NFTS Foundation Report and Financial Slatemenls Year Ended 31 December 2024 Company registration number 03290399
NFTS Foundation Report and financial statements for the year ended 31 December 2024 Contents Page Report of the Trustees Independent Auditorfs Report 10 Statement of Financial Activities Balance Sheet 12 Notes to the Financial Staternents Reference and Administrative Inforniation Trustees Stephen Louis - Chair of Trustees Judith Chan Neil Forster Steve Mertz Secr•tary and Reglstered Offi¢e Trevor Hall Beaconsfield Studios Station Road Beaconsfield Buckinghamshire HP91LG Management Team Dr Jon Wardle Alex Gurney Trevor Hall Company Reglstration Number 03290399 Charity Registration Number 1061561
NFTS Foundation Report and financial statements for the year ended 31 December 2024 (Continued) Reference and Administrative Infomiatlon (Gontinued) Auditors BDO LLP First Floor Bottle Works The Bars Guildford Surrey GU14LP Bankers Lloyds Bank PLC 25 Gresham Street London EC2V 7HN Sollcltors Eversheds Sutherland LLP 1 Wood Street London EC2V 7WS Investment Managers Investec Wealth & Investment Limited 30 Gresham Street London EC2V 7QN
NFTS Foundation Report of the Trustees for the year ended 31 December 2024 The NFTS Foundation trustees (tthe Trustees"), who are also dlrectors of the registered charity of Ihe same name (°the Charity.) for the purposes of the Companies Act, present Iheir annual report together with the audited financial statements for the year ended 31 Dernber 2024. The truslees have adopted the provisions of the Statement of Recommended Practice (SORP) °Accounting and Reporting by Charities" issued in October 2019, preparing the annual report and financial slatements in accordance with the Financial Reporting Standard appllcable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. This report includes the directors, report as required by company law. Trustees The trustees of the NFTS Foundation during the year were: Stephen Louis - Chair of Trustees Judith Chan Neil Forster (appoinled g July 2024) Linda James (resigned 9 July 2024) Steve Mertz The trustees have given generously of their time and expertise for which the NFTS Foundation and the Natlonal Film and Television School {"Ihe School-) are extremely grateful. Structure, Governance and Management NFTS Foundation l.the Foundalion") is a Gharitable company limited by guarantee, which was eslablished on 11 December 1996. It is governed by a Memorandum and Articles of Association. The principal advisers at the date of this report are listed on the previous page. Connected Charit18S The School is a charity connected with the Foundation. By mulual agreement. all costs associated with fundralsing aclivities are bome by the School. From monies received for investment, the Foundation from time to time makes grants, donations and scholarships. The Foundalion donates income and capital from investments to the School. The trustees review the Foundation's investment performance and strategy. Investment Policy (including reserves polKy) Grants, donations and other income received from various organisations and individuals are invested in a broad range of fixed income securities and equities to provide scholarships and Contribute to the running costs of the School. As at 31 December 2024, the reseNes of the Foundation are used for investments held to provide fulure ftjnding to the School. The trustees exercise reasonable care to ensure that these investments are effectively managed by the Foundation's investment managers, Investec Wealth & Investment Limited. The Foundation's Reserve policy is to hold an investment portfolio of at least £3m, the individual amounts being held in accordance with all donor wishes an¢J obligalions. At 31 December 2024, the Foundation's reserves were £6.5m, £3.5m higher than the minimum value set oul in the Foundation's Reserve policy. which is subject to annual review. It is anticipated that the income generated from this level of reserve5 will enable the Foundation to provide a consistent level of funding to the School each year.
