Gharlty Roghtratlan No. 1106815 Gomwny Reghtratlon No. 4988238 (Erffjland •nd Wal•s) KHODORKOVSKY FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
KHODORKOVSKY FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION A Tullcth R Cald8¢0tt A Drei M Logan D A Forsdkk Chmrlty nnl 1106685 ompany numbgr 4988238 R•gl6tor•d offl 4 Hill Str••t London W1J5NE Audltor Ciit¢hleysAudit LLP Beaver Houso 2&38 Hythe Brfdg• Street oOrd Oxlordghlre OX12EP Bankorn Schroder & Co 31 Greaham SL London EC2V 7QA 3011¢110 Tullxh & Co 4 Hll Street London W135NE Inv••lment advl$oT¥ Moryan Stanley & Co. Internalional Llmltsd 25 Cabot Squar• Canary Wharf London E14 4QA 818ck Rock 33 King Wlliam St London EC4R 9AS Goldman Sach$ Irrtomguonal 133 Fleet Street London EC4A 2BB
KHODORKOVSKY FOUNDATION coKrEKrs Trustee¢ report Independenl auditof$ r¢p(Jri statement of Ilnanclal acltvm 10-11 Summary Income and expendliure aCt 12 Balance she•t 13 ststemEnt ofcash 14 Notes to the finarKaal statements 15-23
KHODORKOVSKY FOUNDATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021 The TrU9te pros•nt thr annual report and finanual 8tatem8nts forthe year ended 31 De¢ember 2021. Th& finoncigl statwn•nts have been prepwed in accordance the aCn11n9 pol¢ies set out In nots 1 to the fman¢i•l #tstements and comply vAth the Charity's M•morandum and Articles ofAs8OCiation, the Companies Acl 2006 and "Accounting ar Reporbng by Charilies: Statement of Recommend•d Prac11 apF4icable to tharltles preparing their accounts in accordance wlth the Financial Raporting Standard applicabk in the UK and RepuNc of Ireland IFRS 102). {affectNe 1 January 2019). The main objects ol the charfty are to advan gducation In the Russian Federaticffi throwh Ihe prO510n of schdarshlps lo students and the Making of donatlons to educationd eslabilshments. Pdor to being designated an 'und•slrable organisation. by the Russlan Gmmmert li Juty 2021 {stt betthv der 'Actlvltl•s and Performance?, the Charity supported the Podmoskovny LY¢M, a boardlng school for 188 sti¢ialty déprlved chli dren, Situated OLrtslde of Moscow and Ihe Qxford Ru8818 Fund. The TnBtee$ have o)mplled the duty in 8eclion 17{5} of the Charitie8 Act 2011 to have due r•gard to th• public berth guldance published by the Charity CoTh¥nls810n. Grnntrymaking pollcy Tho Foundalon was endo1 wth $500 mllllon for the puw of advandng •thration In Russia and thus supporting the dpvekpment of a robust and adNe iivil ¥iety in Russla. The Tw¥tees had sought to advance educatlon In Russla by: the provlslon of scholarship$ for siudents (of Russlan nationaltyl att•ndng Russlan universe$ In the Humanities.. the Support of Russian •ducallonal in¥tTtutions and nOrr0 oryani8ation8 focused on educalion.. the 8UPPOrt of •ducalional instilution8 in the UK. vthkh Indirecuy advance education in Russla through the prO$10n of tralnlng. re8earch programmes, stud•ntneather exthange programm8s arHI ryjltural actEvIt$', and the support of confeTen¢e$. vAwsoever hekl, on topics r•lat•d to Russlan •ducation and othèr Initlatives which might advance educatlon In Rug8ia. The deslgnation of Ihg Charity as an 'undesirable organiBalion' by the Ru55ian Govemment has cau8ed the tW8lees lo put a hatt to the actNltle8 of the Charity in Rula for an Indefinite period and to cc81dr how else it can athte¥e Tts objects. AchIem•Thts and prforni•nc• Through the grant making actltIeS of the Oxford Russia Fund, lthlch is 5UPPOrted by th• Charity, 22,794 speei81ist students, 10,288 undergraduate 8tudents, 7,698 graduate and 995 p05tgraduate students at Ru88ian Universit8 Ere. in the perfod 200& 2021, awarded monthly scholarshlps of approxlmately USD110 {192 for Sdents al Higher School of EcKJnomij {using an average donar rate of USD1-RUR521. Furthw. Oxford Russia Fund, during the period 200&2021, sponred 43 summw and nter sch(11 and prDwd8d Engllsh language humanf(ie$ librarfes to 20 Russian Univer8iti8& In addOn, the Oxford Russla Fund. provided in 2019-2021. 30 graduate Jcholarship$ at USD 4.834 each and 28 fello1 8t approxlmatety USD 14,772 each. The SchoL9rshi *Ere rdd on merlt and tAere deslgned to enGourage the study of th• hLThanttle8 In Russlan State UnNetsibe$. The grant glvlng acthrity of the Oxfonl Rus8la Fund In Ru58ia ha8 cga¥e(l on ¥cwnt of in¢lusion by th Russian Ministy of Justice of thè Oxford Russla Fund In the list of undeslrnble oryanlzatlons (Order No. 732-r dated 9th July 2021. ts Ilst number 38) pursuant to th8 Fedoral Law of 28.12.2012 No 272-FZ (as amended by the Federal Lawof 23.5.2015 N 12&FZ (thè'undeslrablè Oryanlzatk•ns LI).
