NFTS Foundation Report and Financial Statemenls Year Ended 31 December 2023 Company registration number 03290399
NFTS Foundation Report and flnanclal statements for the year ended 31 December 2023 Contents Pag• Report of the Trusiees IndepefKlenl Audrtofs Report 10 ststement of Finaal Actsvrties 11 Balarte Sheet 12 Notes io Financ Statements Referonco and Admlnlstratlv• Inforniatlon Trust Stephen Louis - Chair of Trusiees Judilh Chan Neil Forster Steve Mertz Socr•tary and Reglst•r•d Offlc• Trevor Hall Beaconsftld StudK)S Station Road Beaconsfield Buckinghamshire HP9 1LG Managom•nt T•am Dr Jon Wardle Afex Gurney Trevor Hall Company Reglstration Numb•r 0329)399 Charlty Roglstratlon Nurnber 1061561
NFTS Foundatlon Report and flnanclal statements for the year ended 31 December 2023 (contlnued) R•f•renc• and Admlnistratlve Infomiatlon (continued) Audltorn BDO LLP 2 Cily Pla Beehive Ring Road Galwtck West Sussex RH6 OPA 8ankern Lloyds Bank PLC 25 Gresham Slreet LorKlon EC2V 7HN Sollcltors Eversheds Sutherland LLP 1 Wood Slreet London EC2V 7WS Investment Manag•rn Inveslec Wealth & Investment Limrted 30 Gresham Street London EC2V 7QN
NFTS Foundatlon Report of the Trustees for th• year end•d 31 December 2023 The NFTS Foundation trustees ("the Twstees-). who are also direct5 of the registered charily of the same name {'the Charit) for the purposes of Ihe Companies Aci. presenl their annual report together with the audited financial statements lor the year ended 31 December 2023. The tnjstees have adopted the provisions of Ihe Slalement of Recommended Practice (SORP) "Accounting arKI Reporting by charrtS. issued in Cklober 2019. preparing the annual report and financial slalemenls in acc(xdance wlh the Financial Repting Standard applicable in Ihe United Kingdom and RepublK of Ireland (FRS 102) and Charitses Act 2011. Th report Wude$ the directors. rep as required by company law. Trust•e8 T1 Irustees of the NFTS FwndatK)n during the year Ire. Stephen Louis - Chair of Tnjslees Ken Roberts - Chair ol Trustees (reswttl 9 June 2023) Judith Chan Neil Forslef (appointed 9 July 2024) Linda James (Rsgned 9 July 2024) Steve Mertz The trustees have given generously of their tirne and expertise for which Ihe NFTS Foundaiion and Ihe Nallonal Film arKI Televtsn School (-the S(rfxl") are extremely grateful. Structur•, Governanc• and Managwnent NFTS Foundation <lhe FourKlation") is a charitable company Ilmlted by guarantee, which was establlshed on 11 December 1996. It Is governed by a Memorandum and Articles of ASSOClI0n. The principa a(fvtsers at the date of Ihis rep( are ltsted on the previous page. Connected Chwit$ The School is a charity connected wrth the Fndation. By rnutual aeernenI, all costs as80¢iated wilh fundraising activrts afe bome by the School. From mon recefved for investment, the Foundab'on from lime io lime makes granls, donatnS and scholarships. The Foundation donates Incorne arKI caprtal from investments to School. The trustses rev Ihe Ft)undation's inveslment perfomiance and strategy. Inveslm8nt Policy (IncludM reserves pd¢y) Grants. donations and other income receNed from varK)us organisations and indivKluals are invesled In a broad range of fixed Income securities and equit*s to provide scholarships and contritjule lo the running costs of the School. As at 31 December 2023, the reserves of the Foundation are used for investrnents held lo Kyovide future furKling to the School. The trusiees exercise reasonable care to ensure that these irNestments are effectively rnanaged by the Foundats'on's cuffenl invesimenl rnana9ers. Inveslec Wealth & Investrnent Limited. The Foundalton 's reserves pol•cy is to hold an investmenl Portfolio of al leasl £3m. the indivKlual amounts being held in accordance with all donor wishes and obligats'ons. Al 31 December 2023, the F(ndatK)n's reserves were £5m, £2m higher than the minimum value set out In Ihe Foundation's reserve polry. It is anticipaied that the income generaled from thts level of reserves will enable Foundation to WOVKle a consistent level of fundi to the Sthod each yeaf.
NFfs Foundation Report of the Tnjstees for the yoar ended 31 December 2023 (contlnued) ObJeclNes and Act1k7tS The F¢)undation vrds establisld to help in Ihe advancement ol the educab.on of wblic In film. television and other media. and in parlicular the advarKement of education and research al C supp(xted by Ihe School or any charity or educaiional eslablishment connecied (Y associated with the Schcd. The Sc01 Is fesponsible fLY all fundraisiffj actwty lor both the SclK)ol and t1 FndatIOn. Elhic818nd Environmental. Social. and Governance (ESG) CsIderatI8 The trustees seek to Invesi in a way that furttrs the chariiable ObltIveS of the Foundation. 1th an emphasis on 8 proactive approach to suslainability and sctially spOnsible investing. The trustees resep4e the nghl to exdude companies that cary out, or may carry out, activllies Incompatible with ther alms or hold, or may IM)Id particular inveslments which damage. or cwld damage. the Charily and the School's re1xjts0n. The trusiees will coniinue to exerctse pnjdenl oversight over ihe perfcKrnar of the funds invested io ensure ihal the funds continue to meet ihe charilable obieciives of the Foundation. The investment portfolio Is dlversified across a number of sectors and markets, and invested in companies ih demonstrate strorvJ Environmental. Social 8nd Govemance credentials to ensure Investsnent reiums are suslairb1e. Taklng Into account repuiats'on of the Charity and the School, the trustees requlre th8ir appointed Inveslment managers to have due regard for the surtabilrty of any recornmended investmenis. The investment managers must conslder Environmental. Soual and GOVWna (ESG) factors in their invesiment process arKI investment seleclions. Powers of InvestnnI Pursuant to the FourKlaiK)n's Memorandum of Ass0oati. the trusiees may exercise Ihelr Investment powers by: making grants arKI donations, whether oul of Irtome or caprtal: accepting any gifts. endowrnenls. legacies or Contr1tlICls of any other kind of money or w)perty of any kind; and investing Ihe mons ol the F¢)UfKlation not required for ts purposes in or upon such investments. securities or property of any other kind as may be tIKJught frt subject nevertheless to such condikn'ons (rf any) and such consents (rf any) as may for ts time being be imposed c required by law. The board ol Irustees confirms Ihat all investrient funds held and made in acc(xdance wllh Ihese powers. Risk M8nageff*nt The trustees routinely examine Signifant rlsks that the Foundats"on may face during exh financial year. and have developed SyEiems lo monttor and control these risks to rnitigate any impact that may have on FoUndaft in the luiure. Ac¢¢wnling PoliCS Accounting policie5 that have been applied duriNJ the year are outlined in Ihe rnies io the financial statwnents.
