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2020-12-31-accounts

NFTS Foundation

Report and Financial Statements

Year Ended

31 December 2020

Company registration number 03290399

Report and financial statements for the year ended 31 December 2020

NFTS Foundation

Contents

Page

1 Report of the Trustees 5 Independent Auditor's Report 8 Statement of Financial Activities 9 Balance Sheet 10 Notes to the Financial Statements

Reference and Administrative Information

Trustees

Ken Roberts – Chair of Trustees Judith Chan Linda James Stephen Louis

Secretary and Registered Office

Trevor Hall Beaconsfield Studios Station Road Beaconsfield Buckinghamshire HP9 1LG

Management Team

Dr Jon Wardle Alex Gurney Trevor Hall

Company Registration Number

03290399

Charity Registration Number

1061561

NFTS Foundation

Report and financial statements for the year ended 31 December 2020 (continued)

Reference and Administrative Information (continued)

Auditors

BDO LLP 2 City Place Beehive Ring Road Gatwick West Sussex RH6 0PA

Bankers

Lloyds Bank PLC 25 Gresham Street London EC2V 7HN

Solicitors

Eversheds Sutherland LLP 1 Wood Street London EC2V 7WS

Investment Managers

Investec Wealth & Investment Limited 30 Gresham Street London EC2V 7QN

NFTS Foundation

Report of the Trustees for the year ended 31 December 2020

The trustees, who are also directors of the charity for the purposes of the Companies Act, present their annual report together with the audited financial statements for the year ended 31 December 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in October 2019, preparing the annual report and financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. This report includes the directors’ report as required by company law.

Trustees

The trustees of the NFTS Foundation during the year were:

Ken Roberts – Chair of Trustees Judith Chan Linda James Stephen Louis William Tudor-John (resigned 15 May 2021)

The NFTS Foundation's trustees have given generously of their time and expertise for which the NFTS Foundation and the National Film and Television School are extremely grateful.

Structure, Governance and Management

Organisation and Decision Making Structure

NFTS Foundation (“the Foundation”) is a charitable company limited by guarantee, which was established on 11 December 1996. It is governed by a Memorandum and Articles of Association.

The principal advisers at the date of this report are listed on the previous page.

Connected Charities

The National Film and Television School (“the School”) is a charity connected with the Foundation.

By mutual agreement, all costs associated with fundraising activities are borne by the School. The Foundation invests grants, donations and scholarships received for investment. The Foundation donates income and capital from invested funds to the School. The trustees review the Foundation’s investment performance and strategy.

Investment Policy (including reserves policy)

Grants, donations and other income received from various organisations and individuals are invested in a broad range of securities and equities to provide income for the School in the future. As at 31 December 2020, the reserves of the charity represent funds to contribute to the long-term funding of the School.

The Foundation trustees take great care to ensure that these investments are effectively managed by the Foundation's investment managers Investec Wealth & Investment Limited. Representatives of Investec Wealth & Investment Limited attend the Foundation meetings and provide regular updates on investment performance and strategy.

The Foundation's reserves policy is to hold an investment portfolio of at least £3m, the individual amounts being held in accordance with all donor wishes and obligations. At 31 December 2020, the Foundation’s reserves were £4.7m, £1.7m higher than the minimum value set out in the Foundation’s reserve policy.

The income generated from this level of reserves enables the Foundation to provide a consistent level of funding to the School each year.

1

NFTS Foundation

Report of the Trustees

for the year ended 31 December 2020 (continued)

Organisation and Decision Making Structure (continued)

Powers of Investment

The powers of investment of the Foundation as stated in its Memorandum of Association include exercising the following powers:

The board of trustees confirms that all investments are held in accordance with these powers.

Risk Management

The trustees examine the major risks that the charity faces each financial year, and have developed systems to monitor and control these risks to mitigate any impact that they may have on the company in the future.

Accounting Policies

Accounting policies that have been applied during the year are outlined in the notes to the financial statements.

