NFTS Foundation Report and Financial Statements Year Ended 31 December 2022 Company registration number 03290399
NFTS Foundation Rèport and financial ststèments for the year ended 31 Dgcember 2022 Contents Pagè Report of the Trustees Independent Audilorfs Report 10 Slalement of Financial Activities Balance Sheet 12 Notes lo the Financial Statements Reference and Administrative Infomiatlon Trustees Ken Roberts- Chair of Trustees Judith Chan Linda James Stephen Louis Steve Mertz Secretsry and Règistered Offic• Trevor Hall Be2consfield Studios Station Road Beaconsfield Buckinghamshire HP91LG Managemgnt Tèam Dr Jon Wardle Alex Gurney Trevor Hall Company Registration Number 03290399 Charity Registration Number 1061561
NFTS Foundation Report and financial statements for the year end9d 31 December 2022 (continued) Reference and Administrative Inforniatlon (continued) Audltors BDO LLP 2 City Place Beehive Ring Road Gatwick Wesl Sussex RH6 OPA Bankers Lloyds Bank PLC 25 Gresham Street London EC2V 7HN Solicitors Eversheds Sutherland LLP 1 Wood Street London EC2V 7WS Investment Managers Inveslec Wealth & Investment Limited 30 Gresham Street London EC2V 7QN
NFTS Foundation Report of the Trustees for the year ended 31 December 2022 The NFTS Foundation Iruslees I"Ihe Trustees.), who are also directors of the registered charity of the same name l.the Charit) for the purposes of the Companies Act, present their annual report together with the audited financial stslemenls for the year ended 31 December 2022. The trustees have adopted the provisions of the Slalemenl of Recommended Practi ISORPI "Accounting and Reporting by Charities. issued in October 2019, preparing the annual report and financial slalemenls in accordance with the Financia1 Reporting Sl8nd8rd applicable in the United Kingdom and Republic of Ireland IFRS 1021 ané the Charities Act 2011. This report includes the directors, report as required by company law. Trustees The Iruslees of the NFTS Foundation during the year were-. Ken Roberts- Chair of Trustees Judith Chan Linda James Stephen Louis Steve Mertz The Iruslees have given generously of their time and expertise for which the NFTS Foundation and the National Film and Television School {'the School'l are extremely grateful. Structure. Governance and Management Organisation and Decision-making Structure NFTS Foundation I'the Foundation") is a charitable company limited by guarantee. which was established on 11 December 1996. 11 is governed by a Memorandum and Articles of Association. The principal advisers at the dale of this report are listed on the previous page. Connected Charkies The School is a charity connected with the Foundation. By mutual agreement, all costs associated with fundraising activities are borne by the School. From monies received for investment, the Foundation from lime lo lime makes grants. donations and scholarships. The Foundation donates income and capital from investments lo the School. The Iruslees review the Foundation's investment performance and 51ralegy. Investment Policy (including reserrfes poIy) Grants, donations and other income received from various organisalions and individuals are invested in a broad range of fixed income securities and equities lo provide scholarships and contribute to the running costs of the School. As al 31 December 2022, the reserves of the Foundation are used for investments held to provide future funding lo the School. The trustees exercise reasonable care lo ensure that these investments are effectively managed by the Foundation's current investment managers, Inveslec Wealth & Investment Limited. The Foundation 's reserves policy 15 to hold an investment portfolio of al least £3m, the individual amounts being held in accordance with all donor wishes and obligations. At 31 December 2022, the Foundation's reserves were £4.5m, £1.5m higher than the minimum value set out in the Foundation's reserve policy.
