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2023-08-31-accounts

Foundation of Light (a Company Limited by Guarantee) Consolidated Annual Report and Financial Statements for the year ended 31 August 2023

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Registered Charity Number: 1089333 Registered Company Number: 04243171

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Foundation of Light

Annual Report and Consolidated Financial Statements

for the year ended 31 August 2023

Contents

Page

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Foundation of Light

Trustees and Advisers for the year ended 31 August 2023

Trustees

Sir Robert Sydney Murray CBE - Chair of Trustees Col. The Hon. James David Alexander Ramsbotham CBE, DL - Vice Chair of Trustees Kathryn Adie CBE, DL

George Clarke Stephen Cram CBE - Treasurer Kyril Robert Leonid Louis-Dreyfus Martin James Hibbert The Rt Hon, The Baroness Estelle Morris of Yardley, PC Sir Timothy Miles Bindon Rice

Key Management

Lesley Spuhler OBE DL Chief Executive James Wright Managing Director — Foundation of Light Ciaton Brunning Financial Controller . Clare Wilson Managing Director —- Altruism

Registered Office Beacon of Light Stadium Park Sunderland SR5 1SN

Banker Barclays Bank PLC 53 Fawcett Street Sunderland SRI IRS

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Independent Auditor RSM UK Audit LLP Chartered Accountants 1 St. James’ Gate Newcastle upon Tyne NEI 4AD

Legal Advisor Ward Hadaway 102 Quayside Newcastle upon Tyne NEI 3DX

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Foundation of Light

Chairman’s Statement

Lam pleased to share this year’s Annual Report.

Every year since the Foundation’s inception in 2001, I take great pride in looking back on what has been achieved. We have grown to become one of the largest and most respected charities in the region, providing much-needed services and resources to both young and old, and supporting vulnerable families and communities in the North East.

Unfortunately, our community continues to rank highly in deprivation in terms of education, skills, unemployment and health, with Sunderland being the 33rd most deprived area in the country. Ten years after the Government’s Marmot review (Fair Society, Healthy Lives), we continue to see increasing inequality in the North East. Thirty five percent of our children live in poverty, the highest in the UK, foodbank usage has increased by 128% over the last five years-and thousands of households are-unable to meet the costs of their essential needs. Life satisfaction in the North East is at-its lowest since 2012. Of course, this adversely impacts and perpetuates the levels of poorer health and education outcomes for people in our region.

But our Foundation can and does help. People in the North East are hardworking and proud and don’t want handouts, they want a hand up and that's what we aré here to do. Last year, thé Foundation continued. to have an incredible impact; from supporting an unprecedented number of young people and adults on their education and employment journey, to helping budding stars follow their footballing dreams.

The Beacon of Light was designed to be aspirational and inspirational. We welcome thousands of people every week. Our Family Funday in August 2023 saw more than 5,000 people turning up to enjoy our Beacon home; bringing people together is just one of the hopes I had for the building and to see that becominga reality is fantastic.

We have also seen inspiring projects come to fruition, and the resources and range of programmes we have available continue to provide even more opportunities for people from all backgrounds and generations. But it is not just the projects that have made this year so successful; it is the people behind them. From the dedicated volunteers who give up their time, to the staff who work tirelessly to make them happen.

This alongside the support we receive from our donors, partners and our fundraising endeavours, every little part plays a big role in helping make sure that the Foundation of Light can continue to make a difference in our community, helping people to live happier and healthier lives.

Our financial performance for the year reflects the challenge of adapting to the new world and challenging economic environment but still paints a positive picture, despite the unprecedented trading position that we and many other charities and small businesses find ourselves in, the Group reported a trading EBITDA of £40,305 for the year.

The Group’s net assets are £16,911,753 in 2023 of which unrestricted reserves are £94,666 and the Charity reserve funds are £1,225,950 in 2023, of which £1,055,120 are unrestricted, compared to £1,182,256 in 2022 thereby retaining a position ahead of the £750,000 unrestricted policy that we adopted for the charity. Free reserves of the charity are £1,004,758 in 2023 compared to £1,131,894 in 2022.

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Foundation of Light

Chairman’s Statement (continued)

We are proud to have made some significant enhancements in areas of compliance and governance by continuing the Governance Review through a further Trustee Strategy Day and the completion of a Board Effectiveness Review. We also undertook a comprehensive review of the trading company, Altruism. [ am also delighted to welcome a wealth and diverse set of new skills and experiences to our Boards and Committees, including outstanding former football professional Jill Scott MBE, a former Foundation participant, as a Trustee. We have-also achieved an ‘Exemplary’ grading in the Premier League Capability Code of Practice, our compliance model that sets standards in functions such as risk management, safeguarding, finance and quality control.

There are new challenges to face locally and globally, but the North East.remains a great place to live and. grow up. Our people are friendly and passionate, and always happy to help. There is also much transformational regeneration to look forward to, particularly in Sunderland as we see investment in a smart city, the Culture House, project Riverside and the new bridge. Devolution is also just around the corner. All these things don’t happen in isolation, partnerships are‘the key to any success and we are committed to working closely with our partners.

So, with this in mind I would like to thank all our supporters and partners; | would particularly like to thank Sunderland AFC Chairman Kyril Louis-Dreyfus and all the team at Sunderland AFC for their continued commitment and support. And thankyou too for taking an interest in our work: we could not do it without you.

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Sir Bob Murray CBE
4 May 202
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Foundation of Light

Trustees’ Report for the year ended 31 August 2023

The Trustees are pleased to present their annual report together with the audited financial statements of the Charity and Group for the year ended 31 August 2023. This report includes the information required to satisfy the company law requirements to present a Strategic Report and a Directors’ Report.

Structure, Governance and Management

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Governing Document

Foundation of Light is a company limited by guarantee, governed by its Memorandum and Articles of Association dated November 2001. The liability of the Trustees for the debts and liabilities ofthe company is limited, and in the event of the company being wound up, would not exceed £1. It is registered as. a charity with the Charity Commission (registered number 1089333), with two subsidiaries - Altruism Limited (registered number 04303983) date of incorporation 12" Oct 2001 which is governed by its Memorandum and Articles dated 12" Oct 2001 and updated on the 24" Oct 2014 and also Beacon of Light (registered number 09221229) date of incorporation 16" Sept 2014 which is governed by its Memorandum and Articles dated 16" Sept 2014.

Governance Review and Board Effectiveness

The Governance Review resulted in a number of improvements including the development.of a Governance Manual, with updated terms of references and scheme of delegation. Trustees have undertaken a skills survey and there have been positive changes made to the Finance, Audit and Risk Committee, the introduction of the Programmes Committee, two joint meetings and new members ‘ appointed to various Boards. Stakeholder mapping and engagement has taken place and a Board Effectiveness Review is currently underway. Appointment of Trustees As set out in the Articles of Association, Trustees are invited to join the Board, however full-time/part time staff members of Foundation of Light are not eligible. From time-to-time nominees may be invited to become friends of the Foundation or honorary members, Sunderland AFC Limited (‘the Club’) can appoint one Trustee. At the Annual General Meeting one third of Trustees shall resign by rotation and are then eligible to be re-appointed if nominated. Trustees should have the skills and experience needed to lead the Charity and can be reappointed when their full term is completed should the Skills Audit and Board Effectiveness report confirm involvement is still relevant.

Trustee Induction and Training

New Trustees receive an induction pack that includes the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the Charity. Trustees are encouraged to attend appropriate external training events to assist them in the undertaking of their role.

Organisation

The Board of Trustees, which shall include no less than six members and not more than twelve, administers the Charity. The Board meets at least four times a year and there are sub-committees covering Finance, Audit and Risk (comprises four committee members, including three independent members to review the integrity of the financial statements, advise on and oversee risk, and appoint

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Foundation of Light

Trustees’ Report for the year ended 31 August 2023 (continued)

external audit; where appropriate making recommendations to the Trustees), Nominations and Remuneration, and Programmes Committee which meet more regularly. A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance, employment, education, skills and sport related activity. Administrative details for the Charity, its Trustees, and advisors, are detailed on page 1.

Related Parties

Although Foundation of Light is structurally and financially independent from Sunderland AFC (“the Club”), the Club supports its own registered Charity in many ways, not least through its gifts in kind such as match day tickets, prime accommodation, and auction prizes. The Foundation continued to sponsor an Alternative Provision Free School, Beacon of Light School, which resides as a tenant of the Beacon of Light facility in Sunderland. The school transferred to The Laidlaw Schools Trust on the 1% September 2023 but remains as a tenant.

Key Management Pay

The pay of all staff including key management is banded in salary grades dependent on their role. Each grade is reviewed regularly and compared to similar roles in the sector. Revisions to pay grades are included in the annual budget setting process and a recommendation is made to Trustees on the level of pay incteases to be awarded. The Trustees delegate the approval process to the Nominations and Remunerations Committee who have the final say in the pay awards granted for the year.

