Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
Registered Charity No. 1042671
MORGAN STANLEY INTERNATIONAL FOUNDATION
Report of the Trustees and Financial Statements
31 December 2024
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
| CONTENTS | PAGE |
|---|---|
| Report of the trustees | 1 |
| Independent auditor's report | 7 |
| Statement of financial activities | 10 |
| Statement of financial position | 11 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 |
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION REPORT OF THE TRUSTEES
The Trustees present their annual report and financial statements of Morgan Stanley International Foundation (the “Foundation”) for the year ended 31 December 2024.
REFERENCE AND ADMINISTRATIVE INFORMATION
Charity Name: Morgan Stanley International Foundation Charity registration number: 1042671 Registered Office and operational address: 25 Cabot Square Canary Wharf London E14 4QA
TRUSTEES
The following Trustees held office during the year and to the date of this report:
| A Armstrong | |
|---|---|
| S Anselm | |
| N Fogarasi | Resigned 7thJuly 2025 |
| D Fuhrman | |
| J Glynn | Resigned 1stJanuary 2024 |
| M Gregotti | Resigned 1stJanuary 2024 |
| J Harriman | Resigned 26thFebruary 2025 |
| D Kitterick | Resigned 27thFebruary 2025 |
| E Laino | |
| K Lazaroo | Chair |
| C Nicholls | Resigned 1stMarch 2024 |
| Z Parish | Resigned 16thDecember 2024 |
| O Stuart | |
| R Weinberg | |
| C Woodman | |
| J- F Mazaud | |
| L.McCord | |
| A.Munkelt | |
| N Katugampola | Appointed 12thDecember 2024 |
| D Mayer | Appointed 12thDecember 2024 |
| S Wilson | Appointed 12thDecember 2024 |
| I Ansari | Appointed 28thFebruary 2025 |
| L Potter | Appointed 28thFebruary 2025 |
The Trustees meet a minimum of four times a year.
SECRETARY
Paul Bartlett
AUDITOR
Deloitte LLP, Statutory Auditor, HALO, Counterslip, Redcliffe, Bristol, BS1 6AJ.
BANKERS
HSBC Bank plc, 60 Fenchurch Street, London, United Kingdom, EC3M 4BA.
INVESTMENT MANAGER
Sarasin & Partners LLP, Juxon House, 100 St Paul’s Churchyard, London, EC4M 8BU.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION REPORT OF THE TRUSTEES (CONTINUED)
OBJECTIVES AND ACTIVITIES
The principal objective of the Foundation is to make a positive and sustainable impact on children’s welfare in disadvantaged communities across the Europe, Middle East and Africa (“EMEA”) region. Focusing primarily on child health and education, the Foundation works in partnership with charitable organisations to direct funding and utilise the expertise of Morgan Stanley employees to benefit the communities in which Morgan Stanley operates. There have been no changes to the principal activity of the Foundation in the year.
Public Benefit
In setting the objectives and planning the activities of the Foundation, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit. Through supporting local communities in line with the objectives outlined above, the Foundation meets the requirements of this guidance.
Giving Strategy
2024 saw the roll out of an enhanced strategy by increasing both funding and employee involvement, with the aim to create bigger impact and better outcomes for children and young people, over a five-year period.
The Foundation increased its level of giving to a broader number of charities, with the intention of fostering long-term partnerships, aiming to distribute £15 million during this period.
In this first year, through donations from employees and funding from the Foundation, over £2.9 million was provided to ten partner charities in London, Budapest, Glasgow, Frankfurt and Paris.
Grant Policy
Over the past few years, the pandemic and continuing cost of living crisis has deeply affected the life outcomes of children in our communities. To respond to this increasing need, the Foundation has partnered with ten charities across EMEA to identify innovative ways to create better impact and build longer term sustainable change, supporting healthy starts and solid educations for children in our local communities.
The charities supported are Alliance pour l’education – United Way, Bagazs, Csodalampa, Kinderschutzbund, Die Arche, Possibilities for Each and Every Kid (“PEEK”), Place2Be, Restos du Coeur, Save the Children UK and The Felix Project (“TFP”).
Charities were selected through a comprehensive assessment process that considered how impactful, innovative and inspiring each cause and project were.
Diversity and Inclusion
Diversity and inclusion are a fundamental focus for the Foundation and having a diverse Board of Trustees is important to its continued success and ability to meet its objectives. To this end, the Foundation considers diversity of perspectives, backgrounds, and work experience in addition to other demographics when appointing members to the Board of Trustees. Diversity and inclusion are also a key focus of the Foundation’s selection process of the charities it supports. Analysis is performed to ensure that charities’ programmes reach a diverse range of individuals.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION REPORT OF THE TRUSTEES (CONTINUED)
ACHIEVEMENTS AND PERFORMANCE
The Foundation has started strongly on its aim of creating a bigger impact and better outcomes for children and young people.