KHODORKOVSKY FOUNDATION TRUSTEES. REPORT (INCLUDING IXRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 A rovl•wof tho last 16 yoarn In the 16 years up to July 2021, the late Anthory Smith CBE, Ox president of Magdalen Coifege Oxfijrd, JDhn Nighlbngale, FeTh¢M of magdan College, and Alastalr Tull¢xh. a grdduate ot Magdalen College, as truslws of the Oxlord Russkni Fund foRPI, travellèd to Russian ne[SI11e8 to meet Ith Rectors. staff and the Sludents. These were abrupty brought lo a hah wthen fhe ORF degignaled an 'undesirabie organi5ation' ty the RL08ian GovemmenL The effect of sh deslgnation is to prohlblt organSsatlon from transf•rrkng furLdB to Ru¥ia and prohibit any Russkan natlonal Inslde or outside (rf Rua from being In¥ol¥ed in it8 a•s. The designation Is made under Ru88ia's Foreign Agentsl Unde$irnlAe Organlon5 Law and applies to Organatrong whith the Rus¥lan Govemmentthknk8 cOd havè an adverse polilical Influence on RUSSI$. ORF was eslabll$h¢d by the trLrst•es of the KhodortOV5ky Foundadon In 21x15 vAth the alm of provldlNJ scholarships to RusaTr university students. Tho name 0rd Russia Fund Wds chosen to avoid any obstacle to its WOTk in Ruswa that the name of Kh(hJorkovsky Foundatlon Uld have created, In view of Mlkhail Khodorkov8ky being In lall until hi¥ release In 2013. though of course the fact of the funding from the Khodorkovsky Found'on was clèarfy laid out in the publrc finanrAal stat•ments of tr ORF and Khodorkovsky FoUndan. both ofwhioh are registered Eiyjish ¢harilig5. The ORF'8 Scholarghlp programme was rolled out at 20 reglcthl State Urdv•r8Tiie6 throug)lrt Russla from Nlwgorod in Ihe $t lo Vladlvostok in the East and frcrfn Petrozavod In the North to Krasnod in th? South. The scholarshlps were open to students studying the humanitse$ {0fton undervalued SUbCts kn Ru$8ial. Th 8tudents Te shorlbsled by thè local stsle univer8M•s with a final kntion being made by an Independent MIaW group of aCadernA. The arrint of the scholarshlps wa8 approx. USDI.000 p.a which in the earty years of the schotarshlps was just sufficient to 1fv8 on. In later years and a8 result of inltation, the scholarshi Yre a welcome suppl8menl lo slate Bdent grarbts and famlly supporL A per8nnlal question wt to scholarshi> IKJlders on the trustees. vlslts to Russian Universities VAS 'shoukl we In(¥ea the Rouble •Thnt of thp scholarship and reduce Ihe number of scholarships? The students, vot• was ahvay$ in favour of 4llowng as many stud•nts as possible to Secure the ¢oveted ol a ORF scholarship and not Increasing the Roub amount ofthè scholarship. The Schdarships became an Integrnl wt ofthe academic programme of the 20 state UrersteS and 8llmud indeperKlent research (as schoFar3hip8 wère awarded for acti beyond the minimum effort required by the univer8ity}. Above all, the scholarship5 made the scholars proud to Students In the humanities. Many stud1 Uld say, at rast I can tsll my paronts. that l am doing sumethlng yrthile and re¢ogThsed by cthers. Over 41.000 students {aNJ nev8r sS than 2,000 students a year) recelved scholarshlps dwng thé 16 yS of the sch¢larshlp programme'8 existence. Over the years, ORF adapted the programme, seeking to158ten to vthat tha R•ctors sahl as to how the funding could be used most effecllvety. ORF supported pMarity und•ryraduale dents stathg from th¢r 3rd year of stuty. but a180 gradual• studonts, post graduate8 and young 1cher. In addition to the Scholarshlps. ORF supported th• univers'e8 ty provlding English language text academic brarieS for t humanrtieg in hard copy and dectronlcally snd supp¢yted 43 summer and wrrter schools. ging an DPPOrtunlty to students to meet students from other universllies and diU56 multidisrAplinary topics. Pethaps the mo81 notablè of those summer schoo18 wa8 the Pemi English Language Conference wthl¢h ht over modem English V4Tlt•rs to talk to univeTsty18cturers from atxo$$ Russla. In addition k¥ these programmes, ORF prowded a Rector'8 thsrydionary grant equal to 10% of the cost of the scholarships, for the rector8 to spend as they ¢hoose-whelher on travel grants, more boo. semlnar8, journals or othepwi8e, on the basis that the rector¥ Vvukl bthr placed thè trustees to ludge *that ¥Te the mo urgent aRa$ forfinan¢k?I suppo WhN8t there had been occa8lonal rumbllngs in the Ru88lan wess that Mkhal KhkY was trying to a¢fver3ety inffuence the youth of Russla through ORF'S vmrk, ORF was all¢yatd to continue its work unti 2021. The trustee$ were rUPUlouS to avold any type of %thich nlght be Intreted a3 having a polhtcal ele1rL Hovfftr the Ruiiian Govemment everknalty decided that ORF Should h shut Juty 2021. The trusltss left behirvj many friends in Russla that Shared Ihe passion to 8UPkX)rt humanities In Russia and have many happy memorie8 of the visits to Russian universibes oyr the 16 years of ORFS yr lllherever the trLrst•es nt In Russia, the trustees Vlwe greeted Yth warm hospitalty and a Shared Inte$t to as$i¥l students to dIscovthe delights of stutying the humanilieg.
