Charity r•glstration Trumb•r 1106885 Conyany r•gistratlon number 49812U (England and Wal•sl KHODORKOVSKY FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
KHODORKOVSKY FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Tntst• A R Tulkh R M Caldecott A Lkgl M Logan P l<hodorkcvs {Appoinl8d 16 May 2022) Se¢rntsry D A Fts¢k Charlty numb•r 11C6885 Comp•ny nymbor 4988238 R•glstor•d offlc• 4 Hll Street LorHlon W1J SNE Audltor Critchleys Audit LLP Bgavgr Housg 23-38 Hythe Bridge Street Oxford OX12EP Bank•rs Schroder & Co 31 Grèsham St. London EC2V 7¢JA Sollcllorn TGW LIW 4 Hill Street London W13 SNE InVtrnent adVOr8 Morgan Stanley & Co. International Limited 25 Cabot Squar• Canary Wharf London E14 4(JA BlaGkro 33 King Willigm St London EC4R 9AS Goldman Sa¢hs Intamalional 133 Fleel Slreet London EC4A288
KHODORKOVSKY FOUNDATION coKrENTS Pag• TNslees' report Indep8ndenl audttorfs Tewrt Statement of firnCIal adivit 9-10 Summary irfcome and •xpend((ure aw)unt 11 Balance sheet 12 Stalemènl of cash Ilows 13 Note8 to the financial statements 14-22
KHODORKOVSKY FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees prgsent their annual rgPQrt and financ4al statements for th& yoar end8d 31 D8cemb8r 2022. The fjnancial Blatemènls have been propared In accordance wilh the acuunting wti¢bs set out In note 1 to the financial statements and comply with thg Ch8ritl$ Memorandum and Articles of As50C4alion, thè Companies Act 20Cé and "Accounh'ng and Reporllng by Ch8rtbe8.' StBtèment of Recommended Practice appllcable to charities preparing their accounts in ardan with thè Flnancial Raportlng Standard applicable in the UK and Republic of Ireland (FRS 1021. loff•ctiv8 1 January 20191. Obl•thM and 4¢tlvlll The oblecls of Ihe thBrity are lo advance edu¢allon In the Russlan FgdeTation through the pmwsion of stholarships lo Students and th8 making of donab'ons lo edu¢atitsnal establishments. as well as lo promote other thartt8ble obleth recognised by Eng5h L&. Th8 TrustO85 have cornplied wlh the dijty in seetion 1715) of the Charities Acl 2011 to have due gArd lo the public benefit guidance publi8hed by the Charfty Comm18810n. GMnt4haklng pollcy The Foundalton was endowed in CCeMber 2003 with $SfyJ mlllion for the main wrpose of avan¢1 a&Kation in Russia and thus supporting Ihe development of a robust and actlve rjvil society in Rusa. Prfor to belng deSnated an 'Unde$ble organisab'on. by tho Russian Govemm•nt in Juty 2021 bdow under 'Activitiei •nd P•rfomn¢•?, lh8 Charity supported the Podmoskovny Ly¢eum. a boarding sthool for 168 50(¥alty deprlved cildren. situated outsidè of Moscow and the Oxlord Russia Fund Folk)wing th8 dosrynalion of the Foundation as an 'unde$ir8ble organisation, by the Russlan Govemment in Juty 2021, the trustees ha sought to r8focus Foundation's grant making polw lo $upport institutions outside of Rus8 and are supporting other UK Charilies engaged in advanring edu¢abon', Ciwl Sc• Otoanvzalions,. aT the production of documentsri&$. A¢hlw•mgnts and perfornwn¢• Through the granl maklng arAivitiès of the Oxford Russia Fund. whlch was supported by the Charity, 22,794 specAAlist studen15, 10,288 undargraduate students, 7.898 graduate and 995 poslgraduale sludenls al Ru85ian Universities were, in the period 2005- 2021, awarded monthty stholarships of approximalaty USD110 1192 lor students 91 Higher School of Economic81 luslng an average dollar rale of USDI-RUR521. FurtheT. Oxford Russia Fund, during the period 2005-2021, sponsored 43 summer and winter schools and provided English languag8 humanrfles libraries to 20 Russian Universibe$. In addition, the Oxford Ru88ia Fund. pr¢)Nrfded In 2019-2021. 30 graduate scholarshlps at USD 4.834 each and 28 followshlps at approximatsly USD 14,772 •0th. The Scholarships were awarded on merit and were dosigngd to enWage Ihe of the Fwm8nth•s in Russian Stale Univarsibes. Tho grant glvlng aQlvty of the Oxford Russia FLmd in Russia caasad on afxounl of the indusion by the Russian Ministry of Justice of the Oxford Russla Fund in the list of unde$irable organvzations (Order No. 732-r datad 9th July 2021 list numbèr 37. pursuant to the Federal Law of 28.12.2012 No 272 -FZ las amended by Ihfj Fédaral Law of 23.5.2015 N 12Fz Ithe'Llnd•sirnble Oryaniz•tion* La1. 2022 In 2022. the Charity has redirècted lis grant giving adivity away from RussL3 In vSew of being designated as an 'Undesirable Ofganization, a8 referred lo above. The majority of tt)e grants g¢ving has been lo Institutions working in Ihe field of Hurnan Righlslciwl So¢i$ty Ihough wè continue to provide gr8nls. in the sphow of education. to UK edu¢ational instituknons and have Started lo support the makers of documentsry films.
