their teams went out to distribute unsold food to those in need before they dosed. This made us appreciate more than ever how food really is at the heart of our communities, so we set up a new shopping voucher platform to enable us to issue supermarket vouchers to individuals in need through our hardship programme.

Greggs staff and their families could also access these vouchers and other support through our Helping Hands hardship programme.

In 2020 we awarded £138,450 in shopping vouchers through this scheme, with the majority being issued to support families identified through our network of breakfast club schools.

COVlD-19 Emergency Grants Programme

During 2020 we suspended our Local Community Projects Fund, as this was funded largely from collections in Greggs shops - which had dosed temporarily due to coronavirus restrictions. We also knew that many of the projects that we would usually support were no longer taking place due to these restrictions. We continued to support those projects that were still able to operate by awarding small grants where we could. In March and April, we ran an emergency COVID-19 grants programme, offering small grants to enable local people to support their communities. In total we awarded grants of between £200 and £1,000 to over 220 projects across the country.

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Hardship Programme to the fore

While we had been able to pivot quicldy to help meet the needs of impacted communities, the pandemic also had an adverse impact on our traditional sources of income. We were immensely grateful that Greggs pIc continued to fund the Foundation in 2020, despite the financial and other pressures on the business.

We knew that demand through our hardship programme would rise over 2020 and that many organisations supporting their communities would struggle to keep afloat. To enable us to continue to focus on these fundamental areas at the very core of our purpose, we looked at withdrawing £1 million from our investment portfolio. We applied for a Community Match Challenge grant through the Department for Digital, Culture, Media and Sport (DCMS) and were delighted to receive a £1 miUion offer to fund our hardship and holiday programmes through our Brealcfast Club schools. We were also grateful to receive a £100,000 donation through the Barclays' 100 x 100 programme to support these programmes too, at such a crucial time. We pledged to match fund the £1 million Community Match Challenge grant by withdrawing £750,000 from our investment portfolio, transferring £150,000 from unrestricted funds and by allocating the £100,000 donation from Barclays' 100 x 100 programme. The DCMS grant income has been accounted for as received - in 2020 we received £680,000 of the funding and the remaining £320,000 was been received in the first quarter of 2021. Deployment of our match funding began in Apri12021.

In 2020 we were also successful in obtaining a grant of £40,024 from the Community Foundation of Tyne and Wear and Northumber1and to provide vital support through our hardship programmes. Other long standing partner Trusts and Foundations also continued to support the North East Hardship programme and, in many cases, increased their funding in 2020 to help us meet the huge increase in demand. By the end of 2020 we were regular1y receiving more than twice the number of weekly applications than we had in the preceding year, reflecting the increase in hardship over that time.

Nationally, this additional funding from November onwards meant that we were able to fund 300 to 400 hardship grants through our breakfast dub schools each week compared to 30 to 40 grants each week ear1ier in the year. In our last week before Christmas in 2020, we managed to award over 700 grants in response to demand. The families who needed the most help were identified by the schools who then made the applications on their behalf for the support the school thought they needed most, whether in the form of white goods, beds and bedding, supermarket vouchers or clothing vouchers.

We also provided funding during school holidays and lockdown periods to enable our breakfast dub schools to provide food parcels and other support packages for their children and families.

We started making grants funded through the Community Match Challenge of £1 million on the 9th November and by the end of the year we had awarded £551,642 of the £1 m through 1,747 hardship grants and 274 holiday grants. By the end of 2020 we had awarded over £750,000 through all of our hardship programmes which was a massive increase from £354,280 in 2019.

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TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Andrew Davison, OBE Chainnan Tracy Lynch, Foundation Manager

Outcomes from our programmes in 2020

Our focus is on supporting those most in need in our communities and making the greatest difference with our limited resources. 2020 demonstrated our agility in being able to react quickly and effectively to rapidly changing circumstances to deliver the outcomes below.

Breakfast Club Programme

We started the breakfast dub programme in 1999 because we knew there were children all over the country attending school every day without having breakfast. Hungry children find it harder to concentrate and leam, ultimately impacting their academic attainment.