Objectives and Activities

The Foundation was established to help in the advancement of the education of the public in film, television and other media, and in particular the advancement of education and research at or supported by the School or any charity or educational establishment connected or associated with the School.

The School is responsible for all fundraising activity for both the School and the Foundation’s investment fund.

Financial Review

Total income for the Foundation for the year ended 31 December 2020 was £426k (2019 – £137k).

Investment income in the year was £103k (2019 – £137k). This related to dividends and interest earned during the year and represented an average rate of return of 2.4% on the Foundation's £4,178k investment portfolio at 1 January 2020.

Donations received in the year for the John Sargent Scholarship, Nik Powell Scholarship, and James Walker NFTS Writers Fund were £322k (2019 – £Nil).

Total expenditure in the year was £140k (2019 – £140k). Expenditure represented the annual contribution to the School, this being the £120k donation for scholarships, masterclasses and bursaries, and investment management costs.

Market value movements on the investment portfolio generated a net investment gain (realised and unrealised) for the year of £3k, compared with an investment gain of £443k in the previous year. The net movement in funds for the year was an increase of £289k and represented a 6.5% increase in the value of the Foundation's funds.

The fund balance at 31 December 2020 was £4,677k (£4,388k at 31 December 2019) and represented an equities/cash and fixed interest investment mix of 82/18, compared to a mix of 87/13 in the previous year.

The trustees have invested prudently and cautiously during the year. The investment funds raised are held in a broad range of fixed interest securities and equities, which are quoted on a recognised investment exchange.

2

for the year ended 31 December 2020 (continued)

NFTS Foundation

Report of the Trustees

Future Activities

Fundraising activities will continue to be undertaken by the School on behalf of the Foundation. These activities aim to:

The Foundation trustees will continue to exercise prudent oversight over the performance of the funds invested to ensure that the funds continue to meet the charitable objectives of the Foundation.

The trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern based on a review of cash flow forecasts and expected investment performance.

The trustees aim to distribute approximately £120k per annum generated by annual dividend and interest returns on the Foundation’s investment portfolio, for the benefit of the School. However, all distributions by the Foundation are at the discretion of the trustees.

The investment portfolio is diversified across a number of sectors and markets, adopting a prudent investment strategy to ensure investment returns are sustainable. At the height of the Covid-19 pandemic in March 2020, the value of the investment portfolio fell to £3.7m, a fall of 16%. Since then, the portfolio has recovered well with the value of the investment portfolio recovering to £4.6m as at March 2021, in line with the year-end position. This is £1.6m above the minimum level set out in the Foundation’s reserves policy.

Public Benefit

The Foundation meets its public benefits requirement as a charity by distributing grants to the School and scholarships to the School’s students. The trustees are aware of their responsibilities with regards to the public benefits requirement and are conversant with the Charity Commission guidance.

Statement of Trustees’ Responsibilities

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements, the trustees are required to:

3

NFTS Foundation

Report of the Trustees

for the year ended 31 December 2020 (continued)

Statement of Trustees’ Responsibilities (continued)

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions, and 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.

Auditors

All of the current trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the company's auditors for the purposes of their audit and to establish that the auditors are aware of that information. The trustees are not aware of any relevant audit information of which the auditors are unaware.

This report has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

On behalf of the Board

Ken Roberts

Chair of Trustees

Date 07 July 2021

4

NFTS Foundation

Independent Auditor’s Report

Independent Auditor’s Report to Members of NFTS Foundation

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of NFTS Foundation (“the Charitable Company”) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including 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 related to going concern

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

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

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

Other information

The Trustees are responsible for the 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 other information comprises the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

5

NFTS Foundation

Independent Auditor’s Report (continued)

Independent Auditor’s Report to Members of NFTS Foundation (continued)

Other Companies Act 2006 reporting

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

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustee’s report.

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

Responsibilities of Trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 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.