KHODORKOVSKY FOUNDATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Podmoskovny Lyc•um As a re5uk of th8 SUPPOrt by the Khodorkov5ky Foundation (prior to the Russian Govemmerfs designation of the FoundatKn as an undesirable organisationl , over the period 2006-2021 of thè Podmoskovny Lyceum, a boarding school outsldo of Moscow for socialty deprived thildren, 2,945 pupNs receNed a secondary school education of Ihe hKJhest qualty a cariry environmenL Finan¢i•l r•vlew Fundlng sou8$ The chlty was provid&d in D8cemb8r 2003 wilh an expendable endowment of $500m arKI the fvnd$ for the work of the charity are derived from the income and capital gains generated by the endowment. The fmanual dellclt before Inv9s1ment galns and10$59$ aMoLled to $13.688.00012O21'$2.Il.lxIo) detsiled on pagelgj. Resems polky Havthg regard lo Ihe charW5 end¢)wment based incomo., the res08¥ to Covor Iluctualions in donations are not required. Instead thè char(¢ls invèstment poly plans for fluduations in income and capital growlh and the need for lund8 to me81 owolng commitments of the charity durlig Pgriods of Iw diwdand yield gnd nll or negative apital grtrlh. There are no unre$lri¢ted r¥seNo5 but ther is a $ignificant èxpandabl8 ondowment whth can be drawn upon to (xver the costs ofcharitable activities in excess oftho investment income eamed. Inv••trn•nt pollcy The tharity has adopted as its long tomi current target r8tum for its inveslment porttolio 4% over increases in th& US Consumer Index and il 1$ rwnised Ihat this policy envisages lluctual)nS In Inveslm8nl return8 over the lSinesS Lyde. Three kntgmatlona Investment banks mnage the charl8 funds. Rl¥k The investment policy has a conservatwe attiiude to fisk. Antl¢lp•tsd D]$buYsem•nts The long tenn aim of th8 charity is lo make annual grants of at least 2.5% of the charity's funds. Th• abov• spending rate is desvJned to preserve the real value of the charity's funds over the long tsmi. IAonitoring of porf0mnCe The monitoring of the performance of the charrty's invèstmènt portfollo has baen delegated by Trustees lo an investment MMittee wlKJse members Inle experienwl inve6tmenl managemgnt practitiorwrs. Th investsnent Committee also rewews performance of the managers and the alkncalion betsyeen all da88es of assets from time lo time to gnswe thal Ihe total portfol is prudentty invested. Perfomian¢• Over Ihe year, the aggregate value of the Foundatlcn's Investments 1$683M - 2021 .'$840M: 2ff20'.$729MI decreased swnTficanlty after the gr8nl$. This was mainly due to equty ond debt matknts volatilty fdlowing the 2021 increase in valué. Th8 averag& annual iar6table expenL1kure for the past three years as a peicwtsge of invested assets (as at the end ofthe financral yearl is approx. 1.65%12021.' 1.44%). Principal ri#k• and un¢eriintio¥ The trustees condu¢t the overall supervision and Monitoring ol Ihe financ4al position of Ihe charlty. Thère we risks to income as a resutt of fluctuations in worfd equity and bond markets but the chant$ inveslrnenl policy #dopted should mlnimise th• rtsk$ to on acceptable level. Intemal Risks are mibgaled by the impmentatIon of procedu8 fr•r the 8uth0rls8ln of all tr¥nsa£ons by at laasl Iwo of the truste8s.