Back then Greggs took up the charge and established the first Greggs-supported breakfast dub. The Foundation now manages the programme providing a nutritious breakfast to over 39,000 school children each school day. Every school is provided with fresh bread from their nearest Greggs shop and a grant to support start-up and ongoing costs. The average dub costs just £2,500 to set up and run for a year.

We encourage the use of parent volunteers in breakfast dubs. Research has shown the dubs create opportunities to volunteer, helping adults become work ready. Breakfast dubs also help to build relationships, both between pupils who enjoy socialising over a meal, and between the school and the parents benefiting from the extra support.

We receive funding from a range of partners to support these clubs, often private sector companies induding our major partner, Greggs pic. A full list of our breakfast dub partners in 2020 is shown in the 'Our Donors and Supporters' section and we are immensely grateful for their continued support.

• 589 Breakfast clubs

At the end of 2020, the Foundation and its 104 partners supported:

• 39,011^ Children in breakfast clubs each school day
• 7,607,145^ Breakfasts served in 2020

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Community Holiday Club Programme

We started the Community Holiday Programme in 2016, as we recognised that children who attended our breakfast clubs were potentially missing out on the support that they would otherwise get through those clubs during school holidays. Through this programme we provide funding for schools or community projects during school holidays, focusing on areas of deprivation, primarily within reach of breakfast club schools.

We have also been able to enrich the programme by engaging with and building on strong relationships with some of our breakfast club partners. This has enabled us to grow and award more grants to our schools, indirectly supporting families within our communities during the holidays.

In 2020 coronavirus restrictions meant that the typical holiday programme which involved children attending clubs during holidays could not take place, so we adapted our support by funding the provision of food and support packages for families during school holidays and periods of nationallockdown. In total in 2020 we provided grants to schools, totalling £526,902, to support their most vulnerable families.

National Hardship Fund

During 2020 the need for support through our hardship fund grew enormously due to the impact of the pandemic, which had a disproportionate effect on the most vulnerable, with more and more people finding themselves pushed into poverty. Despite being able to afford the least, families in financial hardship often pay the most for basic essentials like buying a cooker or washing machine through a high-cost rent-to-own company. The hardship fund played a vital role in supplying families with basic essentials such as food and clothing vouchers, white goods, beds and bedding.

We are extremely grateful to the support of our partners and funders, including the Department of Digital, Culture Media and Sport. General Mills and Barclays, whose contributions have meant that we were able to support more children and families than we would otherwise have been able to reach alone. To extend the scheme's reach at this important time the Greggs Foundation trustees backed the hardship fund with an additional £ million from their investment reserves.

With all this support we were able award 2,747 hardship grants in 2020 compared to 605 grants in 2019.

Health

In 2020 we continued our partnership with Premiership Rugby to deliver the Tackling Health Programme. This is an interactive programme for children aged seven and eight. which takes a holistic approach to teaching children about their own health and wellbeing and about leading a healthy lifestyle. Designed to educational and dietary standards set by Public Health England, it will be delivered to 45,000 children across England over a three-year period by Premiership Rugby clubs. Due to coronavirus restrictions, in 2020 this programme was adapted to enable delivery to continue through virtual classes.

Community Urban Rivers Regeneration Fund

In 2020 we continued to work in partnership with the Rivers Trust to deliver our Community Urban Rivers Regeneration Fund. This provides funds to local rivers trusts to run educational and community based environmental projects, focused on urban rivers. In 2020 we supported lune Rivers Trust's "Our River Our Future" project and the Mersey Rivers Trust's "love Your River Irk" project with grants of £30,000 each per year for up to three years. They join loch lomond Fisheries Trust, Sevem Rivers Trust, Trent Rivers Trust and Thames 21, who were awarded their grants in 2019 and who are continuing with their work..