NFTS Foundation Report of the Trustees for the yur ended 31 Oee•mber 2023 (contlnued) Flnanclal Revlew Total income for the FoundatDn for the year ended 31 December 2023 was £366k {2022 - £116k). Investment income in the year was £116k (2022- £113k). This related lo dlvldends and interest earned during the year and represented an average rate of reiurn of 2.5% on the FOundatn'S £4.5)8k inveslment portfolio al 1 January 2023. Donations received in the year were £251k (2022 - £3k). Total expendilure in the year was £172k (2022 - £173k). Expenditure represented Ihe donation lo the School, this being the £1 Sok donation for scholarships. bursaries. maslerdasses and Olher costs of the School's curriculum. and investmenl management costs. Market value movements on the investment ptt01 9enarated a net investment gain for the year of £269k (realised gain £596k and unrealised loss £327k), compared wilh an investmenl loss of £619k in Ihe previous year (realised gain £256k and unrealised loss £875k). The net movement in funds for Ihe year was an irKrease 01 £463k and represented a 10.2¥0 increase In Ihe value of the Foundalion's investments. The fund balance ai 31 December 2023 was £4.981k (£4.518k al 31 December 2022) and represented an eqUits/Ca5h and fixed Interesl Inveslment of 84116. compafed with a mix of 110 in preVu5 year. The irustees have invested prudently and Cautu$lY during the year. The investment funds raised are held in a lyoad range of fixed inieresi securities and equities. whKh are quoted on a renised invesiment exchange. Futuro Actlvltlos Fundraising activities will continue io be undertaken by the School on behalf of the Foundaiion. These activitses aim to: raise funds In the fofm of scholarships, chairs. followships and legac5. on a revenue basis. and, where practical. on an investment basis: a1 raise funds for specHI projects such as caprtal equipmenl and buikling development. New funds received In 2023 and 2024 indude(l TfK8 Lesley Land Scholarship and The Crown Scholarshlp. As a resull of these new furKls the trustees currently aim to disIn'te approximately £195k per annum (an increase of £45k on 2023). generated primanly from annual dividend and interesl returns on Ihe Foundatson's inveslments for the benefil of the School. However. all distribulions by the Foundat are at the disCretn of the truslees. LocA(ing fiThard, the 814Jombefg consensus IaSt fcx ¥wxkl GDP growth in 2024 Is 2.8Vo, followed by 3% in 2025. Fears of a US recession conlinue to diminish, 4•thile ecorK>mic MDentUrn in Europe armd the UK appears lo be at its lowest ebb, and China is sbll stru9glirKJ io generate rer%d forbrdrd momeniurn. The Pfo quo for the slightly better growlh outlook has been Ihal inflatn is not coming d1> at quite the pxe central bankers rnh1 have wished, but, for now at least, the underlwng trajectory Is lower. The latesl market valuation of the FLndalK)n'$ investments for the three months erKJed 31 March 2024 valued Ihe investments at £Sm, thus £2m above the minimum level set out in Ihe Fojndatn'8 reserve pollcy. This is in line with the portlolio's valuation as at 31 December 2023 year end.
NFTS Foundation Report of the Trustees for th• y•ar ended 31 December 2023 (contlnued) Futur• Actlvltles (continued) The trustees invest on a mednjm risk basis. wilh an investmenl tmyizon of 10+ years. As such. the truslees are not uncomfortable having to accA)mmodate SI.left volaiilily in captsl values. In Ihe expectation of long-lemi, suslainable gains. The trustees considef that there material uncertainties aboul the F(yJndatn's ability to contiNe as a 904ng concem, given the headfoom Ihe Foundat has on rts minimum reseThe level. a revivov of cash flow forecasis and Ihe expected investment perfomiance over the 12 months folling sfjn off of ihe balarte sheet. Further, all donaiions are at discretion of Ihe Charty. Publlc 8¢nefit The Foundation meets its public benefits requirement as a charity by distributlng grants 10 the School and scholarships lo the School's students. The tfustees are aware of Iheir responsibilities with regards to the publbc b8nefiiS requlrement and are conversanl with Ihe relevant Charity Commission guidance.
