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2023-02-28-accounts

The February Foundation

Annual Report and Financial Statements

28 February 2023

Company Limited by Guarantee Registration Number 05718135 (England and Wales) Charity Registration Number 1113064

Contents

Reports

Reference and administrative information 1
Trustees
report		 2
Independent auditor
s report		 19
Financial statements
Statement of financial activities 23
Balance sheet 24
Statement of cash flows 25
Principal accounting policies 26
Notes to the financial statements 30

The February Foundation

Reference and administrative information

Trustees
Chief Executive and Company Secretary
Registered office
Company registration number
Charity registration number
Auditors
Bankers and investment managers
Solicitors
Website		 James Carleton
Mark Clarke
Michael Moody
Richard Pierce-Saunderson
66
London
WC2A 3LH
05718135 (England and Wales)
1113064
Buzzacott LLP
130 Wood Street
London
EC2V 6DL
C Hoare & Co
37 Fleet Street
London
EC4P 4DQ
UBS Wealth Management
1 Finsbury Avenue
London
EC2M 2AN
Investec Wealth & Investment Limited
2 Gresham Street
London
EC2V 7QN
Farrer & Co LLP
London
WC2A 3LH
www.thefebruaryfoundation.org

The February Foundation 1

Year to 28 February 2023

The trustees present their statutory report together with the financial statements of The February Foundation for the year to 28 February 2023. The trustees are also directors of the Foundation for the purposes of company law and the trustees report contains a and strategic report as required by the Companies Act 2006.

This report has been prepared in accordance with Part 8 of the Charities Act 2011.

The financial statements have been prepared in accordance with the accounting policies set out on pages 26 to 29 of the attached financial statements and comply with the Memorandum and Articles of Association of The February Foundation, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

GOVERNANCE, STRUCTURE AND MANAGEMENT

Constitution

The February Foundation was incorporated on 22 February 2006 as a company limited by guarantee under company registration number 05718135. On 23 February 2006, the Foundation registered on the Central Register of Charities under registration number 1113064.

Trustees

The names of the trustees as at the date of this report are set out as part of the reference and administrative information on page 1 of these Annual Report and Financial Statements. There were no changes in trustees for the year under review.

Recruitment and appointment

The appointment of trustees is governed by the Memorandum and Articles of Association of the Foundation. All trustees must be aged at least 18, and there must at all times be a minimum of two and a maximum of five trustees. Upon appointment every trustee must sign a declaration of willingness to act as a trustee of the Foundation before he or she may vote at any meeting of the trustee. Trustees shall hold office for three years, but may be reappointed.

Induction and training

The Foundation recognises that new and current trustees should be aware of the are provided with a copy of the Memorandum and Articles of Association, the grant giving

The trustees are provided with appropriate updates relating to matters impacting upon charity law and the running and administration of the Foundation from their professional advisers. They also attend external training events where appropriate.

The February Foundation 2

Year to 28 February 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

The trustees (who are also directors of The February Foundation for the purposes of company law) are accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the income and expenditure of the Foundation for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation 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 Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The February Foundation 3

Year to 28 February 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

(continued)

The trustees are responsible for the maintenance and integrity of financial information included on the Foundation preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Key management personnel

The trustees consider that the board of trustees and Chief Executive comprise the key management personnel in charge of directing and controlling, running and operating the Foundation on a day to day basis.

The trustees give their time freely and no trustee received remuneration in the year.

The pay of the Chief Executive is reviewed annually by the trustees.

Organisation

The trustees are ultimately responsible for the policies, activities and assets of the Foundation. They meet formally at least twice a year. The trustees must approve any grants made by the Foundation before such grants are made.

The main functions of the Chief Executive comprise the following:

providing administrative and secretarial support to the trustees;

The February Foundation 4

Year to 28 February 2023

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES

Charitable objectives and activities

as follows:

The Foundation makes grants to a range of charities and charitable activities in accordance in the 2021/22 financial year and decided to continue with the policy of exclusions. These are detailed in the grant making policy section of this report.

Public benefit

charitable purposes in the Charities Act 2011, and, in particular, the relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage, the advancement of education, the advancement of the arts, culture, and heritage.

Grant applications for any charitable purpose are considered by the trustees. To date, all grants have been awarded to registered charities, and the beneficiaries are those of the recipient charities. The charities supported by the Foundation during this financial year are active in end-of-life care, healthcare and patient support and education.

Grant making policy

In the year under review, the following grant making policy applied:

The trustees will normally award grants to registered charities.

The trustees will consider grants for:

The February Foundation 5

Year to 28 February 2023

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Grant making policy (continued)

charities whose charitable objectives are aligned with those of the Foundation.