Risk Management

The Trustees have a risk management strategy which comprises:

This work has identified a few major risks which has resulted in improved procedures and contingency plans and has given the impetus for better planning. Particular attention is focused on non-financial risks arising from working with young people such as safeguarding and health and safety. A key element in the management of financial risk is the setting of a regular review through the Finance, Audit and Risk Committee and Executive Team. Changes in both the political and economic climate are identified as major risks in this risk assessment.

Principal Risks and Uncertainties

The Foundation will always face business risks; however, the Trustees have taken steps to mitigate these as far as possible. The Finance, Audit and Risk Committee and the Board of Trustees undertake reviews. The CEO along with the Assistant Director (Compliance) have delegated responsibility for the day-to-day management of risk through business continuity strategies that support a flexible approach to adapting and surviving. Risks identified include:

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Foundation of Light

Trustees’ Report for the year ended 31 August 2023 (continued)

Cost of Living Crisis

During this period ofhigh inflation and the cost of everyday essentials rising the current crisis is taking a toll on everyone's finances. The Foundation is likely to experience increased demand especially on health and wellbeing programmes as people struggle to meet the cost of everyday life. Running costs increasing and concerns over income as people have less to give further increase the vulnerability of a decrease in donations and declining government funding.

Publie Health Issues

Covid-19, influenza and other public health concerns could further impact our operations and fundraising and the health and safety of staff, volunteers and participants. As a result, financial and physical resource loss and disruption to services and programmes could still occur due to staff absence. Business continuity review and monitoring and operational risk assessments remain high on our risk agenda, all aligned to a risk management system to keep updated with legislation and guidance changes.

Financial Sustainability

The risk of being unable to raise adequate funds to run the Beacon of Light building and tum an Operating profit continues, however the 2023 review of the Altruism Trading Company Ied to a positive move in business focus bringing about a dedicated Altruism and BOL business development team, driving forward growth and development. Improvements are already being seen and with only one outstanding appointment the potential is being recognised. Furthermore, Director appointments to the Group of Companies, the execution of a new business plan and the recruitment of experienced staff and consultants continues to support activities.

Generating income and achieving financial sustainability remains a challenge with income from both local and central government, as well as income from grants and government contracts declining and therefore, increasing financial resilience and closely monitoring income levels continues to be vital! going forward.

Compliance

As we face ever more stringent regulatory requirements, it is essential to ensure legal requirements are up to date, and policies and procedures follow best practice. The Foundation has actions plans and strategic frameworks in place for compliance with areas including the charity’s governing document, the Charities Act and the Companies Act, UK employment legislation, safeguarding, health and safety, GDPR and other essential laws, such as the law relating to contracts, commercial property and tax; and compliance with the applicable fundraising law.

We have comprehensive policies and procedure manuals in place to protect staff, volunteers and participants; regular checks and balances are conducted, and expert consultants are used where needed. Regular mandatory training and personal development is in place for staff, with Boards and Committee’s overseeing the management of compliance and risk.

Protecting and safeguarding service users is one of the key governance priorities of the Foundation of Light and as such we have prioritised developing and embedding safeguarding into every aspect of our governance to protect service users, staff and volunteers. Our safeguarding assurance. framework. is

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Trustees’ Report for the year ended 31 August 2023 (continued)

quality checked by the Programmes Committee and reported to the Trustees by the Committee Chair, Baroness Estelle Morris.

The Foundation has a Business Continuity Plan should any out-of-control factors impact the business; this continues to be monitored and reviewed to ensure it is fit for purpose.

Auman Resources and Key Personnel

Ina challenging recruiting environment, it’s likely that employee turnover may continue to rise, which means succession planning and employee development is essential. The threat of losing key people with specialist knowledge, skills, history, and expertise continues to be a risk.

The Foundation recognises that a combination of increased workloads, pressure at home, health concerns, and money worries, could lead to burnout-in the workplace.and further recognises that the delivery of its health and wellbeing programmes and sustainability initiatives could provide valuable information and support to the wider stakeholders. The Foundation continues to offer a diverse programme of health and wellbeing for staff and seek other ways to support staff and volunteers through support, advice, information, and benefits. The Foundation has a Culture Group which advocates on behalf of staff.

The Foundation is providing opportunities for staff to develop as leaders through formalised leadership training to develop various competencies including communication, accountability, collaboration, negotiation, and change management, developed through a combination of traditional and experiencebased programmes.

Workforce Diversity

The Foundation continues to develop plans to address issues of equality, diversity and inclusion in the workplace which includes improved people skills, knowledge, and capacity along with equality, diversity and inclusion knowledge, skills, and training. An equality, diversity and inclusion working group is in place.

Achievements and Performance

Headlines

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Once again, this last year saw some life changing stories for those accessing our programmes with outcomes including improved confidence, life skills, belonging to the community, and physical health and wellbeing. We are proud to report that our participant demographic was - 5% BAME, 40% female, 27% disability and 1% LBGTQ+ (disclosed).

Our new Impact Framework, that uses a swimming pool analogy of shallow end and deep end to describe how we make a difference to the lives ofour participants, now enables us to better demonstrate our outcomes around six key themes such as ‘being the best me’ and ‘having a role in life’.

2022/2023 has seen:

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Foundation of Light

Trustees’ Report for the year ended 31 August 2023 (continued)

This resulted in:

Strategic Overview

We have-continued to work not only in the Beacon of Light, but outreach in 166 schools, community centres and playing fields in some of the most deprived communities, delivering programmes in areas of education and skills, health and wellbeing, youth and community, and sport and play.

Every contact will count with three million hours of meaningful engagement over five years

Almost half a million hours have been delivered this year alone and this has included over 1,300 participants with a disability, over 7,500 girls and women, and over 700 socially isolated people.

Young People

Our first Youth Voice was launched in January and has been recognised by the Premier League for their work which is something we’re very proud of. We have 10 members who meet twice a month as well as engaging in special projects on an ongoing basis.

We have worked very closely with the Local Authorities to introduce opportunities for young people from low-income families to access holiday camps during half term breaks. Using the Holiday Activities Fund model, we have supported over 50 individuals, many of which have attended multiple courses, which includes a hot meal, important with the cost-of-living crisis.

Our one-to-one mentoring, a partnership with the Violence Reduction Unit (VRU) and secondary schools has enabled us to offer specialist, tailored support to young people who need it most. Over the course of the year, we supported over 4,000 young people in youth engagement activities.

Health and Wellbeing

Ensuring the participants, we work with feel connected to our community is one of the core outcomes we hope to achieve through our programmes. We have supported over 7,000 individuals to feel more connected to their community.

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Foundation of Light

Trustees’ Report for the year ended 31 August 2023 (continued)

The great work we started during the pandemic around ensuring our participants don’t become socially isolated has continued to thrive through initiatives like the Wear Together programme offering over 55’s the opportunity to access five-day per week provision at the Beacon of Light.

Behaviour change is an important goal for us, and 6,907 participants improved their healthy lifestyles activities, making better personal choices.

Education and Skills

Through the work of the Skills and Employability team, we have supported 1,304 participants to improve their job skills, 631 their understanding and awareness of the job market with 88 learners securing employment as a direct result of our intervention.

Supporting our leamers to improve their maths and English, across several programmes, including Family Learning, Study Programme and Post 16 Football Scholarship, is an essential part of our projects and through a variety of approaches, including functional skills, GCSE and Multiply, we have supported 1,087 learners to improve these skills and receive accreditation.

Vibrant and Sustainable Beacon of Light

Footfall continues to increase post pandemic and the Beacon of Light has welcomed not only thousands of participants but also event attenders, Club supporters in the SAFC Fan Zones, and exhibitors.

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Customers

Successful events included over 900 attendees at the Northeast Automotive Exhibition; almost 1,000 at the Red Sky Ball; a Gentoo staff conference for over 1,000 people; and an international gymnastics competition, to name a few.

Customer satisfaction surveys have given testimony to the quality of what we do with 92% willing to recommend us to a friend and through our work with MMC Research, positive perception and greater awareness has increased to 84%, Customer retention is at a significant 80%.

New partnerships have been forged with the University ofSunderland to offer a sports-hub for their students and a further with Together for Children offering a health and wellbeing intervention for primary aged children who may be struggling at school.

Diversity

Ensuring the Foundation of Light is accessible and open to all is essential. Through the data we can collate, we have calculated that 5% of our participants are BAME, 40% of our participants are female, 27% have a disability and 1% identify as LGBTQ+.

Through sponsorship with Paragon, we have been able to introduce a Sensory Room at the Beacon of Light. The safe space provides multi-sensory resources to help those who visit it to self-regulate and refocus.