This programme has not only resulted in improvements to the environment and opened up areas of rivers to the community but has also encouraged community involvement and engagement in the projects, particularty with hard-to-reach groups through activities such as citizen science, clean ups and river management

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Our structure, governance and management

The Foundation is govemed by its trust deed dated 31 March 1987 (as amended) and is registered with the Charity Commission. The overall strategic direction of the Foundation is the responsibility of the trustees and is developed in conjunction with the Foundation Manager. The trustees are aware of their govemance responsibilities and believe that they have the necessary skills to meet these. The trustee board is the Foundation's goveming body and usually meets formally with the Foundation Manager four times a year, although this was more frequent in 2020 to deal with the impacts of the pandemic both on the Foundation and the communities supported through the Foundation. Large grants including North East Core Funding grants are approved at the trustee board meetings. Authority to make small grants, including those under the Local Community Projects Fund and Hardship Fund, is delegated to the Foundation Manager who oversees the day-to-day management of the Foundation and oversees the local charity committees on behalf of the trustees.

In addition to the formal trustee meetings, five sub-committees exist to assist the trustee board in fulfilling its role. They are: Finance and Audit committee, Breakfast Club committee, Grant Making committee, Monitoring and Evaluation committee and Nominations committee. The formal trustee meetings and sub-committees operate in accordance with their respective terms of reference, which are reviewed regularly.

Foundation governance structure

There are also six local charity committees made up of Greggs pic staff, who support the Foundation, based in the following locations:

• Glasgow
• Newcastle upon Tyne
• Manchester
• Leeds
• BirminghamlTreforest
• London

During 2020, with the majority of Greggs staff furloughed from March, the local charity committees' activities were put on hold with plans to re-establish them in 2021.

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Our trustees who served during 2020 were:

Andrew Davison, OBE (Chair)

Andrew is an independent Trustee who brings his knowledge and expertise from the legal sector and as former Company Secretary of Greggs. He also works with a number of other social, cultural and environmental organisations. Andrew is the Chair of the Foundation's Nominations sub-committee and a member of the Finance and Audit sub-committee.

Kate Bradley

Kate is Operations and Strategy Director at UK Athletics and has a wealth of experience in the charitable sector. Kate is the Chair of the Foundation's Grant Making sub-committee.

Roisin Currie

Roisin is the Retail Operations and People Director of Greggs pic. She brings her expert knowledge of the Greggs business to help Greggs Foundation communicate to 23,000 Greggs people. Roisin is a member of the Nominations sub-committee.

Steve Haines

Steve is Director of Public Affairs at Impetus. Steve brings a wide range of knowledge of working with communities, charity govemance and measuring impact Steve is a member of the Monitoring and Evaluation sub-committee.

Jane Irving (also known as Jane Hartley)

Jane is an Associate with Voluntary Organisations Network North East, a support body for the voluntary, community and social enterprise sector. Jane is a member of the Foundation's Grant Making sub-committee.

Richard Hutton

Richard is Finance Director of Greggs pic. His knowledge of financial govemance and business acumen help the Foundation to be a robust and well-managed organisation. Richard is the Chair of the Foundation's Breakfast Club sub-committee, Chair of the Finance and Audit sub-committee and a member of the Nominations sub- committee.

Undsay Graham (retired)

Lindsay is a child food poverty policy advisor and has long campaigned for children to receive free school meals during the summer holidays as well as in term time. Lindsay was a member of the Monitoring and Evaluation sub-committee. Lindsay stepped down from the board on the 4th of February 2020 due to work commitments and we are very grateful for Lindsay's support and contribution during her time with the Foundation.

Fiona Nicholson

Fiona is a dedicated volunteer for the Foundation, with knowledge of the history and culture of Greggs as a member of the Gregg family. Fiona is a member of the Foundation's Grant Making sub-committee, Breakfast Club sub-committee and Nominations sub-committee.

Sanjay Singh

Sanjay is Head of the NHS Edinburgh Foundation. Sanjay's knowledge of over 20 years in business development from the banking sector, combined with his charitable sector career, gives him unique expertise in understanding how to manage complex high-value funding portfolios with social purpose. Sanjay is a member of the Grant Making sub-committee.

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Our Funders and Partners We are immensely grateful for the continued and invaluable support of our funders and partners who stepped up to the challenge in 2020 and without whom we could not have achieved all that we have in our communities.

We are fortunate to receive continued support from Greggs pIc, who have maintained their donation despite such challenging conditions, Greggs customers who give generously to the Foundation and Greggs staff who fundraise and volunteer their time for us throughout the year.