The trustees will not consider grants for:

The February Foundation 6

Year to 28 February 2023

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Grant making policy (continued)

Exceptions to this exclusions policy will be reviewed on a case-by-case basis in the light of the status of the applicant, its organisational structure (for example was it established for philanthropic and benevolent purposes), and the purpose of the grant.

There is no minimum grant. The average grant is usually £5,000 per award, but this is reviewed on a case-by-case basis. Terms and conditions for grants will be discussed and drafted by the trustees on a case-by-case basis. The trustees may decide to award grants without any accompanying conditions.

Investment policy

The Foundation has a portfolio of investments with Investec and UBS which had a market value of £84,717,279 including cash held by the investment managers, at 28 February 2023 (2022 - £84,162,804).

The investment policy of the Foundation is to seek a balanced return from capital growth over the medium term.

The investment portfolio policy is:

The February Foundation 7

Year to 28 February 2023

require that these should be managed by maintaining a spread of investments which give a low to medium risk portfolio.

The trustees seek the investment managers to be custodians of the investment portfolio. It

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Investment policy (continued)

Periodic meetings are held with the investment managers who provide the trustees with reports for the preceding half-year.

The trustees seek to minimise risk by:

monitoring and periodically reviewing the performance of the investment managers;

STRATEGIC REPORT

Achievements and performance

Review of activities

In the year under review, the Third Sector was hit by a perfect storm of the continuing covid19 pandemic (albeit at a reduced level of cases) and the cost-of-living crisis. Although the Foundation did not reintroduce the weekly emergency funding measures it applied during the first lockdowns, the trustees focused on balancing funding priorities directly related to these crises and fulfilling existing commitments.

The Foundation therefore continued its standard applications process with a maximum 12grants (in terms of number of grants made) were once again core cost grants, as these are the most flexible types of grant to make, especially in a constantly changing environment for charities. continued in order to ensure that granted funds would be applied directly to a wide range of charitable activities which directly benefitted the ultimate stakeholders in recipient charities. Reporting requirements and criteria remained flexible in recognition of immense pressure on all charities and their staff. It is important to note here again that reporting requirements can never be entirely removed, as recipient charities and funders quite rightly remain publicly accountable and should operate as transparently as possible.

The February Foundation 8

Year to 28 February 2023

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Review of activities (continued)

It is worth restating, as in last year's accounts, that the issue of transparency is one which all charities should bear in mind, especially in relation to accounts presentation, and the communication of part-year financial information to funders. In the year under review, the Foundation retained its requirement for applications to contain additional information in order to overcome the average 9-month lag between the end of financial years and the publishing of audited accounts. The intention of gathering this additional information (which includes that the Foundation can evaluate applications with as much current information as possible to allow informed decision-making by the trustees. Many financial departments continue to be reluctant to provide up to date financial information, a reluctance which hinders their cha Foundation gathers this information confidentially, not in order to compare and contrast applicant charities, but rather to ensure the Foundation has the most current information possible, and also to enable the Foundation to build a complete picture of the context in which charities operate. It is important, not just at a time of crisis, for funders and applicant charities to be as flexible and open as possible.

are their most important support tool in raising funds, providing important contextual information, and that they should therefore be presented clearly and simply, and include as much data and information as possible (such as service user numbers and their comparatives, user feedback data and their comparatives, service delivery successes and difficulties). It is especially important that narratives match the SOFA and the notes to the or replaced by what they actually mean, especially when large numbers are involved. What has become increasingly apparent over the last few years is that the current SORP actually does not encourage consistency in accounts presentation across the Third Sector.

What remains clear is that the Foundation is in a strong position, both financially and procedurally, to be able to quickly and effectively support its core constituencies. The n its means, and to offer not only financial support but also advice to those charities it deals with. This vision continues to prove its value as the funding landscape becomes increasingly difficult and challenging.

The February Foundation 9

Year to 28 February 2023

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Review of activities (continued)

The Foundation continued to structure its giving in an informed manner, with in-depth research on applications, and extensive due diligence on significant projects. In the year under review, 661 charities were evaluated (compared to 651 in the previous year), which had either applied to the Foundation, or which were selected by the Foundation as potential candidates for funding. This very small 1.5% increase in applications reflects not just that environment, but also that the level of applications was already very high. A note of caution, though - at the time of writing, the Foundation has seen a 38% increase in applications yearon-year, emphasising how covid and the cost-of-living crisis combined are creating more need than ever.