NFfs Foundation Report of the Trustees for the year ended 31 December 2022 (continued) Investment Policy (including reserves policy) (continued) 11 is anlicipaled that the income generated from this level of reserves will enable the Foundation to provide a consistent level of funding to the School each year. Organisation and Decision-making Structure (continued) Ethical and Environmental. Social, and Governance (ESG) considerations The Iruslees seek to invest in a way that furthers the charitable objectives of the Foundation, with an emphasis on a proactive approach lo sustainability and socially responsible investing. The Iruslees reserve the right lo exclude companies that carry out, or may cary out. activities incompatible with their aims or hold, or may hold particular investments which damage, or could damage, the Charity and the School's reputation. To this effect, the Iruslees preclude direct and known investment in tobacco, arms, gambling, pornraphY. high interest rale lending and thermal coal, understood lo be investment in companies with more than 10'/o of their turnover in these aclivilies. Where third party funds are held, Ihe fund is lo have no more than 200h of the fund's value invested in the atM)ve restrictions. Taking into account the reputation of the Charity and the School, the Iruslees require their appointed investment managers lo have due regard for the suilabilily of any recommended investments. The investment managers must CL)nsider Environmental, Social and Governance IESGI factors in their investment process and investment selections. Powers oflnvestment Pursuant to the Foundation's Memoranéum of Association. the Iruslees may exercise their investment powers by.. making grants and donations, whether out of income or capital.. accepting any grfts, endowments, legacies or contributions of any other kind of money or property of any kind,- and investing the monies of the Foundation not required for ils purposes in or upon such inveslmenls, securities or property of any other kind as may be thought fil subject nevertheless lo such conditions lif any) and such consents Irf any) as may for the lime being be imposed or required by law. The board of trLtslees confirms that all investment funds are held and made in accordance with these powers. Risk Management The Iruslees routinely examine signrficanl risks that the Foundation may face during each financial year, and have developed systems lo monitor ané control these risks lo rniligale any impact that they may have on Foundation in the future. Accounting PoliCS Accounting policies that have been applied during the year are outlined in the notes to the financial slalements. Oblectlves and Activities The Foundation was established lo help in the advanment of the education of the public in film, television and other media, and in particular the advancement of education and research al or supported by the School OT any charity or educational eslablishmenl connected or associated with the School. The School is responsible for all fundraising activity for both the School and the Foundation.
NFTS Foundation Report of the Trustws for the year ended 31 Decembgr 2022 (continued) Financial Revi Totsl income for the Foundation for the year ended 31 December 2022 was £113k12021 - £21 Ok). Investment income in the year was £113k12021- £10gkl. This related lo dividends and interest earned during the year and represented an average rate of return of 2.20/0 on the Foundation '$ £5,174k investment portfolio al 1 January 2022. Donations received in the year were £Nil {2021- £100kl. Total expenditure in the year was £173k {2021- £167kl. ExpendilLJre represented the donation lo the School, this being the £150k donation for scholarships, bursaries. rnaslerclasses and other costs of the School's curriculum. and investment management costs. Market value movements on the investment portfolio generated a nel investment loss for the year of £619k Irealised gain £256k and unrealised loss £875kl, compared with an investment gain of £454k in the previous year Irealised gain £384k and unrealised gain £70kl. The net movement in funds for the year was a decrease of £679k and represented a 13.1 /0 decrease in the value of the Foundation's investments. The fund balance at 31 December 2022 was £4,495k 1£5,174k at 31 December 20211 and represented an equilieslcash and fixed interest investment mix of 90110, compared with a mix of 85115 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. Future Actlvities Fundraising activities will continue lo be undertaken by the School on behalf of the Foundation. These activities aim lo.. raise funds in the form of scholarships, chairs. fellowships and legacies, on a revenue basis, and, where practical. on an investment basis,. raise funds for special projects such as capital equipment and building development,. and raise funds for regular events and publications, including graduation productions and screenings, the graduation screening brochure and prospectus. The Iruslees will continue lo exercise prudent oversight over the performance of the funds invested lo ensure that the funds continue lo meet the charitable objectives of the Foundation. The investment portfolio is diversrfied across a number of sectors and markets, and invested in companies that demonslrale strong Environmental, Social and Governance credentials lo ensure investment returns are sustainable. The Iruslees currently aim lo distribute approximately £150k per annum generated primarily from annual dividend and interest retLJrns on the Foundation's investments for the benefi( of the School. However, all dislribulions by the Foundation are at the discretion of the Iruslees. Global markets have been challenging over the five months following the financial year ersd. due to a number of related and unrelated factors. As a result of rising inflation and the cosl of living crisi5, central banks have increased interest rates lo try lo bring inflation under wnlrol. The Bloomberg consensus growth forecast for global GDP in 2023 is 2.40/0, although there is considerable uncertainly about how the year will evolve. The UK, Europe and US markets appear lo have been remarkably resilient. however the pace of China's recovery has been somewhat disappointing. Russia's invasion of the Ukraine continues lo exacerbate the current cost of living Cfisis and market confidence. Sanctions on trade with Russia have impacted the global supply of energy, particularly natural gas lo Europe. The Foundation does not have any direct investment in any Ukrainian or Russian companies. and is advised that any indirect investment equates lo less than 1'k of the Foundations, porttolio.