Funders and partners

7 Layer Solutions Ltd AB Mauri UK & Ireland Agrial Fresh Produce Aksa Homes part of Jigsaw Homes Arta Foods Bank of England Barrhead Travel Believe Housing Bellway Homes Beyond Housing Biffa Biscuit Factory Foundation Blue Barns Poultry Farm Brewin Dolphin British Engines Broadacres Housing Burnley FC in the Comrnunity Caledonia Investments pIc Carrs Flour Mill Cash for Kids Chiesi Ltd Community Foundation Tyne & Wear and Northumberland Confederation of British Industry (CBI) DAC Beachcroft LLP Dalziel Danish Crown David Wood Baking Ltd Dimensions Driver Hire UK Dunbia Endless LLP - Turnaround Foundation English Provender ESS Safeforce Euro Garage Group Findel General Mills Gentoo Gracelands CMS Ltd Greggs pIc Hadrian Trust Ian Gregg Jewson Partnership Solutions Joseph Brough Charitable Trust JT Blakeman Keenans KEP Print Group

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Keytree KPMG Leyland Roundtable 665 Lintz Hall Farm Livin Housing Martin Hart Shopfitting Ltd MOTO in the Community New Charter part of Jigsaw Homes Newcastle Falcons Community Foundation Newcastle United Foundation NORTH North Star Housing Oakfield Foods Ltd Orbit Housing Orion Books Peak Scientific Pilgrim's UK Port of Tyne Pretty Little Thing Qualitest Group - Experior Quom Royal Bank of Scotland SAP Sec-Tech Uk Sir James Knott Trust Stagecoach Sud zucker UK Symingtons Ltd Synergy Flavour Ltd Talent 84 Teal & Mackrill Ltd Thames Valley Housing Association The Chrysalis Trust The Gateshead Housing Company The Joicey T rust The Lower Green Foundation The Rothley Trust The Social Co Thirteen Housing TImpson Torus Foundation Travis Perkins Group Troy Asset Management TSC Food Ltd Tyneside Rotary Club UBSAG UCC Coffee UK & Ireland Virgin Trains East Coast Ward Hadaway Warrens Group Ltd Welbilt UK Limited Wingrove Motor Company Womble Bond Dickinson (UK) LLP Yeo Valley Yoplait Your Homes Newcastle

TRUSTEES' REPORT (CONTINUED)

FORTHEYEARENDED31DECEMBER

The Finance and Audit committee of the trustees meets periodically to review investment performance and to make recommendations on investment strategy to the trustees. In setting their investment strategy, the trustees consider the income requirements of the Foundation and risk profile. This strategy is set within an overall policy which states that the Foundation's accumulated funds, excluding the shareholding in Greggs, are to be invested in medium risk investments with a view to ensuring that capital appreciation (including income) of the fund exceeds inflation by an agreed margin.

The trustees have the discretion to widen the investment portfolio and continue to take advice from Brewin Dolphin. At 31 December 2020 the total value of the portfolio was £21,148,235 (2019: £22,625,886). The change in the investment portfolio was due to changes in the market value of the portfolio and the disinvestment of £250,000 to fund our response to the coronavirus pandemic.

Public benefit The trustees review the Foundation's public benefit annually against Charity Commission guidance and are entirely satisfied that the Foundation continues to fulfil a valuable public benefit. We continue to meet our aim and objectives through our grant making policy and our principal grant programmes. In 2019 the Foundation developed an outcomes framework, which will enable us to better measure our impact across all of our activities.

Trustee recruibnent, induction and training The trustees have the authority to nominate and appoint new trustees. The trustee board considers a prospective trustee's skills, knowledge and experience to support the Foundation's aim. Newly appointed trustees are briefed on their legal obligations under charity law, the content of the trust deed, the committee and the decision- making processes, the business plan and recent financial performance of the Foundation. New trustees are appointed by the existing trustees. An induction meeting with the Chair takes place followed by meetings with the Foundation Manager. New trustees are provided with an induction pack based on Charity Commission essential guidance for new trustees which indudes our previous year's annual report, annual review, a copy of goveming trust deed and a brief history of the Foundation. New trustees are encouraged to visit beneficiary charities with a member of staff from the Foundation team. Periodic training is arranged for trustees.