NFTS Foundation Report of the Trustees for the year ended 31 December 2024 (continued) Objectives and Aotivities The Foundation was established to help in the advancement of the education of the public in film, television and other media. and in particular the advancement of education and research at or supported by the School or any charity or educational establishment connected or associated with the School. The School is responsible for all fundraising actNity for both the School and the Foundation. Ethical and Environmental. Social, and Governance (ESG) considerations The trustees seek to invest in a way that furthers the charit2ble objectives of the Foundation, with an emphasis on proactive approach to sustainability and socially responsible investing. The trustees reSee the right to exclude companies that carry out, or may carry out, activities incompatible with their aims or hold, or may hold particular investments which damage, or could damage, the Foundation's or the School's reputation. The trustees will continue to exercise prudent oversight over the performan of the funds invested to ensure that the funds continue to meet the charitable objectives of the Foundation. The investment portfolio is diversified across a number of sectors and markets, and invested in companies that demonstrale strong Environmental, Social and Governance credentials lo ensure investment returns are sustainable. Taking into account the reputation of the Foundation and the School, the trustee5 require their appointed investment managers to have due regard for the suitability of any recommended investments. The investment managers musl consider Environmental, Social and Governance (ESG) factors in their investment process and investment selections. Powers of Investment Pursuant to the Foundation's Memorandum of Association, the trustees may exercise their investment powers by: making grants and donations, whether out of income or capital, in line with the restrictions applicable to each fund,. accepting any gifts, endowments, legacies or contributions of any other kind of money or property of any kind., and investing the monies of the Foundation in such investments. securities or propety of any other kind as may be thought fit, subject nevertheless to such conditions and such consents as may be imposed or required by law. The board of trustees confirms thai all investment funds are held and made in accordan with these powers. Risk Managen7enl The trustees routinely examine signtficant risks that the Foundation may face during each financial year, and have developed systems to monitor and control these risks to mitigate any impact that they may have on Foundation in the future. Accounting Policies Accounting policÉes that have been applied during the year a outlined in the notes to the financial statements.
NFTS Foundation Report of the Trustees for the year ended 31 December 2024 (continued) Financial Review Total income for Ihe Foundation for the year ended 31 December 2024 was £1,453k (2023 - £366k). Investmenl income in the year was £137k {2023- £116k}. This related to dividends and interest eamed during the year and represented an average rate of return of 2.7 /0 on the Foundation's £4.981 k investment portfolio at 1 January 2024. Donations received in the year were £1,317k (2023 - £251k). Donations included £1 million for The Crown Scholarship and £316k for The Jenne Casarotto Scholarship. Tolal expenditure in the year was £215k {2023 - £172k). Expenditure represented the donation to the School, this being the £195k (2023- £150k) donation for scholarships, bursaries. masterclasses and other costs of the School's curriculum, and inveslment management costs. The increase in the donation to the School is due to Ihe new scholarships awarded from The Crown Scholarship fund, an expendable endowment fund to be awarded over the next 20 years. Marketvalue movements on the investment portfolio generated a net investment gain for Ihe yearof £261 k (realised loss £33k and unrealised gain £294k), compared wilh an investment gain of £269k in the previous year (realised gain £596k and unrealised loss £327k}. The net movement in funds for the year was an increase of £1,499k and represented a 30°/0 increase in the value of the Foundation's investments. The fund balance at 31 December 2024 was £6,480k (£4,g81k at 31 December 2023) and represented an equitieslcash and fixed interest investment mix of 84116, compared with a mix of 84116 in the previous 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 Activities Fundraising activilies will continue to be undertaken by the School on behalf of the Foundation. These activities aim to.. raise funds in the form of scholarships. Ghairs, fellowships and legacies, on a revenue basis, and. where practical, on an investment basis,. and raise funds for special projects such as capital equipment and building development. New funds received in 2024 included The Crown Scholarship and Jenne Casarotto Scholarship. As a result of these new fund5, the trustees currently aim to distribute approximately £195k per annum (an increase of £45k on 2023), generated primarily from annual dividend and interest returns on the Foundation's investments for the benefit of the School. However, all distributions by the Foundation are at the discretion of the trustees. Looking forward, the Bloomberg consensus forecast for world GDP growth in 2025 is now 2.8ttk as at March 2025, a small downgrade from 3.09/0 at Ihe start of the year. Growth expectations have slowed in the US economywith President Trump's tariffs contributing lo this. The probability of a US recession remains low but markels are not ruling out the possibility of it happening whilst inflation forecasls globally have risen on the threat of Trump's tariffs and any reciprocal tariffs. This has caused a degree of heightened market volatility in the short temi. The latest market valuation of Ihe Foundation's investments for the five months ended 31 May 2025 valued the investments at £6.2m, Ihus £3.2m above the minimum level sei out in the Foundation's reserve policy. This is below the portfolio's valuation as at 31 December 2024 year end given the equity market weakness over the pas1 few months.