NFTS Foundation Report of the Trustees ft•r th• year ended 31 December 2023 (continued) Stat•mont of Tru8to•8' Responslbllltles Tt ifustees are responsible fty preparing the annual report and the financial stalemenis in accordance with applicable law and regulations. Company law requires the trustees to prepare financial stalements for each financial year in accordance wilh United Kingdom Generally Accepted Accounling Practice (Uniled Kingdom Accounting Standards arKJ applicable law), Under company law. the Irustees rnusi not approve the financial statements unless they are satisfied that Ihey give a true and fair view of Ihe slate of affairs of the chanty and ol Ihe incomirKJ resource5 and applicats'on of resources, including the income and expendilure. of the charily for thal peflod. In preparing ihese financial siaiements. the truslees are required 10: se1 Suitable accounting polKs and then apply Ihem c4mSiStently: make judgements and estimales thai are reasonable and wudent: stsle theiher applicable UK Acc<>unlmg Stsndards have been lollowed. s(tbJect to any material departures disclosed and explained in the financial slalements- and prepare the financial stalemenls on a gOIj cOrM basis unless it Is Inapyowi8te io presume thal the charity wdl conlinue in business. The trustees are responsible for keepiNJ adequ8ts accountirKJ rec(Kds that are sufficient lo show and explain the chariws transactions. and disclose with reasonable accuracy al any time the financial position of the charrty and enable them to ensure thal Ihe financial staiements comply with the Companies Aci 2006. TY are also responsible for safeguarding the assels of the charity arKI hence for taking reasonable steps for the prevention ar)d detection ol fraud and other irregularities. Audltor All of the currenl trustees have taken all the sieps Ihal Ihey ought to have taken to make ihemsefves aware of any information needed by the companys auditor for the purposes of their audit and lo eslablish Ihai Ihe audilor is avrnre of thal informalion. The trustees are aware of any felevanl audit informaibon of which the auditor is unaware. This report has been prepared in ac¢ordaneA with the spec1 provisions of the Companies Act 2006 relating to small companies. On behalf of tho 8oard Stephen Lou Chalr of Tru8toe8 Dale: 9 July 2024
NFfs Foundation Indep•ndent AudEtorfs Report Ind•p•ndent Audltorfs Report to th• members of NFfs Foundatlon Oplnlon on th• financlal statements In our opinion, the financial stalemenls: give a irue and falr view of the slate of the Chariiable CoMpanS affairs as at 31 December 2023 and of ils incoming resources and applicatson of resources and application of resources for the year Ihen ended: have been property prepared In accordance wilh United Kingdom Genefally Accepted Accounting Practice: have been wepared in accordance Mth the requirements of the Companies Act 2006. We have audiled Ihe financial siatements of NFTS Foundation (-the Charitable Companf) for the year ended 31 December 2023 which comprise the Stalement of Financial Activities, Balance Sheet and notes to the financial statements. including a summary of signrficanl accounting policies. The financial reporting framework Ihat has been applied In their preparaiion is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Slandard applic814• In the UK 8nd RepublK ol Ireland (Unrted Kingdorn Generally Accepted Accounling Practice). Basls for oplnlon We conducted our audlt in accordance wilh Intemational Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those sL3fMJards are further described in the Auditor's responsibilities for Ihe audit of the financial statements section of report. We believe that the audrt evidence we have obtained is sufficient and appropriale to provide a basis for our opinion. Independence We remain independent of the Charitable Company in accordance with the ethical requiremenls relevant to our audit of the financial slaternents in Ihe UK. including the FRC'S Elhical Standard. arKI we have fu111116d our olher ethical responsibilities in accordance with Ihese requirements. Con¢lu8lons r•latod to golng concorn In auditing the financial stalemenls. we have corKluded that Ihe Trustees. use of Ihe going concern basis of accounting in the preparation of the finala1 statements is appropnate. Based on the work we have performed. have not Identified any material uncertainties rel8ting lo evenls or conditions that. irKlividually or collectively. may cast signrficant doubt on Ihe Charitable Companrfs ability to conlinue as a going concern for a period of ai ast twelve months from when the financial statements are authorised for issue. Our re5ponsibilrties and Ihe responsibilities of the Trusiees wrth respect to sK)ing concem are described in the relevant sections of Ihis feport. Other Infomi4tlon The Trustees are responsible for the other infomialion. The other inlomation comprises the Informalton induded in the Annual Report. olher than the financial slatements and our audiior's report thereon. Our opinion on the financial statemenls cloes not cover the other infomiation arKI, excepi to Ihe extent otherwlse explicitly stated in Ouf report. we do nol express any form of assurance conclusion thereon. Our responsibilrty is to read the other Informalion and. in doing so. consider whether the other informaiion is materially Inconsistent with Ihe flnancial statements or our knowrtedge oblained in Ihe audil or otherwise appears to be materially misstated. If we Myentrfy such malerial inconsistencies or apparent maierial misstatements. we are required to determine whether there a material misstalement in the financial siaiements Ihemselves.