KHODORKOVSKY FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Podmoskovny Lyuum As a result of the supwt by the Khodorkovsky FndatIon, over tha p•rfod 202021 of lh• Pocknoskovny Lyceum, a boarding school outside of mrOW for socialty deprived children, 2,945 pupils linduding 168 during the last academic yearl CeiVed * secondary Scho eilu¢atJn of the hlghest quality in a caring environment. The support by Ihe Chaiity ofthe Podmoskovny Lyceurn hès ceased on account ofthe indUOn by the Russian Minlstry of Justice of thg Chanty in the list of undesirable organEalion¥ {Order No. 7314 dd 9th Juty 2021, the list number 37) PLÉrsuant lo the Undt8irnbie i)ryanlzab'ons Law. Fkn•n¢lal r•vlgw The charity was prOded in Dec•mr 2003 an expendable 0nd0ent of $500m and tho funds for the rk of the charity are derNed from the Incom? and capltal gains generatsd by the endowment. The finandal deficit bthre investment gains and loss amounted to $2,921,00012020.' $11.791.000) detsid on page g. Res•ms pollcy HaviThJ regard to the charfty's WKloMrynent based knccthe,. the re•eThos to eA)v•r fluctuatlons in domtions We not required. Instsad th• tharity's InveBtmènt pollcy plans for )luGlualion$ In Income and caphal grovth and the need for fund¥ to meet orwlng commiiments of th• charity during perfod8 of low didend yleld and nll or rrfatNe caprtal grthth. There are no unrestricted reseNes but there Is a slgnlficant expendable end¢ywThenl can be dT•wn upon lo coverthe ¢osts of charitable 8cbvibes in èxcess of the inve8trnènt Income ewned. 1Tr4•8lm•nt polky The charity ha5 adapted as its long teTh CUrAt target retum for It8 Invèstmbnt portrolo 4% OV•T increase8 in the US Consumer Price Ind and it is recognised that thls poliry en¥isages fluctuallS In Inveslmerrt rern8 over th6 busine$$ cyd•. Three irrtemational Inveslment banks man89è the fvnds. Rlsk The Inve9tsnent polky has a conswvalive aititwle to rfs Curr•ncy There 18 an Inherent miJmat¢h bèlvthn the marIty of tho charfty's expendiiure being directy or Indlredty to Russian institullons (the Treed$ of %thlch are Russian Rouble ba58d) and using as the charity's referen currenoy th• US dollar. HowBv•r for prudent investrnwlt management, the USD has been d&en as the referene8 currency. Antlclpatgd Dhburn•m•nts Tho long term aim of the chaiity is to make ¥nnual granlB of at leo8t 3% of tha charty's funds. The above $ponding rale is d•slgn•d to preserve th¢ wl value of the chwity'5 funds over the long temi. Monthrfng ¢f p•rfamiancfr The monitoring ol thè perfomiance of the investment porNollo has been delegated by th• Trust$ to an InvestmEnt commltte• vtho¥e members indude experienced inv•stm8nt management practitsorers. The Investment commttt•& also revievts perfommnce of the managérs and the all¢xatlon bets¥eèn all ¢la$8es of assets from Imè to me to ensure thal the total portrolo 1$ prudenty Invested. Over the year, the aggregate value of ts Foundation's Investments 1$840M, 2020: $729M) Increwd siwificanty after the grnrts. This was mainlv due lo rise$ In US equty marf(ets. The average annual chartiable eXp9nditu for the past three years as a pwc8ntage of investsd a88•t8 {a$ at Ihe end of the finenclal year) ig approx 1.44% (2020: 1.98%).
KHODORKOVSKY FOUNDATION TRUSTEES. REPORT {INCLUDING DIRECTORS, REPORT) {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Prln¢lp•l rlskfj and unc•rt•lntl The INstets conduct the ovèrall $uper¥ision and monitoring of the )Inaneiai po¥ition of Ihe Gharity. There are rf8ks to Income as a result of fluduètTons in world •qufy and bond markets but the tharfty'8 investmont polKy adopted should winimise the rfsks to an acceptsbk level. Intemal Risk8 are rnibgated by the Implementation of procedures ts thp aulIMjgatIOn of all transaLon¥ by at least rfth• truSts. Plam for p•rlod8 The Charfty Is unable, fry the Imo belng, to support èducation in Ru88la (for lCh pury)ose the Charfty was established) In view of tho inclusion of the Charity In the list of undeslrable organizations pursuant to the underae Organizatsons Law. Structum, govwmnce and mn•g•m•nt Charrty IB a company lkntted by guarantse gov8m ty ils MemOranm and Artlc4es ofAssotAatson. The Trustees, are also the dlrectors for the purpose ofcomp8ny law, and ¥tho fjeryed the yeai and up to the dale of signatwe of the finandal statements vre. A TullDch A Smhh R Cald8eott A Drel M Logan {Deceased 28 November 20211 Tru8tee* •re selected the basis of the 5MS arml eyrfence they bbve abl8 to contrlbute In th¢ fiekls of adu¢ation in RU[a and the UK, Investmrt management and charfty administration and have been dravln )trom persons known to the trustees, as supporbve of the charty's work. Naw trusta•$ were irKlucted in to Iholr role as Irustees In a sertes of btlefings on the work of the charity. The Trustees have been selected for their skllls and prof$10nlsM and come many yews of experience in different Walks of life and addiiional tralnlng is provided thmugh worknng together on lolnt ¥lsrt8 lo Russlan universities and on tha Foundation's projects. Oryanlsatlonal structur• and rnlationshlp wlth rnlatsd p•rtlos The charty is managed by its Board of Trugtees. Day-ldaY manag•m8nt is delegated to A Tulloch. The charity Supported the work In Ru8918 of thè Oxford Russia Fund. another UK Charlty, and the maiorfty ofwho8e trustees are also ttee¥ of the charity. The Oxford Russia Fund focused on grants to Russian Unfver$e8 for the provi6ion of ¥cholorship¥. and the 1lstr1x0n of Engllsh languago academic bookn to RuMian unfver8itie8.