The suspicion that funding to charities would seriously drop off in 2021/22 was confirmed, as most covid emergency funding from government and non-specialised funders entirely ceased. This, along with the beginning of the cost-of-living crisis, manifested in significant reductions in overall income for many charities, and adversely affected particularly small and medium-sized charities which had also not appeared to benefit as significantly from covid emergency funding as larger charities. As a result, whilst we had predicted in last year's report that 2022/23 and 2023/24 would see an increasingly difficult funding landscape, it is now fair to say that these adverse funding conditions will continue for a very long time.

Whilst a majority of applications and approaches to the Foundation in the year under review continued to be focused, well-targeted, complex, and intelligent, and based on thorough research of potential funders, and demonstrated sound financial management and significant beneficial soft and hard outcomes for their stakeholders, the number of applications which did not did not exhibit these qualities unfortunately increased again. guidelines, or did not adhere to guidelines provided directly by the Foundation in response to phone and email enquiries.

At this juncture it is important to say that we appreciate that fundraising is a thankless task, especially in the current environment, and that we are painfully aware of fundraising departments being under almost unbearable pressure. This is why our application guidelines are concise and precise as we want to give fundraisers as much guidance as possible which might also support them in making successful applications to other funders.

In the year under review, 27.5% of applications were successful, down from 29.0% in 2021/22, and 37.1% in 2020/21, but still higher than the 23.1% success rate in 2019/20. 3.0% of applications to the Foundation were ineligible to apply (compared to 2.9% in the previous year).

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Year to 28 February 2023

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Review of activities (continued)

remained below budget. The main

reasons for this, in addition to those outlined above, were:

the failure of some grant recipients to reach maximum matched funding levels;

At this point it is worth reiterating that it is important, especially in times of severe crisis, for applicant charities to present cogent cases for funding, including those beneficial soft and hard outcomes referred to above, not because funders want to make grants from a position of power, but because funders need as much relevant information as possible to make effective and good funding decisions.

potential grant recipients which are engaged in projects that the Foundation considers to be significantly innovative and with the potential of having enduring impact, usually nationally. Any such grants, once agreed, are usually subject to confidentiality clauses unless the Foundation considers publicity for such grants to increase their potential reach and impact. Large grants are usually a mix of matched funding and funding dependent on the achievement of key performance indicators agreed by recipient charities and the Foundation.

The Foundation continued its progress towards becoming a wholly paperless organisation in the year under review, with only 3.2% of incoming applications and correspondence on paper, compared to 3.9% in the previous year, 5.5% in 2020/21, 10.8% in 2019/20, and 40.1% in 2017/18. This reduction continues the trend towards greater use of technology and homeworking as a norm. Electronic communications enable the Foundation to respond with great speed and effectiveness to all applicant charities. It is worth noting that many hardcopy applications come from larger charities, which should have the resources to make electronic applications.

Governance Handbook in its entirety.

The February Foundation 11

Year to 28 February 2023

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Grants made

6,495,719. Grants payable represent 209 grants made to 200 charitable organisations. Of this total, £3,067,630 of grants were existing matched funding commitments, where conditions had been met in the 2022/23 financial year.

Education

The Foundation paid eight grants totalling £5,096,635 to two organisations, of which £2.5m was a multi-year grant commitment that had been recognised as a grant expense in 2021/22. The remainder of these grants were under commitments made in previous years, where conditions were met in the year under review.

trustees believe that the grant commitments they have made in this area now create a pathway from Reception to undergraduate level for low-income students to access highquality education, which is entirely in line with their objectives in this area. The Foundation is not accepting new applications in this area.

End-of-life care

The Foundation paid 77 grants totalling £434,582 to 77 organisations.

The Foundation remains committed to supporting end-of-life care at the grassroots level, mainly in a hospice or hospice-at-home context, with an increased emphasis on operating and core costs to give more flexibility for grantee charities.

End-of-life care was disproportionately affected by covid-19, and is being significantly adversely affected by the cost-of-living crisis, especially by rising energy prices. The trustees are cognisant of the fact that hospices continue to see an increase in demand as a result of covid-19, as well as a very high number of patients at the very end of life due to many diagnoses and treatments being delayed due to the exceptional additional pressure put on the NHS by external factors including but not limited to covid-19.

Heritage

The Foundation made two grants totalling £23,195 to one organisation in the heritage sector in the year under review. These grants were under commitments made in previous years. Whilst cognisant of the fact that heritage and culture organisations are being significantly affected by the current economic climate, the trustees considered other health and social care related areas a greater priority.

Healthcare and patient support

The Foundation paid 84 grants totalling £762,468 to 82 organisations.

The Foundation makes grants to charities which support the ill, and the physically and mentally disabled, to empower them to improve the quality of their lives, and to seek to live as independently as possible.