NFTS Foundation Report of the Trustees for the yoar ended 31 December 2022 (continued) Future Activiti¢$ (continued) The latest market valuation of the Foundation's investments for the three months ended 31 March 2023 valued the investments al £4.57m, thus £1.57m above the minimum level sel out in the Foundation's reserve policy. This is an increase of approximately £77k on the portfolio's valuation as al 31 December 2022 year end. The Iruslees invest on a medium risk basis, Imth an investment horizon of 10+ years. As such. the tnjslees are not uncomfortable having lo accommodate short-lerm volatility in capital values. as displayed by current markets, in the expeclalion of long-term. sustainable gains. The trustees consider that there are no material uncertainties about the Foundation's ability lo continue as a going concern, given the headroom the Foundation has on ils minimum reserve level. a review of cash flow forecasts and the expected investment performance over the 12 months following sign off of the balance sheet. Further, all donations are al the discretion of the Charity. Publlc Bgneflt The Foundation meets ils public benefits requirement as a charity by dislribuling grants lo the School and scholarships to the School's students. The Iruslees are aware of their responsibilities with regards to the public benefits requirement and are conversant with the relevant Charity Commission guidance.
NFTS Foundation Report of the Trustees for the year •nded 31 December 2022 (¢ontlnued) Statemgnt of Trust$. Responslbllltles The trustees are responsible for preparing the annual report and the financial slalements in accordance with applicable law and regulations. Company law requires the Iruslees lo prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom knounling Standards and applicable law). Under company law, the truslees must not approve the financial 5talemenls unless they are Satisfied that they give a true and fair view of the slate of affairs of the charity and of the incoming resources and applicalion of resources. including the income and expenditure, of the charity for that period. In preparing these financial Statements, the trustees are requlred to= select suitable accounting policies and then apply them consistently., make judgements and estimates that are reasonable and prudent. slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial 5tstemenls- and prepare the financial statements on 8 going concern basis unless it is inappropriate to Pfesume that the charity will continue in business. The Iruslees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitys Iransaclions. and disclose with reasonable accuracy al any lime 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. Audltors All of the current trustees have taken all the steps that they oughl lo have taken to make themselves aware of any information needed by the company's audrtors for the purposes of theii audit and lo estsblish that the audilors are aware of that information. The Iruslees 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 Trust•es Date: 02 June 2023
NFTS Foundation Indepèndent Auditor's Report Independent Auditor's Report to the members of NFTS Foundatlon Opinion on the financial staternents In our opinion, the financial stalemenls.. give a true and fair view of the stale of the Charitable Company's affairs as at 31 Dember 2022 and of incoming resources and application of resources for the year then ended., have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting PraGlice,- and have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements of NFTS Foundation {"Ihe Charitable CompanW} for the year ended 31 December 2022 which comprise the Sialemenl of Financial Activities Balance Sheet and notes to the financial stalemenls, including a summary of signrficant accounting policies. The financial reporting framework that has been applied in Iheir preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Sl8ndard applicable in the UK 8nd Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK} IISAS (UK)) and applicable law. Ouf responsibilities under those standards are further descTibed in the Auditor's responsibilities for the audit of the financial slalements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Independence We remain independent of the Charitable Company in accordance wilh the ethical requirements relevant lo our audit of the financial slalemenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. ConclusSons rglated to golng concem In auditing the financial slalemenls, 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 dentifIed any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubl on the Charitable Company's ability to continue as a going concern for a period of at least Imelve months from when the financial slalements are aulhorised for issue. OL*r responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Other infomation The Trustees are Tesponsible for the other information. The other information comprises the information included in the Annual Report, other than the financial slalements and our auditor's report thereon. Our opinion on the financial slalemenls does not cover the other information and, except lo the exlenl otherwise explicitly slated in OLJr report, we do not express any form of assLJrance conclusion Ihereon. Our responsibility is lo read the other information and. in doing so, consider whether the other information is rnaterially inconsislenl with the financial slalemenls or our knoedge obtained in the audit or otherwise appears to be materially misslaled. If we idenlrfy such material inconsistencies or apparent material misstatements, we are required lo determine whether there is
NFTS Foundation Independent Audltor's Report Independent Audltor's Report to the members of NFTS Foundation (continued) a material misstatement in the financial statements themselves. If, based on the work we have perfomed, we concluée that there is a material misstalemenl of this other infoTmation, we are required lo report that fact. We have nothing lo report in this regard. Other Companles Act 2006 reporting In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, Report. which includes the Directors, Report prepared foT the purposes of Company Law, for the financial year for which the financial statements are prepared is consislenl with the financial stalemenls,. and the Directors, Report, which are included in the Trustees, Report, has been prepared in accordance wfih applicable legal requirements. In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the COUTse of the audit, we have not idenlrfied material misslatemenls in the Strategic report or the Trustees. report. We have nothing lo report in respect of the following matters in relation lo which the Companies Act 2006 requires us to report lo you rf, in our opinion.. adequate accounting records have not been kept, of returns adequate for our audit have not been received from branches not visited by us-, or the financial statements are not ill agreement with the accounting records and returns., or certain disclosures of DirecloTS' remuneration specified by law are not made,. or we have not received all the information and explarsalions we require for our audit., or the Iruslees were not entitled lo prepare the financial stslements in accordance with the small companies regime and lake advantage of the small companies, exemptions in preparing Ihe directOTS' report and from the requirement to prepare a strategic report. Responsibilities of Trustees As explained more fully in the Trustees, responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company lawl 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 lo enable the preparation of financial slalemenls that are free from material mi5slalemenl, whether due lo fraud or error. In preparing the financial slalemenls, the Trustees are responsible for assessing the Charitable Companls ability lo 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 lo liquidate the Charitsble Company or lo cease operations, or have no realistic alternative bul lo 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 Ihereunder.