KHODORKOVSKY FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Slatsmont of truthm. r•spon¥lbllltl The Trustees, vtho are also the directvrs uf Khodorkovsky Foundation for tho purpose of Company law, afe responsible for preparing the Tru818es' Report and the finanaal statoments in accordance applicable law aTHI Unltsd lfjngdom A¢tyJunlng Standards (United rOdorn G•neroltyAcwted AGcounting PraGti¢el. Company Law wulres the Trustees to preparè financLg1 statements for each finandal y•ar which give a true and fair view af the state of affair8 of the Charfty and of the incomlng resources and applicatlon of régowce8, irKludlng the irbcome and expendlture, of the charitable company for that year. In preparing these flnancial 8tatements. the Trustau aro tequred t¢: - select suitable accounting poliw and then apply them consist•nly,' - observe the methods piiwples in the Charfde8 SORP,. - make judgements and estimates that •r• reasonable ar¥J prudent: and - pr•pare the financlal statements on the going Conc ba3 unle88 it 1$ inapproprlate to pre8ume that the Charfty vdill continuo In operatkn. The Twstees are responsiblè for keeplng adequale ac¢ountin9 records that di8do8e Vth reasonable accuracy at ary time the fin8n¢ial posllon of the Charty and enable thèm to en8ure thot the finanoial statements compty thè Companie8 Act 2006. They are also responsible for safeguardin9 1he assets of the Charity and hence frjr tak¥ig reasonablo steps for the prevention and detsLon of fraud and other Irrngularmes. Dlbc104urn of Inforni*llon to audltor Each of the Trustees has CDnfirmed that thwe Is no Infomiation of they are aware vthrch 1$ relevant to the audit, but of thich the auditor 1$ unaware. They have further ConfiMd that they have taken approprfate 8tepB to identify such relevant information #nd tts •stabli8h th81 th• auditor is avrdre of such information. 3m•ll cOmnY eX•Mpon5 This réport ho8 bn preparad in accordance wlth the Small Compani88 Regime undèr Se¢tiM 419{21 of th8 Companies A¢t 2006. The trustees, pOrt w8¥ approvéd by BfArd ofTru8tee8. AlastairTulloch Date.. .23rd March 2022
KHODORKOVSKY FOUNDATION CRITCHLEYS INDEPENDEKf AUDrroR'S REPORT TO THE TRUSTEES OF KHODORKOVSKY FOUNDATION Qplnlon ha audllod th• financlal slat•mnts of Khodorkovsky Foundation (the 'ChaW) frJr the year ended 31 December 2021 ¥thiEh comwse the Btatement of financial actsvil•s, th• SLKnmary incoTh ar expenditure accourrt, the balance sheeL the 8t8tement of cash tlowB and the notes to the finandal staternents, Indudlng signifficant a¢counting policie¥. The finanryol reporting framewort( that has en appled in thr preparation 15 applkable Law and Unhed Ktngdom Accounllng StaThJard$, in¢luding FRS 102 Yhe Flnanual Rwling Standard applkable In tho UK and Repubmc of IreLqnf (United l<Jngdam Generalty AtteptedAccounting Pradc•l. In our opinion, th• flnandal statgments.. gvle 8 true and lair of trè Stale of the ¢harlable coThpanVB affair5 as at 31 D•c•mb•r 2021 and of tts Inc(Yning rnsourc•s and appllcauon of rnsoure8s, forth• yeortwi ended: have been property preparad In accordanc• llh uned Iqn9dom Generally Acceptsd Accounting Pra(lco' and been prepared In accordance vAiti the requlrerrthts ofthe CompanknAd2006. B•Bl• for oplnlon Vtrt ¢ondu¢ted our audtt In a¢¢ordarK¢ vAth International StarKlards on Auditlng (UK) IISAS {UK)l and applicable law. Our responslblllt5e8 under tM8e 8tandard8 are futher described in the Auditort r•swnwbNftMs forlhe al# of the fmancJalstatom8nts sadon of our reporL arn ind•pendent of the Charrty In accordanGe the ethlcal r•quirements that are relevant to our audit of Ihe firMTKid stat•rr•nts in thet UK including Iho FRC'$ Ethical Standard, and have ffi11ed our other elhicol re8pOn8iNIl In xeordanc6 vith these requlrements. bel that Ihe audit evidence we have obtawied 18 sufficient and approprlat8 to pde a b8818 for ow oplnlon. ConcluBlonB r•kntlng to gdng ¢onc•m In auditing the flnandal $tments. have ¢orKILthd Ihat the tru5tees' use of the golThJ concem bas15 Irf accountin9 In the preparttion ofthe financkAI statemènts 18 appropriate. Based on tho VR have p•rformed. VR have not Idenllfied any motgrial uncertainties relafig to eNtnts or ¢ondthn8 that, indiwduatly or colectivefy, may cast 8ignlficant doubt on the Charity'$ abilty to conlinue a8 Ing concem for i wic41 of at least1 month8 from then1he flnanclal stalemeni8 are 4uthorfs•Y for isjue. Our reipons1blleS and the re8pon8lbllStF88 of the Thteel ith reBpect to gorng Ce•M •r8 de4oib•d In the relmnt sediorn ofthis reporL Olhgr Inforniatlon The other irrfomation ¢0mpri8 the Inlormalon irYJud8d in the annual report ¢Jth8r than the finon¢ial statemonts and our auditorfs report Ihereon. The Tru$t¢e¥ * respOnsie for Ihe other InfDnnation contained Vithin the annu report. Our opinM)n on the ffinandal statements does not cover the other InfmatI and, except to th extent otheThlse explktty sialed In our rnpor¢ do not expre88 any form of a8suranrA wnckJ¥ion trreon. Our rwonsibility Is to r•ad thè oth•r Infomiation a1 In dolng 80. cOnder lHther thè othw Inforynation l¥ materially incon¥btsnt the Ilnandal statenxnts or our knthV£dge Obtain In the course of the audit, or olherwise appears to b8 malerf8Uy mlsstated. If we Idenlfy such material inconsist1•S or apparent materlal misstatsments. aro requlred to detemilne wthethw thls glves ri8e to a materid misstatement n the financial statements th•m5•1w4s. If, bas•d on th• have perfomied, corKlude that there 1$ a matertal mi88tatem•nt of th15 other Infomwdon, wo ar• r•qulr•d to thut fact ha¥e nothlng to report In thls regard.