In 2024, the Foundation’s support positively impacted children and young people by addressing societal issues, including food insecurity, poverty alleviation, social mobility, physical and mental health support, and equal access to education.
Funding supported disadvantaged children and young people by feeding families with over 10,500 nutritious meals, providing 379 emergency grants, delivering 3,177 vital mental health support sessions in schools and hospitals, and offering 2,732 tailored educational workshops which create pathways for social mobility. A breakdown of grants greater than £20,000 is provided in Note 5.
Morgan Stanley employee contributions included:
-
Expertise: Over 9,000 hours of pro bono support to 27 charitable organisations
-
Time: 90% of colleagues volunteered in our local communities, contributing over 60,000 hours
-
Money: Nearly £1 million donated across the region, including matching from the Foundation
The trustees are finalising the framework for collecting data to fully evidence the achievement of the Foundation’s five-year goals.
FINANCIAL REVIEW
The net inflow of funds in the year was £883,247 (2023: £1,152,926) and the total funds at the end of the year were £5,080,556 (2023: £4,197,309). The Foundation's statement of financial position shows net current assets of £1,811,682 (2023: £1,475,923). The Foundation has access to liquid securities within the investment portfolio, classified as fixed assets, which can be liquidated at any time to meet funding needs.
The level of donations received in 2024 increased by £1,851,063 to £2,994,990 (2023: £1,143,927) primarily driven by an increased Morgan Stanley Group donation from Morgan Stanley & Co. International plc (“MSIP”) in order to support the Foundation’s new strategy.
In 2024, grant expenditure of £2,890,586 (2023: £431,566) was recognised, which increased by £2,459,020 from the prior year. The movement is due to increased expenditure as outlined in the ‘Giving Strategy’ section of this report. The Foundation’s restricted expenditure in 2024 of £292,393 was predominantly driven by employee donations to Strategic Charity Partners in London throughout the year (2023: £112,552). The restricted employee donations represent approximately 10% of the total 2024 grant expenditure (2023: 26%). See Note 5 of the Financial Statements for other significant grants.
Going Concern and Principal Funding Sources
The principal funding sources for the Foundation continue to be donations from MSIP and Morgan Stanley employees. Employee donations have been, and continue to be, raised internally via various Morgan Stanley fundraising activities. The Foundation does not participate in external fundraising or engage others to do so on their behalf. No changes are foreseen to the principal funding sources in 2025 and 2026.
The Foundation will only commit to making payments of charitable donations if there are sufficient funds available to do so and it continues to meet its reserves policy, as outlined on page 4. Taking these factors into consideration, the Trustees have no reason to believe that the Foundation will not have access to adequate funding sources to continue in operational existence for the foreseeable future i.e. at least twelve months from the approval of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
Investment Policy and Performance
All investments held by the Foundation have been acquired in accordance with the powers available to the Trustees.
In accordance with the Trust Deed, the Trustees have the power to invest in such stocks, shares, investments and property as they see fit. The Foundation’s investment strategy is to maintain overall wealth, preferably in real terms. The Foundation's neutral position is to invest 80% in the Sarasin Endowments Fund and 20% in the Sarasin Income & Reserves Fund.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION REPORT OF THE TRUSTEES (CONTINUED)
FINANCIAL REVIEW (CONTINUED)
Investment Policy and Performance (Continued)
During the year, the portfolio produced a positive return of 10.5% (2023: positive return of 8.1%). In 2024, the Foundation’s investment portfolio had a relative underperformance of 2.2% (2023: underperformance of 2.7%) compared to the Sarasin reference benchmark.
Risk Management
The Trustees regularly assess the major risks to which the Foundation is exposed , in particular risks related to the operations and finances of the Foundation and are satisfied that systems are in place to mitigate these risks.
The principal operational risks faced by the Foundation are its ability to access its financial assets and make effective grants. Risks associated with access to the Foundation’s financial assets are mitigated through clear segregation of duties, control of access rights and supervision by Trustees. The risk from ineffective grant making is managed through performance of due diligence procedures on prospective grantees, Trustee oversight regarding alignment of grant making with the objectives of the Foundation and monitoring the delivery of grant projects.
The Foundation’s principal financial risks are mitigated by Trustees review of relevant financial information on a quarterly basis (including investment performance, actual expenditure against budget, current level of reserves and cash flow analysis) and utilising Sarasin & Partners LLP as manager and custodian of its investment portfolio.