We have a new relationship with Mears Housing Group who are commissioned on behalf of the Government to house Asylum Seekers in their accommodation around the city. A pilot that consisted

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Foundation of Light

Trustees’ Report for the year ended 31 August 2023 (continued)

of physical activity and cooking lessons to help participants build local relationships was a success, and we are planning further work next year.

Best in our field

Fundraising

Nearly £3.4 million was raised from valued partners and supporters including grants from all three Local Authorities, Sunderland City Council, South Tyneside Council, Durham County Council, trusts and foundations, gifts from individuals and overall fundraising.

Partnerships

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We retained 98% of our donors and were delighted to continue our partnerships with the Harrison Centre for Social Mobility, the McArdle family, Sir Tom Cowie Trust, Roseline Foundation, Caterpillar Foundation and the Violence Reduction Unit. Whilst exciting new relationships were entered into both local Community Foundations, Paragon, Staffpower and Hellens Group.

The Club relationship strengthened with several joint initiatives including a joined-up approach to women and girls' football, a digital inclusion project and a data sharing agreement.

We have worked alongside over 80 businesses in our community to provide opportunities such as reallife learning, access to apprenticeships and employment, workshops and work experience for participants.

Campaigning

This year the Foundation supported a variety of campaigns including Rainbow Laces; World Suicide Prevention Day; World Mental Health Day; LGBTQ+ History Month; Black History Month; World Book Day and Intemational Women's Day. Fundraising campaigns have included Small Change, Big Difference, raising over £60,000 from supporters for cost-of-living projects; we are careful to monitor such campaigns, and ensure that the public, including vulnerable people, are protected through our fundraising standards.

People

Steps continue to improve customers’ online experience via two mobile responsive websites, new online booking platform, regular newsletter and increased social media content.

90% of our employees feel proud to work for us and 100% of leavers say they would work for the Foundation again.

Investment Procedures and Policy

Ait the present time, the reserves of Foundation of Light are held on interest bearing cash deposits in order to meet on-going liquidity requirements. The Trustees have powers to invest the funds as they see fit, as set out in the Memorandum and. Articles of Association.

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Foundation of Light

Trustees’ Report for the year ended 31 August 2023 (continued)

Reserves Policy

The total annual running costs of Foundation of Light (Group), assuming current programmes continue, are expected to be £5.3 million (excluding Gift in Kind). A substantial proportion of the running costs will be met by future grants and contracts which are expected to be received, subject to certain conditions of performance in addition to fundraising activities. The aim is to sustain unrestricted reserves of the Charity at a minimum level of £750k. A robust business plan has been put in place for both the Foundation and the trading company. Charity unrestricted reserves as of 31 August 2023 are £1 million retaining a position ahead of target. Free reserves of the charity are £1,004,758 in 2023 compared to £1,131,894 in 2022. Asat the31 August 2023 the Group unrestricted reserves are £94k.

Plans for Future Years

Our history, tradition and culture provide an important platform to future development and the continuation of current strategic priorities in physical and mental health, first steps employability training and young people.

Over the forthcoming year we look forward to:

Delivery

Through an outcome driven relationship with Sunderland College, we will introduce an innovative new initiative aimed at reducing the number ofyoung people not in education, employment or training across the city. Using a triage approach, we aim to retain students who are on the verge of dropping out of college, for a variety of reasons and through a mentoring approach, work with the individuals to keep them in education with the aim of reintroducing them to college life when they are ready.

Working with Together for Children and several of our partner schools, we will formally launch the new Primary Intervention programme aimed at children who are presenting low or medium level ongoing behavioural, emotional and social difficulties which are mild and moderate to support them with coping strategies when back in mainstream.

With new funding from UKSPF we will deliver one-to-one relational mentoring using our employer and business network to help move those most economically inactive closer to employment. Using the attraction of Sunderland AFC to engage those who otherwise may not engage in activity we will deliver one to one engagement and small group work in the Beacon’s World of Work Zone, including Automotive, Digital, Hospitality, and Health and Social Care.

There will be increased work in South Tyneside and County Durham as discussions with the Local Authorities, the University and colleges progress. With the appointment of an Outreach Manager, we will look to grow programmes focussed on employability, health and young people.

Value for money is important to us, so we will be introducing a reporting method which will enable us to effectively evaluate the effectiveness and efficiency of each programme. This will include achieving the best value inputs, maximising the outputs, ensuring that those outputs deliver the desired outcome and ensuring resources are distributed fairly.

This process of impact reporting will help to gain valuable insights, allowing for data-driven decision making and providing greater control over the direction of each programme.

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Foundation of Light

Trustees’ Report for the year ended 31 August 2023 (continued)

Coliaborations and Customers

Being successful in our application to the Fan’s Fund will help us work closer with the Club and supporters groups to deliver a wide range of matchday activations over the course of the year, ensuring the matchday experience for undetrepresented groups, such as disabled, LGBTQ+ and Ethnic Minority groups, is a positive one and that the connection to the community is. strengthened.

The relationship with the University of Sunderlarid will widen, signing a Strategic Agreement to work collaboratively in the coming years. While the Beacon of Light will become an extension of the University campus, hosting weekly sporting sessions for the various university sports groups, we welcome the possibility ofbecoming a hub for international students and their families.

Wearside Women in Need will host their domestic violence charity from the home of the Foundation for the next three years. We will be working closely with the team at WWIN to develop pathways for Foundation of Light participants to.access the provision if appropriate and there will be cross training opportunities for staff in both organisations.

This year will see the expansion of the City Centre to include Stadium Park. We are excited about the extended opportunities that may bring for partnership working, marketing, the environment and increased footfall around the Beacon.

Following a customer survey issued in the summer, 99% ofBeacon of Light visitors found the Beacon was welcoming, with 80% very satisfied or satisfied with customer service they had received. There were 90% of respondents who would probably or definitely recommend the Beacon to friends and family. 50% of those who took the survey, associated the Beacon with the Foundation of Light, while 43% associate it with Sunderland AFC. Compared to other venues in the city, the Beacon was regarded as very prominent by 75% of respondents.

Plans are being made to bring the Beacon café in-house which will prove to be an additional income stream but more importantly provide an offer and atmosphere appropriate to our clientele.

The Foundation’s ‘Heart on your Sleeve’ campaign will be the focus for community fundraising throughout the year. Key messages are built around Northeast football fans being notorious for their passion and the campaign will channel that energy to help make a difference to lives across Wearside. The Heart on Your Sleeve campaign will aim to tackle these issues, encouraging parents and grandparents to stay both physically and mentally active to inspire the next generation to do the same, giving families the opportunity to access sports and fitness, and mental health resources and sessions.

We will be seeking partners to support a re-development of the front of the Beacon, creating a new experiential space for the local community to exercise, play, learn and develop.

Compliance/Behind the Scenes

As we did last year with policies, we will be streamlining the number of risks, introduce movement markers to show changes in risk, and have standardised action types influenced by inherent risk score. This will provide greater comfort to Trustees and stakeholders,

Submissions for Carbon Footprint and Green Club Accreditation will progress and a range of environmental sustainability initiatives for staff and participants will be rolled out.

EDI is an important area for development. This year we will prioritise a coherent and.authentic action plan and consider and continue to raise the awareness and understanding of the Executive, Programmes Committee and Trustees.

The Volunteer Strategy will come to fruition, and we will undertake the Volunteering Kite Mark.

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Foundation of Light Trustees’ Report for the year ended 31 August 2023 (continued)

Quality control will see an independent deep dive into our health and wellbeing programmes. Areas focussed on will include assessing appropriateness, resources, needs led priorities, funding and identifying areas of growth and impact.

Next year will see us commence planning for beyond five years that will also involve a stakeholder consultation.

Results for the Year

The Group results for the year ended 31 August 2023 show net expenditure of £478,408 against net expenditure of£543,508 for the previous year.

Whilst the depreciation charge of £381,315 for the Beacon is included in the Group accounts, the annual release of capital grants received to support the building of the Beacon of £381,315 in 2023 and £410,834 in 2022 is excluded on consolidation. as it was recognised in full on receipt, in line with accounting standards and is denoted by the restricted fixed asset fund, against which the annual depreciation is charged.

The Group again produced a positive trading EBITDA (Earnings before interest, tax, depreciation and amortisation), of £40,305 compared to £200,879 in 2022.

Income for the year was £4,293,757 (2022: £4,385,917) reflecting reductions in donations and charitable activities but increases in income linked to other trading activities. The Group expenditure reduced to £4,772,165 (2022: £4,929,425) as expected against the lower income reported and also reflecting cost saving exercises.