6

NFTS Foundation

Independent Auditor’s Report (continued)

Independent Auditor’s Report to Members of NFTS Foundation (continued)

Extent to which the audit was 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:

Based on our understanding of the Charitable Company and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to their registration with the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the Financial Statements or their continued operation. We also considered those laws and regulations that have a direct impact on the financial statements such as compliance with the Companies Act 2006 and tax legislation.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.

The audit procedures to address the risks identified included:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an 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 Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paula Willock (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Gatwick UK

Date: 13 July 2021

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

7

NFTS Foundation

Statement of Financial Activities (including income and expenditure account) for the year ended 31 December 2020

Unrestricted
funds
Note
2020
£
Income and endowments
from:
Donations
6
-
Investments
7
3,323
_
Total income
3,323
__
Expenditure on:
_Raising funds
Investment management costs
8
645
Charitable activities
Education
9
4,000
_
Total expenditure
4,645
_
Net gains on investments
112
Net income/(expenditure)
(1,210)
Transfers between funds
(1,730)
_
Net movement in funds
14
(2,940)
_
Reconciliation of funds:
Total fund balances brought
forward at 1 January
14
147,750
__
Total fund balances carried
forward at 31 December
14
144,810
 Permanent
Restricted
endowment
funds
funds
2020
2020
£
£
59,680
262,666
99,869
-
_
_
159,549
262,666
_
_
19,382
-
116,000
-
_
_
135,382
-
_
_
2,783
585
26,950
263,251
1,730
-
_
_
28,680
263,251
_
_
3,687,589
552,849
_
_
3,716,269
816,100

 Total
Funds
2020
£
322,346
103,192
__
425,538
__
20,027
120,000
__
140,027
__
3,480
288,991
-
__
288,991
__
4,388,188
__
4,677,179
 Total
Funds
2019
£
-
136,965
_
136,965
_
20,155
120,000
_
140,155
_
443,211
440,021
-
_
440,021
_
3,948,167
__
4,388,188

All amounts relate to continuing activities.

The notes on pages 10 to 19 form part of these financial statements.

8

NFTS Foundation

Balance Sheet at 31 December 2020

Company number 03290399

Note
Fixed assets
Investments
12
Current assets
Cash and cash equivalents
Net assets
Funds of the charity:
Permanent endowment funds
14
Restricted funds
14
Unrestricted funds
14
Total charity funds		 2020
£
4,457,092
220,087
__
4,677,179
__
816,100
3,716,269
144,810
__
4,677,179
 2019
£
4,178,000
210,188
__
4,388,188
_
552,849
3,687,589
147,750
_
4,388,188

These accounts have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Approved by the trustees and authorised for issue on 07 July 2021 and signed on their behalf by:

Ken Roberts Chair of Trustees

Stephen Louis Trustee

The notes on pages 10 to 19 form part of these financial statements.

9

NFTS Foundation

Notes to the Financial Statements for the year ended 31 December 2020

1 Status of the company

The Foundation is a private company limited by guarantee and is a registered charity incorporated in England and Wales. Each member’s liability is limited, upon winding up, to an amount not exceeding ten pounds.

2 Accounting policies

(a) Basis of preparation

The financial statements of the Foundation have been prepared under the historic cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Foundation constitutes a public benefit entity as defined by FRS 102.

(b) Assessment of going concern

The trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern based on a review of cash flow forecasts and expected investment performance.

The trustees aim to distribute approximately £120k per annum generated by annual dividend and interest returns on the Foundation’s investment portfolio, for the benefit of the School. However, all distributions by the Foundation are at the discretion of the trustees.

The investment portfolio is diversified across a number of sectors and markets, adopting a prudent investment strategy to ensure investment returns are sustainable. At the height of the Covid-19 pandemic in March 2020, the value of the investment portfolio fell to £3.7m, a fall of 16%. Since then, the portfolio has recovered well with the value of the investment portfolio recovering to £4.6m as at March 2021, in line with the year-end position. This is £1.6m above the minimum level set out in the Foundation’s reserves policy.