NFTS Foundation Independent Auditor's Report Independent Auditor's Report to the members of NFTS Foundatlon (continued) Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl, whether due lo fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee th21 an audit conducted in accordance with ISAS {UKI will always detect a material misslatemenl when il exists. Misslalemenls can arise from fraud OT error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. Extent to which the audit was capable of delecting irregularities, including fraud Irregularities, including fraud. are instances of non4ompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misslalement5 in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detailed below-. Based on our understanding of the Charitable Company and the sector in which it operates. discussion with management and those chsrged with governance arid obtaining and understanding of the policies and procedures regarding compliance with laws and regulations we identified the significant laws and regulations lo be United Kingdom Generally Accepted Accounting Practice, United Kingdom lax legislation and Companies act 2006. The Charitable Company is also subject lo laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial slalemenls, for example through the imposition of fines or litigations. We idenlrfied such laws and regulations lo be their registration with the Charity Commission. Our procedures in respect of the above included.. Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations., Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws and regulations., and Review of financial statement disclosures and agreeing lo supporting documentation. We assessed the susceptibility of the financial statements lo material misstalemenl, including fraud. OLJr risk assessment procedures included enquiry with management 2nd those charged with governance regarding any known or suspected instsnces of fraud, obtaining an understanding of the policies and procedures relating lo delecling and responding lo the risks of fraud,. and internal controls established to miligate risks related to fraud and review of minutes of meeting of those charged with governance for any known or suspected instances of fraud. Based on our risk assessment, we considered the areas most susceptible lo fraud lo be manipulation ofthe financial slalemenls via management override. Our procedures in respect of the above included. Testing a sample of journal entries throughout the year, which met a defined risk cfileria, by agreeing lo supporting documenlalion., and Reviewing the manual journals made be management when recording the investment portfolio results. We also communicated relevant idenlrfied laws and regulations and potential fraud risks to all engagement team members and remained alert lo any indications of fraud OT non4ompliance with laws and regulations throughout the audit. Our audit procedures were designed to respond lo risks of rnaleri31 misstatement in the financial slalemenls, recognising that the risk of not delecling a material misslatemenl due lo fraud is higher than the risk of not delecling one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentslions or through collusion. There are inherent limitations in the audit procedures performed and the further removed non- cornpliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are lo become aware of it.
NFTS Foundation Independent Auditor's Report Independent Audttor's Report to the members of NFTS Foundation (conlinued) A further description of our responsibilities for the audit of the financial statements is located al the Financial Reporting Council's l°FRC's"I website al.. htt s.'Ilww.frc.or .uklaudilorsres onsibilities. 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 rnighl slate lo the Charitable Company s members those mallers we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest exlenl permilled by law, we do not accept or assume responsibility lo anyone other than the Charitable Company and the Charitable Company's members as a body. foT our audit work, for this report, or for the opinions we have formed. D¢¢uSnbY.' Paula Willock (Senior Slalulory Audilorl For and on behalf of BDO LLP, statutory auditor Galwick, UK Dale 09 June 2023 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC3051271.
