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← Foundation Of Light

2024-08-31-accounts

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Foundation of Light (a Company Limited by Guarantee) Consolidated Annual Report and Financial Statements _ for the year ended 31 August 2024

Registered Charity Number: 1089333

Registered Company Number: 04243171

Foundation of Light

Annual Report and Consolidated Financial Statements

for the year ended 31 August 2024

Contents

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Foundation of Light

Trustees and Advisers for the year ended 31 August 2024

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 The Rt Hon. The Baroness Tanni Carys Davina Grey-Thompson DBE, DL Jill Scott MBE (appointed 5'" December 2023)

Key Management Lesley Spuhler OBE DL Chief Executive James Wright Managing Director — Foundation of Light Ciaron 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 SR1 IRS

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

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Legal Advisor Ward Hadaway 102 Quayside Newcastle upon Tyne NE1 3DX

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Foundation of Light

Chairman’s Statement

Iam pleased to share this year’s Annual Report.

Over the past year, the Foundation of Light has solidified its role as a key player in addressing the region’s challenges. Through its focus on education, employability, health, and community, the Foundation continues to provide life-changing opportunities, especially for those in vulnerable situations.

In response to the cost-of-living crisis and ongoing economic challenges, the Foundation. has redoubled its efforts to support those in need, equipping individuals and families with the tools and opportunities to build better lives. Through employability programmes, we have empowered individuals with the skills and confidence needed to gain employment. In 2024 alone, we upskilled nearly 1,500 young people and adults, supported over 600 participants in their employment journey, and helped nearly 100 secure jobs.

Our impact is evident in the breadth and depth of our work. Over the past year, we have touched the lives of over 23,000 people through 50 diverse programmes focused on boosting confidence, enhancing life skills, and promoting physical and mental health. From our youngest participant at 18 months to our oldest at 94 years, the Foundation continues to serve as a cornerstone of hope and support for all generations.

This year, the Foundation’s partnerships with local councils, universities, and community organisations have ensured the delivery of transformative programmes. New collaborations with Sunderland and Durham Universities, Croda and Roseline Foundations, and local authorities have opened doors to innovative projects and mentoring opportunities. Our work has been recognised with accolades such as the County Durham Kitemark for high-quality volunteer experiences, a testament to the dedication of over 100 volunteers who bring our mission to life.

We are proud to welcome Jill Scott, an inspirational figure and European Champion with the Lionesses, to our Board of Trustees. Jill’s achievements and values perfectly align with the Foundation’s ethos, and her presence enhances our ability to inspire the next generation.

The Beacon of Light remains a hub of activity and community engagement, hosting not only our Foundation programmes but also providing a home for Wearside Women in Need and Sunderland University’s sports teams. Initiatives like our Female Football Pathway, which has grown from 200 to 500 participants, reflect our commitment to inclusion and gender equality in sports.

Our venue continues to evolve to meet the diverse needs of our community. From supporting young people with alternative education through the Beacon of Light’s provision school to delivering suicide prevention interventions like Andy’s Man Club and the first-ever women’s support group, Believe, the Foundation’s work addresses critical societal challenges. Our SEND support, primary school interventions, and engagement with young offenders demonstrate our holistic approach to empowering individuals and fostering resilience.

Looking ahead, we remain unwavering in our mission to unite Sunderland and its surrounding areas, offering hope, opportunity, and support to. those who need it most. Events such as our Gala Dinner provide a platform to celebrate the achievements of our learners and shine a light on the impact of our work.

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Foundation of Light

Chairman’s Statement (continued)

As we reflect on the successes of the past year, we also acknowledge the challenges that lie ahead. The Foundation of Light stands as a beacon of hope, resilience, and progress for our community. Together, with the continued support of our partners, volunteers, and stakeholders, we will persevere in our mission to make a meaningful difference in the lives of those we serve.

Sir Bob Murray CBE

29 March 2025

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Foundation of Light

Trustees’ Report for the year ended 31 August 2024

The Trustees are pleased to present-their atnual report together with the audited financial statements of the Charity and Group for the year ended 31 August.2024. This. report includes the information. required to satisfy the company law requirements to present a Strategic Report anda Directors’ Report.

Structure, Governance and Management

The Foundation of Light is a registered charity with a simple, but very important, mission. To use the power of football to tackle the North East's biggest societal challenges, and to help members of the community to live happier and healthier lives.

The Foundation uses its position and profile to access traditionally ‘hard to reach’ communities and works across four programme areas: sport and play; world of work, education, arid health and wellbeing.

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 of the 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.

Appointment of Trustees

As set out in the Articles of Association, Trustees aré 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 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 2024 (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.

Governance Review and Board Effectiveness

The Governance Review was initiated in 2020 .and has resulted in several improvements since including the development of a Governance Manual, with updated terms of references and scheme of delegation and the streamlining of the policy matrix and associated manuals. 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. A fourth Strategy Day is planned in 2025 to discuss the Foundation’s new strategy.

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, fot least throtigh its sifts:in kind such as match day tickets, prime accommodation; and auction prizes.

Key Management Pay

The pay of all staff including key management is banded in salary grades dependent oti 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 increases to be awarded. The Trustees delegate the approval process to the Nominations and Remunerations Committee who have the final approval 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 key management.

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Foundation of Light

Trustees’ Report for the year ended 31 August 2024 (continued)

Principle Risks and Uncertainties

The Foundation and its Subsidiaries will always face business risks; however, the Board of Trustees has taken steps to mitigate these as far as possible. The Finance, Audit and Risk Committee, together with the Trustees, oversee risk management, mitigation strategies, and compliance with legal requirements, conducting régular reviews.to ensure robust practices are in place. Responsibility for the day-to-day management ofrisks is delegated to the CEO and the Assistant Director of Compliance, who implement business continuity strategies designed to foster adaptability, resilience, and sustainability. Risks and uncertainties identified include:

Financial

The cost-of-living crisis is straining the Charity and its Subsidiaries through rising operational costs; declining donor capacity, and reduced government ftinding. To address this, the Foundation is diversifying income streams via-enhanced business development, trading activities, and fundraising. Regular financial reviews, reserve management, and lean cost structures are integral to its strategy.

dmpact ofPoverty on Staff

Economic pressures are increasing staff stress and burnout risks, potentially impacting morale and productivity. Mitigation measures include paying the Real Living Wage, offering wellbeing initiatives (financial advice, stress management), flexible work arrangements, and staff development programmes supported by the Culture Group.