Restricted and Unrestricted Funds
Restricted funds are reserved for selected Strategic Charity Partners in London and are not made available for any other purpose. Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation.
Reserves Policy
In line with the Statement of Recommended Practice (“SORP”) 2019 and Charity Commission guidelines, the Trustees regularly review the effectiveness of the Foundation’s reserves policy. As at 2024, the Foundation’s reserve policy is to maintain a level of reserves greater than 100% of current year budgeted expenditure in liquid assets to cover future commitments and contingent liabilities, to safeguard the risk of a downturn in contributions and to ensure that the Foundation provides regular, sustained and consistent support to its designated charities. Effective from 2025, the Trustees approved an update to the Foundation’s reserves policy. Under this revised policy, the Foundation will maintain reserves at a level exceeding 50% of its committed expenditure, ensuring the most efficient use of the Foundation’s reserves while safeguarding against financial uncertainties.
As at 31 December 2024, the Foundation’s level of reserves is in excess of the requirement set out in this policy at 216% (2023: 438%) of the current year budget. Budgeted expenditure for the year to 31 December 2024 was £2,351,220 (2023: £958,109), giving rise to excess reserves of £2,729,336 (2023: £3,239,200). Total Funds of £5,080,556 (2023: £4,197,309), readily available in the form of cash and investments, represent the liquid assets under the reserves policy. As at both 31 December 2024 and 31 December 2023, the Foundation’s Restricted Funds were £nil.
The Foundation’s level of reserves is monitored by the Trustees throughout the year.
PLANS FOR FUTURE PERIODS
The Foundation’s strategy evolved in 2024 with the aim of creating a bigger impact and better outcomes for children and young people by increasing its level of giving to a broader number of charities for a longer period of up to five years. Refer to ‘Giving Strategy’ on page 2 for further details.
2025 will see the introduction of a new programme, the EMEA Impact Through Innovation Awards. This annual programme will seek to grant charitable organisations funding to implement new, innovative projects with the aim of improving outcomes for children and young people.
No other significant change in the Foundation’s principal activity is anticipated.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION REPORT OF THE TRUSTEES (CONTINUED)
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
The Foundation is established as a Trust under a Charitable Trust Deed (the “Trust Deed”) dated 18 November 1994 as amended by a Deed of Variation dated 10 July 2014 and is registered with the Charity Commission.
Trustees Recruitment and Training
The power of appointing new Trustees of the Foundation is vested in the Trustees. When considering appointing a new Trustee, the Board considers diversity and inclusion and has regard to the requirement for complete representation from business units across Morgan Stanley. The Trust Deed provides for a minimum of three with no maximum number of Trustees.
New Trustees receive relevant induction information and briefings, which involve awareness of a Trustee’s responsibilities, the governing document, administrative procedures, and the history and philosophical approach of the Foundation. New Trustees are briefed on their legal obligations under charity law, the content of the Trust Deed, the Board of Trustees and decision-making processes, and recent financial performance of the Foundation.
Trustees are appointed for an initial term of three years, renewable by re-appointment for a further term of three years. Trustees serve a three-year term, which may be renewed once, with the exception of the chair who does not have a fixed term.
Organisational Structure
The Trustees meet at least quarterly and are responsible for the strategic direction and policy of the Foundation. At present, the Board of Trustees includes sixteen members from a variety of professional backgrounds.
The Board of Trustees delegates the day-to-day administrative duties, including finance and initial grant application reviews, to employees of Morgan Stanley. When reviewing grant applications, each applicant is required to undergo a due diligence process that includes a review of the Charities Commission register and screening by Morgan Stanley’s Security group.
The Board of Trustees may delegate any of their powers or functions to committees consisting of two or more persons appointed by them, with at least one member of every committee being a Trustee. All proceedings of committees are reported to the Trustees within a reasonable period.
Key Management Personnel Remuneration
The Trustees and key management personnel (for example, Finance and Community Affairs) of the Foundation in charge of directing and controlling the Foundation give their time freely and receive no remuneration or expenses for their services to the Foundation.
Related Party Relationships
The principal funding sources for the Foundation are donations from MSIP, a subsidiary of Morgan Stanley, and donations from Morgan Stanley employees. Furthermore, all Trustees are Morgan Stanley employees. Details of any related party transactions are disclosed in note 14 to the financial statements.
Events After the Reporting Date
There are no significant events after the reporting date.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION REPORT OF THE TRUSTEES (CONTINUED)
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees are responsible for preparing the Annual Report of the Trustees and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
The law applicable to charities in England & Wales 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 of the charity 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 Statement of Recommended Practice;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper 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 Charities Act 2011 (as amended in the Charities Act 2022), the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed.