Financial Review The financial results for the year are summarised in the Statement of Financial Activities. Total incoming resources in 2020 were £3,888,667 (2019: £3,621,097). Total resources expended were £3,630,773 (2019: £3,669,025) resulting in net incoming resources before investment losses of £257,894 (2019: deficit of £47,928).

This result comprises two key elements; a planned deficit on unrestricted activities of £333,300 reflecting our decision to utilise existing reserves to provide additional support during the Covid pandemic in 2020, a commitment that will continue into 2021; and a surplus of £591,194 on restricted activities reflecting income being received in advance of the activities to which it relates.

Despite the utilisation of unrestricted reserves in 2020 and that planned for 2021, our balance sheet and the availability of funds in the short and long term remains extremely strong.

Reserves The trustees have the benefit of a substantial investment fund, consisting of shares in Greggs pic and also a well-diversified portfolio of investments under professional management. Their objective is to make grants each year which, when added to the costs of running the Foundation, broadly equal the Foundation's income.

The trustees' policy is to seek to maintain free reserves (excluding the equity investments and restricted/designated income funds), at such a level as to meet the short-term running costs of the Foundation for a minimum period of two months. Based on current activity this gives a target level of £605,129. At 31 December 2020, free reserves excluding the investment fund equity balance of £20,738,372 and designated/restricted funds amounted to a surplus of £247,923 (2020: surplus of £160,350).

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The Foundation has the flexibility of access to its investment portfolio should the necessity arise. Additionally, funds have already been designated of £693,137 in order to complete ongoing grant programmes. The trustees are of the view that funds received should be directed towards the delivery of charitable purpose, hence maintaining the relatively modest unrestricted free reserve.

Related third parties The Foundation is closely associated to, but independent of, Greggs pic. The trustees of the Foundation take aU decisions in the best interest of the furtherance of the Foundation and its charitable objectives.

Safeguarding and whistle blowing The Foundation's safeguarding and whistle blowing policies reflect the areas of work that we are involved in. The Foundation takes its duties seriously and there is a clear process to follow if there is any cause for concern. These policies are reviewed in line with changes in policy or guidance from the Charity Commission and other relevant bodies.

Risk management The trustees have sought to identify the major risks to which the Foundation may be subject Systems have been established which are designed to mitigate all major risks to the extent possible. Trustees review the risk management strategy and the major risks to which the charity is exposed on a quarterly basis. The review covers governance, financial, operational, compliance and external risks. Risks identified are prioritised on the basis of likelihood of occurrence and potential impact.

Auditor

A resolution to reappoint RSM UK Audit LLP as auditor will be put to the Trustee Board before the end of the next financial year.

Disclosure of infannation to auditor Each of the trustees has confirmed that there is no infannation of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

, 14th May 2021 The trustees report was approved by the Board of Trustees on.

A Davison aBE (Chair)

Trustee 14th May 2021 Dated:.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GREGGS

FOUNDATION

Opinion We have audited the financial statements of The Greggs Foundation (the 'charity') for the year ended 31 December 2020 which comprise the Statement of Financial Activities induding Income and Expenditure Account, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, induding 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, induding FRS 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 charity's affairs as at 31 December 2020 and of its incoming resources and application of resources, 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 Charities Act 2011.

Basis for opinion We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, induding the FRC's Ethical Standard and we have fulñlled 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 charity'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.

Other information

The other information comprises the information included in the Trustees' Report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the Trustees' Report. Our opinion on the financial statements does not cover the other information and, 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.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GREGGS

FOUNDATION (CONTINUED)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the Trustees' Report; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and retums; or we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, set out on page 16, the trustees' are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal 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 concem, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the trustees either intend to cease operations, or have no realistic altemative but to do so.

Auditor's 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 auditor's 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.

The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with govemance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• obtained an understanding of the nature of the sector, including the legal and regulatory framework, that the charity operates in and how the charity is complying with the legal and regulatory framework;
• inquired of management, and those charged with govemance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
• discussed matters about non-compliance with laws and regulations and how fraud might occur induding assessment of how and where the financial statements may be susceptible to fraud.