NFTS Foundation Statement of Financlal Activities (Including incorne and expendlture aOnt> for the year ended 31 December 2022 Pemwn•nt Restri¢t¢d endowm¢nt funds funds 2022 2022 Unre$tri¢tèd fvnd$ 2022 Total Funds 2022 Total Funds 2021 Note InGome and endowments from: Donations Investments 100,223 109,422 3,055 110,122 113.177 Total Income 3,055 110,122 113,177 209,645 Expendituro on: Raising funds Investment management costs Charitable activities Edu¢2tion 619 22.307 22,926 22,916 10.000 140,O¢XJ 150.000 144.0(K) Total expendllure 10,619 162,307 172.926 166.916 Nel {lossesygains on investments {16,705) {480.4811 1121.753) (618,939} 454,280 Net Income 124,269) 1532,6661 1121,753) (678,688} 497,009 Transfers between fijnds 12,750) 2.750 Net movement in funds 14 127.0191 1529.9161 1121,7531 {678,688) 497.009 Reconclliation of funds: Total fund balances brought forward al 1 January 14 139,652 4,037,007 997,529 5.174,188 4.677,179 Total fund balances carried foThvard at 31 December 14 112,633 3,507,091 875,776 4,495,500 5,174,188 All amounts relate to continuing activities. The notes on pages 12 to 22 form part of these financial slatemenls. 10
NFTS Foundation Balan¢e Sheet at 31 D8Mber 2022 Company number 03290399 Note 2022 2021 Flxbd assets Investments 12 4,283.196 4,815,795 Current ass¢ts Cash and cash equivalents 212,304 358.393 Net assets 4,495,500 5,174,188 Funds of thg ¢hath: Permanent endowment funds Reslricled funds Unreslrscled funds 14 14 14 875.776 3.507,091 112,633 997,529 4,037,007 139,652 Total charlty fund$ 4,495,500 5,174.188 These accounts have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. Approved by the Iru51ees and authorised for issue on 02 June 2023 and signed on their behaw by.. Ken Roberts Chair of Trustees Steve Mertz Trustee The note5 on pages 12 10 22 form part of these financial 5talemenls.
NFTS Foundation Notes to the Financlal Statements for the year ended 31 December 2022 Status of the company The Foundation is a private company limited by guarantee and is a regislered charity incorporated in England and Wales. Each member's liability is limited. upon winding up. lo an amount not exceeding len pounds. Accountlng policies (al Basis of preparation The financial statements of the Foundation have been prepared under the historic cost convention with items recognised al cost or Iransadion value unless otherwise slated in the relevant notes to these accounts. The financial slalemenls have been prepared in accordance with the Slalemenl of Recommended Practi.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Foundation constitvles a public benefit enlty as defined by FRS 102. Ibl Assessment of going concgrn Global markets have been challenging over the five months following the financial year end, due lo a number of related and unrelated factors. As a result of rising inflation and the cost of living crisis, centr21 banks have increased interest rates to try lo bring inflation under control. The Bloomberg consensus growth forecast for global GDP in 2023 is 2.40kn, although there is considerable uncertainty about how the year will evolve. The UK, Europe and US markets appear lo have been remarkably resilient, however the pace of China's recovery has been somewhat disappointing. Russia's invasion of the Ukraine continues lo exacerbate the current cost of living crisis and market confidence. Sanctions on trade with Russia have impacted the global supply of energy, particularly naltjral gas to Europe. The Foundation does not have any direct investment in any Ukrainian or Russian companies, and is advised that any indirect investment equates lo less than 1 V/0 of the Foundations, portfolio. The lalesl market valuation of the Foundation's investments for the three months ended 31 March 2023 valued the investments al £4.57m, thus £1.57m above the minimum level sel out in the Foundation's reserve policy. This is an increase of approximately £77k on the portfolio's valuation as al 31 December 2022 year end. The Iruslees invest on a medium risk basis, with an investment horizon of 10+ years. As such, the trustees are not uncomfortable having lo accommodate short-lerm volalilily in capital values, as displayed by current markets, in the expectation of long-lerm, sustainable gains. The trustees consider that there are no material uncertainties about the Foundation's ability to continue as a going concern, given the headroom the Foundation has on ils minimum reserve level, a review of cash flow forecasts and expected investment performance over the 12 months following sign off of the balance sheet. Further, all donations are al the discretion of the Charity. Ic} Funds structure Unrestricted funds are funds which are available for use at the discretion of the Iruslees in furtherance of the general objectives of the Foundation and which have not been designated for other purposes. 12