(c) Funds structure

Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Foundation and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Foundation for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Permanent endowment funds are funds where a principal sum is held and only the income generated can be used. The donor instructs the principal sum to be held and the income generated is used in accordance with specific restrictions imposed by the donor.

Transfers between endowment funds and restricted funds are made to ensure the principal sum invested is always recognised in the endowment funds with income and investment costs transferred to restricted funds.

Investment income and losses are allocated to the appropriate fund on the basis of the value of the fund at the beginning of the year.

An analysis of the charitable funds has been disclosed in note 14.

10

for the year ended 31 December 2020 (continued)

NFTS Foundation

Notes to the Financial Statements

2 Principal accounting policies (continued)

(d) 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 are recognised when the Foundation has been notified in writing of both the amount and settlement date.

In the event that a donation is subject to conditions that require a level of performance before the Foundation is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Foundation and it is probable that those conditions will be fulfilled in the reporting period.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Foundation; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the investment advisor of the dividend yield of the investment portfolio.

(e) Expenditure

All costs, except investment management costs, associated with the Foundation and fundraising activities are borne by the School.

(f) Cash and cash equivalents

Cash and cash equivalents consists of cash at bank, deposits and short term investments with an original maturity of three months or less.

(g) Taxation

The Foundation is an exempt charity within the meaning of Part 3 of the Charities Act 2011. It is therefore a charity within the meaning of Para 1 of Schedule 6 to the Finance Act 2010 and accordingly, the Foundation is potentially exempt from taxation in respect of income or capital gains received within categories covered by Sections 478 – 488 of the Corporation Tax Act 2010 (CTA 2010) or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.

Expenditure includes irrecoverable Value Added Tax charged by suppliers to the Foundation. Irrecoverable VAT is charged against the category of expenditure for which it was incurred.

(h) Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Foundation does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the Foundation is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

(i) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

11

NFTS Foundation

Notes to the Financial Statements

for the year ended 31 December 2020 (continued)

3 Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the trustees have made the following judgements:

4 Related party transactions and trustees’ expenses and remuneration

During the course of the year, the Foundation and the School entered into a number of related party transactions. The transactions represented fundraising initiatives undertaken to support the scholarship programme, donations towards bursaries, and donations towards the running cost of the curriculum. At 31 December 2020 an amount of £Nil (2019 – £Nil) was owed by the School to the Foundation. During the year the Foundation made total donations to the School of £120,000 (2019 – £120,000) (see note 8).

Key management personnel are considered to be the School’s Director and Finance Director.

The trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2019 – £Nil). During the year, none of the trustees received any reimbursement for meeting expenses (2019 – £Nil). There were no transactions with trustees and connected persons during the year.

During the year, insurance costing £1,000 (2019 – £1,000) was purchased to indemnify the trustees against default on their part. The School paid this during the year on behalf of the Foundation.

5 Connected charities

The Foundation was incorporated to help in the advancement of the education of the public in film, television and other media and in particular the advancement of education and research at or supported by the School or any charity or educational establishment connected or associated with the School.

6 Donations

Unrestricted
funds
£
Donations
-
_
-
_
7
Investment income
Unrestricted
funds
£
Listed investments
3,323
__
3,323
 Permanent
Restricted
endowment
funds
funds
£
£
59,680
262,666
_
_
59,680
262,666
_
_
Permanent
Restricted
endowment
funds
funds
£
£
99,869
-
_
_
99,869
-

 Total
2020
£
322,346
_
322,346
_
Total
2020
£
103,192
__
103,192
 Total
2019
£
-
__
-
_
Total
2019
£
136,965
_
136,965

Investment income is apportioned across the funds based on the fund balance held at the start of the year.