NFTS Foundation Report of the Trustees for the year ended 31 December 2024 (Continued) Future Actlvltles (continued) The trustees invest on a medium risk basis, with an investment horizon of l O+ years. As such, the trustees are not uncomfortable having to accommodate short-term volatility in capitsl values, in the expectstion of long-term, sustainable gains. The trustees consider that there are no material uncertainties about the Foundation's ability to continue as a going concern, gtven the headroom the Foundation has on its 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 at the discretion of the Charity. Public Benefit The Foundation meets its public benefits requirement as a charity by distributing grants to the School and scholarships to the School's students. The trustees are aware of their responsibilities with regards to the public benefits requirement and are conversant with the relevant Charity Commission guidance.
NFTS Foundation Report of the Trustees for the year ended 31 December 2024 (contlnued) Statement of Trustees. Responsibiliti•$ The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Aocounting Practice {United Kingdom Accounting Standards and applicable law). Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming reSoUrS and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial slatements, the trustees are required to: select 5Ultable accounting policies and then apply them consistently., make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed. subject to Sny material departures disclosed and explained in the financial statements; and prepare the financial statements on a going concem basis unless it is inappropriate to presume that the charity will conttnue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions, and disclose wilh reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor All of the current trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the company's auditor for the purposes of their audit and to establish that the auditor is aware of that information. The trustees are not aware of any relevant audit infomation of which the auditor is 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 Stephen Louis Chalr of Trustees Date: 9th June 2025
NFTS Foundation Independent Auditorfs Report Independent Audttor's Report to the members of NFTS Foundatlon Opinlon on the flnanclal statements In our opinion, the financial statements: give a true and fair view of the state of the Charitable CoMpanS affairs as at 31 December 2024 and of ils incoming resources and application of resources and application of resources for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. We have audlted the financial statements of NFTS Foundation {'the Charitable Cornpan) for the year ended 31 December 2024 which comprise the Statement of financial aclivities, Balance sheet and notes to the financia statements, including a summary of signrficant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Stanclard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remain independent of the Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wtth these requirements. Concluslons related to going concern In auditing the financial statemenls. 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 identrfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsiblllties and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Other informatlon The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtsined in the audit or otherwise appears to be materially misstated.
NFTS Foundation Independent Audltorfs Report Independent Auditor's Report to the members of NFTS Foundatlon (continued) If we identify Such material incon5iStencies or apparent material misstaternents. we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Other Companies 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 for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements. and the Directors, Report, which are included in the Trustees, Report, has been prepare(J in accordan wilh applicable legal requiremenls. In the light of the knowledge and understanding of the Charitsble Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustees, report. We have nothing to report in respect of the following matters in rel8lion to which the Companies Act 2006 requires us to report to you if, in our opinion,. adequate accounting records have not been kept, or returns adequale for our audit have not been received from branches not visited by us. or the financial stalements are not in agreement with the accounting records and returns. or certain disclosures of Directors, remuneration specrfied by law are not made., or we have not received all the infomialion and explanations we require for our audit,. or the trustees were not enlitled to prepare the financial statements in accordance with the small company's regime and lake advantage of the small companies, exemptions in preparing the directors. report. Responsibllltles of Trustees As explained more fully in Ihe Trustees, responsibililies statement, the Twstees (who are also the directors of the charilable company for the purposes of company law) are responsible for the preparation of the financial slaiements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparalion of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial slatements, the Trustees are responsible for assessing the Charitable Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Truslees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financlal statements We have been appointed as auditor under the Companies Act 2006 and port in accordance with the Act and relevant regulations made or having effect thereunder.