NFTS Foundation Independ•nt Auditorf8 Report Ind•pondent Aud6torfs R•port to the memb•r8 ol NFfs Foundation (conlinued) If. based on the work we have perfomed. condude that there is a material mi5Statemenl of this other information, we are required to report that faci. We have nothing lo report in Ihis rewd. Other Companles Act 2006 reportlng In our opinion, based on the undertaken in the cwrse of the audrt.. the informatK>n given in the Trustees. Report. which indudes the Direciors, RePt prepared for th8 wrposes of Cornpany Law, for the financial year for 4thich the financial stalemenls are prepare(J is consislent wrth Ihe financial statements; and the Directors. Report. whth are indude(l in the Truslees. Report. has been prepared Sn accordance with applicable legal requirements. In the light of the knothrfedge and understanLling of Ihe Charitable Company and its envlronment obtained In the course of the audit, we have not identified maierial missiatements In the strategic report or the Trustees. report. We have nothing lo report in respeth of the follon9 matters in relatK)n to which the Companies Act 2006 requires us io report to you rf. in our opinion. adequate accounting records have not been kept. Of relums adequate for our audit have not been received from branches not visiled by us; or the financial statements are not in agreement wtth the accounlirKJ fecords reiums,. or certain disdosures of Directors. remuneration specffjied by law are not made,. or we have not received all the infomaiK)n arKI explanations reouire for our audit: or the trusiees were nol entitled io prepare the financial ststements in accordance with Ihe small companies regime and take advantage of the small companies. exemptK)ns in preparing ihe directors. report and from the requirement to prepare a slrategic rewt. Responslbll1tl of Trustees As explained more fully in Trustees. pOnsIbl1rtieS stalement. the Trustees (wlm) are also the directors of the ¢hariiable company for the purposes of company law) are responsible f¢y ihe preparation of Ihe financial slatements and lor being satiSfd that they give a true and fair view. and for such internal control as the Trustees deiermine is necessary to enable the preParatn of financial ststemenls Ihal are free from malerial rnisstalemenl. whether due to fraud or error. In preparing Ihe financial stalemenls. Ihe Truslees are responsible for assessing the Charitable Company's ability to continue as a going concern. disdosing, as applicable. matters related to going concern and using the going concern basis of accounling unless the Trustees either intend lo l•quidate ihe Charitable Company or lo cease operations, or have no realistic altemalive but to do so. Audltorfs r•sponslbllltl•s for th• audit of th• financlal stat•ments We have been appointed as audilor urmler the cornpan Act 2006 and repr In acc(Kdance with the Act and relevant regulations rnade or having effect Ihereunder.
NFTS Foundation Independent Audltoes Report Indep•ndant Audftorfs Report to tho mombers of NFTS Foundatlon (conliniied) Our objectives are lo obtain aSOnable assurance about whether the financial statements as a th01e are free from material misstalemenl. whether due to fraud or effor. and to issue an auditor's report thal includes our opinion. Reasonable assurance is a hh level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a rnalerial misstatement when il exists. Misslatements can arise from fraud or error and are conSered material rf. indivUallY or in the aggfegale, they could reasonably be expected to influence the economic decisions of user5 tsken on the basis of Ihese financial slatements. Extent to which Ihe 8udit was capable of detectiry krngularities. Including fraud Irregularities. including fraud. are instances of non-compliance wilh laws and regulations. We design procedures In Ilne with our responsibililies, outlined above. lo detect materia5 misstatements in respect of irregularities. Including fraud. The exteni io which our procedures are Capable of deteing irregularilies. induding fraud is detailed below: Non-compli8n¢8 with laws and regulat 8ased on: Our understanding of Ihe Charitable Company and the sector In which It Operates; Discussion with management and Ihose charged with governance.. and Obtaining and understanding of the Charitable Company's policies and procedures regarding compliance th laws aThd regUlatnS. We considefed the signrficanl la4Ys arKI regulations to be the United Kingdom Generally Accepted Accounting Practice, Uniled Kingdom tax legislation arKI Companies ath 2006. The Charitable Company is also subject to la and regulations where ihe nseQuen of non<ompllance could have a material effect on the arnount or disclosures in the financial slatements, lor example through Ihe imposition of fines or lilallOnS. We identified such laws and regulations lo be their registration with Ihe Charity Commisslon. Our procedures in respect of the above included.. Review of minutes ol rneeting of Ihose charged with govemance for any Instances of nonthcompliance with laws and regulalions: Review of correspondence with regulatory and lax authoritS for any instsnces of rn-COmpli8n¢e wilh lavts and regulalions: and Review of firkqnckql ststernenl disdosures and agreeing to supporting docurnenlallon. Fraud We assessed the susceptibility of the financtal statemenis to material misstalement. includlng fraud. Our rlsk assessment procedures Included.. Enqulry with management arKI those charged with governance regar(ling any known or suspected instances of fraud; Oblaining an understanding of Ihe Charitable Companls polics arKI procedures lating to: Delecting and responding to Ihe risks of fraud.. and Inlernal controls established io mitigate risks relaled to fraud. Review of minutes of meeiing of those charged with governance for any known or suspected Instances of fraud; and Discussion amongst engagemeni ieam as lo how and where fraud might occur In the financial slatemenls. Based on our risk assessrnent. we considered Ihe area's most susceptible to fraud to be manipulation of Ihe financial sL3tements v managemeni overnide.
NFfs Foundation Indopendent Audltorfs Report Indepondent Auditorfs Report to th• m•mborn of NFfs Foundatlon (conlinued) Our procedures in respect of the at)ove induded: Tesling a sample of journal entries 1hroughl the year. which met a defined risk criterion. by agreeing to supporting documentalion: and Reviewing the manual joumals made by managernenl when recording the investment portlolio results. We also c<xnmunicaied relevanl identif*d laws and regukiions and poienlial fraud rfsks io all engagement team members and remained alert lo any indications of fraud or non<ompliance wth laws and regulations Ihroughout the audit. Our audit procedures deSDed to respond to risks of material misstalement in the financial slatements. recognising Ihat the risk of not detecting a matenal rnisststement due lo fraud is hgher than the risk ol not deiecting one resulting from efror. as fraud may involve deliberate concealment by. lor example, forgery, misrepreseniations or through collusion. There are inherent limitalrons in the audrt procedure5 performed and the further removed non- compliance with laws and regulations is from Ihe events and transactions reflected In the financial slalements. the less likely we are to becorne aware of il. A further desLYiPlion of our responsibilities for the audil of the financial statements is located al the Financial Reporting Council'5 ("FRC's") websile al.. htt .11 of our audilor's report. . This description forms part Us• of our r•port This report is made solely lo the Charitable C¢xnpany's members. as a body. in accordance with Chapief 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so Ihat we rnight slate to the Charilable Company's members those matters we are required to slale to them In an audilor's report and for no other purpose To the fullest extent permitted by law, we do nol accept or assume re5ponsibilily to anyone other than Ihe Charitable Company and the Charitable Company s Members as a l)ody. for our audit work. for this report, or for the onionS we have fomie(l. Do¢u8ton•d by.. 8F75FEDC31D1467 Paula Willock (Senior Statutory Audrt(Y) For and on behalf of 800 LLP. slatutory audrt( Gatwick. UK Date 12 August 2024 BDO LLP Is a limiled Ilability parlnership regisiere(l in England arKI Wales (with regisiered number OC305127).