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Year to 28 February 2023

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Grants made

Healthcare and patient support (continued)

Although demand across national helplines offering patient support and information reduced after rising disproportionately at the height of covid-19, call levels for most helplines remained at significantly elevated volumes compared to pre-pandemic levels. Many of the grants made in the year under review were therefore to maintain the capacity of national helplines.

Other

The Foundation made 38 grants totalling £193,339 to 36 organisations either not included in the areas above, or overlapping the areas above. Most of these grants were towards independent food banks or charities for the homeless or those at risk of becoming homeless, and supported either core costs or specific projects to empower service users to improve their quality of life.

Measuring impact

There are so many different definitions on impact measurement in The Third Sector that it is impossible to arrive at a benchmark for best practice.

The Foundation asks its grant recipients to provide a 1-month and a 6-month report not only on the spending of the grants received, but also on the activities of grant recipients as a whole. This approach ensures contextual reporting rather than looking at one single project

In addition, during the evaluation of applications, the Foundation looks closely not just at quality of life benefits. What this front-loaded approach achieves is to balance hard outcomes (financial, data from impact measures such as GAD-7 and PHQ-9, WarwickEdinburgh Mental Wellbeing Scales, and similar) with soft outcomes (quality of life, serviceuser-defined improvements in physical and mental wellbeing), which establishes during the application process whether or not any applicant charity is being impactful. Financial data and performance give a view on the quality of management and efficiency of charities, whilst soft outcomes (including anecdotal evidence) provide an insight into the real impact charities have on the lives of their service users, who are the ultimate stakeholders of all charities, including trusts and foundations.

The gathering of information pre-application, combined with post-grant reporting, allows the Foundation to make judgements on impact on a case-by-case basis, and the trustees feel eficial impact for the ultimate stakeholders of recipient charities.

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Year to 28 February 2023

STRATEGIC REPORT (continued)

Future plans

that it is important for the Foundation to be open to applications across a range of charitable activities rather than focusing on one area to the exclusion of all others.

The Foundation will continue with this approach for the year ending 28 February 2024, with a focus on maintaining its current maximum 12-week application processing time. The trustees are cognisant of the fact that this approach has historically translated to a relatively low success rate for applicants, and that it also ensures lasting impact. The trustees are also aware of the fact that the cost-of-living crisis and the possible re-emergence of significant levels of covid-19 may require an introduction of emergency measures. They will therefore review the economic and health situation on a frequent and regular basis.

The Foundation's strategy is to be a proactive grant maker which seeks to anticipate need and changes in the charitable sector, as well as responding quickly, effectively, and appropriately to crises. In addition, the Foundation wishes to continue its support of the community-based palliative care sector. In essence, this means that the trustees will continue to make difficult decisions on a monthly basis with due regard to their ongoing commitments.

Looking ahead, the Foundation plans to maintain its strategy of funding grants and operations through income generated from the endowment alone. With this in mind, the trustees have again reviewed the Foundation's grant-making policy, and have determined that, for the financial year ending 28 February 2024, they will continue with the broad grantmaking policy outlined on pages 6 to 7 of this report.

restructured it. The following organisations are therefore not eligible to apply for grants:

The February Foundation 14

Year to 28 February 2023

STRATEGIC REPORT (continued)

Future plans (continued)

Exceptions to this exclusions policy will be reviewed on a case-by-case basis in the light of the status of the applicant, its organisational structure (for example was it established for philanthropic and benevolent purposes), and the purpose of the grant.

Looking further ahead, the Foundation will continue to research existing charities in addition to continuing to consider unsolicited applications within the policy.

The trustees discuss the Foundation's grant-making policy on an ongoing basis, and believe that their wide discretion allows the Foundation to be both innovative and supportive of a large variety of charitable projects and bodies, and that this continues to facilitate the . The Foundation will continue its strategy to become an entirely paperless organisation, and will continue to strongly encourage applicant charities to submit their applications by email rather than by post, with the aim of reducing hardcopy applications and correspondence to 2.5% of all incoming applications and correspondence compared to the 3.2% in the year under review. The beneficial impacts for applicant charities diligence, the ability to create a blueprint for successful applications processes not just in relation to the Foundation, as well as an increase in environmental responsibility. For the Foundation, the beneficial impacts include increased responsiveness, the ability to maintain transparency and speed of response.

Risk management

The trustees believe that by monitoring reserve levels and ensuring that controls exist over key financial systems, and by examining from time to time the operational risks faced by the Foundation and its grant giving activities, that they have established effective systems to mitigate the major risks to which the Foundation is exposed.