NFTS Foundation Notes to thg Financlal Statemenls for the year endgd 31 December 2022 (continued) Principal accountin9 pollcies (continued) Restricted funds are funds which are lo be used in accordance with specrfic restrictions imposed by donors OT which have been raised by the Foundation for particular purposes. The cost of raising and administering such funds are charged against the specrfic fund. The aim and use of each restricted fund is sel out in the notes lo the financial stslemenls. Permanent endowment funds are funds where a principal sum is held and only the income generated can be sed. The donor instructs the principal sum to be held and the income generated is used in accordance with specrfic restrictions imposed by the donor. Transfers between endowment funds and restricted funds are made lo ensure the principal sum invested is always recognised in the endowment funds wf(h income and investment costs transferred lo reslricled funds. Investment income and losses are allocated to the appropriate fund on the basis of the value of the fund al the beginning of the year. An analysis of the charitable funds has been disclosed in note 14. Idl Income recognltlon Al income is recognised once the Foundation has enlitlemenl lo the income, il is probable that the income will be received and the amount of income receivable can be measured reliably. Donations are recognised when the Foundation is contractually entitled lo the income. In the event that a donation is subject lo condrtions that require a level of performance before the Foundation is enlilled lo the funds, the income is deferred and not recognised until either those conditions are fully mel, or the fulfilmenl of those conditions is whollywilhin the control of the Foundation and it is probable that those nditionS 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 nolrficalion of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and noirficalion has been received of the dividend due. This is normally upon nolrfication by the investment advisor of the dNidend yield of the investment portfolio. (e} Expenditure All costs, except investment management costs, associated with the Foundation and fundraising activf(ies are borne by the School. (fl Cash and cash equivalents Cash and cash equivalents consist of cash al bank, deposits and short-lerm investments with an Original maturity of three months or less. Igl Taxation The Foundation is an exempl charity within the meaning of Part 3 of the ChaTrties Act 2011. It is therefore a haThty within the meaning of Para 1 of Schedule 6 to the Finance Act 2010 and accordingly, the Foundation is potentially exempl from tsxalion in respect of income or capital gains received within categories covered by Sections 478 - 488 of the Corporation Tax Act 2010 ICTA 20101 or Section 256 of the Taxalion of Chargeable Gains Act 1992, to the extent that such income or gains are applied lo exclusively charitable purposes. Expenditure includes irrecoverable Value Added Tax charged by Suppliers lo the Foundation. Irrecoverable VAT is charged against the category of expenditure for which il was incurred. 13
NFTS Foundation Notes to the FinanGial Statements for the year ended 31 Dec9mber 2022 (contlnued) Prlneipal accounting policies (continued) {h) Fixed asset investments Investments are a form of basic financial instrument and are initially recognised al their transaction value and subsequenuy measured al their fair value as al the balance sheet date using Ihe closing quoted market price. The Slalemenl of Financial Activities includes the nel gains and losses arising on revaluation and disposals throughout the year. The Foundation does not acquire pul 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 lo inve51menl risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. lil Realised galns and losses All gains and losses are taken lo the Slalemenl of Financial Aclivrties as they arise. Realised gains and losses on investments are calculated as the drfference beeen sales Pr(eedS and their opening carrying value or their purchase value if acquired subsequent lo the first day of the financial year. Unrealised gains arid losses are calculated as the difference between the fair value al the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Aclivilies. Judgements in applying accountlng policies and key sources of estimation un¢ertainty In preparing these financial slalements, the trustees have made the following judgements.. investment income, investment management costs and nel gains on investments are apportioned across the charitable funds based on the lolal of each fund al 1 January 2022,. and with respect lo the next Teporting period. the most significant areas of uncertainly that affect the carrwng value of assets helé by the Foundation are the level of investment return and the performance of investment mafkels. Rolatgd party transactlons 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 ini1121rves undertaken lo support the scholarship programme, donations towards bursaries, and donations towards the running cost of the curriculum. During the year the FoLJndalion made lolal donations lo the School of £150k {2021- £144k) Isee note 9). Key management personnel are considered lo be the School's Director, Finance Director and Head of Financial Reporting. The trustees all give freely their time and expertise wilhoul any form of remuneration or other benefit in cash or kind 12021 £Nill. During the year, none of the Iruslees received any reimbursement for meeting expenses 12021- £Nill. There were no transactions with trustees and connected persons during the year. During the year, insLtrance costing £1 k12021- £1 kl was purchased to indemnrfy the trustees against default on their part. The School paid this during the year on behalf of the Foundation. Connected charltles The Foundation was incorporated lo 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 al or supported by the Sch¢x>l or any charity or educational esiablishmenl connected or associated wlh the School. 14