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 are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the Board of Trustees on 9[th] October 2025 and signed on its behalf by
K. Lazaroo DE3D3BFF099E494. Trustee 09 October 2025
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF
MORGAN STANLEY INTERNATIONAL FOUNDATION
Report on the audit of the financial statements
Opinion
In our opinion the financial statements of Morgan Stanley International Foundation (the “charity”):
-
give a true and fair view of the state of the charity’s affairs as at 31 December 2024 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, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
-
have been prepared in accordance with the requirements of the Charities Act 2011 and the Trust Deed.
We have audited the financial statements which comprise:
-
the Statement of Financial Activities;
-
the Statement of Financial Position;
-
the Statement of Cash Flows; and
-
the related notes 1 to 18.
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).
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 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, including the Financial Reporting Council’s (the FRC’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 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 annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual 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.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF
MORGAN STANLEY INTERNATIONAL FOUNDATION (CONTINUED)
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement, 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 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
We considered the nature of the charity’s industry and its control environment, and reviewed the charity’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the Trustees about their own identification and assessment of the risks of irregularities, including those that are specific to the charity’s business sector.
We obtained an understanding of the legal and regulatory frameworks that the charity operates in, and identified the key laws and regulations that:
-
had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Charities Act, Trust Deed, Charities (Accounts and Reports) Regulations 2008; and
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do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty. This included the Charity Commission and General Data Protection Regulation.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our procedures performed to address it are described below:
- we presume a risk of material misstatement due to fraud in revenue recognition which is related to the completeness of donation income. To address this risk, we reviewed the Trustees’ meeting minutes, all bank statements in the period, and post year end records up to the date of this report to test whether income had been appropriately included in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls; we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF
MORGAN STANLEY INTERNATIONAL FOUNDATION (CONTINUED)
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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enquiring of management concerning actual and potential litigation and claims, and instances of noncompliance with laws and regulations; and
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reading minutes of meetings of those charged with governance.
Report on other legal and regulatory requirements
Matters on which we are required to report by exception
Under the Charities (Accounts and Reports) Regulations 2008 we are required to report in respect of the following matters if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the Trustees’ report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Use of our report
This report is made solely to the charity’s Trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s 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 charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
7EB54235A1DF4FO... Deloitte LLP Statutory Auditor Bristol, United Kingdom 09 October 2025
Deloitte LLP is eligible for appointment as auditor for the charity by virtue of its eligibility for appointment as audit of a company under section 1212 of the Companies Act 2006.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 December 2024
| Note | Restricted Funds Unrestricted Funds |
Total Funds 2024 Total Funds 2023 |
|||
|---|---|---|---|---|---|
| INCOME FROM: | £ £ |
£ £ |
|||
| Donations: | |||||
| Organisations | 3 | - 2,994,990 |
2,994,990 1,143,927 |
||
| Other | 3 | 285,070 - |
285,070 102,677 |
||
| Investment income | 4 | - 103,249 |
103,249 96,646 |
||
| Other income | 7,323 153,331 |
160,654 93,483 |
|||
| TOTAL INCOME | 292,393 3,251,570 |
3,543,963 1,436,733 |
|||
| EXPENDITURE ON: | |||||
| Raising funds: | |||||
| Investment management costs | - (27,101) |
(27,101) (24,747) |
|||
| Charitable activities: | |||||
| Employee volunteering | 5 | - (36) |
(36) (164) |
||
| Grants | 5 | (292,393) (2,598,193) |
(2,890,586) (431,566) |
||
| TOTAL EXPENDITURE | (292,393) (2,625,330) |
(2,917,723) (456,477) |
|||
| Net gains on investment | 8 | - 263,197 |
263,197 178,153 |
||
| Other recognised losses | - (6,190) |
(6,190) (5,483) |
|||
| NET INCOME | - 883,247 |
883,247 1,152,926 |
|||
| NET MOVEMENT IN FUNDS | - 883,247 |
883,247 1,152,926 |
|||
| TOTAL FUNDS AT THE BEGINNING OF THE YEAR |
- 4,197,309 |
4,197,309 3,044,383 |
|||
| TOTAL FUNDS AT THE END OF THE YEAR | - 5,080,556 |
5,080,556 4,197,309 |
The notes on pages 13 to 21 form an integral part of the financial statements.
All activities were continuing in the current and prior year.
See Note 15 for comparative Statement of Financial Activities.