KHODORKOVSKY FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Plans forfutur• porlod8 The ChaTIty Is unable, for the time being. to support educallon In Russ18 (for which purpose the Charity was primarity established) in ¥1 of the indusion of the Chafty in the list ol undèsirable organEations pursuant lo the Underable Organi2Xtions Law and has refoc#J$ed Ils efforts on 8UPPOrting ¢haritable organisations 0Ut8ldè of RLbESia. Structyr•. gov•rnanc• and fflanagem•nt The Charity is a company Ilmmeil by gugrant99 govemed by its Memorandum and Aiti¢los of Association. The Tru$tees, vtho are also Ihe dbrectors forthe purpose of eompany law. and who $8Ned durfng th9 ygar up to the date of sign8lurg of the financi slatsm&nts wer&: A R Tulloch R M Caldecott AD1 M Logan P Khodorkovsky {Appointe(116 M4y 20221 TT(tstags are selecl8d on the basis of the skllls and exporionc8 Ihey were ¥l)ltr to ¢ontribul8 in th8 fdS of •ducatK)n and human rights, investment mAn8gement and charrty adminlslTaUon and have been drawn from person$ known to the ITUStees, as suppOrte of the charity's work. New trustees were inducted in lo thelr role as Iwustees in a ser$ of briefings on the tsf the charty. Thè Truslg8s have been seleded for th•ir skills and prtrfessionalism ond come with many years of experien¢e in dfftrent walks of lile and 8ddN1LaI Irainry is provlded on the Foundgtion's projects.. Organlsatlonal structure and r•latlonshlp wlth rnlat•d parths Th• ¢hority is managad by its 8oard ofTru8lee$. D4y-tfyd management is delegated loA TlO¢h. stat•m•nt of Inwtes' rn•ponslbllities The Trustees, who ar8 also the directors of Khodorkovsky Foundalion for the purpose ol company law. 8re Tesponslble for prep8ring the Trustees. Report and th8 ffinanclal statements in accordance with applKable law and United Kingdom A¢counllng Standards {Uniled Kingdom Gener011y Ac¢èpt8d Accounting Pradicel. Company Law requir08 the Trust8OS to Prepare financAal stalgrnents for each flnan¢lal year vthiL* give a true an fair Mew of the slate of affairs of the Charity and of the incoming resourcès and application of reUrtes, indudlng the income an¢J expendf(ure, ol the Charitab company IOT that year. In preparing these fina¥81 $latèmenl$, the Trustees are requlred to.. - SgIKt $LMlabJe accounting poli¢i•s and then appty them asiStent,. - obseryg the methods and prinGiplo$ in thg ChaTltl&$ SORP.. - make judgements and estunates that are reanable and PTud8nl'. slate whether applicable UK Accounting Stsndard8 have been fdlowed. subjed to any material dgpartures dlsdosed and gxplairbed in the financkal statements., and - prepare the financial statements on the gomw concèrn basls unl&ss it Is ingppropriate to presume that the Chadty wll continue in opwallon. The Trustees are re8ponslbF8 for keeping adequate accounting r¥¢ords that disclose with reasonable accuraty #t any time the financial positson of the Charity and enable them Its en$urÈ that the financial statements comply wrth the Companles Act 2006. They are also responsible for Bafeguardlng the assets of thg Charty and hence for lakiny reasonable steps for the prevenOn and detethon of fraud and other irregularitiès.
KHODORKOVSKY FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Dlsclosure of InfOrntIOn to audltor Eath of the Trustees has Confivrned that there 1$ no infomiation of which they are aware whlth Is relevant lo the audft, but ol whth the auditor is unaware. They have fvrthe¥ ¢onfirmgd that Ih•y haw takèn appropriate Steps to identfy Such relevanl irrformation and to 8stsbllsh that the audltor 18 awar8 of such krformattw. Small company •x•mptlons Thls report has prepargd in aOrdnCe with the Small Companies Regwne under Sectkn 419(21 of lh9 Compani&sAct 21K)6. The Irustee5' report wa8 approved by th Board of Trust•ès. A R Tulloch Tntso
KHODORKOVSKY FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KHODORKOVSKY FOUNDATION Oplnlon have audited the financial ststements of Khodorkovsky Foundat¥)n lthe 'ChariV) for the year ended 31 Dgcombgr 2022 which comprise the $latemant of fan¢al activiknes, the Summary ineom& and expenditure a¢nt. balan¢& sheet, the statement ol cgsh flows and notes to the financial statements, induding signifi¢8nl accounllng polloe$. The finanThal reporting framowork that has been appl in their preparation is appluble law and United lfjngdorn Accounting Stsndards, in¢luding Finanaal Reporting Standard 102 The Financial Reportlng stands appfv¢able in the UK and R&publlc of Imland Iunitgd lfjngdc¥n GenerallyACceplAeun1Ing Praclice). In our ownion, the finanu81 statements-. give a Inje and fair view of the state of the ¢h8ritabl• companls affairs as at 31 Dmber 2022 and of rt8 Incoming resources 8nd application of resouri8, Induding its InMe and expenditure, for thg year then ended; have been property prepared In accordance wlth Vntted lfjngdom Generalfy A¢upt•d Accounling Practiee., and havg been PT8pared in accordan vth th8 rnquir8m8nts ofthe Compapie$Ad 21)06. BaslB for oplnlon We ¢onducted our audit in aCCX•rdance vAth Inlémallonal Standards on Auditing {UK) IISAS IUK)) and appli¢able law. Our respongbilibes under Ih05e standards arè luth described in the AudrtoE$ Trsponsibillties for the audit of the financial stafements seGtlon of OUT report. We are independenl of thè Charity in accordan with the