NFTS Foundation Independent Auditor's Report Independent AuditoPs Report to the members of NFTS Foundatlon (continued) Our objectives 8re to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordan with ISAS (UK) will always detect a material misstatement when it exisls. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Extent to which the audrf was capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures In line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our ProdureS are capable of detecting irregularities, including fraud is detailed below.. Non-compliance with laws and regulations Based on.. Our understanding of the Charitable Company and the sector In which it operates. Discussion with management and those charged with governance., and Obtaining and understanding of the Charitable Company's policies and procedures regarding compliance with18ws and regulations. We considered the significant laws 2nd regulations to be the applicable accounting framework. UK tax legislation etc. The Charitable Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to 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-complian 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 to supporting documentation. Fraud We assessed the susceptibilty of the financial statements to material misstatement, including fraud. Our risk assessment procedures included., Enquiry with management and those charged with governance regarding any known or suspected instsn$ offraud. Obtaining an understanding of the Charitable Company's policies and procedures relating to,. Detecting and responding to the risks of fraud., and Internal Controls established to mitigate risks related to fraud. Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud,. and Discussion amongst the engagement team as to how and where fraud might occur in the financial statements. Based on our risk assessment, we considered the area's most susceptible to fraud to be manipulation of the financial statements through management override of controls and fraud in revenue recognition for donations income. Our procedures in respect of the above included.. Testing a sample of journal entries throughout the year, which met a defined risk criterion. along with a random sample of journals, by agreeing to supporting documentation.
NFTS Foundation Independent Auditor's Report Independent Auditor's Report to the members of NFfs Foundation (continued) Reviewing journal entries processed by management when recording the investment portfolio results Selecting a sample of donations received in the year and checking its recognition and fund classification. as well as a review of post year end receipts and board minutes to confirm completeness of the donations recognised. We also communicated relevant identified laws and regulations and potential fraud risks to all engagemenl te8m members and remained alert to any indications of fraud or non-compliance with laws and regulations throughoul the audit. Our audit procedures were designed lo respond lo risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstaiement due to fraud is higher than the risk of nol detecting one resulting from error, as fraud may involve deliberate Concealment by, for example. forgery, misrepresentations or through collusion. There are inherent limilations in the audit procedures performed and the further removed non- ompliance with laws and regulations is from the events and transactions retlected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council's {"FRC's'} website at.. htt s.'IIMww.frc.or .UaUditOrsres onsibilities. This description forms part of our auditor's report. Usé of our report This report is made solely to the Charitable Company's members, as a body, in accordance with Chapler 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company's members those matters we are required to stste to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accepl or assume responsibility to anyone other than the Charitable Company and the Charitable Company's members as a body, for our audit work, for this report, or for the opinions we have formed. Signed by.. Pa gEDeE2FE668E4BE Paul Jagger (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Guildford, UK Date: 19 June 2025 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
NFTS Foundation Statement of Financial Activities (including income and expenditure a¢¢ount) for the year ended 31 December 2024 Pemianent endowment funds 2024 Unrestricled funds 2024 Restricted funds 2024 Total Funds 2024 Total Funds 2023 Note Income and endowments from: Donations Investments Other income 1,316.524 133.569 112 1,316,524 136,416 112 250,723 115,570 58 2,847 Totsl Income 2,847 1,450.205 1,453,052 366.351 Expenditure on: Raising fijnds Investment management costs Charitable activities Education 412 19,484 19,896 22.016 195,000 195,000 150.000 Total expendilure 412 214,484 214,896 172.016 Net gains on investments 5,682 192,973 62.111 260,766 268.827 Net income 8,117 1,428,694 62.111 1,498.922 463,162 Transfers beeen funds {1,435} 4.776 (3,3411 Net movement in funds 14 6,682 1,433,470 58,770 1,498,922 463.162 Reconciliation of funds: Total fund balances brought forward at 1 January 14 109,140 3.684,625 1,187,118 4,980,883 4.517.721 Total fund balances carried forward at 31 December 14 115,822 5.118,095 1,245,888 6,479,805 4,980,883 All amounts relate to continuing activities. The notes on pages 12 to 22 form part of these financial statements. 10
NFTS Foundation Balance Sheet at 31 December 2024 Company number 03290399 Note 2024 2023 Fixed assets Investments 12 6,296,220 4,753,495 Current assets Cash and cash equivalents 183,585 227,388 Net assets 6,479,805 4,980.883 Funds of the charlty: Permanent endowment funds Restricted funds Unrestricted funds 14 14 14 1,245.888 5,118,095 115,822 1,187,118 3,684.625 109.140 Total ¢harlty funds 6,479,805 4.980.883 These accounts have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. Approved by the trustees and authorised for issue on 9th June 2025 and signed on their behalf by: S&¥L La Stephen Louis Chair of Trustees Judith Chan Trustee The notes on pages 12 to 22 form part of these financial statements.