NFTS Foundation Statement of Flnanclal Activities (Includlng Incorne and expendlture account) for the yèar ended 31 December 2023 Perman•nt Unrnstrlct•d Re•trlcl•d •ndvwmenl lunds fund8 lunds 2023 2023 2023 Reslaled Total Fund• 2022 Total Funds 2023 Not• Income and endowm•nts from: t)onaln3 Investments Other income 625 112.673 250.098 250,723 115,570 3,052 113,177 2,897 Total In¢om• 2.897 113.298 250.156 366,351 116,229 Expendltur• on: Rai&ng lunds Inveslmenl managemenl costs Charilable aGbvrties Educatic>n 552 21,464 22.016 22,926 10,CO) 140,0(KJ 1 $0,000 150.OLX) Total •xpendlturn 10.552 161,464 172,016 172.926 Nel galnsl(losses) on investments 6.695 205,851 56.281 268,827 (618.939) Net Incomel{108ses) {960) 157.685 306,437 463.162 (675.636) Transfers betvfftn funds (2.533) Nat Movnent In funds 14 (3.493) 160.218 306.437 463,162 (675.636> R•conclllatlon of lund8: Total lund balarKes brought for4vard al 1 January (Restated) 14 112,633 3,524,407 880,681 4,517.721 5,193.3S7 Tolal fund balances carrfad forward at 31 December 14 109,140 3.684,625 1.187.118 4,980,883 4,517.721 All amounts relate to continuiryJ activ¢iies. The te$ on pages 12 10 22 f¢xm part of Ihese finarKlal staiernents. 10
NFTS Foundation Balance Sheet al 310ecefflber 2023 Company numb¢r 03290399 Restated 2022 Not• 2023 Flxed assets Investsnents 12 4753,495 4.283.196 Curr•nt assets Cash arKI cash equNalents Debtors 227.388 212.304 22.221 Net assets 4,980,883 4.517.721 Funds of the charlty: Permaneni endowment funds Restrle0 funds Unreslricied funds 14 14 14 1,187,118 3,684,625 109,140 880.681 3.524,407 112.633 Total charlty funds 4.980.883 4,517,721 These xcounts have been prepared in acc4ydarKe wrth the speual provisions of Ihe Companies Act 21M)6 relakn'ng lo small companies. Approved by the trustees and aulhorised for issue on 9 July 2024 arKI s19r on their behalf by; sleptrn Lou Chalr of TruStS Judith Chan Trust T1 notes on pages 12 10 22 f•Jm part of these finarmsal slatements. 11
NFfs Foundation
Notes to the Flnanclal Statements
for the year ended 31 December 2023
Status of the company
The Foundation is a wlvate c¢>mpany limiie(I by guarantee and is a registered charrty inccyporated in EnglarKI
and Wales. Each memberfs liability is limited. upon wirKling UP. to an amount not exceeding ten pounds.
Accountlng pollcles
(a> Basls of preparatlon
The financial staiements of Ihe F
NFTS Foundation Notes to the Flnanclal Statements for the year ended 31 Docember 2023 (continued) Prlnclpal accountlng pollclos (continued) Transfers belween erKlowment funds reslrded funds afe made to ensure the principal sum invested is ys recognised in the endo4Mnenl funds with incThne and investmenl costs transferred lo restricted fuThJs. Investment in(x)me. Inveslmenl ma)agement costs and net gainylosses on investments are apportioned across the funds quarterty based Ihe value of each fuThJ al 31 March. 30 June. 30 September, and 31 December 2023. An anal>sis of Ihe chariiable furKls has been disclosed in note 14. (d) Incom• rKognltlon Ail income ts recogntsed ¢yKe the Fration has enlillement10 irKome. rt is Fyobable thal the income will be re1Ve and the arnnI of income recetvable can be measured reliably. Dona1Ks are recognised when ihe Foundation (wtractually enlrfled 10 the Irwne. In lh8 event that a dOnan is sub to condrtM)ns Ihai require a level of perfwnance before the Foundation Is enli118d lo Ihe funds, Ihe income is deferred and not recognwd untd erther those COndrtnS are fully met, or the fuifilmenl of those conditions ts %th)Ily within the conirol of the FoundalK and rt Is wobable that Ihose condilions will be fulfilled in the repn9 perd. Intest on funds held on deposit is induded when receivable and the arnount Can be measured reliably by the Foundation.. this is normally upon notrfication of the interest paid or payable by ihe bank. Dividends are recognised once the dividend has been dead and noIrf11on has been received of the dividend due. Th Is nomially upon nOtifatIOn by the investment advisor ol the divmdend eld ol the investment portlolio. (e) Expendltur• AII costs, except investment managemont costs, assoo'ated wth thè Foundation and fundraislng ivilies are borne by the School. (n Cash and cash equlvalents Cash and cash equivalents constsl of Gqsh at bank, deposrts and short-term investment5 wilh an original matunty of months (Y less. (g) Taxation The FOundatn is an exempt charity ¥thin tre meaning of Part 3 of the Charitles Act 2011. It is Iherefofe a chanty within the meaning of Para 1 of Schedule 6 to the Finance Act 2010 and accordingly. the Foundaiion is polenlially exempt from taxation in respect of income or capital gains received within categories covered by SeCtns 478 - 488 of the Corpcxation Tax Aci 2010 (CTA 2010) w Seciion 256 of the Taxalion of Chargeable Gains Aci 1992. to the exlent that such tncome or gairts affj appld to exdusively chariiable purposes. Expenditure indudes irrecoverable Value Added Tax charge(I by supplrs to the Foundatn. Irrecoverable VAT Is thwged against ts calegcyy of expendilure for which it was irthrred. (hl Flxed asset Investments Invesimenls are a fom ol bas financial instrument and are inrtially recognised al Iheir transactson value and 8ubsequenUy measured at their fair value as at the balance sheet dale using ihe closing quoted markei price. The Statement of Financ1 Activities inc4(Kles Ihe nei gains and losses &ising on revaluats'on and disposals oughout the yew. 13