The reserves of the Group remain strong with funds carried forward of £16,911,753 (2022: £17,390,161) of which unrestricted funds represent £94,666.(2022: £190,164). The reserves for the Charity also remain strong in 2023 at a level of £1,225,950 (2022; £1,342,835) of which £1,055,120 (2022: £1,182,256) are unrestricted and exceeding the minimum target of £750,000 set out in the reserves policy. ,

The Group’s cash generated from operating activities was £40,659 cash inflow (2022: £131,255 outflow), £43,909 was invested on new assets ranging from pitch maintenance equipment to impressive gaming screens for the introduction of new courses. After interest on loans of £73,097 and the recommencement of capital loan repayments of £23,699, the Group’s cash and cash equivalents reduced by £100,046 over the year to £1,192,240, still maintaining a healthy financial position to carry forward into 2024.

Going Concern

The financial statements have been prepared on a going concern basis, notwithstanding that the Group has reported 2023 net expenditure of £478,408 (2022: £543,508) and 2023 net cash outflows of £100,044 (2022: £313,253). The Group year-end balance sheet for 2023 has net current assets of £1,022,902 (2022: net current assets of £1,101,783) including cash at bank of £1,192,240 (2022: £1,292,286).

The primary extemal finance of the Group is the loan due to the Charity Bank which has an outstanding balance of £1,076,301 as of 31 August 2023. Monthly capital and interest repayments commenced February 2023 with the final repayment due January 2038. Interest is charged at 3% above the Bank of England rate. This loan now only has one covenant attached which is a cash covenant in comparison to the previous three covenants.

Management have prepared a cash flow forecast for the period ending 31 May 2025 which has been used as their basis of assessing the going concern basis of preparation. The cash flow reflects grant

13

Foundation of Light

Trustees’ Report for the year ended 31 August 2023 (continued)

funding that has already been secured as well as including assumptions that renewals of regular finders will take place.

The Trustees are. confident that the company and.Group will have sufficient funds to. continue to meet its liabilities as they fall due and for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements.on a going concern basis.

RSM UK Audit LLP were appointed as auditor to the company and a resolution proposing that they be re- appointed will be put at a General Meeting.

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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On behalf of the Trustees
\y yy
Sir Robert Sydney Murray CBE ,
4 May 2024
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14

Foundation of Light

Statement of Responsibilities of the Trustees of Foundation of Light in respect of the Trustees’ Annual Report and the Financial Statements

The Trustees, who are also the Directors ofFoundation of Light for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view ofthe state of affairs of the charitable company and the.Group and ofthe incoming resources and application of resources, including the income and expenditure, of the charitable Group for that year.

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

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

:

15

Foundation of Light

Independent auditor’s report to the members of Foundation of Light

Opinion

We have audited the financial statements of Foundation of Light (the ‘parent charitable company’) and its subsidiaries (the ‘Group’).for the year ended 31 August 2023 which comprise the Group and Company Statement ofFinancial Activities, the Group and Company Balance Sheets, the Group and Company Cash Flow Statements and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied: in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Trustees’ Report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements docs 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.

16

Foundation of Light

Independent auditor’s report to the members of Foundation of Light (continued)

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 obtairied in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report, or the Strategic Report included within the Trustees’ Report.

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

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 15, the Trustees (who are also the directors of the charitable company for the purposes ofcompany law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and. for such internal control as the Trustees determine is necessary to enable the préparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

17

Foundation of Light

Independent auditor’s report to the members of Foundation of Light (continued)

Alditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from. material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements.can arise from fraud or error and are considered material if, individually or in

the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have. a direct effect on the determination of material amounts and disclosures in the financial siatements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws. and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the Group audit engagement team:

18

Foundation of Light

Independent auditor’s report to the members of Foundation of Light (continued)

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies. Act 2006, Charities Act 2011 and the parent charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, evaluating advice received from external advisors and inspecting correspondence and minutes.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety, UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. We performed audit procedures to inquire of management and those charged with governance. whether the Group is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The Group audit engagement team identified the risk of management override of controls and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and reviewing transactions around the year-end to consider if the income is recorded in the correct period.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Use of our report This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

@Sm~ ut Rude WP

LUCY ROBSON (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 1 St James’ Gate Newcastle upon Tyne NEI 4AD

Date = ielos [2+

19

Foundation of Light

Company Statement of Financial Activities for the year ended 31 August 2023 (including Income and Expenditure account)

Note Unrestricted Restricted Totalfunds Total funds
funds funds 31 August 31 August
2023 2022
£ £ £ £
Income from:
Donations and legacies la 66,040 30,471 96,511 233,828
Charitable activities 1b 658,029 2,187,146 2,845,175 2,998,984
Othertrading activities Ic 467,480 - 467,480 405,149
Investments ld 37,271 - 37,271 ~
TotalIncome 1,228,820 2,217,617 3,446,437 3,637,961
Expenditure on:
Raising funds 2a 339,742 - 339,742 379,145
Charitable activities 2b 844,046 2,379,534 3,223,580 3,153,889
Exceptional item 2e - - - 102,301
TotalExpenditure 1,183,788 2,379,534 3,563,322 3,635,335
Net (expenditure)/income 45,032 (161,917) (116,885) 2,626
Transfers between funds 11 (172,168) 172,168 - -
Netmovement in funds (127,136) 10,251 (116,885) 2,626
Total fundsbroughtforward 1,182,256 160,579 1,342,835 1,340,209
Totalfundscarriedforward 1,055,120 170,830 1,225,950 1,342,835

All gains and losses recognised in the year are included in the Statement of Financial Activities.

All income and. expenditure are derived from continuing activities.

There is no difference between the net incoming resources shown above arid their historical cost equivalents.

20

Foundation of Light

Company Balance Sheet as at 31 August 2023

Note 31 August 31 August
2023 2022
£ £
Fixed assets
Intangible assets 5 27,179 51,013
Property, Plantand Equipment 6 72,296 92,364
Investments 7 2 2
Total fixed assets 99,477 143,379
Current assets
Debtors 8 1,457,905 2,134,419
Cash atbankand inhand 1,059,779 931,035
Total current assets 2,517,684 3,065,454
Creditors: amounts falling duewithinoneyear 9 (356,260) (791,598)
Net current assets 2,161,424 2,273,856
Total assets less current liabilities 2,260,901 2,417,235
Creditors: amounts falling due aftermorethanoneyear 10 (1,034,951) —_(1,074,400)
Net assets 1,225,950 1,342,835
The funds ofthecharity:
Restricted income funds 11 170,830 160,579
Unrestricted income funds
General funds 11 1,004,758 1,131,894
Designated funds ial 50,362 50,362
Total unrestricted income funds 1,055,120 1,182,256
Totalcharityfunds 1,225,950 1,342,835

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The financial statements were approved by the Trustees on 4 May 2024 and were.signed on their
blakNANby: N
Trustee =
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21

/

Foundation of Light

Consolidated Statement of Financial Activities for the year ended , 31 August 2023 (including Income and Expenditure account)

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Note|Unrestricted|Restricted|Restricted|Totalfunds|Total|funds| |funds|funds|Fixed|Asset|31|August|31|August| |funds|2023|2022| |£|£|£|£|£| |Income|from:| |Donations and|legacies|la|66,040|30,471|1,600|98,111|283,827| |Charitable|activities|ib|658,029|2,187,146|-|2,845,175|2,998,984| |Other trading|activities|Ic|1,313,200|-|-|1,313,200|1,103,106| |Investments|37,271|-|-|37,271|-| |Total Income|2,074,540|2,217,617|1,600|4,293,757|=|4,385,917| |Expenditure|on:| |Raising|funds|2a|785,068|-|-|785,068|809,670| |Charitable|activities|2b|1,502,912|2,089,423|394,762|3,987,097|3,939,850| |Exceptional|item|2e|-|-|-|~|179,905| |Total|Expenditure|2,287,980|2,089,423|394,762|4,772,165|4,929,425| |Net|(expenditure)/income|(213,440)|128,194|(393,162)|(478,408)|=|(543,508)| |Transfers|between|funds|ll|117,942|(117,942)|-|-|-| |Net movement|in|funds|(95,498)|10,252|(393,162)|(478,408)|(543,508)| |Total|funds|brought forward|190,164|160,579|17,039,418|17,390,161|17,933,669| |Total|funds|carried|forward|94,666|170,831|16,646,256|16,911,753|17,390,161|

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All gains and losses recognised in the year are included in the Statement of Financial Activities.

All income and expenditure are derived from continuing activities.

There is no difference between the net incoming resources shown above and their historical cost equivalents.