KHODORKOVSKY FOUNDATION INDEPENDENT AUDITOR'S REPORT (coKfiNUED) TO THE TRUSTEES OF KHODORKOVSKY FOUNDATION Oplnlom on othor matl•rn w•scrfbod by tho COMnI¢S Act 2006 In our oplnlon, ba8ed on the undertaken in the courne of our 8udk'. the irrfomallon gen In the trustees. rel. Indudes the dkectorn. report prepared for the purposes of company law, for Ihe financial year for whth th• )Inanclal statements are prepared 1$ con8lstent with the financlal ststernents- and the diTectorn' report induded 1h1n the trustees. reF4)rt has be prepared in accordancè Vth 8ppli¢able gal requwements. Mattern on whleh ar• raqulrnd lo report by oxc•pUon In th8 light of the knovledge and understandlng of the Charity and its eNronment obtained In the Gourse of the gud¢ have not identifipd material mlsstatements in the diredors. report IndLvJed thIn the trustees, report. have nothlNJ to report In regpect of the foll¢hrj matters titsn b Tttich the Companles Act 2006 requires us to reportto you rf, in our opinion: adequalo aeLounllng records have not been kept. or rrn$ adequate for our audit IK9¥8 not been recee from branches not vlslted by u8" or the ffinandal slatemerrts are not in ogreemenl the accounling records and r•tums: certaln dIO$ureS oftrustee$' remunernlon spedfied by laware nol made., or we have not received all Information and explanations we requlre for our audit,. or th• Trustees were not entitled to prepare the financial Statements In accordance wlth th• small ¢omparie8 regime and tsko advantage of the small componie8' eMpon8 in prfjpari the tsu8tee8' report and from Ihe requirement to wepare a strategic reF4JrL R•sponsibiliti08 of Trustoes As explained more fully in the $lat¢m£nt of trustaes. responsibililies. the Tru8tse8, vkno are aho the director5 of the Charfty for the purpo$e of company law, are reBponsible for the preparation of the financial statements and for be5ng satisfed that Ihey gwe a true and fair wew, and lor 8uth intomal control as the Trust••s detemiine 1$ n•c5sary to enable the proparation of finanGial statements that are free frorn material mi85talement, thetrer due to fraud or error. In preparing the financial statements, the Trustees are responsible for assesslng the Chwity'¥ ability to continue as a going concem. dlsdoslng. as applicable, matters related to going concem and u¥ing the golng concem basis of accounting unl•ss tha Trustee5 either intend to Iquld the charrt•ble company Qr to caase operatK)n8. or have no r8afisliG atternatwe but to do 8D. Auditorfs r•spon8ibiliti08 for th• audli ol tho flnanclal ¥tst•m•nts Our oblecuves are to obtain reasor)iblè asgurance aboLrt vthether the ffinandal stat•m8nts as a thole are free from material misstatement, vthether due to fraud or error, and to issue an auditorfs report that indude5 OUT oplnlon. Reasonat4e assuran 1$ a hiqh level of a$$uTan¢e but Is not a guarartee thgt an audit condu¢ted in accordance **thh I (UK) will akvays detect a material misstatement ¥rtn it exists. Misstatements can arise from fraud or ew and are COndered maleri81 rf, indiwduaty or in the ag9regate, they Uld r•asonabty be expected to infiuen¢e the economic de$lOn8 of Use taken on the ba8is of thesè financlal 8tstements.
KHODORKOVSKY FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRIJSTEES OF KHODORKOVSKY FOUNDATION lffegularllie Indud#ig fraud, a instsnce8 of nor4ompllan¢e with laws and reatIOns. dèslgn pro¢edures In line th r r08pon8ibNitles, Ouulrd above. to detect matèrfal mrsststernents In respect of Irrngulariiies. Indudlng frd. The extent lo vthlch our procèdures are capabl• of d8te¢ting irregartè&. indudlng fraud. 18 •ngapm•nt partner ensured that tho ongagennt team me¢t1¥91Y had the appropriate competence, capabllllles arbj sktll$ to identify or rewnl8e nonmPlice v•lth applrcable lawl arKI regulations" Identsfied the and regulations apFAkable"LO the company through dl4cu88is With tsusleej arKI other managemenL and from our knO%edge and WAperience,' v focused on Sp1¢ la and regulations vknith we rLsnsidered may have a direct materfal offact on the finanrAal 8tatements or th• Dperations of th& charltablo company. indudlng the terms of grant agreements and Charity Commisslon regulation. VK •55e$wl the extent of compllance vA1h the laws and regulations IdtIfd alx)ve through maklng enqulrfes of management and inspecting legal correspondence bthere appluble,. and IdlIed law3 and regulad¢)ns re communicated wlthln the audit team rn9ularly and the team remained alert to in8tsnc•s of non-¢ompliancp throughDUtthe audst. V assessed the suswlibility of the compan¥ fina Statem to maleriol nlsstatement, IreIlIng obtaining an Lmdorstsndlng of how fraud might occur, by.. maknng enqulries of managerwt as to they considered there was suscapts'bllty to fraud, their kntrdledge of actual, suspectèd al alleged fraud.. and considering the intemal contrc48 In place to mitsgate risks of fraKI and no[COmrA1e la and regulatio. To address tha rfsk offraud through monagement bias and