NFfs Foundation Notes to the Flnanelal Statements for the year ended 31 D•e•mber 2023 (conllnued) Prlnclpal accountlng pollcl•s (continued) The Foundation does rt acquire wi options. derivatives or other complex financial instruments. The main fomi of financial risk faced by the FoundatK)n is thal of volalilty In equity markets and investment markets due lo wider economr conditions, the attitude of investors to investment risk. arKI changes in sentiment concerning equities and wiihin partujlar SeCtS Of sub sect(Ys. (i) Reallsed galns and loss All gains and losses are taken to the Statemenl of FinaTxial Acb'vrties as they arise. Realssed gains and losses on invesknents ar8 calculated as the drfference between sales proceeds and their opening carrying value or Iheir purchase value rf acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the drffefence behveen the fair value al the year and their carrying value. Realised and unrealised inveslment gains and losses are corn.ned in the Statement of Financial ActNilies. Judgem•nl8 In applylng accountlng pollcl•8 and k•y sourcu of •stlmatlon unc•rtalnty In pparing these finar£ial ststements, trustees have made th8 following judgements: Investment income. invesknent management costs arKI net gainsnosses on Inveslments are apportioned ross the furKls quarterfy based on the value of each fund ai 31 March. 30 June. 30 September. and 31 December 2023: armj wilh respecl io the nexl reporting pef?od, the most signffjtcant areas of uncertainty thal affect the catyng value of a&wts hekl by the FrthIK)n are the level of investsnenl reium and the perfLYmance ol investment markels. R•lated party trangactlons and trust•es' •xp•nse8 and r•mun•ratlon Durlng the course of Ihe ypaf. the F(ndatIOn arKI the School entered into a number of relaied party transactions. The transactions represented fundraising inrtiatives undertaken to support the scholarship ogramme. donations towards Ir$ar. and donatnS lOarrI5 Ihe running cost of the rricUlum. During th8 year the Foundati¢)n rnade tolal donaiions to the School of £150k (2022- £150k) (see note 9). Key management personnel are consldered lo be School's Direth. Finance Director and Head of FinaThJa Reporting. The trustees all give freely their lime and expertise any form of remuneraiion (x other benefrt in cash or kir (2022 - £Nil). During the year. none of Ihe trustees received any reimbursemenl for rneellng expenses (2022 - £Nill. There were transactKTh with trustees and connected persons durlng Ihe sear. Durfng the year, insurance costing £1.1 k (2022 - £1 k) was purchase(I to indemnlfy ts trustees against default on thelr part. The School paid this during the year on behalf of the Foundation. Connoct¢d chariti The Foundation 7+Yas inc(Kp81ad to in the advarKement of educatK)n of the public In film. television and other media arKI in particular the advancement of educati<)n and research at ¢x supported by the S(tsol or any charity of educational estsbllshment connected associated wilh Ihe School. 14
NFfs Foundation Notes to th• Flnanclal Statements for the year ended 31 Decernber 2023 (contlnuad) Donations P•mwi•nl R•stal•d Total 2022 Total 2023 fvnd• funds funds DonatM)ns 625 250.098 250,723 3.052 625 250.098 250,723 3.052 Invasimont Inme unr••trIct RMtrlct•d •ndlment funds lunds fund• Total 2023 Total 2022 Income from listed invesiments 2.897 112.673 115,570 113,177 2.897 112.673 115,570 113,177 Investmenl InCe is apportK)ned a(xoss the funds based on the fund balances held at ts end of each quartef. InvtM0nt manag•rn•nt Costs 2023 2022 Inveslment managemern fees 22,016 22.926 Analysls of charltabl• •xpondftur• During the year, donations of £150k {2072- £1 Sok) Vre male lo the School. These donallons represenl £69k towards scholarships and bursaries and £81k towards masterdasses and other costs of the School's curriculum. All Other Cosis associated with tt)e Foundalbon's fundraising actiVitS are borne by the School because there is an integraled lundratsing programme for the School and for the FoundaiK)n. 10 Employee emoluments No staff are employed by the Foundatwi (2022- £Nil). 11 Auditors. remunoration The audit fee of £12,rKy) (2022 - £8.400) ¥Yas tKme by the School. 15