Compliance and Governance

The Foundation navigates complex regulations, including the Charities Commission, Companies Act, General Data Protection Regulation (GDPR), and Health and Safety laws, alongside rising cybersecurity threats. Regular updates to policies, tailored training, a robust safeguarding framework, and enhanced cybersecurity systems ensure compliance and governance.

Human Resources

Recruitment and retention temain challenging due to financial pressures and workloads, while diversity remains a priority. Initiatives include leadership training, health initiatives, succession planning, and equality, diversity and inclusion (EDI) focused activities to create an inclusive workplace.

Operations

Unforeseen events like pandemics and cyberattacks threaten continuity and security. The Foundation maintains an updated Business Continuity Plan, invests in cybersecurity, and conducts regular audits and staff training to build resilience.

ducreased Demand for Services

The cost-of-living crisis has heightened demand for the Foundation's programmes, especially health and wellbeing services. To meet this demand, the Foundation secures targeted funding, collaborates with local partners, and regularly evaluates program outcomes to optimise resource use,

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Foundation of Light

Trustees’ Report for the year ended 31 August 2024 (continued)

Public Health Issues

While COVID-19 risks have diminished, future pandemics or crises remain possible. The Foundation continues to refine response plans based on past experience and collaborates with other organizations to ensure preparedness.

Achievements and Performance

The past year delivered life-changing outcomes for participants, improving confidence, life skills, community belonging, and physical and mental wellbeing. Key demographic highlights: 5.08% BAME, 32% female, 8.55% disability, and 0.06% LGBTQ+ (disclosed),

2023/2024 Delivery Highlights

Programmes reached 183 schools, community centres, and playing fields in deprived areas, delivering education, health, and youth initiatives. Over five years, three million hours of meaningful engagement are targeted, with 454,987 hours delivered this yéar alone.

Community: Launched Primary Intervention Programme to address behaviour challenges in schools: expanded the YOLO mentoring project with Police Crime Commissioners; and the Holiday Activity and Food (HAF) programme supported 303 unique and 994 repeat young people, ensuring access to healthy meals during school breaks.

Health and Wellbeing: 16,000+ individuals felt more connected to their community and programmes addressed isolation, diet, and physical health, benefiting 2,477 participants.

Education and Skills: 1,000+ participants improved job skills; 874 enhancedjob market awareness: 78 gained employment, 825 improved maths and English through family learning, scholarships, and study programme. Partnered with Sunderland College to support at-risk learners.

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Foundation of Light

Trustees’ Report for the year ended 31 August 2024 (continued)

Football in the Community: Over 15,000 participants ranging from Little Dribblers (18 months.to 5 year olds) to over 55s playing walking football. 634 female footballers accessing weekly coaching opportunities, including the Foundation led Girls Academy programme which has helped develop dozens for SAFC Women first team players. Over 2,000 participants with disabilities accessed inclusive football and wider sports coaching.

Beacon ofLight and Income Growth

Achieved profitability for Altruism Ltd, with significant growth in sports space sales, partnerships, and events. In March 2024 Altruism commenced its new café operation, Yard Nine, demonstrated strong income potential. Footfall reached 6,500+ weekly visitors.

Raised £4.91M through local authority grants, trusts, foundations, and donor support. Launched campaigns like "Heart on Your Sleeve" and “Wear One” to address citywide challenges.

Maintained 96% donor retention and developed new partnerships with Croda Foundation, Durham University, and more.

Diversity and Inclusion

Engaged underrepresented groups through Fans Fund initiatives focusing on LGBTQ4, disability, woinen and girls, anti-racism, and heritage. This strengthened community conriections and fosteréd a diverse, united fanbase,

People

93% of employees feel proud to work for the Foundation, with 92% of leavers expressing willingness to return.

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Investment Procedures and Policy

At 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.

Reserves Policy

The total annual running costs of Foundation of Light (Group), assuming current programmes continue, are expected to be £5.2 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 2024 are £1.2 million retaining a position ahead of target. Free reserves of the charity are £1,152,360 in 2024 compared to £1,004,758 in 2023. Asat the 31 August 2024 the Group unrestricted reserves are £323,350 compared to £94,666 in 2023.

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Foundation of Light

Trustees’ Report for the year ended 31 August 2024 (continued)

Inspiring Plans for Future Years

Vision for 2025 and Beyond

2025 marks a transformative year as the Foundation redevelops its strategy, building on past achievements and collaborating with stakeholders to shape the next five years.

Key Delivery Areas

Empowering Young People: Launching a project with the Croda Foundation to tackle worklessness and empower youth; expanding mentoring with the Roseline Foundation; establishing a Youth Hub and introducing a careers initiative in partnership with Helen McArdle and the Harrison Centre for Social Mobility.

Health and Wellbeing: Developing a Health Hub at the Beacon of Light to address isolation and health inequalities. Expanding targeted support programs to improve community inclusion and quality of life,

Regional Growth: Launching new community sessions across Sunderland, South Tyneside, and County Durham with partners including Durham University, Local Authorities and Karbon Homes.

Strengthening Impact and Engagement

Storytelling: Enhancing data collection to showcase impact and reinforce the value of investing in the Foundation.

Inclusivity and Accessibility: Creating more inclusive opportunities with SAFC and Fans Fund, focusing on underrepresented groups.