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Year to 28 February 2023

STRATEGIC REPORT (continued)

Risk management (continued)

The principal risks faced by the Foundation are as follows:

Financial sustainability (including covid-19);

Financial sustainability (including covid-19)

The key elements in managing financial sustainability are a regular review of available funds with which to meet current and future grant commitments, regular liaison with investment managers and the bank, and monthly reporting of performance against budget for income and expenditure. In addition, financial risk is mitigated by processes which ensure that all financial instructions are approved by at least two trustees.

In the year under review, markets remained volatile, but in the year under review was almost unchanged compared to the previous year. The trustees are confident -liquidity holdings

Ineffective grant making

The key elements in managing effective grant making are rigorous evaluation of all grant applications (including the process outlined in the Measuring Impact section of this report), robust reporting requirements which need to be fulfilled by grant recipients. Risks are mitigated by a monthly review by the trustees of grant making, recipient reporting, and grant applications.

Investment management

The key elements in effective investment management are a trustee body with a skill set appropriate to evaluating investment performance, the engagement of professional investment managers with a significant and successful track record, monthly reviews of investment performance, and regular meetings with investment managers and the bank.

In order to ensure best practice and continuous improvement, the trustees review the

The February Foundation 16

Year to 28 February 2023

Statement of Trustees' Responsibilities

The Trustees (who in this reporting period are also directors of The February Foundation for the purposes of company law) are responsible for preparing the report and 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 period which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.

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

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The February Foundation 17

Year to 28 February 2023

Statement of Trustees' Responsibilities (continued)

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The above report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Signed on behalf of the trustees:

Trustee James Carleton

Approved by the trustees on

The February Foundation 18

Year to 28 February 2023

Opinion

the year ended 28 February 2023 which comprise the statement of financial activities, the balance sheet, statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including applicable in the UK and Republic of (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) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the accounts 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 charitable company months from when the accounts are authorised for issue.

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

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Year to 28 February 2023

Other information

The trustees are responsible for the other information. The other information comprises the report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the including the strategic report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Year to 28 February 2023

Responsibilities of trustees

As explained more fully in the responsibilities statement, the trustees 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 charitable going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

A further description of our responsibilities for the audit of the accounts is located on the www.frc.org.uk/auditorsresponsibilities. This

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Year to 28 February 2023

Use of our report

This report is made with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Katharine Patel (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

28 November 2023

The February Foundation 22

Statement of financial activities Year ended 28 February 2023

(Including income and expenditure account)

Notes Unrestricted
funds
£		 Unrestricted
funds
£		 Expendable
endowment
£		 Total
2023
£		 Unrestricted
funds
£		 Expendable
endowment
£		 Total
2022
£
Income from:
Donations
Investments
1
Total income
Expenditure on:
Investment management costs
Charitable activities
2
Total expenditure
Net (expenditure) / income before
gains / (losses) on investments
Net gains /(losses) on investments
6
. Realised on sale
. Unrealised: changes in market value
Transfer between funds
11
Net (expenditure) / incomeand net
movement in funds for the year
Fund balances brought forward at
1 March 2022
10
Fund balances carried forward at
28 February 2023
10		 4,209,186 2,971,270 2,971,270
4,209,186		 4,099,572 8,665,168 8,665,168
4,099,572
4,209,186 2,971,270 7,180,456 4,099,572 8,665,168 12,764,740
4,243,962 118,689 118,689
4,234,962		 27,280,615 128,908 128,908
27,280,615
4,243,962 118,689 4,362,651 27,280,615 128,908 27,409,523
(34,776) 2,852,581 2,817,805 (23,181,043) 8,536,260 (14,644,783)
(1,338,889)
3,608,823		 (1,338,889)
3,608,823		 517,472
(32,539,030)		 517,472
(32,539,030)
2,269,934 2,269,934 (32,021,558) (32,021,558)
25,000,000 (25,000,000)
(34,776)
16,777,976		 5,122,515
54,068,899		 5,087,739
70,846,875		 1,818,957 (48,485,298) (46,666,341)
14,959,019 102,554,197 117,513,216
16,743,200 59,191,414 75,934,614
16,777,976 54,068,899 70,846,875

All income and expenditure is derived from continuing activities. The statement of financial activities includes all gains and losses recognised in the year.