NFTS Foundation Notes to the Flnancial Statements for the year ended 31 December 2024 Status of the company The Foundation is a private company limited by guarantee and is a registered charity incorporated in England and Wales. Each member's liability is limited, upon winding up. to an amount not exceeding ten pounds. Accounting policies (a) Basis of preparatlon The financial statements of the Foundation have been prepared under the historic cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial stalements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 102) and the Companies Act 2008. The Foundation constitutes a public benefrt entity as defined by FRS 102. (b) Assessment of going concern Looking forward, the Bloomberg consensus forecast for world GDP growth in 2025 is now 2.8 % as at March 2025, a small downgrade from 3.00/0 at the start of the year. Growth expectations have slowed in the US economy with Presidenl Trump's tariffs contributing to this. The probability of a US recession remains low but markets are not ruling out the possibility of it happening whilst intlation forecasts globally have risen on the threat of Trump's tariffs and any reciprocal tariffs. This has caused a degree of heightened market volatility in the short term. The latest market valuation of the Foundation's investments for the five months ended 31 May 2025 valued the investments at £6.2m, thus £3.2m above the minimum level set out in the Foundation's reserve policy. This is below the portfolio's valuation as at 31 December 2024 year end 9iven the equity market weakness over the past few months. The trustees invest on a medium risk basis, with an investment horlzon of 10+ years. As such, the trustees are comfortable accommodating some short-term volatility in capilal values, in the expectation of long-term 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 Foundalion has on its minimum reserve level. a review of cash flow forecasts and expected investment performance over the 12 months following sign off of the balance sheet. The annual commttted expenditure is not signrficant compared to the easily liquidated cash balances available and all donations are at the discretion of the trustees. (c) Funds StrUUre Unrestricted funds are funds which are available for use at the discretion of the trustees in furtheran of the general objectives of the Foundation and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specffjic restrictions imposed by donors or which have been raised by the Foundation for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial ststements, Permanent endowment funds are funds where a principal sum Is held and only the income generated can be used, unless the donor gives permission to use capital from the fund. The donor instru¢ts the principal sum to be held and the income generated is used in accordance with specific restrictions imposed by the donor. and is recognised in a restricted fund. 12
NFTS Foundation Notes to the Financlal Statements for the year ended 31 December 2024 (¢ontlnued) Principal accounting policies (continued) Transfers between endowment funds and restricted funds are made to ensure the prlncipal sum invested is always recognised in the endowment funds with income and investmenl costs transferred to restricted fvnds, Investment income, investment management cosls and net gainsllosses on investments are apportioned across the funds quarterly based on the value of each fund at 31 March. 30 June, 30 September, and 31 December 2024. An analysis of the charitable funds has been disclosed in note 14. (d) Incomg recognition All income is recognised once the Foundation has entitlemenl to the income, it is probable that the income will be received and the amount of income re[Vable can be measured reliably. Donations are recognised when the Foundation is contractually entitled to the income. In the event thal a donation Is subject to conditions that require a level of performance before the Foundation is entitled lo the funds, the income is deferred and not recognised until either those conditions are fully met, or the fujfilment of those conditions is wholly within the control of the Foundation and it is probable that those conditions will be fulfilled in the reporting period. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Foundation-, this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and nolrficalion has been received of the dividend due. This is normally upon notification by the investment advisor of the dividend yield of Ihe investment portfolio. (e) Expenditure All costs, expt investment management costs. associated with the Foundation and fundraising activities are bome by the School. (fj Cash and cash equivalents Cash and cash equivalents consist of cash at bank, deposits and short-iemi investments with an original maturity of three months or less. (g} Taxation The Foundation is an exempt charity within the meaning of Part 3 of the Charities Act 2011. It is therefore a charity wtthin the meaning of Para 1 of Schedule 6 to the Finance Act 2010 and accordingly, the Foundation is potentially exempt from taxation in respect of income or capital gains reiVed within categories covered by Sections 478 - 488 of the Corporation Tax Act 2010 (CTA 2010) or Section 256 of the Taxation of Chargeable Gains Act 1992, lo the extent that such income or gains are applied to exclusiveEy charitsble purposes. Expenditure includes irrecoverable Value Added Tax charged by suppliers to the Foundation. Irrecoverable VAT is charged against Ihe category of expenditure for which il was incurred. (h) Flxed asset Investments Investmenls are initially recognised at their transaction value and subsequently measured al their fair value as at the balance sheet date using the closing quoled market price. The Statement of Financial Activities includes the riet gains and losses arising on revaluation and disposals throughout the year. 13
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2024 (contlnued) Principal accounting policles (Gontinued) The Foundation does not acquire put options, derivatives or other complex financial instruments. The main fomi of financial risk faced by the Foundation is that of volalility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. {1) Realised galns and losses All gains and losses are taken to the Statement of Financlal Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculate(f as the difference beeen the fair value at the year end and their carrying value. Realised 8nd unrealised investment gains and losses are combined in the Statement of Financial Activities. Judgements In applying accounting policies and key sources of estlmation uncertainty In preparing these financial statements, the trustees have made the following judgements.. investment income, investmenl management costs and net gainsllosses on investments are apportioned across the funds quarterly based on the value of each fund at 31 March, 30 June, 30 September, and 31 December 2024. and wrth respect to the next reporting period, the most significant areas of uncertainty that affecl the carrying value of assets held by the Foundation are the level of investment return and the performance of investment markets. Related party transactions and trustees, expenses and remuneration During the course of the year, the Foundation and the School entered into a number of related party transactions. The transactions represented fundraising initiatives undertaken to support the scholarship programme, donations towards bursaries, and donations towards the running cost of the curriculum. During the year the Foundation made total donations to the School of £195k (2023 - £150k) (see note 9). Key management personnel are considered to be the School's D1ctor, Finance Director and Head of Financial Reporting. The trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2023 - £Nil). During the year, none of the trLJStees received any reimbursernent for meeting expenses (2023 - £Nil). There were no transactions wilh trustees and connected person5 during the year. During the year. insurance costing £1.3k (2023 - £1.1k) was purchased to indemnfy the trustees asainst default on their part. The School paid this during the year on behalf of the Foundation. Connected charittes The Foundation was incorporated to help in the advancement of the education of the public in film, television and other media and in particular the advancement of education and research at or supported by the School or any charity or educ81ional establishment connected or associated with the School. 14
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2024 (continued) Donations Pemianent endowment funds Unrestrlcted fund5 Restricted funds Total 2024 Total 2023 Donations 1.316,524 1,316,524 250,723 1,316,524 1,316,524 250,723 Investment income Permanent endowment funds un$tctod funds R88trlcted funds Total 2024 Totsl 2023 Income from listed investments 2,847 133,569 136,416 115,570 2.847 133,569 136,416 115.570 Investment income is apportioned across the funds based on the fund balances held at the end of each quarter. Investment management costs 2024 2023 Investment management fees 19,896 22.016 Analysls of charitable expendlture During the year. donations of £195k {2023 - £150k) were made to the School. These donations represent £125k towards scholarships and bursaries and £70k towards masterclasses and other cosls of the School's curriculum. All other costs associated with the Foundation's fundraising activities are borne by the School because there is an integrated fundraising programme for the School and for the Foundation. 10 Employee emoluments No staff are employed by the Foundation12023- £Nil). 11 Auditors, remuneration The audit fee of £14.4k {2023- £12k) was borne by the School. 15