Participant Voices: Establishing focus groups to ensure programmes align with community needs.

Partnerships: Building alliances with like-minded organizations to amplify impact and reach.

Region of Sport Initiative: Collaborating with the North East Combined Authority to establish accessible physical activity and. sports.

Compliance and Organisational Development

Equality, Diversity, and Inclusion (EDI): Developing an EDI strategy with goals for inclusive recruitment, participant voice amplification, and transparency.

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Quality: Introducing a quality calendar with programme observations, audits, and staff development.

Excellence Initiatives: Continuing to achieve Capability Code of Practice, Volunteer Kitemark, Better Health at Work Award, Digital Accreditation for innovation, and Disability Confident Employer Level 2.

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Foundation of Light Trustees’ Report for the year ended 31 August 2024 (continued)

Results for the Year

The Group results for the year ended 31 August 2024 show net expenditure of £311,905 against net expenditure of£478,408 for the previous year.

Whilst the depreciation charge of £381,316 for the Beacon is included in the Group accounts, the annual release of capital grants received to support the building of the Beacon of £381,783 in 2024 and £381,315 in 2023 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 £195,055 compared to £40,305 in 2023.

Income for the year was £4,910,621 (2023: £4,293,757) reflecting increases in donations and charitable activities as well as increases in other trading activities. The Group expenditure also increased to £5,222,526 (2023: £4,772,165) as expected against. the higher income reported reflecting additional delivery costs.

The reserves of the Group remain strong with funds carried forward of £16,599,848 (2023: £16,911,753) of which unrestricted funds represent £323,350 (2023: £94,666). The reserves for the Charity also remain strong in 2024 at a level of £1,226,235 (2023; £1,225,950) of which £1,202,722 (2023: £1,055,120) 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 £144,378 cash inflow (2023: £40,659 outflow), £16,323 was invested on new assets ranging from an interactive totem to equipment to kit out the Yard Nine café area. After interest on loans of £86,954 and capital loan repayments of £40,732, the Group’s cash and cash equivalents increased by £369 over the year to £1,192,609, still maintaining a healthy financial position to carry forward into 2025.

Going Concern

The financial statements have been prepared on a going concern basis, notwithstanding that the Group has reported 2024 net expenditure of £311,905 (2023: £478,408) and 2024 net cash inflows of £369 (2023: outflow £100,046). The Group year-end balance sheet for 2024 has net current assets of £1,116,639 (2023: £1,022,902) including cash at bank of £1,192,609 (2023: £1,192,240).

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The primary extemal finance of the Group is the loan due to. the Charity Bank which has an outstanding balance of £1,035,569 as of 31 August 2024. Monthly capital and interest repayments commenced February 2023 with the final repayment due January 2038. Interest is chargéd 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 August 2026 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 wel! as including assumptions that renewals of regular funders 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,

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Foundation of Light

Trustees’ Report for the year ended 31 August 2024 (continued)

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 éstablish that the auditor is aware of stich information.

On behalf of the Trustees Sir Robert Sydney Murra a 29" March 202522

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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 of Foundation of Light for the purposes 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they give.a true and fair view ofthe state of affairs ofthe charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period.

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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 Group 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,

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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 2024 which comprise the Group and Company Statement of Financial 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (SAs (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 fo 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.

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

Other information

The other information comprises the information included in the Consolidated Annual Report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the Consolidated Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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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 obtained 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 of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the 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 accouriting 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.

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

Auditor’s responsibilities for the audit ofthe 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 atise from fraud ot 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 statements, to perform audit procedures to help identify instances ofnon-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.

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In relation to fraud, the objectives of our audit aré 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:

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Lucy Robson

04/25

Foundation of Light

Company Statement of Financial Activities for the year ended 31 August 2024 (including Income and Expenditure account)

Note Unrestricted Restricted Totalfunds Total funds
funds funds 31 August 31 August
2024 2023
£ £ £ £
Income from:
Donations and legacies la 100,867 45,633 146,500 96,511
Charitable activities lb 904,160 2,210,117 3,114,277 2,845,175
Other trading activities Ic 470,913 - 470,913 467,480
Investments Id 48,708 - 48,708 37,271
TotalIncome 1,524,648 2,255,750 3,780,398 3,446,437
Expenditure on:
Raising funds 2a 254,829 - 254,829 339,742
Charitable activities 2b 996,209 2,529,075 3,525,284 3,223,580
Total Expenditure 1,251,038 2,529,075 3,780,113. 3,563,322
Net(expenditure)/income 273,610 (273,325) 285 =(116,885)
Transfers between. funds 11 (126,008) 126,008 - -
Netmovement in funds 147,602 (447,317) 285 (116,885)
Total funds brought forward 1,055,120 170,830 1,225,950 1,342,835
Totalfundscarriedforward 1,202,722 23,513 1,226,235 1,225,950

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.

17

Foundation of Light

Company Balance Sheet as at 31 August 2024

Note 31 August 31 August
2024 2023
£ £
Fixed assets
Intangible assets 5 3,901 27,179
Property, Plantand Equipment 6 45,342 72,296
Investments 7 2 2
Total fixed assets 49,245 99,477
Currentassets
Debiors 8 1,791,154 1,457;905
Cash atbank and inhand 1,115,805 1,059,779
Total currentassets 2,906,959 2,517,684
Creditors: amounts fallingduewithinoneyear 9 (741,767) (356,260)
Net currentassets 2,165,192 2,161,424
Totalassets less currentliabilities 2,214,437 2,260,901
Creditors: amounts fallingdue aftermore thanoneyear 10 (988,202) (1,034,951)
Net-assets ~ 1,226,235 1,225,950
The funds of the charity:
Restricted income funds 11 23,513 170,836
Unrestricted income funds
Generalfunds 11 1,152,360 1,004,758
Designated funds i 50,362 50,362
Total unrestricted income funds 1,202,722 1,055,120
Totalcharityfunds 1,226,235 1,225,950