12

NFTS Foundation

Notes to the Financial Statements

for the year ended 31 December 2020 (continued)

8 Investment management costs

Investment management fees 2020
£
20,027
__		 2019
£
20,155
__

9 Analysis of charitable expenditure

During the year, donations of £120,000 (2019 – £120,000) were made to the School. These donations represent £40,000 towards scholarships and £80,000 towards the curriculum (masterclasses and bursaries).

All other costs associated with the Foundation's fundraising activities are borne by the School because there is an integrated fundraising programme for the School and for the Foundation.

10 Employee emoluments

No staff are employed by the Foundation (2019 – £Nil).

11 Auditors' remuneration

The audit fee of £3,570 (2019 – £3,540) was borne by the School.

12 Fixed asset investments

Movement in quoted investments:
Market value brought forward as at 1 January
Additions to investments at cost
Disposals at carrying value
Gain on revaluation
Market value as at 31 December
Cost
2020
£
These investments are represented by:
Quoted investments:
UK fixed interest
484,266
UK equities
1,753,576
Overseas fixed interest
122,188
Overseas equities
649,835
__
3,009,865
 Market
value
2020
£
513,559
2,389,843
124,718
1,428,972
__
4,457,092
 2020
£
4,178,000
663,230
(516,592)
132,454
_
4,457,092
_
Cost
2019
£
537,420
1,733,665
30,215
561,926
__
2,863,226
 2019
£
3,547,218
398,114
(203,638)
436,306
__
4,178,000
_
Market
value
2019
£
553,182
2,450,688
28,701
1,145,429
_
4,178,000

13

for the year ended 31 December 2020 (continued)

NFTS Foundation

Notes to the Financial Statements

12 Fixed asset investments (continued)

The following investments represented more than 5% of the value of the portfolio as at 31 December 2020:

Number of units Market Value £ % of portfolio
Ishares Core S & P 500 Ucits Etf USD 11,700 318,445 7.1
Merian Invest Mgmt Merian UK Mid Cap U1 GBP 124,894 236,673 5.3
Findlay Park Fds American USD Dis 1,925 222,217 5.0

The following investments represented more than 5% of the value of the portfolio as at 31 December 2019:

Number of units Market Value £ % of portfolio
Ishares Core S & P 500 Ucits Etf USD 11,700 284,573 6.8
Merian Invest Mgmt Merian UK Mid Cap U1 GBP 124,894 214,442 5.1

Investments are retained by the Foundation for the long term to generate income for the School and to ensure that the objectives of the charity are fulfilled.

Investment in equities and fixed interest securities are all traded in quoted public markets. The basis of fair value for quoted investments is equivalent to the market value, using bid price.

13 Financial instruments

Financial assets measured at fair value through profit or loss comprise fixed asset investments in a trading portfolio of listed company shares. Details of these can be found in note 12.

The significance of financial instruments to the ongoing financial sustainability of the Foundation is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report.

The main risk to the Foundation from financial instruments lies in the combination of uncertain investment markets and volatility of yield. Due to market sentiment favouring lower risk investments, the yield on bonds has been abnormally low giving rise to a significant downside risk of a fall in capital values when interest rates return to normal levels.

The Foundation’s investments are mainly traded in markets with good liquidity and high trading volumes; therefore liquidity risk is assessed as low. The Foundation has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Foundation manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Foundation does not make use of any derivatives or complex financial instruments.