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION
STATEMENT OF FINANCIAL POSITION As at 31 December 2024
| As at 31 December 2024 | |||||
|---|---|---|---|---|---|
| Restricted | Unrestricted | Total Funds | Total Funds Total Funds |
||
| Note | Funds | Funds | 2024 | 2024 2023 |
|
| £ | £ | £ | £ £ |
||
| FIXED ASSETS | |||||
| Investments | 8 | 600,000 | 3,068,874 | 3,668,874 | 874 3,321,386 |
| CURRENT ASSETS | |||||
| Debtors | 9 | 61,317 | - | 61,317 | 61,317 - |
| Cash at bank and in hand | 10 | 204,736 | 2,486,252 | 2,690,988 | 988 2,043,647 |
| 266,053 | 2,486,252 | 2,752,305 | 2,752,305 2,043,647 |
||
| LIABILITIES | |||||
| Creditors: Amounts falling due within one year |
11 | (466,053) | (466,053) (474,570) |
(940,623) | (940,623) (567,724) |
| NET CURRENT (LIABILITIES)/ASSETS |
(200,000) | 2,011,682 | 1,811,682 | 1,811,682 1,475,923 |
|
| Creditors: Amounts falling due after one year |
12 | (400,000) | - | - (400,000) |
(400,000) (600,000) |
| NET ASSETS | - | 5,080,556 | 5,080,556 | 556 4,197,309 |
|
| THE FUNDS OF THE CHARITY | |||||
| Restricted funds | - | - | - | - - |
|
| Unrestricted funds | - | 5,080,556 | 5,080,556 | 556 4,197,309 |
|
| TOTAL FUNDS | 13 | - | 5,080,556 | 5,080,556 | 556 4,197,309 |
The notes on pages 13 to 21 form an integral part of the financial statements.
See Note 16 for comparative Statement of Financial Position.
Approved by the Board of Trustees on and signed on its behalf by:
Kim hagervos [ KinDE3D3BFFO99E494...of by: K Lazaroo Trustee 09 October 2025
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Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION
STATEMENT OF CASH FLOWS Year ended 31 December 2024
| Note | Total Total |
|---|---|
| Funds Funds |
|
| 2024 2023 |
|
| £ £ |
|
| NET CASH FLOWS FROM OPERATING ACTIVITIES 17 |
653,531 455,037 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |
| Dividends and other income from investments 8 |
17,834 3,011 |
| Investment management costs paid during the year 8 |
(18,958) (24,747) |
| NET CASH FLOWS USED IN INVESTING ACTIVITIES | (1,124) (21,736) |
| CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR |
652,407 433,301 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR |
2,132,590 1,704,772 |
| Net losses on cash and cash equivalents due to exchange rate movements |
|
| (6,190) (5,483) |
|
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR |
2,778,807 2,132,590 |
| RECONCILIATION TO CASH AT BANK: | |
| Cash at bank 10 |
2,690,988 2,043,647 |
| Cash held byinvestment manager 10 |
87,819 88,943 |
| CASH AND CASH EQUIVALENTS | 2,778,807 2,132,590 |
The notes on pages 13 to 21 form an integral part of the financial statements.
12
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024
1. BASIS OF PREPARATION
Charitable status
The Foundation is established as a Trust under a Charitable Trust Deed (the “Trust Deed”) dated 18 November 1994 as amended by a Deed of Variation dated 10 July 2014 and is registered with the Charity Commission.
Statement of compliance
The Foundation meets the definition of a public benefit entity under FRS 102.
These financial statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to these financial statements. These financial statements have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 January 2019; and the Charities Act 2011 (as amended in the Charities Act 2022). They have all been applied consistently throughout the year and the preceding year.
Certain presentational changes have been made to the Statement of Cash Flows for 2024. There is no impact on total amounts reported.
New standards and interpretations
There were no new standards or interpretations relevant to the Foundation’s operations which were adopted during the year. The Exposure Draft SORP is being reviewed in preparation for its implementation in the future, ensuring a comprehensive understanding of the forthcoming changes and their impact. The Foundation does not expect the adoption will have a material impact on its financial statements.
The going concern assumption
The Foundation’s activities, together with the factors likely to affect its future development, performance and position are set out in the Report of the Trustees. The Foundation has sufficient resources to cover future pledged liabilities and continually monitors reserve levels to ensure reserves are held are in excess of the reserves requirement. The principal funding sources for the Foundation continue to be donations from MSIP and from Morgan Stanley employees. Employee donations have been raised internally via various Morgan Stanley fundraising activities. The Foundation does not participate in external fundraising or engage others to do so on their behalf. No changes are foreseen to the principal funding sources in 2025 and 2026.
Taking these factors into consideration, the Trustees have no reason to believe that the Foundation will not have access to adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the annual Report of the Trustees and financial statements.