The financial statements were approved by the Trustees on29" March 2025 and were signed on their behalf by:

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Sir Robert Sydney Murray CBpe
Trustee a
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18

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Foundation of Light

Consolidated Balance Sheet as at 31 August 2024

Note 31August
2024		 31 August
2023
Fixedassets
Intangibleassets 5 §,999 34,360
Property, Plant and Equipment 6 16,465,412 16,889,442
Totalfixedassets 16,471,411 16,923,802
Current assets
Debtors 8 913,777 588,146
Cashatbankand inhand 1,192,609 1,192,240
Total current assets 2,106,386 1,780,386
Creditors: amounts falling duewithin oneyear 9 (989,747) (757,484)
Netcurrent assets 1,116,639 1,022,902
Totalassets less current liabilities 17,588,050 17,946,704
Creditors: amounts fallingdue aftermorethan oneyear 10 (988,202) (1,034,951)
Net assets 16,599,848 16,911,753
The funds ofthe group:
Restricted funds
Restricted FixedAsset Funds 11 16,252,984 16,646,256
Restricted IncomeFunds ll 23,514 170,831
Total restricted funds
Unrestrictedfunds		 16,276,498 16,817,087
General funds
Designated funds		 iv
11		 272,988
50,362		 44,304
50,362
Totalunrestrictedfunds 323,350 94,666
Totalgroupfunds 16,599,848 16,911,753
Thefinancial statementsonpages20to46wereapprovedbytheTrusteeson
weresignedontheirbehalfby:		 on29"March2025 2025and
Siree
Trustee

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Foundation of Light

Consolidated Statement of Financial Activities for the year ended 31 August 2024 (including Income and Expenditure account)

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|||||||||| |---|---|---|---|---|---|---|---|---| |Note|Unrestricted|Restricted|Restricted|Totalfunds|Total|funds| |funds|funds|Fixed|Asset|31|August|31|August| |funds|2024|2023| |£|£|£|£|£| |Income|from:| |Donations|and|legacies|la|100,867|45,633|(3,000)|143,500|98,111| |Charitable|activities|Ib|904,160|2,210,117|-|3,114,277|2,845,175| |Other trading|activities|Ic|1,604,136|-|-|1,604,136|1,313,200| |Investments|48,708|-|-|48,708|37,271| |Total|Income|2,657,871|2,255,750|(3,000)|4,910,621|4,293,757| |Expenditure on:| |Raising funds|2a|907,688|-|-|907,688|785,068| |Charitable|activities|2b|1,683,213|2,241,353|390,272|4,314,838|3,987,097| |Total|Expenditure|2,590,901|2,241,353|390,272|5,222,526|4,772,165| |Net (expenditure)/income|66,970|14,397|(393,272)|(311,905)|(478,408)| |Transfers|between|funds|1]|161,714|(161,714)|-|-|~| |Net movement|in|funds|228,684|(147,317)|(393,272)|=|(311,905)|— (478,408)| |Total|funds|brought forward|94,666|170,831|16,646,256|16,911,753|17,390,161| |Total|funds|carried|forward|323,350|23,514|16,252,984|16,599,848|16,911,753|

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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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||||||||| |---|---|---|---|---|---|---|---| |31 August|31 August| |Trading EBITDA|2024|2023| |£|£| |Net expenditure|(311,905)|(478,408)| |Depreciation|and amortisation|charges|468,714|482,887| |Interest receivable|(48,708)|(37,271)| |Interest|payable|86,954|73,097| |Trading|EBITDA|(Earnings|Before|Interest,|Taxes,|195.055|40,305| |Depreciation|andAmortisation and Exceptional Itent)|,|,|

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Foundation of Light

Company Cashflow for the year ended 31 August 2024

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||||||||| |---|---|---|---|---|---|---|---| |For the|year|For the year| |ending|31|ending 31| |August 2024|August 2023| |£|£| |Net|cashflows|from|by operating|activities:|193,918|249,196| |Cashflows|from|investing|activities:| |Purchase of|property,|plant,|equipment and intangible|assets|(10,204)|(23,658)| |Net|cash -used|in|investing|activities|(10,204)|(23,658)| |Cashflows|from|financing|activities:| |Loan Repayments|(40,732)|(23,699)| |Interest paid|on borrowings|(86,954)|(73,097)| |Net cash|used|in financing|activities|(127,686)|(96,796)| |Change|in cash and cash|equivalents|in the period|56,028|128,742| |Cash and cash equivalents at the beginning of|the period|1,059,777|931,035| |Cash and cash equivalents at the end ofthe period|3,115,805|1,059,777| |Reconciliation|of net movement|in|funds|to|net cashflows|from|operating activities:| |Net movement|in|funds|285|(116,886)| |Adjustments|for:| |Depreciation|and amortisation|charges|60,436|67,560| |Interest payable|86,954|73,097| |(Increase)/decrease|in debtors|(333,249)|676,514| |Increase/(decrease)|in|creditors|379,492|(451,089)| |Net cashflows|from|operating|activities|193,918|249,196|

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Foundation of Light

Consolidated Cashflow for the year ended 31 August 2024

Fortheyear Forthe year
ending31 ending31
August2024 August 2023
£ £
Netcashflows from byoperating activities: 144,378 40,659
Cashflows from investing activities:
Purchase ofproperty, plant, equipment andintangible assets (16,323) (43,909)
Netcash used in investing activities (16,323) (43,909)
Cashflows from financing activities:
Loan Repayments (40,732) (23,699)
Interestpaidonborrowings (86,954) (73,097)
Net cash used in financing activities (127,686) (96,796)
Change in cash and cash equivalents in the period 369 (100,046)
Cash and cash equivalents atthebeginning of the period 1,192,240 1,292,286
Cash and cash equivalents at the end of the period 1,192,609 1,192,240
Reconciliation ofnetmovement in funds to netcashflows from operating activities:
Netmovementinfunds
Adjustments for:		 (311,905) (478,408)
Depreciationandamortisationcharges 468,714 482,887
Interestpayable 86,954 73,097
(Increase)/decrease indebtors (325,631) 359,584
Increase/(decrease) in creditors 226,246 (396,501)
Exceptional item - -
Netcashflowsfromoperatingactivities 144,378 40,659