NFTS Foundation Notas to the Flnancial Statements for the year ended 31 December 2023 (continued) 12 Flxed au•t Investments 2023 2022 Movement in quoted inwstments.. Markel value brought fcrfwwd as at 1 Januwy Addilions to investments ai cost Disposals al carryrng value Loss on revaluation 4.283,196 2,717,091 <1,919,142) (327,650) 4.815,795 1,745.872 {1.403.889) (874.582) Markei value as al 31 December 4753,495 4,283.196 Market value 2023 Market value 2022 Cost 2023 Cost 2022 Ttrw Investrnerrts are rewesented ty. Quoted InsIMents.' UK fixed interest UK equities Overseas fixed interest Overseas equit$ 561,579 1,077,947 417.485 2,381,411 566,262 1,149.918 416.710 2.620,605 243,375 1.378.394 537,366 1.481.340 215.692 1.744,280 519.798 1.803.426 4.438,422 4753.495 3.640,475 4.283,196 16
NFfs Foundation Not¢5 to the FInala1 Statemen1$ lor tho year ended 31 December 2023 (contlnu•d) 12 Flxed ass Investments (con11nd) Ttwe were no investrnents reFxesentirwJ more than 5% of the value of the txxlfolK) as al 31 December 2023. The following investrnents rewesented mrye than 5% of value of Ihe portfdio as ai 31 Dewnber 2022: Number of unlts 18.130 Mark•t Value £ 230.070 Brown Advw Fds US Sustainable Glh Si GBP JP Morgan FLtnd Icv¢ JPM US Eq Irt C2 GBP Nel Di portfollo 146.0(Xl 230.972 Investments are reiained by Ihe FoundatK)n fw Ihe long lerm10 generdle inc(Yne lor School and lo ensure thal the objectives of the chty are fulfilled. Investment in equrties and fe<l interest securities are all traded in quoted publt markets. The basis of fair Vall for quoie(l investrnents is equivalent to the market value, using bKI rYKe. 13 Flnanclal Instfum•nts Financ1 assets measured al lair value thrgh profit or loss comwise red asset investmenls in a trading portfolio of listed company shares. Details of these can be fThJrKI In note 12. sn&nce of fInar1 instruments to the ongoing finarKial sustainabilty of the FourK1aiion Is considered in Ihe financd review and investrnenl policy and perfcXMar sections of the Truslees, Annual Report. The main risk 10 the Fndation from financial instruments lies in the combinaiion of uncertaln Inveslment markeis and vdatility of yield. Due to markel senlimenl favouring lower risk inveslments, the weld on bonds has been abnomially low giving rise to a Snan1 downside risk of a fall in capital values when interest rales return to normal levels. The Foundation's Investments are mainly traded in markels wlh g)d Iu[dIty and high trading volumes: therefore. ItqUKJrty nsk is assessed as low. The F¢)undalK)n has no material inveslment holdings in markels sUbct to exchange conlrols or trading restrKiion8. The Foundation manages these investment risks by retsining expert advisors and operaling an investmenl policy that Pfovsdes for a hh degree of diversiftstion of ldIng$ %tyithin investment asset classes that are quole(J on recognised stock exchww. Ttr* Fwndabon does not make use of any dertvalives or complex finanoal instruments. 17
NFfs Foundation Notes to the Flnanclal Statements for the y•ar ended 31 December 2023 (contlnuod) 14 Analysls of charttablo funds Fund balances brought foThvard Exp•ndllure donations Expenditur• to School Investment Income n•t transfers Fund balances carried lorward Galns and losse8 Analysis of fund movements year ended 31 December 2023 Permanent endowm•nt funds: The Louis Malle Stholarship Post office Scholarship Kodak Scholarship John Sargent Scholarship Nik Powell Scholarship Lesley Land Scholarship 113.261 286.635 133.769 242,468 104,548 7,272 16,819 120.533 303,454 142,069 256,570 110.675 253,817 14.102 6,127 3.661 250.156 Total p•mian•nt endowment funds 880,681 250.156 56.281 1,187,118 Rutrlcted funds: Lew Grade Chair Cubby Broccoli Chalr Richard Dunn Scholarshlp David Munro Fund Human Rghts Dornentary Award mh861 Samuelson Scholarship Freddie Young Scholarship Tl Colln Young SCIarshIP The TVOr Jones Schobarshlp Sir John Tery Memorial Scholarship Tre Louis Malle Scholarship Post Office ScholarsNp Kodak Scholarship Nik POV11 Schdarship John Safgenl Schdarship James Walker NFfs Writers Fund Lesley LaThl S¢trh1p 1,901.773 918.379 520,239 48,507 23,623 13,238 (60.000) (30.OOOy (7.000> (9,247) 112,455 (4.500) 54,586 <2,524) 30,718 1,993.488 962.088 554,671 77,816 1.981 10 15 113 149 (1.OQ)) (378) (2) (3) (21) (28) 4,596 24 83,015 428 623 4,727 6,238 577 4.375 5.774 260 343 34.145 10.057 <1,000) {2.000) (5.841) (3.500) (2.126) (5.orx)) (20.(K)O) (164 (5971 (1.378) (680) (501) (1.157) (45) (239) 35,839 10,591 3.131 7.219 7,59) 6,974 2,627 8.063 825 1.375 2,149 41,137 2,055 22.752 1,136 835 Total restrfct•d funds 3.524.407 113.298 (137.467) {21.464) 205,851 3,684,625 Unrestrlcted funds: General reS 112.633 2.897 (12.533) (552) 6.695 109,140 Total unr•strlcted funds 112,633 2,897 (12.533) (552) 6.695 109,140 Total funds 4.517,721 366,351 (150.OCK)) (22,016) 268.827 4,980.883 18