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||||||||| |---|---|---|---|---|---|---|---| |3] August|31 August| |Trading EBITDA|2023|2022| |£|£| |Net expenditure|(478,408)|(543,508)| |Exceptional|item|-|179,905| |Depreciation|and amortisation|charges|482,887|525,459| |Interest receivable|(37,271)| |Interest payable|73,097|39,023| |Trading|EBITDA|(Earnings|Befere|Interest,|Taxes,|40,305,|200,879°| |Depreciation|and Amortisation|and Exceptional Iteni)|

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22

Foundation of Light

Consolidated Balance Sheet as at 31 August 2023

Note 31 August 31 August
2023 2022
£ £
Fixed assets
Intangible assets 5 34,360 63,277
Property, Plant andEquipment 6 16,889,442 17,299,501
Total fixed assets 16,923,802 17,362,778
Current assets
. Debtors 8 588,146 947,730
Cash atbankand inhand 1,192,240 —-1,292,286
Total current assets 1,780,386 2,240,016
Creditors: amounts falling duewithin oneyear 9 (757,484) (1,138,233)
Net current assets 1,022,902 1,101,783
Total assets less current liabilities 17,946,704 18,464,561
Creditors: amounts falling due aftermorethan oneyear 10 (1,034,951) (1,074,400)
Netassets 16,911,753 17,390,161
The funds of the group:
Restricted funds
Restricted FixedAssetFunds 11 16,646,256 17,039,418
Restricted Income Funds 11 170,831 160,579
Total restricted funds 16,817,087 17,199,997
Unrestricted funds
General finds 11 44,304 139,802
Designatedfunds I 50,362 50,362
Total unrestricted funds 94,666 190,164
Totalgroupfunds 16,911,753 17,390,161

The financial statements on pages 16 to 43 were approved by the Trustees on 4 May 2024 and were signed on their behalf by:

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—_
Sir Robert Sydney Murray CBE
Trustee
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23

Foundation of Light

Company Cashflow for the year ended 31 August 2023

.

For theyear For theyear
ending31 ending 3.1
August2023 August2022
£ £
Net cashflows from byoperating activities: 249,196 (183,498)
Cashflows from investing activities:
Purchase ofproperty, plant, equipment and equipment and intangible assets (23,658) (122,411)
Net cash used in investing activities (23,658) (122,411)
Cashflows from financing activities:
Loan Repayments (23,699) -
Interestpaid on borrowings (73,097) (39,023)
Netcash used in financing activities _ (96,796) (39,023)
Change in cashand cash equivalents in theperiod 128,742 (344,932)
Cash and cash equivalents at the beginningofthe period 931,035 1,275,967
Cash and cash equivalents at the end ofthe period 1,059,777 931,035
Reconciliation ofnetmovement in funds to net cashflows from operating activities:
Netmovement infunds (116,886) 2,626
Adjustments for:
Depreciation and amortisation charges 67,560 .
62,876
Interest payable 73,097 39,023
(Increase)/decrease indebtors 676,514 (269,378)
(Decrease)/increase in creditors (451,089) (120,946)
Exceptionalitem - 102,301
Netcashflowsfromoperatingactivities 249,196 (183,498)

24

Foundation of Light

Consolidated Cashflow for the year ended 31 August 2023

,

For theyear For theyear
ending31 ending31
August2023 August2022
£ £
Netcashflows from byoperating activities: 40,659 (131,255)
Cashflows from investing activities:
Purchase ofproperty, plant, equipment and intangible assets (43,909) (142,975)
Net cash used in investing activities (43,909) (142,975)
Cashflows from financing activities:
Loan Repayments (23,699) -
Interestpaidon borrowings (73,097) (39,023)
Net cash used in financing activities (96,796) (39,023)
Change in cashand cash equivalents in theperiod (100,046) (313,253)
Cash and cash equivalents at the beginning ofthe period 1,292,286 1,605,539
Cash and cash equivalents at the end of the period 1,192,240 1,292,286
Reconciliation ofnetmovement in funds to net cashflowsfrom operating activities:
Netmovement in funds (478,408) (543,508)
Adjustments for:
Depreciation andamortisation charges 482,887 525,460
Interest payable 73,097 39,023
(Iincrease)/decrease in debtors 359,584 (495,378)
Increase/(decrease) in creditors (396,501) 163,243
Exceptional item - 179,905
Netcashflowsfromoperatingactivities 40,659 (131,255)

25

Foundation of Light

Accounting Policies

Foundation of Light is a Private Limited Company by guarantee incorporated in England & Wales.

The Group financial statements are prepared under the historical cost convention and in accordance with the Companies Act.2006, applicable accounting standards in the United Kingdom, including the Staternent of Recommended Practice: Accounting and Reporting by Charities 20.15 (SORP) and the Charities Act 2011. The accounts have been prepared on a going concern basis and the accounting policies have been applied consistently.

The charity is a public benefit entity as defined by FRS 102.

Basis of Consolidation

The Group financial statements consolidate the results of the Charity and its wholly owned subsidiaries, Beacon of Light Limited and Altruism Limited using accounting policies consistently applied across the Group, and after eliminating intra-Group transactions.

Going Concern

. The financial statements have been prepared on a going concern basis, notwithstanding that the Group has reported 2023 net expenditure of £478,408 (2022: £543,508) and 2023 net cash outflows of £100,044 (2022: £313,253). The Group year-end balance sheet for 2023 has net current assets of £1,022,902 (2022: net current assets of £1,101,783) including cash at bank of £1,192,240 (2022: £1 292,286).

The primary external finance of the Group is the loan due to the Charity Bank which has an outstanding balance of £1,075,813 as of 31 August 2023. Monthly capital and interest repayments commenced February 2023 with the final repayment due January 2038. Interest is charged at 3% above the Bank of England rate. This loan now only has one covenant attached which is a cash covenant in comparison to the previous three covenants

Management have prepared a cash flow forecast for the period ending 31 May 2025 which has been used as their basis of assessing the going concern basis of preparation. The cash flow reflects grant funding that has already been secured as well as including assumptions that renewals of regular funders will take place.

Gift in Kind

Gift in kind is received from Sunderland AFC in the form of products and services given freely and staff time donated. Where they can be quantified, gift in kind is included within the statement of financial activities as both income and expense. '

26

:

Foundation of Light

Accounting Policies (continued)

Income

Voluntary income including gifts and legacies that provide core funding which are general in nature are recognised when there is entitlement, probability of receipt and the amount can be measured with sufficient reliability.

Investment income is recognised on a receivable basis and arises from an interest-bearing deposit account. The Charity only recognise interest on bonds when it is unconditional, and hence all conditions of the bond have been met, and it has matured.

----- Start of picture text -----
,
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Income from charitable activities includes income received from grants and contracts. Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability.

Donations are recognised when received unless the receipt is probable, when they are recognised as accrued income. Donations and grants received for specific purposes are classed as restricted and are deferred until the Charity is entitled to the funding and has met the conditions set out in the funding agreement.

Trading income is recognised on an accruals basis as performance obligations are fulfilled.

Beacon of Light capital grant income was funding received by Beacon of Light Limited toward the construction of the Beacon ofLight facility. In the consolidated SOFA, capital grants were recognised upon receipt, as required by paragraph 5.27 of the SORP and held in a specific restricted fund for future depreciation charges.

The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.

Expenditure

Expenditure is accounted for on an accruals basis as a liability is incurred and includes irrecoverable VAT as applicable. Contractual arrangements and performance-related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises resulting in the payment being unavoidable.

27

Foundation of Light

Accounting Policies (continued)

Redundancy and Termination Benefits

Redundancy and termination benefits are accrued by the. Charity when there is a constructive obligation to pay them. This is normally via a contractual, legislation or other agreement with employees and their representatives.

Intangible Fixed Assets

The Foundation of Light website.and the development of an operational IT system have been classified as intangible fixed assets. Amortisation has been provided on a straight-line basis reflecting the expected useful life of the assets, with a full month’s amortisation charge in the month of completion, at a rate of 33% per annum. The assets have been capitalised at cost, comprising all directly attributable costs required to bring them into working condition.

Tangible Fixed Assets

Individual fixed assets costing £500 or more are capitalised at cost. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation is provided on a straight-line basis over the estimated useful life.of the asset with a full month’s depreciation charged in the month of acquisition. Principal rates used are:

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||||| |---|---|---|---| |Land|and Buildings|2%| |Computer Equipment|33%| |Buildings|2%|-|10%| |Fixtures|and Fittings|25%|

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The Beacon is classified under Buildings, as the facility is used by the Charity as a functional property to further the charitable objectives of the Charity. The building will be depreciated over its anticipated useful economic life.

Fundraising

Fundraising income and expenditure are accounted for on an accruals basis and is classified as unrestricted unless fundraising is targeted at a specific cause then this would be classed as

Funds

Resiricted funds are funds raised or donated for a specific purpose. All other funds are classified as unrestricted.