override ofcontro15, Wa.. perfor1d anatytical procedures to idenufy any unusual or Lmexpected relatlon¥hlps', tested Joumal entrles to Identfy unu$ual transaclions., assessed vthelher judgemwrts and 888umpts.ons made In d•tarnining the accounting estimates were kndicative of potenual blas; and vestigated the rationale behlrKI slgnthjnt or unu¥ual tran8actlon8. In resporffje to the risk rf irregularities and noTrcompliwce 1th laws arKI rowlations, y dosigngd wocedurns thich included, but were not limited to: agreelng flnan¢lal stment di%losure$ to underlylng supporbng documentation" readlng the mlnutos of meetlng8 of those charged with govemance,. enquirfng of manag•ment es to actual and putential litigation and claims; rwiewing corresponden¢& yth the Charity Commlsslon and the companls logal advl8ers: and evAng the temi$ of grant agreèments There xe Inherenl limitatrons In our autht yocedure8 descrlw obove. The mcn removed that lawa and Yegulatkn5 are from finanual transactlons. 1he les8 likefy it is that V&vuld become aware of noTCOMPanCe. Auditiry standards atso limit th• audit FKowlure8 required to klentify nonwGompliance Ith¥s WMI regulationg to enqulry of the dlreclors and other management and the inspethi of re9ulatory lryal ¢orrespondw, if PAalorfal mL8statements that ari58 duo to fraud be harder to dètsd than that arfse from error as may Involve deliberate corbcealment or cdluslon. A further descriplion of ow responslbNlll88 16 availab on the Flnawal Reporting Couwl's vthite at.. http8Jl w.fr&0rg.uklaudrtorSIeSPDnSlbI[as. Thls descripb'on foms part of our ouditorfs reporL
KHODORKOVSKY FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF KHODORKOVSKY FOUNDATION Use of our r•port This report is made $01gly to Iha charitable companys member5. as a body, in accordance ¥ith Chaplor 3 of Part 16 of the Companles Act 2006. Our audit work has been undertaken so that w• mlght State to the charitable ¢ompany$ trnmbers those matters we are r8quir•d to stat• lo thern in an auditors, rnport and for no other purpose. To the fullest extent permitled by IWH, we do not accept or assume Te8ponBibility to anyone other than the tharitsble company and the charftable TrpanY'S member8 a8 o body, for our audit Drk, for Ihls reporL or forthè oplnlons we have foffted. Rob•rt Klrtland (S•nlor Stattrtory Audl for •nd on behall of Crltchl•y• Audlt LLP Chart•r0d Accountants Statutory Audltor 4 April 2022 Beaver House 2>38 Hythe Blidge Street Oxford Oxfordshlrts OX12EP
KHODORKOVSKY FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 Currnnt flnanclal year Unr•strl¢t•d Endvrnnt fun(ts fund• 2021 2021 Totsl 2021 2020 Investments 3,879 3,879 4,243 18 Investrnent management 1,821 1,621 1,954 Charltable acts¥ibe¥ 5,229 5,229 14.080 Total r••our¢•s •xp•nd•d 5,229 1,621 6,650 16,034 Nel goi(105$0> on hiv•stments 10 118,525 118,525 116.706 N•t InglIoMIng r0C•S b•for• transf•rs (1,350) 116,904 115.554 104.916 Gross transfers belween fvnd8 1.350 11,350) N•t mov•mont In fund8 115,554 115,554 104.915 Fund balances at 1 J•nu•ry 2021 730,470 730,470 625,555 Fund balanco5 al 31 Dmb•r 2021 846.024 848,024 730.470 Thfr statement of fi¢181 8ctp4iknes inrjudes alj gains and loSS r•¢ogni8ed in the year. All iicome and expenditure derive from conlinuing acti&$. 10-
KHODORKOVSKY FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Prlor flnanclal y•ar Unmtrfrtad End0ent fundj fund• 2020 2020 $000 Totsl 2020 SDIJO Inveslment8 4,243 4,243 ndliu Invgslm•nt management 1.954 1,954 Charltable acUvlUes 14.080 14,080 Tolaj r•sour¢M exp•nd•d 14.080 16,034 Net 9oin&l(losses) on inve8tsnent8 116.708 118,706 Not loulgolngyfnMmlng mouY¢M bèforo tran•forn 19,8371 114,752 104,915 1kn$8 tran81er8 ben funds 9.837 {9,B37} Not mov•m•nt In 1 104,916 104,915 FLtl balances at 1 January 2020 625.555 625,555 Fund bal•nc•s at 31 D•c•mb•r 2020 730.470 730,470 11
KHODORKOVSKY FOUNDATION SUMMARY INCOME AND EXPENDrruRE ACCOUNT FOR THE YEAR ENDED 31 DECEAIBER 2021 All Incomè fund• 2021 $000 income funds 2020 Gro¥$ Income Trnnsfer frorn endownent 3.179 4.243 9,837 Total kncome in the ryrting yiod 6,229 14,080 T(rtal exp1rn from inwne fvnds 0329 14.080 Not•xp0ndrn lor the year 12-
KHODORKOVSKY FOUNDATION BALANCE SHEET AS AT 31 DECEAIBER 2021 2021 2020 $000 $000 Flxod •ss•ts Investsnents 10 839,815 728,870 Caih Jt bart and in hand 7,521 5,206 Crlton. •mounts f•lllThg du• *lthlrb 11 11,312) (3,6061 Net euffent assets 6,209 1.600 Total assets I• currnnt Ilablllllos 846,024 730,470 C•phlll fund• ent funds- ene ExPendae ondobwneTrt Incom• funds Unre8tr1thd fund8 12 846,024 730.470 846,024 730,470 Those anal statemerrt¥ are prepared in United Slat•s DOIr8. The rate of exchange at 31 Denber 2021 1$ £141.3489412020: £1 =$1.35772) The finala1 statements Yre approved ond •uthorlsed for18gue by the Trust on 23rd March 2022 astairTulloch Company R•gI•tratI¢ Nth 4988238 13-