The February Foundation 23

Balance sheet as at 28 February 2023

Notes 2023
£		 2023
£		 2022
£		 2022
£
Fixed assets
Investments
6
Current assets
Debtors
7
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within
one year
8
Net current assets
Total assets less current liabilities
Non-current liabilities
Creditors: amounts falling due
after one year
8
Net assets
The funds of the Foundation
10
Funds and reserves
Capital funds
Expendable endowment
Income funds
Unrestricted funds		 94,414
5,982,683		 86,717,279
3,506,635
84,162,804
73,578
5,858,992
6,077,097
(2,570,462)		 5,932,570
(2,571,499)
3,361,071
90,223,914
(14,289,300)		 87,523,875
(16,677,000)
75,934,614 70,846,875
59,191,414
16,743,200
54,068,899
16,777,976
75,934,614 70,846,875

Approved by the trustees and signed on their behalf by:

Trustee James Carleton

Approved on:

The February Foundation

Company Registration Number: 05718135 (England and Wales)

The February Foundation 24

Statement of cash flows Year ended 28 February 2023

----- Start of picture text -----
2023 2022
Notes £ £
Cash flows from operating activities:
Net cash (used in) provided by operating activities A (3,780,118) 414,993
Cash flows from investing activities:
Dividends and interest from investments 4,188,350 4,083,237
Proceeds from the disposal of investments 14,153,456 6,805,149
Purchase of investments (15,286,650) (9,665,999)
Net cash provided by investing activities 3,058,118 1,222,387
Change in cash and cash equivalents in the year (722,000) 1,637,380
Cash and cash equivalents at 1 March 2022 B 7,560,066 5,922,686
Cash and cash equivalents at 28 February 2023 B 6,838,594 7,560,066
Notes to the statement of cash flows
A Reconciliation of net movement in funds to net cash (used in) / provided by operating
activities
2023 2022
£ £
Net income/ (expenditure) (as per the statement of financial
activities) 5,087,739 (46,666,341)
Adjustments for:
(Gain) / loss on investments (2,269,934) 32,021,558
Dividends and interest from investments (4,209,186) (4,099,572)
(Decrease) / increase in creditors (2,388,737) 19,159,348
Net cash (used in) / provided by operating activities (3,780,118) 414,993
B Analysis of cash and cash equivalents
2023 2022
£ £
Cash at bank and in hand 5,982,683 5,858,992
Cash held by investment managers (note 6) 855,911 1,701,074
Total cash and cash equivalents 6,838,594 7,560,066
----- End of picture text -----

The February Foundation 25

Principal accounting policies Year ended 28 February 2023

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 28 February 2023.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) and the Charities Act 2011. The financial statements have been prepared under the historical cost convention except for the modification to a fair value basis as specified in the accounting policies below.

The Foundation constitutes a public benefit entity as defined by FRS 102.

All financial information is presented in British Pounds Sterling (£), the Foundation functional currency, and has been rounded to the nearest pound (£).

Critical accounting estimates and areas of judgement

The preparation of financial statements requires the use of certain critical accounting estimates and judgements. It also requires the trustees to exercise judgement in the process of applying accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including an expectation of future events that are believed to be reasonable under the circumstances. Although these results may differ from those estimates.

Areas requiring the use of estimates and critical judgements that may impact on the Foundation :

Assessment of going concern

The trustees of the Foundation have not identified any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern.

The February Foundation 26

Principal accounting policies Year ended 28 February 2023

Assessment of going concern (continued)

The trustees consider that through the investment portfolio together with the returns on investments, provide sufficient funding to meet the anticipated grant commitments for the ensuing year and its long term grant commitments.

Income

Income from donations is recognised in the period in which the Foundation becomes entitled to the donation and where receipt is probable and its amount can be measured reliably.

Investment income comprises dividends and interest on the Foundation investments. Dividends are recognised once the dividend has been declared and the Foundation has received notification that the dividend is due.

Interest on the Foundation when receipt is probable and the amount can be measured reliably using the effective interest method.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It includes VAT which cannot be recovered.

Expenditure on charitable activities comprises grants payable and related support and governance costs.

Grants payable

Grants payable are recognised when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions.

Long term grants payable are initially recognised at present value with the discount and subsequent unwinding of the discount being credited or charged to the statement of financial activities as grant expenditure within charitable activities.

Grants are not recognised as payable but noted as financial commitments in the notes to the financial statements under the following circumstances:

Where the beneficiary has not been informed; or

Where the amount and timing of matched funding payments is uncertain.

The February Foundation 27

Principal accounting policies Year ended 28 February 2023

Expenditure (continued)

Support and governance costs

Support costs are those functions that assist the work of the Foundation but do not directly undertake charitable activities. Support costs include administration, personnel and governance costs. Governance costs include audit costs and legal costs relating to the Foundation

Investment management fees

Investment management fees incurred in managing the investments of the endowment are charged against the endowment fund.

Fixed asset investments

The Foundation measured at cost and subsequently at market value. Investment gains and losses, whether realised or unrealised, are recognised in the statement of financial activities in the period in which they arise.

Financial instruments

The Foundation only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the Foundation and their measurement basis are as follows:

Financial assets accrued income is a basic financial instruments and are measured at amortised cost as detailed in note 7.