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES
a. Fund structure
Restricted funds are reserved for Strategic London Charity Partners and are not made available for any other purpose. Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation.
b. Income recognition
All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.
Donations and interest on funds held on deposit are recognised when receivable and the amount can be measured reliably by the Foundation; this is typically upon notification of receipt by the bank.
13
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 December 2024
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
c. Expenditure recognition
Expenditure is recognised as soon as there is a legal or constructive obligation committing the Foundation to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Charitable activities expenditure includes grants payments made to third party charities in the furtherance of the charitable objectives of the Foundation (specifically direct charitable grants and employee matching grants) and costs of employee fundraising activities.
Grants are recognised when the Foundation has a legal or constructive obligation to make the grant. For direct grants, this is typically once a recipient charity has been notified of a grant award.
d.
Functional currency
Items included in the financial statements are measured and presented in Pounds Sterling, the currency of the primary economic environment in which the Foundation operates.
All currency amounts in the financial statements are rounded to the nearest thousand Pounds Sterling.
e. Foreign currencies
All monetary assets and liabilities denominated in currencies other than Pound Sterling are translated in Pound Sterling at the rates ruling at the balance sheet date. Transactions in currencies other than Pound Sterling are recorded at the rates ruling at the dates of transactions. All translation differences are taken through “Other recognised gains/(losses)” in the Statement of Financial Activities.
f. Investments
Investments held in an investment portfolio are stated at their fair value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.
g. Cash and cash equivalents
For the purposes of the Statement of Cash Flows, Cash and Cash Equivalents comprise cash at bank and in hand and cash held by the investment manager with original maturities of three months or less, that are readily convertible to known amounts of cash and subject to insignificant risk of change in value.
h.
Financial instruments excluding investments
Financial assets and liabilities primarily comprise debtors, cash at bank and in hand and creditors. Debtors are measured at their recoverable amount. Creditors are recorded at their settlement amount.
i. Taxation
The Foundation is recognised as a charity for taxation purposes and as a result no liability to taxation arises on its charitable activities.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
j. Donated services
The Foundation relies on the employees of Morgan Stanley for various administrative tasks of which the costs cannot be reliably measured and are borne by another Morgan Stanley Group undertaking.
k.
Critical accounting judgements and key sources of estimation uncertainty
No critical judgements have been made in the process of applying the Foundation’s accounting policies that have had a significant effect on the amounts recognised in the financial statements. There are no key sources of estimation uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next financial year.
3. DONATIONS
Donations from organisations represent monies received from MSIP. Other donations to the restricted funds represent monies received from employees within the Morgan Stanley EMEA group of companies.
14
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 December 2024
4. INVESTMENT INCOME
| Dividends and interest from investments | 2024 £ 2023 £ 103,249 96,646 |
|---|---|
5. GRANTS
During the year, the following grants of amounts greater than or equal to £20,000 were made or have been committed to the following beneficiaries:
Year ended 31 December 2024
| Restricted Funds Strategic London Charity Partners Unrestricted Funds Save The Children (London/Glasgow) The Felix Project (London) Place2Be (London) PEEK (Glasgow) Kinderschutzbund (Frankfurt) Alliance Pour L’Education (Paris) Bagazs (Budapest) Csodalampa (Budapest) Die Arche (Frankfurt) Restos Du Coeur (Paris) CAF Onlus (Milan) Fundacion Tomillo (Madrid) Other grants made or committed of less than £20,000 (including matched funding) Total Unrestricted Funds Grants Total Grants Support costs |
£ £ 292,393 706,000 18 589,700 427,700 166,000 144,108 124,495 114,949 112,947 103,399 54,757 23,143 21,077 9,918 2,598,193 2,890,586 36 |
£ £ 292,393 706,000 18 589,700 427,700 166,000 144,108 124,495 114,949 112,947 103,399 54,757 23,143 21,077 9,918 2,598,193 2,890,586 36 |
|---|---|---|
| 2,890,586 | ||
| 36 |
In 2024, the restricted and unrestricted fund grants were made to charities supporting the following initiatives: Education (£1,079,837), Hunger (£936,851), Children’s Mental Health (£427,700), Poverty (£310,108) and Health (£136,090).
Grants greater than or equal to £20,000 as disclosed above are in excess of 99.6% (2023: 89.7%) of grant expenditure for the year.
Amounts which have been committed to Strategic London Charity Partners are comprised of amounts raised by employees.
Support costs comprise of bank fees incurred for making payments to the relevant grant recipients.