NFfs Foundation Notes to th• Flnan¢lal Ststements for th• year endod 31 December 2023 (contlnued) The restricted funds of £3,685k include £646k io pfovbde scholarships and bur&wies (Rhard Dunn, Freddie Young, Sir John Terry. Colin Young, Trevor Jones. James Walker). £2.956k for Chairs (Lew Grade. Cubby Broccoli). and £83k lo supp(Yt dooJmentary film makirvJ Concernir human nghts (David Munro Fund). The pemianent endowmenl funds of £1.187k are endowwts to wovide scholarships (Loui8 P¥lalle. Posi l(odak. John SargenL Nik PO11. Lesley Land). The dividends eamed on the furKls dunng the Jear of £116k, the realised profrt of £596k, Ihe UrweaIed loss of £327k and the investrnent management costs of £22k have been allocated across the lurKls quarterfy based on the value of each fund at 31 March. 30 June. Sepiember, and 31 December 2023. 19
NFTS Foundation Notes to the Flnancial SL1tements for the year ended 31 December 2023 (condnued) 14 Analysls of charltable funds (continued) Restated fund balances carrled forward Fund balances brought fOard Restated galns and 1088es Restated R•8tat•d •xpendituro Incom• (n•t ol transfer81 Analy818 of fund movoments year ended 31 D0mber 2022 P•rnianent •ndowm•nt lunds: The Louis Malle Schdarship Post Olfice Schdarship Kodak Scholarship John Sargent Scholarship Nik Powell Scholarshlp 129,958 325.581 153.070 275.072 118,753 (16.697 (38.946 {19.301 {32.604 (14.205) 113,261 286,635 133,769 242,468 104.548 Total p•rman•nt •ndowm•nt funds 1,Q)2.434 (121.753) 880,681 Lew Grade Chalr Cubby 8roccoli Chair Richard Dunn Scholarship David Munro Fund - Human RhIS Docurnentary Award Michad Sarnuelson Scholarship Freddie Young Scholarship The Colin Young Scholarship The Trevor Jones SchoFarship Sir John Tefry Memorial Scholarship Louis Malle Scholarship Post Offe Scholarshlp Kodak Scholarship Nik Powell Scholarship John Sargenl Scholarship James Walker NFTS Writers Fund 2.185.038 1.056.310 587.242 47,793 23,105 12,845 (69,882) (261,376) (34.680) (126.356) (9,802) {70.246> 1,901,773 918,379 520.239 ).013 441 643 4.873 6,430 39,144 9.622 (3,399) (2) (3) (22) (28) {1.173) (2,618) (7,122) (4.21 S) (2.597) {6.207> {18.207) (10.767) (53) (77) (583) {769) (4,682) 77.816 396 577 4,375 5,774 34,145 10,057 10 14 107 141 3.053 7.122 3.529 2.597 5.962 4.071 8.276 7,590 2,394 60.845 2,149 41,137 (5.572) Total re$trbCt fund8 4.051.271 113,174 (159.557) (480.481 > 3,524.407 Unr¢strlct•d funds: General reserves 139.652 3,055 (13.369) (16.705) 112.633 Total unrestrkted fund8 139,652 3.055 (13.369) (16.705) 112.633 Total funds 5,193.357 116.229 (172.926) {618,939) 4,517,721
NFTS Foundation Notes to the Flnanclal Statements ft•r tho year ended 31 December 2023 (contlnuedj 15 Analysls of not assets between funds Pernianent Unrestrfct•d R•strlcted •ndowment funds funds funds Restated Total 2022 Total 2023 Fund balances al 31 December 2023 ae rewesented by. Invesiments Cash and cash equivalents Debt(Ks 3.S66.377 118.248 1.187.118 4.753.495 227.388 4,283.196 212.304 22.221 109,140 109,140 3.684.625 1.187.118 4,980.883 4.517.721 Pernianonl Unr•8trfcl•d R•8trlct•d endowment funds fund• funds R•glat Total 2022 Total 2021 Fund balan at 31 Dec4mb 2022 are reesented by. Inveslments Cash and cash equivalents Debtors 3.407,420 99.671 17.316 875,776 4,283,196 212,304 22.221 4,815.795 358,393 19.169 112.633 4,905 112,633 3,507.091 875,776 4.517,721 5.193,357 Suff[ent resources we held In an appropryate fcKm to enable e&h restrKted fund to be applied In accordance th the restriciions. 21
NFfs Foundation Not08 to the Flnanclal Ststements for the year ended 31 Decefflber 2023 (condnu•d) 16 Statement of Flnanclal Activltl•s for the y•ar •nd•d 31 D•c•mb•r 2022 R•s0d P•rnMrnnt R•8tated rnstrlcled •ndowmenl lot funds lund lunds 2022 2022 2022 Unrnstrlcted funds 2022 Note Income and endowments from.. Dor)ations Irbveslments 3.052 110.122 3,052 113,177 3.055 Total Incom• 3.055 113.174 116,229 Expondllur• on: Raisiry funds Investmenl managemenl costs Charitable aci?Vit$ Educali 619 22.307 22,926 10.(M)O 140.(KrfJ 150.000 Total expendlture 10.619 162.307 172.926 Net losses M investrnents (16.705) (480.481) {121.753) (618.939) N•t losses (24.269) (529.614) {121.753) (675.636 Transfefs betrw funds {2.750) 2.750 N•t movem•nt In funds 14 (27.019> (526.864) {121.753) (675.636 Total fund balances brght forward ai 1 January 14 139.652 4.051,271 1,002.434 5,193.357 Total fund balanc•s carrl•d foThvard at 31 Dec•mb•r 14 112.633 3,524,407 880,681 4,517,721 17 Restatement Restricted income of £17.3k for James Walker NFTS Writers Fund and pernianent endowment income of £4.9k for Ihe John Sargent Scholarship FurKJ was fecognised in 2023 that related lo funds recetved by Ihe School In 2021 and 2022. These furKls %ere receNed into Ihe School's Just Giving fundraising account arxl were rM)I Identified and transferred to the Foundation until 2023. The School's Just Giving acccyjnt is now reconciled by the School on al1&3sl a quarterly basE. wth any morues due lo the FoUnda1n transferred immediately. restatement recognises the funds in the correcl accounting PWNJd the donations ere recefved. with the Impact being an adjustment lo the 2022 funds totalling £22.2k.