Surplus funds held are deposited with Barclays Bank and Nationwide to earn interest prior to utilisation by the Foundation.

There is a designated furid to build a reserve to fund the replacement of fixed assets.

Operating Leases

The Charity classifies the lease of minibuses and photocopying equipment as operating leases. Rental charges are charged ona straight-line basis over the term of the lease.

Finance Leases

’ Assets acquired under finance leases are capitalised and the outstanding future lease obligations are shown in creditors.

28

Foundation of Light

Accounting Policies (continued)

Judgements.and Key Sources of Estimation Uncertainty

In the application of the accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The Directors do not consider that there are any significant judgements or estimates included in the financial statements.

29

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023

1 Group Income

(a) Donations and Legacies - Group

(a) Donations and Legacies -
Group
For the For the
year year
ending ending
31 31
. August August
Unrestricted Restricted 2023 Unrestricted Restricted 2022
£ £ £ £ £ £
Gifts, Donations andLegacies 52,428 - 52,428 103,107 - 103,107
Capital Grants - 1,600 1,600 - 49,999 49,999
Membership, Subscriptions and
Sponsorship 3,445 - 3,445 10,373 - 10,373
Donated goods andservices 10,167 30,471 40,638 86,644 33,704 120,348
66,040 32,071 98,111 200,124 83,703 283,827
(a) Donationsand Legacies -
Charity
(a) Donationsand Legacies -
Charity
For the For the
year year
ending ending
31 31
August August
Unrestricted Restricted 2023 Unrestricted Restricted 2022
£ £ £ £ £ £
Gifts, Donations andLegacies 52,428 - 52,428 103,107 - 103,107
Membership, Subscriptions and
Sponsorship 3,445 - 3,445 10,373 - 10,373
Donated goods andservices 10,167 30,471 40,638 86,644 33,704 120,348
66,040 30,471 96,511 200,124 33,704 233,828

,

30

.

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

BySource ofFunding Unrestricted Restricted For theyear Fortheyear
ending31 ending31
August2023 August2022
£ £ £ £
Footballcoaching sales 478,239 - 478,239 368,180
Sale ofservices as part ofthe direct
charitable activities 179,790 - 179,790 135,495
Contractualpaymentsfrom government
orpublic authorities - 728,709 728,709 1,034,176
Performance related grants where level
ofincomedepends onvolume ofservice - 1,458,437 1,458,437 1,461,133
provided
658,029 2,187,146 2,845,175 2,998,984

In the prior period, income from charitable activities comprised of £728,135 unrestricted funds and restricted income of £2,270,849.

ByCharitable Activity Unrestricted Restricted For theyear Fortheyear
ending 31 ending31
August2023 August2022
£ £ £ £
SportandPlay 544,610 210,510 755,120 624,325
Education 53,753 408,363 462,116 616,606
World ofWork 1,006 479,064 480,070 543,323
Community - 705,507 705,507 757,163
Health 8,643 298,424 307,067 260,455
Core 50,017 85,278 135,295 197,112
658,029 2,187,146 2,845,175 2,998,984

31

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

(c) Other trading activities -Group

Unrestricted Restricted Fortheyear Fortheyear
ending 31 ending 31
August 2023 August2022
£ £ £ £
Fundraising events 176,247 - 176,247 113,730
Sponsorshipsand lottery 94,116 - 94,116 82,820
Letting arrangements for Property 14,117 - 14,117 24,200
Trading activity 1,028,720 - 1,028,720 882,356
1,313,200 - 1,313,200 1,103,106

In the prior year, income-from other trading activities comprised solely of £1,103,106 unrestricted income.

Other trading activities - Charity

Unrestricted Restricted Fortheyear Forthe year
ending31 ending 31
August2023 August 2022
£ £ £ £
Fundraising events 176,247 - 176,247 113,730
Sponsorships and lottery 94,116 ~ 94,116 82,820
Letting arrangements for Property 14,117 - 14,117 24,200
_
Trading activity 183,000 - 183,000 184,399
467,480 - 467,480 405,149

In the prior year, income from other trading activities comprised solely of £405,149 unrestricted income.

(d) =‘ Investments — Group and Charity

Unrestricted Restricted For theyear Fortheyear
ending 31 ending31
August 2023 Aligust2022
£ £ £ £
Bank interest received 37,271 - 37,271 -

32

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

2 Group Expenditure

a) Expenditure on raising funds — Group

For theyearendingForthe the yearending31
31 August2023 August 2022
£ £
Cost ofseeking donations and grants 157,926 123,013
Fundraising events 93,945 66,810
Sponsorships and lottery 28,102 37,190
Membership scheme 5,413 2,900
Otherrunningcosts 444,795 443,067
Depreciation 20,566 21,670
Marketing andpublicity 24,154 28,376
Matchday tickets and stadium tours 10,167 86,644
785,068 809,670

In the prior year, expenditure on raising funds comprised solely of £809,670 unrestricted expenditure.

Expenditure on raising funds — Charity

For theyear endingFor theyear ending 31
31 August2023 August2022
£ £
Cost ofseeking donations and grants 157,926 123,013
Fundraising events 93,945 66,810
Sponsorships and lottery 28,102 37,190
Membership scheme 5,413 2,900
Otherrunning costs 20,035 34,212
Marketing and publicity 24,154 28,376
Matchday tickets andstadium tours 10,167 86,644
339,742 379,145

In the prior year, expenditure on raising funds comprised solely of £379,145 unrestricted expenditure.

33

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

b) Expenditure by Charitable Activity - Group

Sportand World of Education Community Health Beacon Core 2023 2022
Play Work ofLight
£ £ £ £ £ £ £ £ £
Matchday tickets 18,204 5,362 350 2,379 4,176 - - 30,471 33,704
and stadium. tours
Education 454,340 342,173 495,229 472,293 246,773 - ~ 2,010,808 2,119,803
Depreciation and 14,712 14,712 14,712 14,712 14,712 394,762 - 468,322 503,788
amortisation
Redundancy - - - - - - 4,806 4,806 -
Expenses
Building! 181,998 115,706 111,378 170,040 74,009 - - 653,131 624,943
Support costs(c) 183,420 116,610 112,249 171,369 = 74,587 - 135,295 793,530 635,782
Governance (d) 5,209 5,205 5,205 5,205 5,205 - - 26,029 21,830
857,883 599,768 739,123 $35,998 419,462 394,762 140,101 3,987,097 3,939,850

Expenditure on charitable activities comprised of £1,502,912 unrestricted funds (2022: £1,149,172) and £2,484,185 restricted funds (2022: £2,790,678).

Support costs are staffing and overheads for functions such as Directors, Finance, Admin, IT and HR and are allocated based on income.

Expenditure is allocated between the restricted and unrestricted funds based on the project to which it relates; expenditure relating to the generation of unrestricted income such as the sales of sparts and play coaching courses is classified as unrestricted expenditure, while expenditure relating to restricted grant funded programmes is classified as restricted expenditure,

' Building costs relate to the staffing and overheads associated with operating the Beacon of Light facility.

34

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

b) Expenditure by Charitable Activity — Charity

Sportand Sportand Worldof Education Community Community Health Core 2023 2022
Play Work
£ £ £ £ £ £ £ £
Matchday 18,204 5,362 350 2,379 4,176 - 30,471 33,704
tickets and
stadium tours ‘
Education 535,181 393,568 544,702 547,823 279,647 ~ 2,300,921 2,403,708
Redundancy - - - - - 4,806 4,806 -
Expenses
Depreciation 14,712 14,712 14,712 14,712 14,712 - 73,560 62,875
and
amortisation
Support cost (c) 183,420 116,610 112,249 171,369 74,587 135,295 793,530 635,782
Governance (qd) 4,060 4,058 4,058 4,058 4,058 - 20,292 17,830
755,577 534,310 676,071 740,341 377,180 140,101 3,223,580 3,153,899
Expenditure on charitable activitiescomprised of£844,046 unrestricted funds(2022: (2022: £622,528)and£2,379,534 restricted
funds (2022: £2,633,662).
e) Expenditure by Support Costs —-Group and Charity
Sportand Worldof Education Community Health Core 2023 2022
Play Work
£ £ £ £ £ £ £ £
Administration 99,942 63,539 60,009 91,615 39,874 30,740 385,719 247,808
Directors 48,436 30,794 28,488 43,493 18,930 30,740 200,881 =167,924
FinanceDept 20,324 12,919 15,899 24,272 10,564 43,076 127,054 148,545
HRDept 4,038 2,567 2,471 3,773 1,642 - 14,491 7,652
ITDept 10,680 6,791 5,382 8,216 3,577 30,739 65,385 63,853
183,420 116,610 112,249 171,369 74,587 135,295 793,530 635,782

Expenditure on charitable activities comprised of £844,046 unrestricted funds (2022: £622,528) and £2,379,534 restricted funds (2022: £2,633,662).

e) Expenditure by Support Costs —- Group and Charity

Fortheyear Forthe year
ending 31 August ending 31 August
2023 2022
(d) Governance Costs --Group £ £
Audit Fees 20,789 22,050
VATFees 5,240 4,050
TotalCosts -Group 26,029 26,100
Governancecostsarechargedasincurred.