ethical rul[mentS ihal are relevant lo our audit of thè finanual Statements in the UK, irKJuding th8 FRC'S Ethical Standard. and wè haw fulfilled our olher ethical rèspon$ibililies in accordance wNh these requ1Ments. We b8lttiVe that the audit evidence w8 have obiained 15 suificienl and appiopwiate to prwde a basis for our oplnk)n. Coneluslons relattng to golng ¢oncern In auditing Ihè finanrial statements, we have that the tru5ta8s' use of the goN)g o)noern basis of accounllng in the preparati¢)n of th6 financial statements 16 apFYoprial. Based on the work wtt have parformgd, we have not identified any malerial uncertainties relaliThJ lo vanls or ¢onditsons that, Individuty or lIClivfy, may cast significant doubl on the Charity's aknlity lo continue as a golng ¢one4m for a period of al ltrasl tMelv& monlhs from when the financial $t8lem8nts arg aulhorfsed for issue. Our r•SpObIlItIeS and thè re$pon8iblitiès of the TFUStees with ts8pe¢t to golng frM are describtd In thg rel&vanl sectn$ of Ihis rwt. othèr infomiatlon The other infornation comprises Ihe Infom)81son induded in the annual report other Ihan the financial 5talement8 and our d09 report thereon. The Trusl8es are responslblo for the other Informat ¢ontsed within the annu reporL Our opmiion on th8 financAal statements does nol eover the other informatlon d, ex¢ept to the extent olherwise expllcmy slated In our rewt, wt th) rKI express wy forrn of assurance ¢on¢lu$ion thproon. Our respon8ibilty Is lo read the t)thgr informalion and, in dolng $0, considor wh8lhor the other information is materfolly irKon51Stenl wrth thè finanaal statement5 or our knowledge obtained in the course ofthe audh, or othernise appears to be materially NI88tsted. If we identfy such material inconsistenc$ or apparent material mi$slal8mènts, we are rfjquired to delennine wh¥th8r this gwe5 rise to a rnalerial misstatement in the financAal stslemenls themselves. If, based on the work we have perfornied, we condude that there is a material misstalement of this 01her Information. wo are required to Tewt that f We have nothing to rèport In thls regard. Opiniom on other matters pre8crfbed by th• Compnl•s A¢t 2006 In ouropinion. based on the woth undertaken in the fAJurse of our audit". the infomialion given in the trustee5' report for the financial year for whlch the financial ststements a prepared, whith includés the directOTS' report prepared ftx the purposes ofcompany law, is nsIStenI wilh the financial slatements; and the ltOrS, report ineludod vrithin the trustees, report has been prepared in accord•n¢è with applicable legal requioménls.
KHODORKOVSKY FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KHODORKOVSKY FOUNDATION Mattern on which wt are Mqulred to report by exceptlon In the light of the knowledge and understsnding of Ihe Charity and its environrnent obtained the course of the audit. we have not identified material mls8t8tement5 in the directors, report indudgd within the trustees, rem. We have nothing lo report in rèspect Of the foll¢)wlrwJ matters In relatlon lo whlch thè Companie¥ Act 20 requires U5 to report to you W, in oyr opinion.. adequate accounting rec4Jrd3 havè not been kept, or rètum8 adequato for our audrt ha¥9 not begn rg¢dMwd from branches nol sItOd by u5.. or the financial 5talemenls are not in agreement th the accounllng record$ and returns.. or certain disdosures of trustees, MuBration $psofi8d by law are not made,. or we havè not reeeived all the irrf0m1atn and explanations we require for our audit or the Trustees were not entIld to prepare the financial stalemenl3 in &cordance with the small (x>mpanies regime and lake advantsge of the smal companies. eXernplns in preparing the trustees, report a1 from the r8qur8m8nt to pr8par8 a strategic report. ResponsibilitiH of Trutst$ As explained More fulty in thtr $tatem•nt of trustees. responsibilities. the Ttee$. who are also the dire¢Xtts of the Charity for the purpose of company law. are responwble for the preparation of ttbe financ481 statements and for being satisfied that they gNe a true and fail $, and sud) intemal eontrol as the Tte&S determine is necessary lo enable Ihe preparation of finandal Ststements Ih8t a fre& from mat8ri81 misstBtèmenL whether due to fraud or error. In preparing Ihe financial statements, the Trustèe$ arè rèsponsibl& for assasn0 th8 Charltys ablllty lo continua as a going concern. disdosing, as applicable, matteTS retated to going nCM and using thè going ¢oncem basis of accounting unles5 the Trustees either intend to liquidate Ihe charitsbje company or to cease operations, or hav9 no realLsliG altgmative but to do so. Audltorfb M8pon8lbllld•$ for th• audll of th• flnon¢hl gtstsmonts Oui obje¢tives are to obtain reasonab assurance aboul whelhef the finaal slalèments as a whde 8re free from mal8rial mlsslalemenL whether due lo fraud or error, and to issue an auditorf5 report that include5 our opin•)n. Reasonable assurxw is a high level of assurance but is not a guarantee that an audf( ctsnducled Sn aceordanc* with ISAS (UK) wlll aayS detect a material misstatement when it exisis. Missialements can arise from fraud or eor and we considered material rf, individually or in th8 aggr8gata. tY coukj masonabty bo expeded to influence the economlc declslons ol u8er8 tsken on the basls of these financial stslements.