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2024 (continued) 12 Fixed asset investments 2024 2023 Movement in quoted investments.. Market value brought forward as at 1 January Additions to investments at cost Disposals at carrying value Gainlloss on revaluatton 4,753,495 2,200,555 (951,611) 293,781 4,283,196 2.717,091 {1.919,142) (327,650) Market value as at 31 December 6.296,220 4.753,495 Market value 2024 Market value 2023 Cost 2024 Cost 2023 These investments are represented by: Quoted investments.. UK fixed interest UK equitl8S Overseas fixed interest Overseas equities 1,057,466 971,931 418,387 3,240,249 1.028,998 1.083,409 406,036 3,777,777 561,579 1,077,947 417,485 2,381,411 566,262 1,149,918 416,710 2,620,605 5,688,033 6,296,220 4.438.422 4,753,495 There were no investments representing more th8n 5C/*o of the value of the portfolio as at 31 December 2024 (2023- £Nil), Investments are retained by the Foundation for the long term to generate income for the School and to ensure that the objectives of the charity are fulfilled. Investment in equities and fixed interest securities are all traded in quoted public markets. The basis of fair value for quoted investments is equivalent to the market value, using bid pri. 16
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2024 (contlnued) 13 Finan¢ial instruments Financial assets measured at fair value through profit or loss comprise red asset investments in a trading porttolio of listed company shares. Details of Ihese can be foLEnd in note 12. The significance of financial instrumenls to the ongoing financial sustainability of the Foundation is considered in the financial review and investment policy and performance sections of the Trustees, Annual Report. The Foundation's investments are mainly traded in markets with good liquidty and high trading volumes,. therefore, liquidity risk is assessed as low. The Foundation has no material investment holdings in markels subject to exchange controls or trading restrictions. The Foundation manages these inveslment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings wtthin investment asset classes that are quoted on recognised stock exchanges. The Foundation dces not make use of any derivalives or complex financial instruments. 17
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2024 (continued) 14 Analysis of charitable funds Fund balances brought forward Expenditure donations Expendlture to School investment In¢ome net transfers Fund balances arried forniard Gains and losses Analysis of fund movements year ended 31 December 2024 Permanent endowment funds: Louis Malle Scholarship Post Office Scholarship Kodak Scholarship John Sargent Scholarship Nik Powell Scholarship Lesley Land Scholarship 120,533 303,454 142,069 256,570 110,675 253,817 6,777 15,610 7,672 13,339 5,686 13,027 127,310 319,064 149,741 269,909 116,361 263.503 (3,341) Total permanent endowment funds 1.187,118 (3,341) 62,111 1,245,888 Restrlcted funds: Lew Grade Chair Cubby Broccoli Chair Richard Dunn Scholarship David Munro Fund Human Rights Michael Samuelson Scholarship Freddie Young Scholarship Colin Young Scholarship Trevor Jones Scholarship Sir John Terry Memorial Scholarship Louis Malle Scholarship Post Office Scholarship Kodak Scholarship Nik Powell Scholarship John Sargent Scholarship James Walker NFTS Writers Fund Lesley Land Scholarship The Crown Scholarship Jenne Casarotto Scholarship 1,993,488 962,088 554,671 83,015 428 623 4,727 6,238 51.608 25.099 14.330 2.146 11 16 123 163 {60,000) {30,000) (7,000) (1,000) {7,472} 103,282 (3,641) 50,092 (2,074) 28,703 (311) 4,297 (2) 22 (2) 32 (18) 246 (24) 325 2,080,906 1,003,638 588,630 88,147 459 669 5.078 6,702 35,839 10,591 915 3,381 7,767 3,818 2,827 6,647 659 6.451 1,006,436 317,808 {1,000} {2,000} {6,646} {3,500) (2,419) (5,000) (20,000) (6,659) (45,000) (132) (489) (1,121) (551) (408) (960) (13) {928) (1,048) {290} 1,841 37,463 11,483 6,974 6,741 2,055 22.752 1,136 2,742 4,079 681 2,566 886 962,954 318,404 Total restrlcted funds 3,684,625 1,450.205 {190,224) (19,484) 192,973 5,118,095 Unrestri¢ted funds: General reseNes 109,140 2.847 (1,435) (412) 5,682 115.822 Total unrestricted funds 109,140 2,847 (1,435} (412) 5,682 115,822 Total funds 4,980,883 1,453,052 (195,000) (19,896) 260,766 6,479.805 18