35

,

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

e) Exceptional item - Group

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Business|rates| |Business|rates|relating|to|the|period|of June 2018 — August 2021|

----- End of picture text -----

----- Start of picture text -----
|||||| |---|---|---|---|---| |Year|ended|Year|ended| |31|August 2023|31|August|2022| |£|£| |-|179,905|

----- End of picture text -----

e) Exceptional item ~ Charity

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Year|ended|Year|ended| |31|August 2023|31|August 2022| |£|£| |Business|rates| |Business|rates|relating|to|the|period|of June 2018 — August 2021|-|102,301|

----- End of picture text -----

Included within expenditure is an amount of £nil (2022: £179,905 Group and £102,301 Charity) relating to rates costs for the period 1 June 2018 to 31 August 2021. This expenditure arose due to an arrangement that was agreed during the previous finaricial year in respect of previous accounting periods. Current business rates have been reflected as expected in current expenditure.

36

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

3 Group Staff Costs

Yearending31 =Yearending 3.1
August2023 August 2022
£ z
Staffcosts:
; Wages and salaries 2,264,221 2,241,893
Social security costs 199,400 157,212
Other pension costs 74,977 54,756
Redundancy costs 13,783 -
2,552,381 2,453,861

Two employees received total employee benefits above £60,000 for the reporting period, one at . £60,000 = £70,000 & one at £100,000 - £110,000 (2022: two employees). For staff paid over £60,000 pension contributions of £7,190 were made (2022; £8,075). Key Management detailed on page 1 cumulatively received £294,498 in employee benefits in 2022 (2022: £296,066).

The Trustees are not entitled to, and did not receive, any remuneration for their services to the Charity (2022: £nil). During the year total expenses reimbursed to trustees for travel and subsistence, amounted to £503 (2022: nil).

The Foundation had an Aviva defined contribution pension scheme which was open to all permanent employees after successful completion of their probation period. The Foundation made a standard contribution of 3% of basic salary on behalf of the members, at a cost of £28,719 (2022: £25,355) in the year. At the year end £nil (2022: £4,608) in payable contributions were outstanding. The Foundation has also been required to auto-enrol al! eligible employees into a pension scheme since July 2014, as such, all new employees are automatically enrolled into the NEST governmental defined contribution scheme. Employees.are required to make a 5% contribution and the Fouridation makes a standard contribution of 3%. The cost of the NEST scheme in 2023 was £25,521 (2022: £29,816). At the year-end there were £nil (2022: £5,642) payable contributions outstanding. These pension costs would be allocated as per staff costs based on project/activity allocations. During the year the Foundation undertook a pension review which resulted in a new Royal London company pension scheme taking over the existing Aviva scheme. This scheme is open to all permanent employees after successful completion oftheir probation period. The Foundation madea standard contribution of 3% of basic salary on behalf of the members, at a cost of £20,738 (2022: £nil) in the year. At the year end £20,738 (2022: £nil) in payable contributions were outstanding.

The monthly average number of persons employed by the Group and Charity during the year was 143 (2022: 144). The average number of full-time staff members was 68 (2022: 74) and those on part time and casual contracts was 75 (2022: 70). All staff are employed for the furtherance of the Charity’s objectives.

37

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

Staff employed can be further analysed as follows:

----- Start of picture text -----
|||||| |---|---|---|---|---| |Year ending 31|Year ending|31| |Augusi.2023|August 2022| |aNer|Ni|mheer| |Delivery|Staff|102|105| |Support|and Administration|13|14| |Beacon|of Light Operations|17|14| |Commercial|and|Marketing|8|9| |Directors|3|2| |143|144|

----- End of picture text -----

4 Net outgoing resources before transfers

Net outgoing resources for the Group are stated after charging:

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Year|ending 31|Year|ending|31| |August 2023|August 2022| |£|£| |Audit fee|27,350|22,050| |Depreciation|453,970|502,542| |Amortisation|28,917|22,917| |Operating|lease|costs:| |-|plant and machinery|15,951|21,367| |Bank|Interest|73,097|39,023| |Non-Audit|Fees|for Tax|Compliance|services|4,050|4,050| |E£Nil|depreciation|was charged|in|the year|related|to|leased|assets|(2021:|£Nil).|;|

----- End of picture text -----

38

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

5 Intangible assets

Charity Website and data
warehouse		 Total
£ £
Cost
As at 1 September2022 71,500 71,500
Additions - -
As at31 August2023 71,500 71,500
Accumulated Amortisation
As at 1 September 2022 20,487 20,487
Charge forthe Period 23,834 23,834
At31 August.2023 44,321 44,321
Net book value
,
At31 August2023 ; 27,179 27,179
At31 August2022 $1,013 51,013
Group Website and data Tatal
warehouse
£ £
Cost
As at 1 September2022 86,750 86,750
Additions - -
,
As at31 August2023 86,750 86,750
Accumulated Amortisation
As at 1 September2022 23,473 23,473
Charge for thePeriod 28,917 28,917
At31 August2023 §2,390 §2,390
Net bookvalue
At31 August2023 34,360 34,360
At31August2022 63,277 63,277

39

,

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

6 Property, Plant and Equipment

,

Charity Computer
Equipment		 Leasehold
Buildings		 Fixturesand
Fittings		 Total
£ £ £ £
Cost
As at 1 September 2022 385,789 75,706 226,975 688,470
Additions 17,568 - 12,090 29,658
Disposals (186,050) - (104,855) (290,905)
As at31 August2023 217,307 75,706 134,210 427,223
Accumulated Depreciation
As at 1 September2022 309,925 75,706 210,475 596,106
Disposals (186,050) - (104,855) (290,905)
Charge for thePeriod 43,120 - 6,606 49,726
At31 August2023 166,995 75,706 112,226 354,927
Net book value
At31 August2023 50,312 - 21,984 72,296
At31August2022 75,864 - 16,500 92,364

40

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

Group Computer Freehold Leasehold Fixturesand Total
Equipment Buildings Buildings Fittings
£ £ £ £ £
Cost
As at 1 September2022 586,240 18,720,701 75,706 501,187 19,883,834
Additions 17,570 - - 32,341 49,911
Disposals (186,050) - - (104,855) (290,905)
As at.31 August2023 417,760 18,720,701 75,706 428,673 19,642,840
Accumulated Depreciation
As at 1 September2022 510,291 1,526,831 75,706 471,505 2,584,333
Disposals (186,050) = - (104,855) (290,905)
Charge forthe Period 43,203 381,315 - 35,452 459,970
At31 August2023 367,444 1,908,146 75,706 402,102 2,753,398
Net book value
At 31 August 2023 50,316 16,812,555 - 26,571 16,889,442
At31August 2022 75,949 17,193,870 - 29,682 17,299,501

7 Investments

The Foundation has a wholly owned subsidiary, Altruism Limited (previously SAFC Community Limited), a company incorporated in England and Wales registration number 04303983. The purpose of the company is to operate the commercial trading at the Beacon of Light, including sport facility hire, meetings and predominantly events. The income ofthe subsidiary as at 31 August 2023 was £916,806 (2022: £784,372) with expenditure totalling £966,999 (2022: £1,002,247) resulting in a net loss of £50,193 (2022 loss: £217,875). The net liabilities of the subsidiary as of 31 August 2023 were £1,051,915 (2022: net liabilities of £1,001,722).

The Foundation also has a wholly owned trading subsidiary, Beacon of Light Limited registration number 09221229, which was established in September 2014. The purpose of the company was to construct and now to run the Beacon of Light facility. The income of the:subsidiary as at 31 August 2023 was £1,121,082 (2022: £1,070,028) with expenditure totalling £1,053,628 (2022: £1,069,857) resulting in a net profit of£67,454 (2022 profit: £717). The net liabilities of the subsidiary as of 31 August 2023 were £414,063 (2022: net liabilities of £481,517).

Both subsidiaries share the same registered address as the Foundation of Light; Beacon of Light, Stadium Way, Sunderland, SR5 ISN.

