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← The February Foundation

2024-02-29-accounts

The February Foundation

Annual Report and Financial Statements

29 February 2024

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

Contents

Reports

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 29 February 2024

The trustees present their statutory report together with the financial statements of The February Foundation for the year to 29 February 2024. 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 policy, and a copy of othe

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 29 February 2024

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 29 February 2024

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 29 February 2024

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES

Charitable objectives and activities

as follows:

r purposes as shall be

The Foundation makes grants to a range of charities and charitable activities in accordance

The truste in the 2022/23 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

The trustees confirm that they have referre making policy.

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 new applications from:

The February Foundation 5

Year to 29 February 2024

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 new applications from:

Animal charities (except those involving therapy or sport for the disabled);

The February Foundation 6

Year to 29 February 2024

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 £79,373,785 including cash held by the investment managers, at 29 February 2024 (2023 - £84,717,279).

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 29 February 2024

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Investment policy (continued)

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 y to produce a balanced investment strategy.

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;

investing in bonds which are mainly rated A to AAA;

The February Foundation 8

Year to 29 February 2024

STRATEGIC REPORT

Achievements and performance

Review of activities

In the year under review, the Third Sector continued to struggle with the cost-of-living crisis and high incidences of covid-19 amongst healthcare staff against a background of enduring national staff shortages. Despite inflation growth slowing, fixed overhead costs continued to rise disproportionately for the whole of the sector, particularly affecting small to mediumsized charities, and the historically underfunded hospice sector. The trustees focused on balancing the funding priorities directly related to these issues and fulfilling existing commitments.

The Foundation continued its standard applications process with a maximum 12-week response time, and monthly grant distributions. In terms of the number of Foundation grants made, core and operating cost grants accounted for 25%, reducing from over 50% in the previous year, mainly as a result of applications focusing on specific projects which were underfunded due to the worsening economic climate. Although core and operating cost grants remain the most flexible types of grant, especially in a constantly changing environment for charities, it was encouraging to see successful applicant charities with an excluding fundraising costs from core and operating cost grants continued in order to ensure that such grants would directly benefit the ultimate stakeholders in recipient charities. Reporting requirements and criteria remained flexible in recognition of the immense pressures on all charities and their staff. It is important to note, as always, that reporting requirements can never be entirely removed; recipient charities and funders quite rightly remain publicly accountable, and should operate as transparently as possible.

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 a

at the time of application) is to allow informed decision-making by the trustees. It is important once again to emphasise that the Foundation gathers this information confidentially. This information gathering also enables the Foundation to build a complete picture of the context in which charities operate. The trustees do not anticipate changing the requirement for additional information.

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). The inclusion of as much detailed and in-depth information in annual accounts increases the ability of charities to raise funds from all potential funders, not just from the Foundation.

The Foundation remains in a strong position, both financially and procedurally, to be able to quickly and effectively support its core constituencies. Its vision has always been to be a funder of longevity, to spend within 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

The February Foundation 9

Year to 29 February 2024

STRATEGIC REPORT

Achievements and performance

Review of activities (continued)

landscape remains difficult and challenging.

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, 724 charities were evaluated (compared to 662 in the previous year, a 9.0% increase), which had either applied to the Foundation, or which were selected by the Foundation as potential candidates for funding. This significant increase on the back of an already high level of applications is similar to that experienced by funders across the sector, and reflects continuing increasing need, and a persistently difficult funding landscape. The reality here is that one single trust or foundation cannot possibly meet all needs in the sector.

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. did not adhere to the application guidelines provided directly by the Foundation in response to phone and email enquiries. The trustees recognise that often this can be due to the thankless nature of the fundraising task, and the immense pressures on fundraising staff. However, it is always worth considering the value of five minutes of additional research before putting together a

to give fundraisers as much universally-applicable guidance as possible.

In the year under review, 23.9% of applications were successful, down from 27.5% in 2022/23, 29.0% in 2021/22, and 37.1% in 2020/21, but still higher than the 23.1% success rate in 2019/20. 2.8% of applications to the Foundation were ineligible to apply (compared to 3.0% in the previous year).

T ain 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. At the risk of repetition, this is why it is so important to include as much data as possible in applications, to allow funders to make fully informed

The February Foundation 10

Year to 29 February 2024

STRATEGIC REPORT

Achievements and performance

Review of activities (continued)

decisions.

The consideration of larger grants is us 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 conditional 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 2.8% of incoming applications on paper, compared to 3.2% in the previous year, 3.9% in 2021/22, 5.5% in 2020/21, 10.8% in 2019/20, and 40.1% in 2017/18. This reduction continues the trend towards widespread use of technology and homeworking as a norm. Electronic communications enable the Foundation to respond with great speed and effectiveness to all applicant charities. To temper this, however, it should be noted that there was an alarming increase in hardcopy mailshots, reports, and newsletters, which was disappointing.