KHODORKOVSKY FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 $000 sooo C••h flows from oper•tlng •ctl¥ttl Cash abBOrt)ed by operadons 15 {9,144) 113.372) Inv•sllng actlvllhs Purchate of Inv•str Proceeds on disposal of imiostmonts Investment Income recelved (127,8591 148,289 3,879 1234.6621 243.630 4,243 Not ca•h g•n•rat•d from Investlng 24.509 13,211 N•t Qh usod In financing acb"¥iti•8 Not Incre•$•l(dKrnaw) In ¢uh •nd ush •qufv•lents 15,385 (181) Cash and cash equi¥alents at beginnlng of year 10.789 10.950 C•%h and cash •qufv•l•nts at •nd ofy•ar 26,154 10.789 R•latlng to: Cash at bank and In hand Cash wthin investment portrdh) 7,521 18,833 5206 5.583 -14-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng pollcl6s Charfty Irrfomiatlon Khodorkov8ky Foundation 18 J piivate company Ilm by guarantee in¢oYpwated In England and Wal•$. The registered offio is Tuloeh & Co, 4 Hlll Street, London, W1J 5NE. 1.1 Accounting convontlon The financial 8talement$ haye bèen prepared In ac¢ordan¢e Ihe cha,5 Merandl andArti¢ie$ of Association, the Companies Act 2006, FRS 102 'The Financial Reporttng Standard applicable in the UK and Republlc of Ireland. CFRS 102.1, the Chariues SORP "Accounting arKI Reporting by Choriti88'. Statement of Remmended Practice appllcable to chaiitie8 prepgring th•ir accounts in accordance the Flnancial Reporting Standaryj applICab In the UK and RepubliG of Ireland IFRS f02}" {effectfve 1 January 20191 and the Companm Act 2006. The Ch$rity 1$ • Publlc B•nefSt Entlty as defined by FRS 102. The finanuol $18temanls ar• pryred in dollars, vknich is the funcllonal currency of the Charrty. Monetary amourts in these financial statement8 are rounded to the nearest $1,000. The finanual ¥tslements have been prepared under the htstorical cost eonventlon, modM•d to Indude asset imiestments at falr value. The principal ¥¢counling policies adopted are spt out below. 12 Golng conc•m At the timè of 8pproMng the flnwLial stalements, the Trustee$ have o reasonable exPectsOn thal the Charity ha$ adequate regources to continue in operational existence for the fore8eeable future. Thus the Trust••s continue lo adopt the going concèm basls of accounting in preparing the finanaal gtatemenis. 1.3 Charll#bl• funds Unrestri¢Aed funds are avallable foT Uae al the di$tion of the Tru8tee$ in furtherance of their charitable )bjectiv•s. Exwndablo andowment funds represgnt a88•ts the ntention 18 for the assets lo be held long temi for the benefft ofthe charity. Howyvw, as tt Is an expendab12 endovmenl, assets can be ublised to cover expenditure that excee¢J$ the balance on unrestricted frJnd8. Income ariling on the d0wMerrt fund Can be used in accordance wilh the objects of the ¢harity and 15 included as unrnstrlcted income. Any capital galn8 or losses arising on the investments fom part of the fijnd. Investment management costs are charged against the fund. 1A Incom• Income k8 recowlsed then the Charity is Ilty ¢ntMed to It after any perfOrn¢e condrtlons have been me( the amounts can be measured reliatty. and It18 probable that income V*ill be receNed. DonatiM8 and Invesknent income are indLthd In th• Statement of Financial A¢tNibes they are -15-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounllng pollcl•s IContlnu•dl 1A Exppndtur• AJI expendlture Is accounted for on an acuuo18 ba818 under the appropriete expense ¢ategory. ExperKllture indudes irrecoverabfe VAT vknere appropdate. Any support Costs spectfic to one of the acbwties Is 8llocaled 01 to the 8ctivJty. The remaining support costs are alk)¢ated to that athty in propDrlron lo the combined costs of activltles undertaken diredy and grants. Al co¥1$ ale clasfified as charitable aclivities apart from those atttlbulable to rysing ftJnd$ (investment management $). Grants poyabh Grants ar• Induded in expendlturè under tharitable aclivitie5 vthen they are approved by the Trustees and the Commitment has communlcated to the ben•fityarie8. Ary su¢h grants Mt paid by the year end are iiduded In crèdltrjrs. 1.6 Flx•d a¥8•t Invo•knonts FSxed asset investrments are init1a1 measured at transaction prlcè, and are subsequentry m8a$ured at fair value at each repon9 dats. Fair value Includes accrued interest vthere applica•. W an investment does not ha a readlty avallable market Wic8 f( Is Volued by thè relevant Inve8lment Manager. The Ststement Financial Athibes indud•s nèl gains and losses arising on revaluations and disposals throughout the yew. Du• to the number of inveslment transoction8 In the year it is not PO88itAe, •ty and aCratety to split the Inv8Stm8nt 98in$ befvRen redl3ed and Unrealld and henc• this Split ha8 Mt been ¥hovm on th• face of the Statement of Financial Activf(les. 1.7 C•8h and ¢Mh •qulval Cash and equivalents indude cash in hand arbj d•poJft8 held at G41 wlh banks. Ba8lc financid assets, wthlch Indude cash and bank bglanGes. are initialty mts¥ured at trarcl10n price. Baslc financ6al liabilitie5, indudlng tyeditors arè lnits recoyniged at tran88ction prl¢e unless the aangement consbtLrtss • finan(ing transa¢tion. Amounts payab ats da$sified as current liabile8 If pMentI$ due within one year or hs¥. If not, they are presented as non4unent liabllIes. 