Cash at bank is classified as a basic financial instrument and is measured at face value.

Financial liabilities ~~a~~ ccrued expenses and grants payable are financial instruments, and are measured at amortised cost or fair value (discounted for the time value of money) as detailed in note 9.

Financial assets and liabilities

Financial assets and financial liabilities are recognised in the balance sheet when the Foundation becomes party to the contractual provisions of the instrument.

Debtors

Accrued income is initially recognised at the settlement amount and subsequently at amortised cost or their recoverable amount.

The February Foundation 28

Principal accounting policies Year ended 28 February 2023

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be measured or estimated reliably.

Creditors and provisions are initially recognised at fair value, being the amount the Foundation anticipates it will pay to settle the debt, and subsequently at amortised cost.

Non-current creditors are measured at their present value at the balance sheet date where the time value of money is material. The initial recognition of the discount and its subsequent unwinding are credited or charged in the statement of financial activities to the appropriate income or expenditure heading. The discount rate applied is based on the opportunity cost of income from investments foregone.

Pension costs

the statement of financial activities in the year in which they are payable to the scheme.

Fund accounting

The expendable endowment funds represent the capital funds of the Foundation which can be drawn upon if required.

The unrestricted funds represent funds available for the general charitable purposes of the Foundation at the discretion of the trustees.

The February Foundation 29

Notes to the financial statements 28 February 2023

1 Investment income

Investment income
2023
£		 2022
£
Dividends on investments
Interest on cash holdings		 4,125,409
83,777
4,209,186		 4,096,229
3,343
4,099,572

2 Expenditure on charitable activities

----- Start of picture text -----
2023 2022
£ £
Grants to institutions by category :
. Education 2,697,935 25,582,025
. Healthcare and patient support 762,468 916,578
. End-of-life care 434,582 490,204
. Other categories 216,534 134,575
Total grants payable 4,111,519 27,123,382
Grant and Foundation administrative expenses including governance
costs (note 3) 132,443 157,233
4,243,962 27,280,615
----- End of picture text -----

The trustees awarded grants to 200 charitable institutions in the year ended 28 February 2023 (2022 - 200). The trustees consider that the disclosure of specific material grants to institutions could seriously prejudice the furtherance of the purposes of the Foundation.

A reconciliation of the grants payable and commitments shown in these financial statements is as follows:

----- Start of picture text -----
2023 2022
£ £
Grants payable at 1 March 2022 (note 8) 19,209,500 57,500
Grants made during the year 4,111,519 27,123,382
Grants paid in the year (6,495,719) (7,971,382)
Grants payable at 28 February 2023 (note 8) 16,825,300 19,209,500
The above grants commitments fall due as follows:
Within one year (note 8) 2,536,000 2,532,500
After one year (note 8) 14,289,300 16,677,000
16,825,300 19,209,500
----- End of picture text -----

The February Foundation 30

Notes to the financial statements 28 February 2023

3 Governance costs

----- Start of picture text -----
2023 2022
£ £
Fees payable to the auditor:
Statutory audit 13,200 12,720
Taxation services 2,580 2,460
Payroll services 2,976 2,864
Other advisory services 1,200 900
19,956 18,944
----- End of picture text -----

4 Staff costs including key management personnel and trustees remuneration

----- Start of picture text -----
2023 2022
£ £
Staff costs comprise:
Wages and salaries 87,000 87,000
Social security costs 6,322 7,776
Pension costs 6,525 6,525
Medical insurance 1,687 1,687
101,534 102,988
----- End of picture text -----

The average monthly number of persons (including key management personnel) employed by the charitable company during the year on a full time equivalent basis was one (2022 - one).

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Foundation and are represented by the trustees and the Chief Executive. The remuneration paid to the Chief Executive is as set out above.

The trustees received no remuneration (2022 - none) and were not reimbursed for any expenses (2022 - none).

5 Taxation

The February Foundation is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

The February Foundation 31

Notes to the financial statements 28 February 2023

6 Fixed asset investments

At the year-end, fixed asset investments comprised the following investments and cash held for investment:

----- Start of picture text -----
Total Total
2023 2022
£ £
Market value of investments at 1 March 2022 82,461,730 111,622,438
Additions 15,286,650 9,665,999
Disposals (proceeds £14,153,456: realised losses £1,342,379) (15,495,835) (6,287,677)
Unrealised gains / (losses) in the year 3,608,823 (32,539,030)
Market value of investments at 28 February 2023 85,861,368 82,461,730
Cash held for reinvestment 855,911 1,701,074
86,717,279 84,162,804
Historic cost of investments at 28 February 2023 31,205,672 31,414,857
The market value of investments at 28 February 2023 comprises:
UK listed 58,474,135 58,799,745
UK fixed interest stock 8,193,524 9,038,631
Overseas listed 14,600,382 10,757,462
Overseas fixed interest 1,140,711 575,102
Alternatives 1,800,237 1,413,642
Property 1,652,379 1,877,148
Cash held for reinvestment 855,911 1,701,074
86,717,279 84,162,804
----- End of picture text -----