15
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 December 2024
5. GRANTS (CONTINUED)
Year ended 31 December 2023
| Restricted Funds London Employee Nominated Charity Partnership: The Felix Project Unrestricted Funds Anna Freud (London) Coup de Pouce (Paris) Foundacion Tomillo (Madrid) OSA (Budapest) Glasgow Children’s Hospital Charity (Glasgow) Career Ready (Glasgow) Children’s Hospices Across Scotland (Glasgow) Bator Tabor (Budapest) Basis Point (Dublin) Other grants made or committed of less than £20,000 (including matched funding) Total Unrestricted Funds Grants Total Grants Support Costs |
£ £ 112,552 49,292 36,217 30,180 30,147 30,000 30,000 25,000 22,160 21,632 44,386 319,014 431,566 164 |
£ £ 112,552 49,292 36,217 30,180 30,147 30,000 30,000 25,000 22,160 21,632 44,386 319,014 431,566 164 |
|---|---|---|
| 431,566 | ||
| 164 |
In 2023, the restricted and unrestricted fund grants were made to charities supporting the following initiatives: Health (£187,069), Children’s Education (£140,189), Children’s Mental Health (£79,439) and other initiatives (£24,869).
6. STAFF COSTS
The Foundation incurs no staff costs (2023: £nil) as services are donated. The Trustees and key management personnel received no fees or expenses for their services to the Foundation (2023: £nil).
7. TAXATION
The Foundation qualifies as a charity within the definition of Chapter 3 of Part 11 to the Corporation Tax Act 2010 by HM Revenue & Customs. Income used for the purposes of the Foundation is exempt from taxation.
16
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 December 2024
8. INVESTMENTS
| Market value at 1 January Net gains on revaluation Investment income (note 4) Investment management costs paid during the year Market value at 31 December Cost of investment portfolio at 31 December |
Investments 2024 £ Cash 2024 £ Total 2024 £ Investments 2023 £ Cash 2023 £ Total 2023 £ 3,232,443 88,943 3,321,386 2,960,655 110,679 3,071,334 245,372 17,825 263,197 175,409 2,744 178,153 103,240 9 103,249 96,379 267 96,646 - (18,958) (18,958) - (24,747) (24,747) 3,581,055 87,819 3,668,874 3,232,443 88,943 3,321,386 3,455,269 3,351,414 |
|---|---|
Market value analysed between:
| Cash held by investment manager Investment funds: Equity investment funds Fixed income investment funds Alternative investment, commodities & real estate Total investments held by investment manager |
2024 £ 2023 £ 87,819 88,943 2,423,905 2,013,245 723,981 792,634 433,169 426,564 |
|---|---|
| 3,581,055 3,232,443 |
|
| 3,668,874 3,321,368 |
All investments are carried at their fair value as determined by the investment manager. Holdings in investment funds are valued at the bid price.
9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |
|---|---|
| 2024 2023 |
|
| Restricted Funds Debtors |
£ £ |
| 61,317 - |
10. CASH AND CASH EQUIVALENTS
For the purposes of the statement of cash flows, cash and cash equivalents comprise the following balances, which have less than three months maturity from the date of acquisition:
| 2024 2023 |
|
|---|---|
| £ £ |
|
| Cash at bank and in hand | 2,690,988 2,043,647 |
| Cash held by investment manager | 87,819 88,943 |
| 2,778,807 2,132,590 |
17
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 December 2024
11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 12. 13. |
2024 | 2023 £ 441,818 - 441,818 84,347 34,366 7,193 567,724 |
|||
|---|---|---|---|---|---|
| £ | |||||
| Restricted Funds | |||||
| Amount payable to: | |||||
| The Felix Project | 200,000 | ||||
| Strategic London Charity Partners | 266,053 | ||||
| 466,053 | |||||
| Unrestricted Funds | |||||
| Grant funds committed and not yet paid | 3,377 | ||||
| Matching funds committed | 463,049 | ||||
| Accrued investment management costs | 8,144 | ||||
| 940,623 | |||||
| CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR | |||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Restricted Funds | |||||
| Amount payable to The Felix Project | 400,000 | 600,000 |
|||
| MOVEMENT IN FUNDS As at 31 December 2024 Restricted Funds Unrestricted Funds £ £ At 1 January 2024 - 4,197,309 Income 292,393 3,251,570 Expenditure (292,393) (2,625,330) Gain on investments - 263,197 Foreign exchange losses - (6,190) At 31 December 2024 - 5,080,556 |
Total Funds £ 4,197,309 3,543,963 (2,917,723) 263,197 (6,190) 5,080,556 |
||||
| - 5,080,556 |
18
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 December 2024
13. MOVEMENT IN FUNDS (CONTINUED)
As at 31 December 2023
| As at 31 December 2023 | |
|---|---|
| At 1 January 2023 Income Expenditure Gain on investments Foreign exchange losses At 31 December 2023 |
Restricted Funds TFP Unrestricted Funds Total Funds £ £ £ - 3,044,383 3,044,383 112,552 1,324,181 1,436,733 (112,552) (343,925) (456,477) - 178,153 178,153 - (5,483) (5,483) |
| - 4,197,309 4,197,309 |
The restricted funds represent monies payable to the Foundation’s Strategic London Charity Partners (In 2023 Restricted Funds represents monies payable to The Felix Project).