1.8 For•lgn •xchany Transa¢tion$ in currencte8 other than pound5 St•rfing are recorded at the rates of exchange prevalltng at the datè8 of the transactions. Al each rePOn9 end date, monetary a359ts and Ilabilrties that are denomlnated In foreign currerleS are retran81ated at the rates prevailing on the rewrting end dat•. Gain8 and IDss•s arising on tranatIOn In the peri¢xl ar• Induded in th• Statement of Fina131 Acbvitieg. Crfocal a¢¢wnllng 0Stlmats¥ andJudg•m•nts In the apPlitiOn of Ihe Charfty's x¢ounting pollciès. the Tru¥tees are required to make judgements, esbmates and assumptions about the c8rying amount of assets and liabilitses that are not readily apparent from other $¢xrrGe$. The estimates and 483oK¥ated assumption8 are based on hrstorical exFHience arml otherfactor5 Ihal are consid•r•d to be vant Aciual resuits may dffter from the8e estlmates. The estimate8 and undetylng 8ssumplrons are r•vlw*d on an ongoing bas18. Revisions to accounting estimates are recognised in the period in which the estimate 1$ revised vthere the revlslon affects only that period. or in the S10 of the rs1On and fiAurn period¥ whore the revislon aflects both wwent fuiure periods. 16-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Inv•stmorrt¥ fund• funds 2021 2020 $000 Inwne from listed invèstments Intèregt receNable 3,879 4.239 3.879 4,243 RalvlNJ funds funds g•ngral 2021 $000 fvnds generdl 2020 Investment management 1,621 1,954 1,621 1,954 Ch•rhablo athlll8s Advanc•- Advanc•- mont of mwt of Educallon Education In Ru••la In R# 2021 2021 SODO Grant funding of actmles (see note 6) 4,999 13,848 Share ofsupport costs note 71 Share ofgovernance o)sts {see nDte 7) 133 97 135 97 5,229 14,080 17-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEhlBER 2021 Grants pyablo Advan¢fr Advanc ment of nlof EdtIon In EdLrcation In Russla Ru881a 2021 2020 Grants to instituloTra: Oxford Russla Fund Podm08kovny Lyceum- Boardlng School Hill Fuundation Cambridge Commonwealth. European and Intemattonal TnJst AUantiG College RoyalAacdemy of Mustc Imperial College London 251 6.402 3.789 6,474 1,423 1,833 182 147 {1,833} 198 1751 56 4.999 13,848 Support co•ts Support GoY•man¢g 2021 Support Govaman¢e 2020 $000 5000 $000 Charty administration and moniioring of aCtIlieS Other expenses. indudlng exchange drfferences 115 115 122 122 18 18 13 13 Audit fees Tax MplIanCe fees (to audit )Im) Legd and profe88ion81 17 17 17 17 77 133 97 230 135 97 232 atysed betsveen Charhable acllvhle5 133 97 230 135 97 232 A soltcMorfs pradce of A Tulloch (a Trustee) 18 the printipsl pmwded profti88ional 8eNlw In conn8¢ti¢)n *ith the dwrity's administration. For this ¥{ Tulloch & Co tharg•d the chority a VAT Indusive amount of $154,964 (£114,878) {2020: $165,474 {£121.876)l of vthich di8burs8mants and VAT amounted to £19.146 (2020.. £26.876). Some of the disbursements arn travel expenses forTrustee¥. 18-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2021 Employ• The average monthly number ol enwbyees during the year was: 2021 Numbor 2020 NUmr Total There were ry) employee8 whose annual mOratiOn was more th#n $60.000. 19-
0¢5>08 Ln (N 4> a) Ilia ryj • lp 4rJ * r4 )0
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 11 Gr•dltors: amoun1• f•llhvJ due *lthln one ymr 2021 2020 $000 Gts Yable A¢enlS and deferred in 2,537 1,9 1,216 1,312 3,608 -21-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (coKfiNUEO) FOR THE YEAR ENDED 31 DECEMBER 2021 13 Anatysll of nèt as8•ts b•iwn funth Unr•strlel•d El(yan0n1 funds fun 2021 2021 $000 Total Unrethcted Endovmiènt funds ds 2020 2020 $000 $000 T¢)tsl 2021 $000 2020 Fund balances at 31 December 2021 oro represented by.. Irwe¥knents Currnnt as¥etsl Olabilttses) 839.815 839.815 728.870 728.870 6.209 209 1,800 1,6f) 846,024 846,024 730,470 730.470 14 Rdat•d pwty tr•n6•cVI%HB TrarAactlon• vthh relatsd pardo• ring the year the Chartty entered Into the follthmng rol*ed partlos: The charity is related to Oxfijrd Russia Fund by vSrtue of Trustees being commn to both charTbeB. Grants of $251.00012020'. ¥3.789,0001 Yre payable to Oxlord Rus8kg Fund In tho yw. $nll of thls was included In credttoTS al the year end P020.' $535,000). Durlng the ffious year ended 31 De¢ember 2020 the charty al80 made a grant of $1,423,000 to The Hll Foundotion. There vrds no creditor at the year end. The Hill FouTrJation i8 a related paty a$ Ihe majority of ts Trustsos are also Trustsos af th8 KhOdoo¥SkY Foundation. 16 Cash pngratsd frtyn opratlo 2021 $000 2020 Surplus for the year 115,564 104,915 Adjustments lx. Investrnent income recognlsed in $latement of ffinanctal actMtle8 Falrvalue gains and losses on investments {3,879) (118,525) {4,243) {116.706) ovements in thvrldng capila.. (Dr•aSe}nGrea8e In credltors (2.2941 2.662 Cash ab•orf)•d by opttakn• 19.144) {13,3721 16 An•lyds of changm In nrt ftwKI The Chartty had no debt during the y•ar. -23-