14

NFTS Foundation

Notes to the Financial Statements for the year ended 31 December 2020 (continued)

14 Analysis of charitable funds

Analysis of fund movements
year ended 31 December 2020
Permanent endowment funds:
The Louis Malle Scholarship
Post Office Scholarship
Kodak Scholarship
John Sargent Scholarship
Nik Powell Scholarship
Total permanent endowment funds
Restricted funds:
Lew Grade Chair
Cubby Broccoli Chair
Richard Dunn Scholarship
David Munro Fund – Human Rights
Documentary Award
Michael Samuelson Scholarship
Freddie Young Scholarship
Freddie Francis Scholarship
The Stanley Kubrick Fellowship
The Colin Young Scholarship
The Trevor Jones Scholarship
Sir John Terry Memorial Scholarship
The Louis Malle Scholarship
Post Office Scholarship
Kodak Scholarship
John Sargent Scholarship
James Walker NFTS Writers Fund
Total restricted funds
Unrestricted funds:
General reserves
Total unrestricted funds
Total funds		 Fund
balances
brought
forward
£
117,711
296,533
138,605
-
-
_
552,849
_
1,996,729
985,121
529,654
80,758
389
4,187
5,522
21,700
4,288
5,657
36,297
7,047
388
9,852
-
-
_
3,687,589
_
147,750
_
147,750
_
4,388,188
 Expenditur
e
Income
(net of
transfers)
£
£
-
-
-
-
-
-
200,000
-
62,666
-
_
_
262,666
-
_
_
44,909
(48,715)
22,157
(34,299)
11,912
(9,312)
1,816
(353)
9
(2)
94
(1,018)
124
(4,024)
488
(20,095)
96
(19)
127
(25)
816
(1,158)
2,806
(2,545)
6,678
(7,066)
3,339
(4,148)
4,498
(873)
59,680
-
_
_
159,549
(133,652)
_
_
3,323
(6,375)
_
_
3,323
(6,375)
_
_
425,538
(140,027)

 Gains
and
losses
£
95
225
113
152
-
_
585
_
1,515
747
402
61
-
3
4
16
3
4
28
-
-
-
-
-
_
2,783
_
112
_
112
_
3,480
 Fund
balances
carried
forward
£
117,806
296,758
138,718
200,152
62,666
__
816,100
__
1,994,438
973,726
532,656
82,282
396
3,266
1,626
2,109
4,368
5,763
35,983
7,308
-
9,043
3,625
59,680
__
3,716,269
__
144,810
__
144,810
__
4,677,179

15

NFTS Foundation

Notes to the Financial Statements for the year ended 31 December 2020 (continued)

The restricted funds of £3,716k include £665k to provide scholarships and bursaries (Richard Dunn, Freddie Young, Freddie Francis, Sir John Terry, Colin Young, Trevor Jones, James Walker), £2,969k for Chairs (Lew Grade, Cubby Broccoli), and £82k to support documentary film making concerning human rights (David Munro Fund).

The permanent endowment funds of £816k are endowments to provide scholarships (Louis Malle, Post Office, Kodak, John Sargent, Nik Powell).

Donations in the year included £60k restricted funds (James Walker NFTS Writers Fund), and £263k restricted endowment funds (John Sargent Scholarship and Nik Powell Scholarship).

The dividends earned on the funds during the year of £103k, the realised loss of £129k, the unrealised profit of £132k and the investment management costs of £20k have been allocated across the funds based on the brought forward fund balances at 1 January 2020.

16

NFTS Foundation

Notes to the Financial Statements for the year ended 31 December 2020 (continued)

14 Analysis of charitable funds (continued)

Analysis of fund movements
year ended 31 December 2019
Permanent endowment funds:
The Louis Malle Scholarship
Post Office Scholarship
Kodak Scholarship
Total permanent endowment funds
Restricted funds:
Lew Grade Chair
Cubby Broccoli Chair
Richard Dunn Scholarship
David Munro Fund – Human Rights
Documentary Award
Michael Samuelson Scholarship
Freddie Young Scholarship
Freddie Francis Scholarship
The Stanley Kubrick Fellowship
The Colin Young Scholarship
The Trevor Jones Scholarship
Sir John Terry Memorial Scholarship
The Louis Malle Scholarship
Post Office Scholarship
Kodak Scholarship
Total restricted funds
Unrestricted funds:
General reserves
Total unrestricted funds
Total funds		 Restated
Fund
balances
brought
forward
£
105,446
266,605
123,666
_
495,717
_
1,783,721
889,019
469,989
72,952
341
3,667
7,463
19,005
3,755
4,954
36,167
3,815
-
9,414
_
3,304,262
_
148,188
_
148,188
_
3,948,167
 Income
Expenditur
e
£
£
-
-
-
-
-
-
_
_
-
-
_
_
61,879
(49,107)
30,841
(34,538)
16,304
(9,399)
2,531
(2,914)
12
(2)
127
(19)
259
(3,038)
658
(97)
130
(19)
172
(25)
1,255
(5,185)
3,790
(558)
9,249
(8,861)
4,617
(4,179)
_
_
131,824
(117,941)
_
_
5,141
(22,214)
_
_
5,141
(22,214)
_
_
136,965
(140,155)