NFTS Foundation Notes to the Finanelal Statgments for the year endod 310ecember 2022 (continued) Donations Permanent endowment funds Unrèstrlcted funds Restricted fvnds Total 2022 Total 2021 Donations 100,223 100,223 Investment income Pemianent endowment fvnds Unrestrlcted fvnds Ro$triet•d funds Total 2022 Total 2021 Income from listed investments 3.055 110,122 113,177 109,422 3,055 110.122 113,177 109,422 Investment income is apportioned across the funds based on the fund balance held al the start of the year. Investment management costs 2022 2021 Investment management fees 22,926 22,916 9 Analysis of charitable gxpenditure During the year, donations of £150k12021- £144kl We made lo the School. These donations represent £67k towards scholarships and bursaries and £83k towards masleTclasses and other costs of the School's curriculum. All other costs associated wsth the Foundation's fundraising activities are borne by the Sch¢)ol because there is an integrated fundraising programme for the School and for the Foundation. 10 Employee emoluments No staff a employed by the Foundation {2021- £Nil). 11 Auditors. remuneration The audit fee of £8.40012021- £4,200) was trne by the School. 15
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2022 (continued) 12 Fixed asset investments 2022 2021 Movement in quoted inveslm8nts'. Market value brought forward as al 1 January Additions lo investments al cost Disposals at carrying value {Lossllgain on revaluation 4,815,795 1,745.872 11,403,889) 1874,582) 4.457,092 887,768 1599,1461 70,081 Market value as al 31 December 4,283,196 4,815,795 Market value 2022 Market value 2021 Cost 2022 Cost 2021 These investments are represented by.. Quoted investments.. UK fixed interest UK equities Overseas fixed interest Overseas equities 243.375 1,378,394 537,366 1.481,340 215,692 1.744,280 519,798 1.803,426 441,188 1,696,124 162,153 999,026 449,714 2,464,334 170,580 1,731,167 3.640,475 4.283,196 3,298,491 4,815,795 16
NFTS Foundation Notes to the Flnancial Statgmènts for the year ended 31 December 2022 (Contlnued) 12 Fixed asset investments (continued) The following investments represented more than 50/0 of the value of the porffolio as at 31 December 2022.. Number of units Market Value £ % of portfollo Brown Advisory Fds US Sustainable Gih Si GBP 18,130 230,070 JP Morgan Fund Icvc JPM US Eq Inc C2 GBP 146,000 230,972 Nel Di There were no investments representing MO than 5Q/o of the value of the portfolio as al 31 December 2021. Investments are retained by the Foundation for the long term lo generate income for the School and to ensure that the objectives of the charity are fulfilled. Investment in equities and fixed inleresl 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. The Foundation does not have any direct investment in any Ukrainian or Russian companies and any indirect investment equates lo less than 1010 of the Foundations. portfolio. 13 Finanelal Instruments Financial assets measured al fair value through profil or loss comprise fixed asset investments in a trading porttolio of li51ed company shares. Details of these can be found in note 12. The signfficance of financial instruments to the ongoing financi81 suslainabilfty of the Foundation is considered in the financial VIeW and investment policy and performance sections of the Trustees, Annual Report. The main risk lo the Foundation from financial instruments lies ir) the combination of uncertain inveslmenl markets and volatility of yield. Due lo market sentiment favouring lower risk inveslmenls, the yield on bonds has been abnormally low giving rise lo a signrficanl downside risk of a f811 in capitsl values when interest rates return to normal levels. The Foundation's investments are mainly traded in markets wth good liquidity and high trading volumes., Iherefore, 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 inveslrnenl risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversrficalion 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 inslrumenls. 17