22

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 Statement of Recommended Practice: Accounting and Reporting by Charities 2015 (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 2024 net expenditure of £311,905 (2023:-£478,408) and 2024 net cash inflows of £369 (2023: outflow £100,046). The Group year-end balance sheet for 2024 has net current assets of £1,116,639 (2023: 1,022,902) including cash at bank of £1,192,609 (2023: £1,192,240),

The primary external finance of the Group is the. loan due to the Charity Bank which has an outstanding. balance of £1,035,569 as of 31 August 2024. 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 two covenants attached one of which is a cash covenant in comparison to the previous three covenants.

Management have prepared a cash flaw forecast for the period ending 31 August 2026 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.

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23

Foundation of Light

Accounting Policies (continued)

Income

Voluntary income including gifts and legacies that provide core funding which are gerieral 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, ahd it has matured.

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 of Light 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.

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24

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 ona 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:

Land and Buildings 2-12.5%
Computer Equipment 33%
Fixtures and Fittings 25%
4Gpitch 12.5%

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 is depreciated over its anticipated useful economic life.

Any significant additions with a separately identifiable useful life are reviewed separately and depreciated on a component basis where necessary.

Fundraising

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

Funds

Restricted 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 fund 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 ofthe lease.

Finance Leases

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

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25

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.

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Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024

1 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 2024 Unrestricted Restricted 2023
£ £ £ £ £ £
Gifts, Donations andLegacies 85,767 - 85,767 $2,428 - 52,428
Capital Grants - (3,000) (3,000) - 1,600 1,600
Membership, Subscriptions and
Sponsorship 15,1006 - 15,100 3,445 ~ 3,445
Donated goods andservices - 45,633 45,633 10,167 30,471 40,638
100,867 42,633. 143,500 66,040 32,071 98,111
(a)DonationsandLegacies-
Charity For the
year		 Forthe
year
ending ending
Unrestricted Restricted August
2024		 Unrestricted Restricted August
2023
£ £ £ £ £ £
Gifts, Donations andLegacies 85,767 - 85,767 52,428 -~ 52,428
Membership, Subscriptions and
Sponsorship 15,100 - 15,100 3,445 - 3,445
Donated goods and services - 45,633 45,633 10,167 30471 40,638
100,867 45,633 146,500 66,040 30,471 96,511

27

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Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

1 Income (continued)

(b) Income from charitable activities— Group and Charity

BySourceofFunding Unrestricted Restricted Fortheyear Fortheyear
ending31
August2024.		 ending31
=August2023
Football coaching sales 664,694 - 664,694 478,239
Sale ofservices as partofthe direct
charitable activities 193,666 - 193,666 179,790
Contractualpayments fromgovernment
orpublic authorities 42,900 746,136 789,036 728,709
Performance related grants where level
ofincomedepends onvolume ofservice 2,900 1,463,981 1,466,881 1,458,437
provided
904,160 2,210,117 3,114,277 2,845,175

In the prior period, income from charitable activities comprised of £658,029 unrestricted funds and restricted income of £2,187,146.

ByCharitable Activity Unrestricted Restricted For theyear Fortheyear
ending31 ending 31
. August2024 August2023
£ £ £ £
SportandPlay 739,452 244,064 983,516 755,120
Education 105,875 491,264 597,139 462,116
WorldofWork 878 666,146 667,024 480,070
Community 42,940 370,130 413,070 705,507
Health 11,104 317,810 328,914 307,067
Core 3,911 120,703 124,614 135,295
904,160 2,210,117 3,114,277 2,845,175

28

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Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

1 Income (continued)

{c) Other trading activities - Group

Unrestricted Restricted Fortheyear Fortheyear
ending31 ending 31
August2024 August2023
£ £ £ £
Fundraising events 27,746 - 27,746 176,247
Sponsorships and lottery 84,455 - 84,455 94,116
Letting arrangements forProperty - - - 14,117
Trading activity 1,491,935 - 1,491,935 1,028,720
1,604,136 - 1,604,136 1,313,200

In the prior year, income from other trading activities comprised solely of £1,313,200 unrestricted income.

Other trading activities - Charity

Unrestricted Restricted Fortheyear Fortheyear
ending31 ending 31
August2024 August2023
£ £ £ £
Fundraising events 27,746 - 27,746 176,247
Sponsorships and lottery 84,455 - 84,455 94,116
Lettingarrangements forProperty > - - 14,117
Tradingactivity 358,712 - 358,712 183,000
470,913 : 470,913 467,480

In the prior year, income from other trading activities comprised solely of £467,480 unrestricted income.

(a) Investments — Group and Charity

Unrestricted Restricted Fortheyear Fortheyear
ending31 ending 31
August2024 August 2023
£ £ £ £
Bank interest received 48,708 - 48,708 37,271

29

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Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

2 Expenditure

a) Expenditure on raising funds — Group

)

For theyear endingForthe theyearending 31
31.August2024 August2023
£ £
Costofseeking donations andgrants 144,242 157,926
Fundraising events 3,893 93,945
Sponsorships and lottery 28,861 28,102
Membershipscheme 36 5,41 3
Otherrunning costs 694,514 444,795
Depreciation 3,177 20,566
Marketingandpublicity 32,965 24,154
Matchday tickets andstadium tours - 10,167
907,688 785,068

In the prior year, expenditure on raising funds comprised solely of £785,068 unrestricted expenditure.