KHODORKOVSKY FOUNDATION INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE MEMBERS OF KHODORKOVSKY FOUNDATION Irregularblies. induding Iraud. aro Inslonces of noTrcompli8nce wlth laws and r9gulations. We d&$ign procedures in Ilng wlth our responsibilities, oudined abov&. to detect material mi$slol¥menl$ in respect of Irregularities, including fd. The extent lo which our procedures are Capab of detecting irregLtlarllle8. Induding fraud, 18 datwlad low.. tho 8ngagem&nl partner ensured Ih8t th8 engagement team Collectlvely had the appropriate competenc, eapabililies and skills to klenlify or reeognlsg rn-CoMplianGe with appli¢8blè laws and regulalN)ns,' we idenb"fi8d Ihg laws and regulations 8ppli¢abl• to th8 company through di$¢ussions with Iru$lees and other m8nagemènt, and from our knowledge ?nd experience.. • we focusèd on 8pe¢ifi¢ laws and regulations which we considered may have a dired matarial 8ff8cI on the finanrAal slalements r)r th8 op8rations of the chari18ble company, including the lems of gront agreements and Charity Commi55ion regulatKJn. we assessed the extent of comlance Wbth the kws and r¥yulalions id8ntifed above through mmking 8nquiri8s of rnanagemenl and inspecting gaI correspondence where appli¢oble'. and identified laws and regulallons were wmmunicated within the audtt tsam rggularty and the te¥m f•mnad 8rt lo Instsn$ of nOTOmpli8n¢0 throughout the audrL We assessed the susceptlbilty of the c4mpany's finanaal statsmènts lo malerfal w4ssts1gmenl, including obtalnlng an understanding of how fraud might o¢¢ur, by.. m8king 8nquiries of managemenl 8$ to where they c4Jnsldered there wa8 suKaptibility lo tra1, thek krle(l9& of actual. suspectsd and alleged fraud." ond consKJerfng inlfjmal controls in pl8¢e lo mrtigale rlsks of fraud and nonw¢ompliance wtth laws and regulatft$. To address the fi8k of fraud Ihrough management bias and overrid8 of contro, we". perforned analytical procadures to idenlify any unusual or uneX¢td relationshi,. lested joumal enlrie$ lo ldenb.fy unusual transactions., assessed whether judgemonts and assumption5 made in det¢m)InltvJ th& aCcOj eslimate$ wère indicattve of potential bias- and invèstigated the ratKJnale behind $19nSfic8nl or unusuol IransaGlions. In response lo the rfsk of irregularityès and nowomplk4nc• with laws and regul8liMs, we designed Fxocedus which indudtrd. but were not limrted lo: agreeing financial statement dlsclo$ures to underlying supporting documwl*ion-, r•odin9 th& minutes of rneelings of Ihost charged wilh govèman¢e', enquiring of management as to actual and po19ntial littqation and claims; viewing correspondence with ihe Charity Commission and the cornpanvs legal athsers.. and reviewing the temis of grant agreements There ar8 inherent Wmltalions in our audil woceduros des¢rSb9d al)ove. The more r•mov8d that laws regulations are from financial transactions. the le5$ likely it is that we would become awa of nOr0Mlancè. Auditing slandards a150 limit the audil procedures r8qulred to Identify non-compliance with laws and rggulalions lo nquiry of the directors and other management and the inspedion of regulatory and leBal ¢ornspondence. rf any. Material misstalemènls that arf8e dug to fraud can be harder to detect than Ihosg that arise from ¢rror as th8y may Involve éeliberate concealment ¢x collusion. A further description of our responsibililies Is avallat4e on the Financial Reporting Councif5 website 8t= https:11 www.froory.uklauditorsresponsibilities. This desc¥iption forms part of our audilo¢s report.
KHODORKOVSKY FOUNDATION INDEPENDENT AUDITOR'S REPORT ICONTINUEDI TO THE MEMBERS OF KHODORKOVSKY FOUNDATION Us• of our rnport Thls ieport is made SOlY to the charitable company's members. 8$ a body, in accordancè with Chapter 3 of Part 18 of the Companies Act 20Ce. Our audit work has been undertaken so that we mlghl stste lo the ¢harrtabb c(¥npany's Members Ihose matters we are required lo state to them in an audilo¢s report and for no other wrpose. To the fullest exlent pemiitted by w. we do nol accept or a58ume i&sponsibility lo anyone other than the thariioble company and the ch*itable company's members as a body, for r audrt worft, for this report. or for th• opinitins w8 have forni8d. Robert Kirtland (Sonior StatutoryAuditoT} for and on bohalf of Crit¢hltys Audit LLP 191412023 Charter Accountants Statutory Audltor Beaver House 23-38 Hythe Bridge Street Oxford oxt 2EP
KHODORKOVSKY FOUNDATION STATEMENT OF FINANCIAL ACTMTIES FOR THE YEAR ENDED 31 DECEMBER 2022 Cumntfinantiil y•ar Unro•trt¢l•d Endowmont lund8 ndg 2022 2022 s0 Total 2022 2021 $000 Mot•s Income from: Investments 4.347 4,347 3,879 Ex endltur• on: Raisin funds Investment managernent 1.553 1,621 Ch8rilable a¢bwti•s 16.482 16.462 5,229 Totsl •Xp•ndIr• 16,482 18.035 6.850 gainslOosse8} on inv851menls (148.577> 1148.577) 118.525 Not loutyolnglllTh¢omlng r•source$ beforo tran$lors (12.1351 (150,130) {162.2651 115,554 Gross transfers bBtrthn fund$ 12,135 112.1351 N•1 mov•m•nt In fundB {162.265I 1162,2651 115,554 Fund balanc at 1 January 2022 846.024 846,024 730.470 Fund balanc•s at 31 December 2022 683,759 883.759 846.024 Thg slal•ment of ffinancral a711e5 ItKlude$ al gains and10&8es recogrSe(l in the year. All income and exp¢ndilur• d8riv8 from conlinuing aNItse8.