NFTS Foundation Notes to the Financlal Statemonts for the year end 31 December 2022 (continued) 14 Analysis of charitable funds Fund balan¢es brought forward Fund balances carried forward Gains and losses Expenditure Income (net of transfers) Analysis of fund movements year ended 31 December 2022 Pemianent endowment funds: The Louis Malle Scholarship Post Office Scholarship Kodak Scholarship John Sargent Scholarship Nik Powell Scholarship 129,958 325.581 153,070 270,167 118,753 {16,6971 {38,9461 {19,3011 {32,6041 (14,2051 113.261 286,635 133.769 237.563 104.$48 Totsl permanent endowment funds 997,529 1121,7531 875.776 Restricted funds: Lew Grade Chair Cubby Broccoli Chair Richard Dunn Scholarship David Munro Fund- Human Rights Documentary Award Michael Samuelson Scholarship Freddie Young Scholarship The Colin Young Scholarship The Trevor Jones Scholarship Sir John Tery Memorial Scholarship The Louis Malle Seholarship Post Office Scholarship Koijak Scholarship Nik Powell Scholarship John Sargent Scholarship James Walker Ns Writers Fund 2,185,038 1,056,310 587,242 47,793 23,105 12,845 169,6821 134,6801 {9,6021 1261,3761 1,901,773 1126,3561 918,379 170,2461 520,239 90,013 441 643 4,873 6,430 39,144 9,622 1,969 10 14 107 141 856 3,053 7,122 3,529 2,597 5,962 1,019 {3,3991 {21 {31 1221 1281 {1,1731 {2,6181 {7,1221 {4,21 $1 (2,5971 16,2071 118,207} 110,767} 153} 177} I3} 1769) 14,682} 77,816 396 577 4,375 5.774 34,145 10,057 8,276 7.590 2,394 46,581 2,149 23,821 15,5721 Total restricted funds 4.037,007 110,122 1159,557} (480,4811 3,507,091 Unrestricted funds: General reserves 139,652 3,055 {13,3691 116,7051 112,633 Total unreStri¢d funds 139,652 3,055 {13,3691 116,7051 112,633 Total funds 5,174,188 113,177 {172,9261 1618,9391 4,495,500
NFTS Foundation Notes to the Financial Statements for the year ended 31 Dember 2022 (continued) The restricted funds of £3,507k include £609k lo provide scholarships and bursaries (Richard Dunn, Freddie Young, Sir John Terry, Colin Young, Trevor Jones, James Walker), £2,820k for Chairs (Lew Grade, Cubby Broccoli). and £78k lo support documentary film making Conrning human rights (David Munro Fund). The permanent endowment funds of £876k are endowments lo provide scholarships ILouis Malle. Post Office, Kodak, John Sargent, Nik Powell}. The dividends earned on the funds during the year of £113k, the realised profil of £256k, the unrealised loss of £875k and the inveslmenl management costs of £23k have been allocated across the funds based on the brought forward fund balances al 1 January 2022. 19
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2022 (continued) 14 Analysis of charitable funds (Gontinued) Fund balances brought fopward Fund balances carried forward Galns and losses Expenditure Income (net of transfers) Analysis of fund movements year ended 31 December 2021 Pemianent endowment funds: The Louis Malle Scholarship Post Office Scholarship Kodak Scholarship John Sargent Scholarship Nik Powell Scholarship 117,806 296,758 138,718 200,152 62,666 12,152 28,823 14.352 19.792 6,087 129,958 325,581 1 $3,070 270,167 118.753 50,223 50,000 Total permanent endowmènt funds 816,100 100,223 81,206 997.529 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 Nik Powe11 Scholarship John Sargent Scholarship James Walker NFTS Writers Fund 1,994,438 973,726 532,656 46,661 22,780 12,461 149,774) 134,771) 19,610) 193.713 94,575 51.735 2,185.038 1,056.310 587.242 82,282 396 3,266 1,626 2,109 4,368 5,763 35,983 7,308 1,925 12,1861 121 13,0161 11,8221 12.3631 (211 1281 11,1761 16131 16,9431 14.2241 11,4661 15,9981 120.2921 7,992 38 317 158 205 424 560 3,495 90.013 441 76 38 49 102 135 4,873 6,430 39,144 9,622 2,927 6,943 3,457 1,466 4,767 1,396 9,043 8,276 3,625 59,680 2,394 46,581 5.797 Total restricted funds 3.716,269 106,034 {144,305} 359,009 4,037.007 Unrestricted funds: General reserves 144,810 3,388 122,611) 14,065 139,652 Total unrestrlcted funds 144,810 3,388 122,6111 14,065 139,652 Total funds 4,677,179 209,645 1166,9161 454,280 5,174,188 20
NFTS Foundation Notes to the Financial Statgrnents for tho yèar ended 31 December 2022 (continued) 15 Analysis of net assgts between funds Permanent endowment funds Unrestricted Restrided funds funds Total 2022 Total 2021 Fund balances al 31 December 2022 are represented by.. Investments Cash and cash equivalents 3,407,420 99,671 875,776 4,283.196 212.304 4,815,795 358,393 112,633 112.633 3,507,091 875,776 4,495.500 5,174,188 Permanent endowmgnt funds Unrestrictgd Restricted funds funds Total 2021 Total 2020 Fund balances at 31 December 2021 are represented by.. Investments Cash and cash equivalents 3,818,266 218.741 997.529 4,815,795 358,393 4,457,092 220.087 139,652 139,652 4,037,007 997,529 5.174.188 4,677,179 Sufficient resources are held in an appropriate fom) to enable each restricted fund lo be applied in accordance with the restrictions. 21
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2022 (contlnued) 16 Statement of Financial Activities for the year onded 31 December 2021 Pèrmanent Restricted endowment funds funds 2021 2021 Unrestrlcted funds 2021 Total Funds 2021 Note Income and endowments from- Donations Investments 100,223 100,223 109,422 3,388 106,034 Total Income 3,388 106,034 100,223 209,645 Expenditure on.. Raising funds Investment management costs Charitable aclivilies Education 709 22,207 22,916 15,864 128,136 144,000 Total expenditure 16,573 1 $0,343 166,916 Nel gains on investments 14.065 359,009 81,206 454.280 Net income 314,700 181,429 497,009 Transfers between funds (6,0381 6,038 Net movernent in funds 14 {5,1581 320,738 181,429 497.009 Total fund balances brought forward at 1 January 14 144,810 3,716,269 816,100 4,677.179 Total fund balances carried forward at 310ecembgr 14 139,652 4,037,007 997,529 5,174.188 22