Expenditure on raising funds — Charity

For theyear endingForthe theyearending 31
31 August2024 August2023
£ £
Costofseeking donations andgrants 144,242 157,926
Fundraising events 3,893 93,945
Sponsorships and lottery 28,861 28,102
Membershipscheme 36 5,413
Otherrunningcosts 44,832 20,035
Marketing andpublicity 32,965 24,154
Matchdaytickets and stadiumtours - 10,167
254,829 339,742

In the prior year, expenditure on raising funds comprised solely of £339,742 unrestricted expenditure.

30

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Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

2 Expenditure (continued)

b) Expenditure by Charitable Activity - Group

Sportand World of Education Community Health Beacon Core 2024 2023
Play Work ofLight
£ £ £ £ £ £ £ £ £
Matchday tickets 12,955. [2,952 1,600 11,614 6,512 - - 45,633 30,47
and stadium tours
Education 527,497 443,063 442,393 430,046 233,374 - - 2,076,373 2,010,80:
Depreciation and 12,087 12,087 12,087 12,087 12,087 390,272 - 450,707 468,32:
amortisation
Redundancy - 2,641 - ~ - - - 2,641 4,801
Expenses
Building! 223,621 151,660 135,771 93,919 74,785 - - 679,756 653,13
Supportcosts (c) 296,285 200,942 179,889 124,438 99,085 ~ 124,614 1,025,253. 793,53:
Governance (d) 6,895 6,895 6,895 6,895 6,895 ~ “ 34,475 26,02
1,079,340 $30,240 778,635 678,999 432,738 390,272 124,614 4,314,838. 3,987,09

Expenditure on charitable activities comprised of £1,683,213 unrestricted funds (2023: £1,502,912) and £2,631,625 restricted funds (2023: £2,484,185).

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 fimds based on the project to which it relates; expenditure relating to the generation of unrestricted income such as the sales of sports 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.

31

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Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

2 Expenditure (continued)

b) Expenditure by Charitable Activity — Charity

Sportand Worldof Education Community Community Health Core 2024 2023
Play Work
£ £ £ £ £ £ £ £
Matchday 12,955 12,952 1,600 11,614 6,512 - 45,633 30,471
tickets and
stadiumtours
Education 623,019 507,846 $00,389 470,164 265,319 - 2,366,737 2,300,921
Redundancy - 2,641 . “ - - 2,641 4,806
Expenses
Depreciation 12,087 12,087 12,087 12,087 12,087 - 60,435 73,560
and
amortisation
Support cost (c) 296,285 200,942 179,889 124,438 99,085 124,614 1,025,253 793,530
Governance (d) 4,917. 4,917 4,917 4,917 4,917 ~ 24,585 20,292
949,263 741,385 698,882 623,220 387,920 124,614 3,525,284 3,223,580
Expenditureon charitableactivities comprised of£996,209 unrestricted funds (2023:£844,046) and£2,529,075 restricted
funds (2023: £2,379,534).
c) Expenditure by Support Costs—Group and Charity
Sportand World of Education Community Health Core 2024 2023
Play Work
£ £ £ £ £ £ £ £
Administration 161,531 110,659 99,206 69,038 55,243 31,154 526,831 385,719
Directors 65,545 43,425 38,762 26,480 20,862 31,154 226,228 200,881
Finance Dept 31,783 20,945 18,552 12,250 9,370 31,153 124,053 127,054
HRDept 4,251 4,009 3,956 3,816 3,755 - 19,787 14,491
IT Dept 33,174 21,904 19,414 12,854 9,855 31,153 128,354 65,385
296,284 200,942 179,890 124,438 99,085 124,614 1,025,253 793,530

Expenditure on charitable activities comprised of £996,209 unrestricted funds (2023: £844,046) and £2,529,075 restricted funds (2023: £2,379,534).

c) Expenditure by Support Costs — Group and Charity

32

Foundation of Light

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Notes to the Financial Statements for the year ended 31 August 2024 (continued)

2 Expenditure (continued)

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|||||| |---|---|---|---|---| |For|the year|For the year| |ending 31|August|ending|31|August| |2024|2023| |(d) Governance Costs|- Group|£|£| |Audit Fees|30,400|20,789| |VAT Fees|2,827|5,240| |Other|costs|1,248|=| |Total|Costs|- Group|34,475|26,029|

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Governance costs are charged as incurred.

33

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Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued) 3 Group Staff Costs

Group Staff CostsCosts
Yearending31 Yearending31
August2024 August2023
£ £
Staffcosts:
Wages and salaries 2,599,759 2,264,221
Social security costs 221,524 199,400
Other pension costs 89,408 74,977
Redundancy costs 2,641 13,783
2,913,332 2,552,381

Two employees (2023: two employees) received total employee benefits above £60,000 for the reporting period, one at £60,000 - £70,000 (2023: one), one at £90,000 - £100,000 (2023: none) and none at £100,000 - £110,000 (2023: one). For staff paid over £60,000 pension contributions of £7,555 were made (2023: £7,190). Key Management detailed on page 1 cumulatively received £317,750 in employee benefits in 2024 (2023: £294,498).

The Trustees are not entitled to, and did not receive, any remuneration for their services to the Charity (2023: £nil). During the year total expenses reimbursed to trustees for travel and subsistence, amounted to £nil (2023: £503).

In previous years 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, ata cost of £nil (2023: £28,719) in the year. The Foundation has also been required to auto-enrol all 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 Foundation makes a standard contribution of 3%. The cost of the NEST scheme in 2024 was £738 (2023: £25,521). At the year-end £90 (2022: £nil) in payable contributions were outstanding. These pension costs would be allocated as per staff costs based on project/activity allocations. In 2023 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 of their probation period. The Foundation made a standard contribution of 3% of basic salary on behalf of the members, at a cost of £88,667 (2023: £20,738) in the year. At the year end £7,536 (2023: £20,738) in payable contributions were outstanding.