KHODORKOVSKY FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Prlor flnanclal y•ar Unre•tricted Endowment fvnds lunds 2021 2021 $000 SOOD Total 2021 Incorne from: Investm*nls 3.879 3,879 EX ndliur• on: Raisin funds Investment management 1,621 Charitable actm13 5,229 5,229 Total •xpgndllur• 5.229 1.621 6,650 Nel gainslllosse81 on investments 118,525 118,525 Not loutgolngyln¢omlng rosources boforn trnn8fers 11.350) 116,904 115.554 Gr05s transfers betsmen funds 1,350 (1,3501 Not movoment In fund• 115.554 115.554 FuThJ batance8 al 1 January 2021 730,470 730,470 Fund balanc•s at 31 Do¢embgr 2021 846,024 846.024 10-
KHODORKOVSKY FOUNDATION SUMMARY INCOMEAND EXPENDrruREACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 All in¢om• funds 20 $000 l income funds 2021 Gro$s in¢ome Tr8nsfar from endowTh•nl knds 4J47 12.13S 3.879 1.350 Total incom8 in tho reporting period 16A82 5.229 Total expenditure from Incom9 funds 16A82 5.229 N•t •xp•ndltur• forth• year 11
KHODORKOVSKY FOUNDATION BALANCE SHEET AS AT 31 DECEAIBER 2022 2022 2021 iooo $000 $000 Fix•d a¥s•ts Inveslments 10 683.602 839.815 Curvvnl a8$0ts Cash al bank and in hand 2,303 7.521 Cr¢dltorn: amounts falllng duo Tlthln on• y•ar 11 12,1461 {1,3121 Nel current assets 157 8,209 Total assets les¥ ¢urr•nt Ilabllltl• 883.759 848.024 C•pltsl fvnd• dowment funds- Expendable endowment Income funds Unr8stn"cl8d funds ne 12 683.759 846.024 683,759 846,024 These financial slalements are prepared in United Slate$ D¢41ar$. The rate of exchange at 31 December 2022 Is £1-$1.209012021: £1-$1.34B94) Th8 financ4al statements were ved and authorised for issue by the Twste•s on .................. n'l 2u13 A R Tulloch Company Re9i¥tr•tion No. 4988238 12-
KHODORKOVSKY FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Notss $000 $0 $000 Cash flows from opgratlng activities Cash absorbed by operations 15 117,201) 19,144) knv•stlnq acthiltlo$ Purchase of investrnen15 Proceeds on disposal of Inve8trments Investnt Income receNed 1133,0881 125,868 4,347 (127,659} 148.289 3,879 N•t cash {uwl inVg•n•rnted from Invutlng actlvld•s (2,873) 24.509 Net ¢h In fln•n¢lng •ellvltl•s N•t IdKrnaseVincre•Be in ¢a8h and ¢ah oqulval•nts 120.074) 15,365 Ca8h and ca8h equlvalents at beginning of year 26.154 10,789 Cash and cash equivlents at ehd olyear 6.080 26.154 Rel•ting to.. Cash at bank and in hand Cash wlhin investment portfolio 7,521 18,633 3,777 13-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECE&VBER 2022 A¢¢ountlng pollcle• Charity inforniatioTr odorkovsky FoundalM)n a private ¢omp8ny limited by guarant•• incorpJr8lad in England and 188. The regi81ered office Is TGW Law. 4 Hlll Street. London, W1J 5NE. 1.1 AcCounn9 eonv•ntlon The financAal statements have been PTepared in aC¢OTdan¢e with the Charitls Memornnthjm and Arbcl8s of Associallon. the Companies Act 2006, FRS 102 "The Finanoal Reporting Standard appCable in the UK and Republi¢ of Ireland. fFRS 1021. the Charibes SORP "Accounting and Reporling by CharTlies'. Ststemenl of Recomménd8d Pr8cb"cA apICabl to charitses preparing their accounts in accordance with the Financial Rèporting Slandard applicable in the UK and Republic of Ireland IFRS 102)- {effective 1 January 2019) and the Companles Act 2006. The Charlty Is a Publlc Benefft Entity as define<l by FRS 102. The financial stalem8nls are prepared in dollars, whtch is the lunronal rrencY of the Chaiity. Monotsry amounts in thes8 financial statements are rounded lo the nearest $1.000. The finarA81 3tatemerts been pPared und•r t PTi%torieal cost convention, modrfied to indude fe asset nvestments at fair value. The prinapal accountlng pollcl&s adopted are sel out below. 1.2 Golng eone•m At the lime of approving the financial slalemenls, the Tru$le$ have a re¥son•ble expeClon thot the Charity has adequate resources lo continue in operational exislenee for the foreseeable future. Thu8 the Trustges ontinue to adopt Ihe going concern basis of accounting in preparing the finanrial 51alernents. 