Finally, in the year under Governance Handbook in its entirety.

Grants made

Grants payable represent 186 grants made to 178 charitable organisations. Of this total, £3,152,838 of grants were existing matched funding commitments, where conditions had been met in the 2023/24 financial year.

Education

The Foundation paid 11 grants totalling £5,530,838 to four organisations. All 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. It is for this reason that the Foundation is not accepting new applications in this area.

End-of-life care

The Foundation paid 83 grants totalling £478,231 to 82 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 recipient charities.

The February Foundation 11

Year to 29 February 2024

STRATEGIC REPORT

Achievements and performance

Review of activities (continued)

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

Heritage

The Foundation made no grants to the heritage sector in the year under review. Whilst cognisant of the fact that heritage and culture organisations are being significantly affected by the current economic climate, the trustees considered health and social care related areas a greater priority. The Foundation is still accepting applications from heritage and culture charities.

Healthcare and patient support (excluding end-of-life care)

The Foundation paid 70 grants totalling £363,507 to 70 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.

Although demand across national helplines offering patient support and information continues to decline in a perceived post-pandemic world, call levels for most helplines remain 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 22 grants totalling £114,783 to 22 organisations either not included in the areas above, or overlapping the areas above.

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 continued discrediting of the effective altruism movement also puts into perspective impact measurement approaches which look solely at value for money outcomes. The Foundation believes that, although basic sound finance and business management principles should guide all charities, every charity is unique, and that evaluating impact has to be on a case-by-case basis.

For this reason, 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 impact.

In addition, during the evaluation of applications, the Foundation looks closely not just at

The February Foundation 12

Year to 29 February 2024

STRATEGIC REPORT

Achievements and performance

Measuring impact (continued)

financial and user 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 for the ultimate stakeholders of recipient charities.

Future plans

The trustees continue to regularly review the breadth of the 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 whilst being cognisant of the fact that not all applications can be supported.

The Foundation will continue with this approach for the year ending 28 February 2025, with a focus on maintaining its current maximum 12-week application processing time. The trustees are cognisant of the fact that this approach, combined with external factors such as overly-high funding ratios and a failure by applicants to follow application guidelines, has historically translated to a relatively low success rate for applicants.

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 2025, they will continue with the broad grantmaking policy outlined on pages 5 to 7 of this report.

They will not

The February Foundation 13

Year to 29 February 2024

STRATEGIC REPORT

Future plans (continued)

consider new applications from:

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

The February Foundation 14

Year to 29 February 2024

STRATEGIC REPORT

Future plans (continued)

compared to the 2.8% in the year under review. The beneficial impacts for applicant charities e 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.

The trustees are very cognisant of the impact AI is having on the world at large, and on the Third Sector in particular. They believe that it is very important that any AI output in any sphere (charitable or not) must be fact-checked and emotion-checked. Whilst it may become acceptable for AI tools thus checked to be useful research tools for applicant charities (and the use of them acknowledged by those charities), the Foundation does not believe that non-human due diligence on charities and their real impact or value will ever be possible or desirable or effective.

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, they have established effective systems to mitigate the major risks to which the Foundation is exposed.

The principal risks faced by the Foundation are as follows:

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.

The February Foundation 15

Year to 29 February 2024

STRATEGIC REPORT

Financial sustainability (including covid-19) (continued)

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), setting grant 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 29 February 2024

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 29 February 2024

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 18/09/2024

The February Foundation 18

Year to 29 February 2024

Opinion

the year ended 29 February 2024 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 are relevant to our audit of the

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.

The February Foundation 19

Year to 29 February 2024

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial 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:

The February Foundation 20

Year to 29 February 2024

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 n, disclosing, as applicable, matters related to 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

The February Foundation 21

Year to 29 February 2024

Use of our report

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

11 November 2024

The February Foundation 22

Statement of financial activities Year ended 29 February 2024

(Including income and expenditure account)