The unrestricted funds are available to be spent for any purpose permitted in the Trust Deed at the discretion of the Trustees.
14. RELATED PARTY TRANSACTIONS
In 2024, the Foundation received from MSIP, a subsidiary of Morgan Stanley, donations totalling £2,994,990 (2023: £1,143,927) to unrestricted funds.
The audit fee of £20,000 (2023: £20,000) has been borne by a Morgan Stanley Group company in both the current and prior years and not charged to the Foundation.
19
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 December 2024
15. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES
| Restricted Funds Unrestricted Funds Total Funds 2023 |
|
|---|---|
| £ £ £ |
|
| INCOME FROM: | |
| Donations: | |
| Organisations | - 1,143,927 1,143,927 |
| Other | 102,677 - 102,677 |
| Investment income | - 96,646 96,646 |
| Other income | 9,875 83,608 93,483 |
| TOTAL INCOME | 112,552 1,324,181 1,436,733 |
| EXPENDITURE ON: | |
| Raising funds: | |
| Investment management costs | - (24,747) (24,747) |
| Charitable activities: | |
| Employee volunteering | - (164) (164) |
| Grants | (112,552) (319,014) (431,566) |
| TOTAL EXPENDITURE | (112,552) (343,925) (456,477) |
| Net losses on investment | - 178,153 178,153 |
| Other recognised losses | - (5,483) (5,483) |
| NET INCOME | - 1,152,926 1,152,926 |
| TRANSFERS | |
| Transfer between funds | - - - |
| NET MOVEMENT IN FUNDS | - 1,152,926 1,152,926 |
| TOTAL FUNDS AT THE BEGINNING OF THE YEAR |
- 3,044,383 3,044,383 |
| TOTAL FUNDS AT THE END OF THE YEAR | - 4,197,309 4,197,309 |
20
Docusign Envelope ID: 8068DFE5-C8DE-4A47-85BE-D076808FFD67
MORGAN STANLEY INTERNATIONAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 December 2024
16. COMPARATIVE STATEMENT OF FINANCIAL POSITION
| Restricted | Unrestricted | Total |
||
|---|---|---|---|---|
| Funds | Funds | Funds | ||
| 2023 | ||||
| £ | £ | £ | ||
| FIXED ASSETS | ||||
| Investments | 750,006 | 2,571,380 | 3,321,386 | |
| CURRENT ASSETS | ||||
| Debtors | - | - | - | |
| Cash at bank and in hand | 291,812 | 1,751,835 | 2,043,647 | |
| 291,812 | 1,751,835 | 2,043,647 | ||
| LIABILITIES | ||||
| Creditors: Amounts falling due within one year | (441,818) | (125,906) | (567,724) | |
| NET CURRENT (LIABILITIES)/ ASSETS | (150,006) | 1,625,929 | 1,475,923 | |
| Creditors: Amounts falling due after one year | (600,000) | - | (600,000) | |
| NET ASSETS | - | 4,197,309 | 4,197,309 | |
| THE FUNDS OF THE CHARITY | ||||
| Restricted funds | - | - | - | |
| Unrestricted funds | - | 4,197,309 | 4,197,309 | |
| TOTAL FUNDS | - | 4,197,309 | 4,197,309 | |
| 17. | RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH | FLOW PROVIDED BY | ||
| OPERATING ACTIVITIES | ||||
| 2024 | 2023 | |||
| £ | £ | |||
| NET MOVEMENT IN FUNDS | 883,247 | 1,152,926 | ||
| Adjustments for: | ||||
| (Gains) on investments | (263,197) | (178,153) | ||
| Investment management costs paid during the year | 18,958 | 24,747 | ||
| Dividends and interest from investments | (103,249) | (96,646) | ||
| (Increase)/Decrease in debtors | (61,317) | 245 | ||
| Increase/(Decrease) in creditors | 172,899 | (453,565) | ||
| FX on grants during the year | 6,190 | 5,483 | ||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 653,531 | 455,037 | ||
| 18. | EVENTS AFTER THE REPORTING DATE |
There are no significant events after the reporting date.
21