13 Charftable funds Unreslrided lunds are avallable for use al the dL8¢rekn of the Trustees in furtherance of iheir charitable objective8. Expendable endowrnenl funds ffjpresent assets where the intenlb)n 1$ for the gssels to be held long term for the benefit Df the chaiity. However, as It is an expenda9 endowment. as$el$ can be uknli$8d lo cov•r expenditure that exceeds the balance on unrestricted nds. Income arising on endowment fund can be used in 8¢tordan¢e with the obJ"ect$ of thè eharty and is induded as unrestricted income. Any capftal gains OT kjsses arising on the investmts form part of tho fvnd. Investment m8na9ement ¢o$ts are Charged against the fund. 1A In¢om• Income 18 recognised when the Charity 15 legally enlitl¢d 1¢ il after any perform$n o)nditsons have been met. the amounts can be measured rèliabty. and il is probable that income wiu be recew. Donations and investment inLX)rne ¥re inc4udd in Ihg Slat*mtrnl of Finanryal Acbvibts when Ihey are recved. 14-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 A¢¢ounVng poll¢l•s Icontinuod 1.5 Exp•ndiiur• All expènditu 1$ gceounled for on an accrua15 baBi$ under the approprial¥ oxpgns• category. Expendhu Includes Irre¢overablg VAT where appropriate. Any Support costs specffjc to one of th9 actiwlie5 13 allocated wholty lo the actity- Tha remaining support C051s are aNocalpd to Ih818¢tNity In proportion lo the cofflbir costs of actiMlie5 undertaken dir¢dy and grants. All cos15 are clasfied a$ d)arttable aL#ivities apart from th08e attiibutable lo raising funds Ilnve8tmont management costs). Grnnts payoble Grants are included in expenditure under charilablo a¢tivity•s when they are approved by the Twuslees and th commitment has been communicated to the benefldarle8. Any such grants not paid by th8 year and ara Induded In wdttors. 1.6 Flx•d •99•1 Inv•slments Fixed asset investments are inttsally mèasured al transaction pricè. and a subsequenlly measured at fair value at eath reporbng dats. Fair value includes accrued interest where applicable. If an inve$tm&nt do8s not have a readiFy available market price Tt 1$ valued by the revant Investment Manager. The Statement of Finanaal ActivitYè6 includès net gains and losses arising on revaluations and disposals Ihroughoui tha year. Due to the nLFmber of investment transaction$ in the year it is not possible. easity and attur8lety lo split the investment gains btheen ie81i$èd and unre811sed and hence this split has not been shown on the face of the Slalement of Finanoal Actmlies. 1.7 Cash and c48h equlvalents Cash and (xsh equivalerrts indude c88h in hgnd and deposits held at (W wilh banks. Basie r Inancial assets Basic ffinanrAal assets. whith inthd• cash and bank balances, are Inrtially measured al transaction Ce. asl¢ flnanclal h111•S Basic finana¥l liabilrtigs. Induthng ryeditors are initsalty recogrw$8d ¥1 transadion price unless the arrangement constitutes a finanang transaclion. Afflounts payable are classified as ¢uff•nl kbiliti8s rf payrnent is due within one year or l•s If not. they are presented as nonwcJJrrent Ilabblllles. For•lgn •xchang• Transactions in rArrentye$ t)thw than pounds stading are recorded al the rates of exthange prevailing al the daley tsf thè transa¢b)ns. At eath reporting end date. monelary assets and liabilities that 8re dgnominated foreign eurrencies arè relranslalod at tho ral9$ prevailing on the reporting end date. Gal and lossas arising on translation in the period are included in th& Slatement of Financial Actimties. crftlrAI a¢¢ountlng gllmat•B and ludgem•nts In the appllcallon of the Charity's accounting poliryes, the Trusle&s r¥quired to make judgements, eslimales and as$umplions about th8 carrying amount of 855ets and li#[b.S that are not readily apparent from other sourtts. The e¥tirn81e$ and assoaated assumptions arè baseil on hlstorfcal exrienCe and other lactots that are ¢onsKlered lo be levant. Actual resth rnay differ from these estimates. The estimate5 and undertyln9 a8sumplion$ are reviewed on an ongoing basis. Revisions to awAJunting estimate5 are recogni5ed in the peri¢d in which the estimate is revised where the re$lon affècts only that period. or in the period of the revlsion and future periods where the revtsion affeds both current and fulure periods. 15-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED> FOR THE YEAR ENDED 310ECEMBER 2022 knvestments Unrestricted UnrestriGtsd fund¥ funds 2022 2021 Ins>)me from listed inveslrnnts Inlwe81 re(*ivat4e 3,879 107 4,347 3,879 Rai$ing funds EndowThnt End(ywmenl fund$ funds g•n•ral 9gneral 2022 2021 Investment management 1.553 1,621 1,553 1,621 Charilabl• aclmt Advancfv Supportfor ment ol Hum•n Education Rightslclvll Socl•ty 2022 $000 Total Adv•n¢•- 2022 m•nt of Educaiion 2022 SOOD Grydnt funding of actmlies {see note 6) 5.367 10.931 16.298 Share of support o)sts {s88 not8 7) sha of govgmancg costs Isee rte n 31 133 97 5.428 11,054 16,482 5,229