7 Debtors

Debtors
2023
£		 2022
£
Due within one year
Accrued investment income		 94,414 73,578
94,414 73,578

The February Foundation 32

Notes to the financial statements 28 February 2023

8. Creditors

Creditors
2023
£		 2022
£
Due within one year
Accrued expenses
Grants payable
Due after more than one year
Grants payable
Total creditors		 34,462
2,536,000		 38,999
2,532,500
2,570,462 2,571,499
14,289,300 16,677,000
16,859,762 20,733,899

Grants payable after one year have been recognised at net present value to reflect the time value of money. The value of grants payable, before discounting, at 28 February 2023 was £20,047,000 (2022 - £22,532,500)

9. Financial instruments and financial risk management

The Foundation holds financial instrument measured at amortised cost or fair value as follows:

2023
£		 2022
£
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial liabilities measured at fair value		 93,414
2,581,462
14,278,300		 73,578
2,571,499
16,677,000

The Foundation has exposure to one main area of risk, liquidity risk.

Liquidity risk

The objective of the Foundation in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The Foundation seeks to meet its financial obligations through cash flows from its investment portfolio. In the event that the cash flows would not cover all the financial liabilities, the charity has sufficient cash reserves available to meet any shortfall.

The February Foundation 33

Notes to the financial statements 28 February 2023

10. Analysis of net assets between funds

----- Start of picture text -----
Expendable Unrestricted Total
endowment funds 2023
£ £ £
Fund balances at 28 February 2023
are represented by:
Investments 59,191,414 27,525,865 86,717,279
Current assets 6,077,097 6,077,097
Creditors: amounts falling due within one year (2,570,462) (2,570,462)
Creditors: amounts falling due after one year (14,289,300) (14,289,300)
Total net assets 59,191,414 16,743,200 75,934,614
Expendable Unrestricted Total
endowment funds 2022
£ £ £
Fund balances at 28 February 2022
are represented by:
Investments 54,068,899 30,093,905 84,162,804
Current assets 5,932,570 5,932,570
Creditors: amounts falling due within one year (2,571,499) (2,571,499)
Creditors: amounts falling due after one year (16,677,000) (16,677,000)
Total net assets 54,068,899 16,777,976 70,846,875
----- End of picture text -----

11. Transfers between funds

In the 2021/22 financial year the Foundation approved a significant unconditional grant of £22.5m payable in annual instalments to 2030/31. The grant existing unrestricted income fund and, in order to ensure that sufficient unrestricted income funds were available to meet all known grant commitments, the Foundation made a transfer from the expendable endowment fund to the unrestricted funds of £25,000,000 which the trustees considered

No transfer was considered necessary in the 2022/23 financial year.

The February Foundation 34

Notes to the financial statements 28 February 2023

12. Grant funding commitments

At 28 February 2023, the trustees had approved the following grants which will not be paid to the recipient unless and until either matched funding is obtained by the recipient before the agreement expires or conditions attached to the agreement are fulfilled by the recipient.

These amounts have not been recognised as a liability in the balance sheet.

Education
£		 Healthcare
and patient
support
£		 End-of-
Life
Care
£		 Other
£		 Total
£
Maximum commitment at
1 March 2022
Paid in year
New/(lapsed) commitments
Maximum commitment at
28 February 2023		 12,815,500
(2,600,135)
(217,641)
9,997,724		 459,000
(176,151)
(228,849)
54,000		 92,500
(39,300)
31,800
85,000		 82,500
(20,696)
(61,804)		 13,442,892
(2,836,281)
(446,490)
10,136,724
Education
£		 Healthcare
and patient
support
£		 End-of-
Life
Care
£		 Other
£		 Total
£
Maximum commitment at
1 March 2021
Paid in year
New/(lapsed) commitments
Maximum commitment at
28 February 2022		 2,565,000
(930,024)
11,180,524
12,815,500		 1,164,892
(535,892)
(170,000)
459,000		 60,000
(30,000)
62,500
92,500		 100,000
(22,500)
5,000
82,500		 3,889,892
(1,518,416)
11,071,416
13,442,892

Matched and conditional funding commitments are available under agreements which expire between 2023/24 and 2026/7.

13. Related parties

The Foundation did not enter into any transactions with related parties during the financial year (2022 None)

The February Foundation 35