 Fund
Gains
balances
and
carried
losses
forward
£
£
12,265
117,711
29,928
296,533
14,939
138,605
_
__
57,132
552,849
_
__
200,236
1,996,729
99,799
985,121
52,760
529,654
8,189
80,758
38
389
412
4,187
838
5,522
2,134
5,522
422
4,288
556
5,657
4,060
36,297
-
7,047
-
388
-
9,852
_
__
369,444
3,687,589
_
__
16,635
147,750
_
__
16,635
147,750
_
__
443,211
4,388,188

__

17

NFTS Foundation

Notes to the Financial Statements

for the year ended 31 December 2020 (continued)

15 Analysis of net assets between funds

Permanent
Unrestricted
Restricted
endowment
funds
funds
funds
Fund balances at 31 December
2020 are represented by:
£
£
£
Investments
47,069
3,656,589
753,434
Cash and cash equivalents
97,741
59,680
62,666
_
_
_
144,810
3,716,269
816,100
_
_
_
Permanent
Unrestricted
Restricted
endowment
funds
funds
funds
£
£
£
Fund balances at 31 December
2019 are represented by:
Investments
-
3,625,151
552,849
Cash and cash equivalents
147,750
62,438
-
_
_
__
147,750
3,687,589
552,849


 Total
2020
£
4,457,092
220,087
_
4,677,179
_
Total
2019
£
4,178,000
210,188
__
4,388,188
 Total
2019
£
4,178,000
210,188
__
4,388,188
_
Total
2018
£
3,547,218
400,949
_
3,948,167

Sufficient resources are held in an appropriate form to enable each restricted fund to be applied in accordance with the restrictions.

18

Notes to the Financial Statements for the year ended 31 December 2020 (continued)

NFTS Foundation

16 Statement of Financial Activities for the year ended 31 December 2019

Unrestricte
d
funds
Note
2019
£
Income and endowments
from:
Investments
7
5,141
Donations
-
_
Total income
5,141
__
Expenditure on:
_Raising funds
Investment management costs
8
756
Charitable activities
Education
9
21,458
_
Total expenditure
22,214
_
Net gains/(losses) on
investments
16,635
Net income/(expenditure)
(438)
_
Net movement in funds
14
(438)
_
Reconciliation of funds:
Total fund balances brought
forward at 1 January
14
148,188
__
Total fund balances carried
forward at 31 December
14
147,750
 Restricted
Permanent
endowmen
t
funds
funds
2019
2019
£
£
131,824
-
-
-
_
_
131,824
-
_
_
19,399
-
98,542
-
_
_
117,941
-
_
_
369,444
57,132
383,327
57,132
_
_
383,327
57,132
_
_
3,304,262
495,717
_
_
3,687,589
552,849

 Total
Funds
2019
£
136,965
-
__
136,965
__
20,155
120,000
__
140,155
__
443,211
440,021
__
440,021
__
3,948,167
__
4,388,188
 Total
Funds
2018
£
128,417
23
_
128,440
_
19,844
120,000
_
139,844
_
(256,413)
(267,817)
_
(267,817)
_
4,215,984
__
3,948,167

19