The monthly average number of persons employed by the Group and. Charity during the year was 150 (2023: 143). The average number of full-time staff members was 67 (2023: 68) and those on part time and casual contracts was 83 (2022: 75). All staff are employed for the furtherance of the Charity’s objectives.

34

Foundation of Light

|

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

3 Group Staff Costs (continued)

Staff employed can be further analysed as follows:

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||||| |---|---|---|---| |Year|ending 31|Year|ending 31| |August 2024|August 2023| |Nmber|Nm ber| |Delivery|Staff|106|102| |Support and|Administration|16|13| |Beacon|of Light Operations|17|17| |Commercial and|Marketing|8|8| |Directors|3|3| |;|150|143|

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4 Net outgoing resources before transfers

Net outgoing resources for the Group are stated after charging:

==> picture [449 x 220] intentionally omitted <==

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Year|ending 31|Year ending|31| |August|2024|August 2023| |£|£| |Audit|fee|30,400|27,350| |Depreciation|440,353|453,970| |Amortisation|28,361|28,917| |Operating|lease|costs:| |-|plant|and machinery|12,100|15,951| |Bank Interest|86,954|73,097| |Non-Audit|Fees|for Tax Compliance|services|4,050|4,050|

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

£Nil depreciation was charged in the year related to leased assets (2023: £Nil).

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Foundation of Light

| | | | ! | |

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

5 Intangible assets

Charity Website anddata Total
warehouse
£ £
Cost
As.at September 2023 71,500
Additions - -
As at31 August2024 71,500 71,500
Accumulated Amortisation
As at 1 September2023 44,321 44,321
Chargefor the Period 23,278 23,278
At31 August2024 67,599 67,599
Net bookvalue
At31 August2024 3,901 3,901
At31 August2023 27,179 27,179
Group Website anddata Total
warehouse
£ £
cnne
Cost
Asat 1 September2023 86,750 86,750
Additions - -
Asat31August2024 86,750 86,750
AccumulatedAmortisation
As at 1 September 2023 52,390 52,390
Charge forthe Period 28,361 28,361
At31 August 2024 80,751 80,751
Net book value
At31 August 2024 5,999 5,999
At31August 2023 34,360 34,360

36

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

6 Property, Plant and Equipment

Charity Computer
Equipment		 Leasehold
Buildings		 Fixtures and
Fittings		 Total
£ £ £ £
Cost
As at 1 September2023 247,307 75,706 134,210 427,223
Additions 6,507 - 3,697 10,204
As at31 August2024 223,814 75,706 137,907 © 437,427
Accumulated Depreciation
As at September2023 166,995 75,706 112,226
ChargeforthePeriod 28,777 - 8,381 37,158
At31 August2024 495,772 75,706 120,607 392,085
Netbookvalue
At31 August2024 28,042 ~ 17,300 45,342
At31August2023 50,312 - 21,984 72,296

37

| | ! |

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

6 Property, Plant and Equipment (continued)

Group Computer
Equipment		 Freehold
Buildings		 Leasehold
Buildings		 Fixturesand
Fittings		 Total
£ £ £ £ £
Cost
As at 1 September 2023 417,760 18,720,701 75,706 428,673 19,642,840
Additions 7,832 - - 8,491 16,323
As at31 August2024 425,592 18,720,701 75,706 437,164 19,659,163
Accumulated Depreciation
As at 1 September2023 367,444 1,908,146 75,706 402,102 2,753,398
Charge forthePeriod 28,962 381,316 - 30,075 440,353
At31 August2024 396,406 2,289,462 75,706 432,177 3,193,751
Net book value
At31 August2024 29,186 16,431,239 - 4,987 16,465,412
At31August2023 50,316 16,812,555 - 26,571 16,889,442

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 of the subsidiary as at 31 August 2024 was £1,205,954 (2023: £916,806) with expenditure totalling £1,191,263 (2023: £966,999) resulting in a net profit of £14,691 (2023 loss: £50,193). The net liabilities of the subsidiary as of 31 August 2024 were £1,037,224 (2023: net liabilities. of £1,051,915).

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 2024 was £1,134,819 (2023: £1,121,082) with expenditure totalling £1,079,917 (2023: £1,053 ,628) resulting in a net profit of£54,902 (2023 profit: £67,454). The net liabilities of the subsidiary as of 31 August 2024 were £359,161 (2023: net liabilities of £414,063).

Both subsidiaries share the same registered address as the Foundation of Light; Beacon of Light, Stadium Way, ‘Sunderland, SRS 1SN.

38

i

| | | |

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

8 Debtors

Charity Charity Group Group
31 August 31 August 31 August 31 August
2024 2023 2024 2023
£ &£ £ £
Trade Debtors 118,081 81,918 227,839 197,787
Amounts due from Group undertakings 1,067,597 1,069,281 - -
AmountsduefromSunderlandAFCLtd 7,143 15,506 19,897 19,346
OtherDebtors - ~ 12,216 37 A19
Prepayments and accrued income 598,333 291,200 653,825 333,894
1,791,154
neces		 1,457,905
aera		 913,777
588,146
onan

Amounts due from Group undertakings includes an intercompany loan of £865,840, of which £170,865 is due in less than one year, and £694,975 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 31August 31 August
2024 2023 2024 2023
£ £ £ £
Trade Creditors 88,312 43,813 154,489 382,385
Amounts dueto SunderlandAFCLtd 3,679 35,985 5,869 35,985
OtherCreditors 60,441 132,201 83,850 136,610
Amountsdueto Group undertakings 25,844 14,890 - “
Accruals and deferred income 516,124 88,021 698,172 161,154
CharityBankLoan 47,367 41,350 47,367 41,350
741,767 356,260 989,747 757,484

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

39

| | | | | |

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

9 Creditors: amounts falling due within one year (continued)

Deferred income can be further analysed as follows:

==> picture [462 x 126] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Charity|forthe|||Charity|forthe|||Groupforthe|Group for the| |year ending 31|yearending31|year ending 31|year ending 31| |August 2024|August 2023.|August 2024|August 2023| |£|£|£|£| |Balance|brought forward|104,552|357,657|104,552|386,131| |Recognised|in year|2,659,505|2,599,853|3,009,593|2,796,686| |Released|in year|(2,444,734)|(2,852,958)|(2,723,679)|(3,078,265)| |Balance|carried|forward|319,323|104,552|390,466|104,552|

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

Incomie is deferred based on the calendar period the activity takes place.