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2024 (continued) The restricted funds of £5,118k include £1,945k to provide scholarships and bursaries (Richard Dunn, Freddie Young, Sir John Terry, Colin Young, Trevor Jones, James Walker, The Crown, Jenne Casarotto). £3.085k for Chairs (Lew Grade, Cubby Broccoli), and £88k to support documentary film making concerning human rights (David Munro Fund). The new Crown Scholarship is an expendable endowment over 20 years, The permanent endowmentfunds of £1,246k are endowments to provlde scholarships (Louis Malle, Post Office, Kodak, John Sargent, Nik Powell, Lesley Land}. The dividends earned on the funds during the year of £136k, the realised loss of £33k, the unrealised gain of £293k and the investment management costs of £20k have been allocated across the funds quarterly based on the value of each fund at 31 March,30 June, 30 September, and 31 December 2024. 19
NFTS Foundation Notes to the Financial Statements for the year ended 31 Decembèr 2024 (continued) 14 Analysls of charltable funds Fund balances brought forward Expenditure donatlons Expenditure to School investment Income net transfers Fund balances ¢arriod forward Gains and losses Analysis of fund movements year ended 31 December 2023 Pernianent endowment funds: Louis MalEe Scholarship 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 8,300 14,102 6,127 3,661 120,533 303,454 142,069 256,570 110,675 253.817 250.156 Total permanent èndowment funds 880,681 250,156 56.281 1,187,118 Restricted funds: Lew Grade Chair Cubby Broccoli Chair Richard Dunn Scholarship David Munro Fund Human Rights Michael Samuelson Scholarship Freddie Young Scholarship Colin Young Scholarship Trevor Jones Scholarship Sir John Terry Memorial Scholarship Louis Malle Scholarship Post Office Scholarship Kodak Scholarship Nik Powell Scholarship John Sargent Scholarship James Walker NFTS Writers Fund Lesley Land Scholarship 1,901,773 918,379 520,239 77,816 396 577 4,375 5,774 48,507 23.623 13.238 1,981 1Q 15 113 149 {60,000) {30.000) (7,000) (1,000) (9.247) 112,455 (4.500) 54,586 (2.524) 30,718 {378} 4,5g6 (2) 24 (3) (21) (28) 1,993,488 962,088 5S4,671 83,015 428 623 4,727 6,238 260 343 34,145 10,057 858 3.131 7.219 3,564 2.627 6.063 825 1.375 (1,000) (2,000) (5,841) {3,500) (2,126) {5,000) (20,000) (164) (597) (1,378) (680) (501) (1,157) (45) (239) 2,000 35.839 10,591 7,590 6,974 2,149 41,137 2,055 22,752 1,136 835 Total restricted funds 3,524,407 113,298 (137.467) (21,464) 205,851 3,684,625 Unrestricted funds: General reserves 112,633 2,897 (12.533) (552) 6.695 109,140 Total unrestricted funds 112,633 2,897 (12.533) (552) 6,695 109,140 Total funds 4,517,721 366,351 (150,000) (22,016) 268,827 4,980,883 20
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2024 (Contlnued) 15 Analysls of net assets between funds Permanent endowment funds Unrestricted Restrlcted funds funds Total 2024 Total 2023 Fund balances at 31 December 2024 are represented by.. Investments Cash and cash equivalenls 5,050,332 1,245.888 67,763 6,296,220 183.585 4,753,495 227,388 115,822 115,822 5,118,095 1,245,888 6.479.805 4,g80,883 Permanent Unrestricted Restrlcted endowment funds funds funds Restated Total 2022 Total 2023 Fund balanS at 31 December 2023 are represenled by: Investments Cash and cash equivalents Debtors 3,566,377 118,248 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 Sufflcient resources are held in an appropriate form to enable each restricted fund to be applied in accordan with the restrictions. 21
NFTS Foundation Notes to the Financial Statements for the year ended 31 December 2024 (continued) 16 Statement of Financial A5vItIeS for the year ended 31 December 2023 Permanont Restrlcted endowment funds funds 2023 2023 Unrestricted fund6 2023 Totsl Funds 2023 Note Income and endowments from: Donations Investments Other income 625 112,673 250.098 250,723 115,570 2,897 58 Total income 2,897 113,298 250,156 366,351 Expendlture on: Raising funds Investmenl management costs Charitabl8 activities Education 552 21,464 22,016 10,000 140,000 150,000 Total expenditure 10,552 161.464 172,016 Net gains on investments 6,695 205,851 56,281 268,827 Net {losses>lincome {960) 157.685 306,437 463.162 Transfers beeen funds {2,533) 2,533 Net movement In funds 14 {3,493) 160,218 306,437 463,162 Total fund balances brought forward at 1 January 14 112,633 3,524,407 880.681 4,517,721 Total fund balances ¢arrled forward at 31 December 14 109,140 3,684.625 1.187,118 4,980,883 22