41

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

8 Debtors

Charity Charity Group Group
31 August 31 August 31 August 31 August
2023 2022 2023 2022
£ £ £ £
Trade Debtors 81,918 169,027 197,787 260,208
Amounts duefromGroup undertakings 1,069,281 1,300,778 - -
Amounts due from SunderlandAFC Ltd 15,506 1,694 19,346 8,334
OtherDebtors - 3 37,119 10,240
Prepayments andaccruedincome 291,200 662,917 333,894 668,948
1,457,905 2,134,419 588,146 947,730

Amounts due from Group undertakings includes an intercompany loan of £1,015,840, of which £300,000 is due in less than one year, and £715,840 is due after more than one year. The loan is due for repayment by June 2029. Interest is charged at 3%. The remaining balance relates to recharges invoiced but not received as at year-end.

9 Creditors: amounts falling due within one year

Charity Charity Group Group
31 August 31 August 31 August 31 August
2023 2022 2023 2022
£ £ £ £
Trade Creditors 43,813 41,481 382,385 374,069
Amounts due to SunderlandAFC Ltd 35,985 42,969 35,985 42,969
OtherCreditors 132,201 76,124 136,610 66,213
Amounts due toGroup undertakings 14,890 75,624 - -
Accruals and deferred income $8,021 529,800 161,154 629,382
Charity BankLoan 41,350 25,600 41,350 25,600
356,260 791,598 757,484 =1,138,233

Amounts due to Group undertakings are unsecured, have no interest and are repayable.on demand.

42

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

Deferred income can be further analysed as follows:

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Charity|for|the|Charity|forthe|Groupforthe|Group|forthe| |yearAugustending2023 31|yearendingAugust 202231|yearAusust ending 202331|yearAugust ending 202231| |£|£|£|£| |Balance|brought forward|357,657|152,293|386,131|230,734| |Recognised|in year|2,599,853|2,632,490|2,796,686|2,707,264| |Released:in|year|(2,852,958)|(2,427, 126)|(3,078,265)|(2,551,867)| |Balance|carried|forward|104,552|357,657|104,552|386,131| |Income|is|deferred|based on|the|calendar period|the|activity|takes|place.| |10|Creditors:|amounts|falling|due|after one year| |Charity|Charity|Group|Group| |31|August|31|August|31|August|31|August| |2023|2022|2023|2022| |£|£|£|£| |Charity|Bank Loan|1,034,951|1,074,400|4,034,951|1,074,400|

----- End of picture text -----

The primary. external finance of the Group is the loan due to the Charity Bank which has an outstanding balance of £1,076,301 as of 31 August 2023. Monthly capital and interest repayments commenced Februaty 2023 with the final repayment due January 2038. Interest is charged at 3% above the Bank of England rate. This loan now only has two covenants attached; a cash covenant and a loan to value covenant in comparison to the previous three covenants. The Charity bank loan is secured by a fixed charge against the Beacon of Light facility.

43

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

11 Analysis of Net Assets

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Charity| |Fund balances at 31 August 2023|are represented by:|Unrestricted|Restricted|Total| |£|£|£| |)| |Fixed|Assets|-|99,475|99,475| |Investments|-|2|2| |Net Current Assets|1,055,120|1,106,304.|2,161,424| |Creditors:|amounts|falling due|after one year|-|(1,034,951)|(1,034,951)| |Total|funds|1,055,120|170,830|1,225,950|

----- End of picture text -----

The funds can be further analysed as follows:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |1|September|Income|Expenditure|Transfers|31|August| |2022|2023| |£|£|£|£|£| |General|funds|1,131,894|1,228,820|(1,183,788)|(172,168)|—-1,004,758| |Designated|funds| |Contingency|fund|50,362|-|~|~|50,362| |Total|designated|funds|50,362|-|-|-|50,362| |Total|unrestricted|funds|1,182,256|1,228,820|(1,183,788)|(172,168)|1,055,120| |Restricted|funds:| |Education|-|408,713|(531,406)|122,693|-| |World|of Work|4,243|484,496|(493,749)|5,080|-| |Sport and|Play|-|228,714|(228,714)|-|-| |Community|156,336|707,886|(693,391)|(1)|170,830| |Health|-|302,600|(346,997)|44,397|-| |Core|.|85,278|(85,278)|-|-| |Total|restricted|funds|160,579|2,217,617|(2,379,535)|172,168|170,830| |Total funds|1,342,835|3,446,437|(3,563,323)|-|1,225,950|

----- End of picture text -----

,

44

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

11 Analysis of net assets (continued)

Group
Fundbalances at 31 August 2023 arerepresented by: Unrestricted Restricted Total
£ £ £
Fixed Assets - 16,923,802 16,923,802
NetCurrent Assets 94,666 928,236 1,022,902
Creditors: amounts fallingdue after 1 year _ -
(1,034,951)		 (1,034,951)
Total funds 94,666 16,817,087 16,911,753
The funds can be furtheranalysed as follows:
31 August Income Expenditure Transfers 31 August
2022 2023
£ £ £ £ £
Generalfunds 139,802 2,074,540 (2,287,980) 117,942 44,304
Designated funds
Contingency fund 50,362 - - - 50,362
Total designated funds 50,362 - - - 50,362
Total unrestricted funds 190,164 2,074,540 (2,287,980) 117,942 94,666
Restricted funds:
Education - 408,713 (481,933) 73,220 -
WorldofWork 4,243 484,426 (442,354) (46,315) -
Sportand Play - 228,714 (147,873) (80,841) -
Community 156,336 707,886 (617,862) (75,529) 170,831
Health - 302,600 (314,123) 11,523 -
Core - 85,278 (85,278) - -
Beacon ofLight 17,039,418 1,600 (394,762) - 16,646,256
Total restricted funds 17,199,997 2,219,217 (2,484,185) (117,942) 16,817,087
Totalfunds 17,390,161 4,293,757 (4,772,165) - 16,911,753

45

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

11 Analysis of Net Assets (continued)

During the year, transfers were made. between unrestricted and restricted funds to cover overspends that had occurred on certain restricted funds. Some restricted funds have been rolled forward between financial years and we have no indication of any claw backs to date. There have also been some transfers between restricted funds, the Sport and Play department are partially funded by restricted grant income from Trusts and Foundations; however, the majority of funding is from unrestricted funds, particularly trading income from the delivery of courses. Community, Core, Health, Education and World of Work projects are mainly funded by grants from Trust and Foundations, corporate funding and Public Sector contracts; the balance is funded from unrestricted funds.

A description of each restricted fund is given below:

Education Includes Post 16 Football Scholarship and, secondary education projects.

World of Work

Family Learning programmes and employability courses (based in Durham, Sunderland, and South Tyneside).

Sport and Play Community football teams, the Emerging Talent Centre and in and out of curriculum coaching in Durham, Sunderland, and South Tyneside.

Health Includes suicide prevention, physical and mental health projects, over 55s and veterans’ delivery sessions, and the Coal to Goals project.

Community Inclusion Youth Engagement activity. Beacon of Light Grant funding received for the construction of the Beacon of Light facility, funding capital expenditure on the project and the depreciation charges on the build.

Core

Digital, including the website and E-Learning platform.

46

,

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2023 (continued)

12 Financial Commitments

Operating lease commitments

.

At 31 August the Group had total commitments under non-cancellable operating leases, as follows:

31 August2023 31 August2023 31 August2022 31 August2022
Group Landand
buildings		 Other Total Land and
buildings		 Other Total
£ £ £ £ £ £
Withinone year ~ 4,784 4,784 - 4,784 4,784
Between oneto five years - 7,973 7,973 - 12,757 12,757
Total - 12,787 =12,757 - 17,541 17,541

13 Related Party Transactions

During the year, the Foundation of Light provided services to Beacon of Light Limited, namely through the recharge of staffing support and overheads of£351,070 (2022: £294,674) and Altruism Limited of £227,897 (2022: £203,987). In addition, the Beacon of Light Limited also received income from rent. and sérvices charges of £99,733 (2022: £93,518) from the Foundation of Light, £521,673 (2022: £494,117) from Altruism Limited. Altruism Limited received hire income from sporting and meeting facilities from the Foundation of Light of £223,174 (2022: £190,379).

.

The Foundation received quantifiable gifts in kind from Sunderland AFC Limited of £40,638 (2022: £120,348). Gifts included match tickets for both staff and participants as well as use of certain areas of the Stadium for tours etc.

Details of the Foundation’s relationship with the Club can be found on page 5 of the Trustees’ report.

The Foundation continued to sponsor an Alternative Provision Free School, Beacon. of Light School, which received its first intake of pupils in September 2017. Lesley Spuhler OBE (Chief Executive) was a Member of Beacon of Light School until 31" August 2023 and James Wright (Managing Director) is a school governor. Income, being recharges of invoices and services in the year totalled £81,098 (2022: £114,498) with outstanding balances at the year end of £2,660. The School joined the Laidlaw Schools Trust on 1** September 2023.

The Foundation received donations from Trustee’s in thé year of £25,700 (2022: £nil).

47