10 Creditors: amounts falling due after more than one year

==> picture [413 x 82] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Charity|Charity|Group|Group| |31|August|31|August|31|August|31|August| |2024|2023|2024|2023| |£|£|£|£| |Charity Bank Loan|988,202|1,034,951|988,202|1,034,951|

----- 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 £1,035,569 as of 31 August 2024. 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 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.

40

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

11 Analysis of Net Assets

Charity

Fundbalances at31 August2024 arerepresented by: Fundbalances at31 August2024 arerepresented by: Unrestricted Unrestricted Restricted Total
£ £ £
FixedAssets - 49,243 49,243
Investments - 2 2
Net CurrentAssets 1,202,722 962,470 2,165,192
Creditors: amounts falling due afteroneyear - (988,202) (988,202)
Total funds 1,202,722 23,513 1,226,235
The funds can be further analysedas follows:
1 September Income Expenditure Transfers 31 August
2023 2024
£ £ £ £ £
General funds 1,004,758 1,524,648 (1,251,038) (126,008) 1,152,360
Designated funds
Contingency fund 50,362 - - - 50,362
Total designated funds 50,362 - - - 50,362
Total unrestricted funds 1,055,120 1,524,648 (1,251,038) (126,008) 1,202,722
Restricted funds:
Education - 492,864 (593,212) 100,348 -
WorldofWork - 679,098 (679,160) 62 -
SportandPlay - 257,019 (257,019) - “
Community 170,830 381,744 (529,061) - 23,513
Health - 324,322 (349,920) 25,598 -
Core - 120,703 (120,703) - -
Total restricted funds 170,830 2,255,750 (2,529,075) 126,008 23,513
Totalfunds 1,225,950 3,780,398 (3,780,113) - 1,226,235

|

|

| | | | | | | | | | | |

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

11 Analysis of net assets (continued)

Group
Fundbalances at31August2024arerepresentedby: Unrestricted Restricted Total
£ £ £
FixedAssets -
16,471,412		 16,471,412
NetCurrentAssets 323,350 793,288 1,116,638
Creditors: amounts fallingdueafter 1 year - (988,202) (988,202)
Totalfunds 323,350
16,276,498		 16,599,848
The funds canbe furtheranalysed as follows:
31 August Income Expenditure Transfers 31 August
2023 2024
£ £ £ £ £
General funds 44,304 2,657,871 (2,590,901) 161,714 272,988
Designated funds
Contingencyfund 50,362 - - - 50,362
Total designated funds 50,362 - ~ - 50,362
Total unrestricted funds 94,666 2,657,871 (2,590,901) 161,714 323,350
Restricted funds:
Education - 492,863 (535,216) 42,353 -
WorldofWork + 679,098 (617,018) (62,079) 1
SportandPlay - 257,020 (161,498) = (95,522) am
Community 170,831 381,744 (488,943) (40,119) 23,513
Health - 324,322 (317,975) (6,347) -
Core - 120,703 (120,703) - -
BeaconofLight 16,646,256 (3,000) (390,272) - 16,252,984
Total restricted funds 16,817,087 2,252,750 (2,631,625) (161,714) 16,276,498
Totalfunds 16,911,753 4,910,621 (5,222,526) ~___ 16,599,848

42

| | |

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (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: thé balance is funded from unrestricted funds.

A description of each restricted fund is given below:

==> picture [403 x 317] intentionally omitted <==

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |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|Youth Engagement|activity,| |Beacon|of Light|Grant|funding|received|for|the|construction|of the|Beacon|of| |Light|facility, funding|capital|expenditure-on the project arid the| |depreciation|charges|on|the|build.| |Core|Digital,|including|the website and E-Learning|platform.| |Designated|funds|A reserve|built.to|fund|the replacement of fixed|assets.|

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

43

.

Foundation of Light

Notes to the Financial Statements for the year ended 31 August 2024 (continued)

12 Financial Commitments

Operating lease commitments

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

31 August2024 31 August2024 31 August.2023 31 August.2023
Group Landand
buildings		 Other Total Landand
buildings		 Other Total
£ £ £ £ £ £
Within oneyear - 8,384 8,384 - 4,784 4,784
Between one to fiveyears - 55,389 §5,389 - 7,973 7,973
Total = 63,773 63,773 ~ 12,757 12,757

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 £575,498 (2023: £351,070) and Altruism Limited of£277,060 (2023: £227,897). In addition, the Beacon of Light Limited also received income from rent, services charges and ovetheads of £106,052 (2023: £99,733) from the Foundation of Light, £616,886 (2023: £521,673) from Altruism Limited. Altruism Limited received hire income from sporting and meeting facilities from the Foundation of Light of £188,066 (2023: £223,174).

The Foundation received quantifiable gifts in kind from Sunderland AFC Limited of £45,633 (2023: £40,368). Gifts included match tickets for both staff and participants.as well as use of certain areas of the Stadium for tours etc. Outstanding balances at the year end owed to the Group from Sunderland AFC Limited total £19,897 (2023: £19,346)

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 £110,952 (2023: £81,098) with outstanding balances at the year end of £16,433. The School joined the Laidlaw Schools Trust on 15 September 2023.

The Foundation reports donations of £30 from Trustee’s in the year (2023: £25,700).

44