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 DECEAIBER 2022 Grants payabb Advan¢•- Support for Advanc mènt of Human ment of Edu¢atlon Rlghtslcivil Educallon SoGlety 2022 $000 2022 $000 2021 $000 Grants to institutions.. Oxford Russia Fund Merkel Film$ Ltd Snowstomi ProduconS Ltd The Instfiule of Modem Russia AUanll¢ Colege New GaneratKJn Europe Foundation The Eastem Europe Research Foundal Centre for Liberal Modomty Einbahnstrasse Produdion$ Lantos Foundation Other- exernpt from disdosure Cambridge Commonwtahh. European and Internalional Trust Royal Acmy of Music Imperial College Lond Podmoskovny Ly(um- 8oardkng S¢h)ol 251 259 62 10,000 2,339 431 2.637 (1.8331 1751 56 6,402 5,367 10,931 4.999 'Otherf grants above comprise5 whdly of grants made to 3 inslitulions. The grants are in support of education in lin& wrth the chavitls objectivès bul arè exempt from di$dosur¥ on the basis of serious prethudice and therefor& rKI lurfhgr detal has been gi¥en. 17-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Support costs Support Govem#ne• costs costs 20229Jpwt costs Govemance costs 2021 $000 sooo $000 Chatity adwinistration and monitorin9 of aCtiVrt Other exp8nse$. including gxchonga differences 87 87 115 115 18 18 Audrt fees Tax mplianCe fees (to audit firm> Leg81 and professh)rtal 17 17 17 17 70 70 77 133 97 230 Analy$ed b&tsveen Chorllablg *1 133 97 230 Tru¥t••s A $olicitor'$ practicè of whth A Tulloch la Trustee) Is the principal provided professional seNces in connection th the charws administration. For thi8 work Tulloth & Co thargad thg charlty a VAT indu51ve amounl of $138.1991£114,308112021'. $154,9641£114,878)l of which disbursemenls and VAT arnounted to £19,047 {2021'. £19,146). Some of the disbursements are Iravel èxpense6 for Trustees. Employ• Tho avorage Mthty num of gmployees during tho y•orwas'. 2022 Mumber 2021 Mumbgr Total There wgre no p]DyeeS whose annual rmOr10n was more than $60.(}. 18-
KHODORKOVSKY FOUNDATIOM NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR ThIE YEAR ENDED JI DECEIABER 2022 Comm¢dhy Quh%hlD T•tIi prop•rty In¥l•trnl si 97.467 11WI 196.198 .351 21.671 102.78S 9.817 1QSS3 831815 133.C48 1148.577) 114.856) 114.IIA) 112s.ie61 Addlir {1.781 erftbm IrCAqh hqhj 119,3931 110,83n At31 Dee&mber2022 .617 .133 79.177 7n 681802 arnourrt At31 DeQ*r2022 3517 za¥,gJ3 70.1n 17n 6Bie02 At31 D•vnb•r2021 511382 196,198 102.7JS 9,017 lu. 831816 -19-
KHODORKOVSKY FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 11 Crèdltorn: amounts falllng du• vAthln on• ymr 2022 $000 2021 $000 Grants payable Atcntals and deferred income 1.405 741 98 1.216 2.146 1.312 -20-
KHODORKOVSKY FOUNDATIOM NOTE$ TO THE FINAN¢IALSTATEIAENfJ ICONTINUEDI FOR ThE YEAR ENDED 31 DECEIIBER 2022 12 Enthrnn•ntlda pj 12 Dts s•0• oo sooo EnoerrtJnd1<P%I81 no470 {1,8211 {1,350) II¥R5 146.024 11.5521 112.1W 1148.srn 681769 D.470 1.8111 {1,360) 118.525 016.024 11.$531 {12.1W {141.ST7) M3.759 .21.
KHODORKOVSKY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
| 13 Analysis of net assets between funds Unrestricted funds Endowment funds 2022 2022 $000 $000 Fund balances at 31 December 2022 are represented by: Investments - 683,602 Current assets/(liabilities) - 157 - 683,759 |
Total Unrestricted funds Endowment funds 2022 2021 2021 $000 $000 $000 683,602 - 839,815 157 - 6,209 683,759 - 846,024 |
Total 2021 $000 839,815 6,209 |
|---|---|---|
| 846,024 |
14 Related party transactions
Transactions with related parties
During the year the Charity entered into the following transactions with related parties:
The charity is related to Oxford Russia Fund by virtue of Trustees being common to both charities. Grants of $8,000 (2021: $251,000 ) were payable to Oxford Russia Fund in the year, $nil of this was included in creditors at the year end (2021: $nil).
| 15 | Cash generated from operations | 2022 | 2021 |
|---|---|---|---|
| $000 | $000 | ||
| (Deficit)/surpus for the year | (162,265) | 115,554 | |
| Adjustments for: | |||
| Investment income recognised in statement of financial activities | (4,347) | (3,879) | |
| Fair value gains and losses on investments | 148,577 | (118,525) | |
| Movements in working capital: | |||
| Increase/(decrease) in creditors | 834 | (2,294) | |
| Cash absorbed by operations | (17,201) | (9,144) |
16 Analysis of changes in net funds
The Charity had no debt during the year.
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