Notes Unrestricted
funds
£		 Unrestricted
funds
£		 Expendable
endowment
£		 Total
2024
£		 Unrestricted
funds
£		 Expendable
endowment
£		 Total
2023
£
Income from:
Donations
Investments
1
Total income
Expenditure on:
Investment management costs
Charitable activities
2
Total expenditure
Net income / (expenditure) before
gains / (losses) on investments
Net (losses) / gains on investments
6
. Realised on sale
. Unrealised: changes in market value
Transfer between funds
11
Net (expenditure) / income and net
movement in funds for the year
Fund balances brought forward at
1 March 2023
10
Fund balances carried forward at
29 February 2024
10		 5,589,528 2,893,032 2,893,032
5,589,528		 4,209,186 2,971,270 2,971,270
4,209,186
5,589,528 2,893,032 8,482,560 4,209,186 2,971,270 7,180,456
4,298,904 126,492 126,492
4,298,904		 4,243,962 118,689 118,689
4,234,962
4,298,904 126,492 4,425,396 4,243,962 118,689 4,362,651
1,290,624 2,766,540 4,057,164 (34,776) 2,852,581 2,817,805
623,219
(11,782,851)		 623,219
(11,782,851)		 (1,338,889)
3,608,823		 (1,338,889)
3,608,823
(11,159,632) (11,159,632) 2,269,934 2,269,934
1,290,624
16,743,200		 (8,393,092)
59,191,414		 (7,102,468)
75,934,614		 (34,776)
16,777,976		 5,122,515
54,068,899		 5,087,739
70,846,875
18,033,824 50,798,322 68,832,146 16,743,200 59,191,414 75,934,614

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 29 February 2024

Notes 2024
£		 2024
£		 2023
£		 2023
£
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		 1,188,466
2,803,058		 79,373,785
1,440,281		 94,414
5,982,683		 86,717,279
3,506,635
3,991,524
(2,551,263)		 6,077,097
(2,570,462)
80,814,046
(11,981,900)		 90,223,914
(14,289,300)
68,832,146 75,934,614
50,798,322
18,033,824
59,191,414
16,743,200
68,832,146 75,934,614

Approved by the trustees and signed on their behalf by:

Trustee James Carleton

Approved on: 18/09/2024

The February Foundation

Company Registration Number: 05718135 (England and Wales)

The February Foundation 24

Statement of cash flows Year ended 29 February 2024

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2024 2023
Notes £ £
Cash flows from operating activities:
Net cash used in operating activities A (3,858,963) (3,780,118)
Cash flows from investing activities:
Dividends and interest from investments 4,495,476 4,188,350
Proceeds from the disposal of investments 6,878,727 14,153,456
Purchase of investments (10,199,836) (15,286,650)
Net cash provided by investing activities 1,174,367 3,058,118
Change in cash and cash equivalents in the year (2,684,596) (722,000)
Cash and cash equivalents at 1 March 2023 B 6,838,594 7,560,066
Cash and cash equivalents at 29 February 2024 B 4,153,998 6,838,594
Notes to the statement of cash flows
A Reconciliation of net movement in funds to net cash used in operating activities
2024 2023
£ £
Net (expenditure) / income (as per the statement of financial
activities) (7102,468) 5,087,739
Adjustments for:
Loss / (Gain) on investments 11,159,632 (2,269,934)
Dividends and interest from investments (5,589,528) (4,209,186)
Decrease in creditors (2,326,599) (2,388,737)
Net cash used in operating activities (3,858,963) (3,780,118)
B Analysis of cash and cash equivalents
2024 2023
£ £
Cash at bank and in hand 2,803,058 5,982,683
Cash held by investment managers (note 6) 1,350,940 855,911
Total cash and cash equivalents 4,153,998 6,838,594
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The February Foundation 25

Principal accounting policies Year ended 29 February 2024

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 29 February 2024.

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 29 February 2024

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 recognised 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 29 February 2024

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 FRS102. Financial assets and liabilities and their recognition and measurement bases are as follows:

Debt instruments that are payable or receivable within one year, typically trade debtors and creditors are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

At the end of each reporting period financial assets are assessed for objective evidence of impairment. If such evidence is identified, an impairment loss is recognised in the statement of financial activities. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an carrying amount and a best estimate of the recoverable amount.

A financial asset is derecognised only when the contractual rights to the cash flows from the financial asset expire or are settled in cash, or when substantially all the risk and rewards of ownership of the financial asset have been transferred to another party.

A financial liability is derecognised when the contract that gives rise to it is settled, sold cancelled or expired..

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 29 February 2024

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 29 February 2024

1 Investment income

Investment income

2024
£
2023
£
Dividends on investments
Interest on cash holdings		 5,520,075
69,453
5,589,528		 4,125,409
83,777
4,209,186

2 Expenditure on charitable activities

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2024 2023
£ £
Grants to institutions by category :
. Education 3,229,438 2,697,935
. Healthcare and patient support 338,507 762,468
. End-of-life care 472,231 434,582
. Other categories 114,783 216,534
Total grants payable 4,154,959 4,111,519
Grant and Foundation administrative expenses including governance
costs (note 3) 143,945 132,443
4,298,904 4,243,962
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The trustees awarded grants to 178 charitable institutions in the year ended 29 February 2024 (2023 - 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:

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2024 2023
£ £
Grants payable at 1 March 2023 (note 8) 16,825,300 19,209,500
Grants made during the year 4,154,959 4,111,519
Grants paid in the year (6,487,359) (6,495,719)
Grants payable at 29 February 2024 (note 8) 14,492,900 16,825,300
The above grants commitments fall due as follows:
Within one year (note 8) 2,511,000 2,536,000
After one year (note 8) 11,981,900 14,289,300
14,492,900 16,825,300
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The February Foundation 30

Notes to the financial statements 29 February 2024

3 Governance costs

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2024 2023
£ £
Fees payable to the auditor:
Statutory audit 16,105 13,200
Taxation services 2,820 2,580
Payroll services 4,656 2,976
Other advisory services 1,200
23,581 19,956
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4 Staff costs including key management personnel and trustees remuneration

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2024 2023
£ £
Staff costs comprise:
Wages and salaries 93,667 87,000
Social security costs 6,671 6,322
Pension costs 7,025 6,525
Medical insurance 1,687 1,687
109,049 101,534
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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 (2023 - 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 (2023 - none) and were not reimbursed for any expenses (2023 - 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 29 February 2024

6 Fixed asset investments

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

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Total Total
2024 2023
£ £
Market value of investments at 1 March 2023 85,861,368 82,461,730
Additions 10,199,836 15,286,650
Disposals (proceeds £6,878,727: realised gains £623,219) (6,255,508) (15,495,835)
Unrealised (losses) / gains in the year (11,782,851) 3,608,823
Market value of investments at 29 February 2024 78,022,845 85,861,368
Cash held for reinvestment 1,350,940 855,911
79,373,785 86,717,279
Historic cost of investments at 29 February 2024 34,292,046 31,205,672
The market value of investments at 29 February 2024 comprises:
UK listed 44,929,689 58,474,135
UK fixed interest stock 12,467,384 8,193,524
Overseas listed 17,279,990 14,600,382
Overseas fixed interest 715,307 1,140,711
Alternatives 1,621,415 1,800,237
Property 1,018,060 1,652,379
Cash held for reinvestment 1,350,940 855,911
79,373,785 86,717,279
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7 Debtors

Debtors
2024
£		 2023
£
Due within one year
Accrued income		 1,188,466 94,414
1,188,466 94,414

The February Foundation 32

Notes to the financial statements 29 February 2024

8. Creditors

Creditors
2024
£		 2023
£
Due within one year
Accrued expenses
Grants payable
Due after more than one year
Grants payable
Total creditors		 40,263
2,511,000		 34,462
2,536,000
2,551,263 2,570,462
11,981,900 14,289,300
14,533,163 16,859,762

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 29 February 2024 was £15,000,000 (2023 - £17,500,000)

9. Financial instruments and financial risk management

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

2024
£		 2023
£
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial liabilities measured at fair value		 1,188,466
2,551,263
11,981,900		 93,414
2,536,000
14,289,300

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 29 February 2024

10. Analysis of net assets between funds

Analysis of net assets between funds

Expendable
endowment
£
Unrestricted
funds
£		 Total
2023
£
79,373,785
3,991,524
(2,551,263)
(11,981,900)
68,832,146
Fund balances at 29 February 2024
are represented by:
Investments

Current assets
Creditors: amounts falling due within one year
Creditors: amounts falling due after one year
Total net assets
 50,798,322
50,798,322		 28,575,463
3,991,524
(2,551,263)
(11,981,900)
18,033,824

Expendable
endowment
£
Unrestricted
funds
£		 Total
2023
£
86,717,279
6,077,097
(2,570,462)
(14,289,300)
75,934,614
Fund balances at 28 February 2023
are represented by:
Investments

Current assets
Creditors: amounts falling due within one year
Creditors: amounts falling due after one year
Total net assets
 59,191,414
59,191,414		 27,525,865
6,077,097
(2,570,462)
(14,289,300)
16,743,200

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 nown grant commitments.

No transfer was considered necessary in the 2023/24 financial year.

The February Foundation 34

Notes to the financial statements 29 February 2024

12. Grant funding commitments

At 29 February 2024, 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.

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Healthcare End-of-
and patient Life
Education support Care Other Total
£ £ £ £ £
Maximum commitment at 9,997,724 54,000 85,000 10,136,724
1 March 2023
Paid in year (3,030,837) (65,000) (3,095,837)
New/(lapsed) commitments (168,043) 48,000 (150,043)
Maximum commitment at
29 February 2024 6,798,844 102,000 20,000 6,920,844
Healthcare End-of-
and patient Life
Education support Care Other Total
£ £ £ £ £
Maximum commitment at 12,815,500 459,000 92,500 82,500 13,442,892
1 March 2022
Paid in year (2,600,135) (176,151) (39,300) (20,696) (2,836,281)
New/(lapsed) commitments (217,641) (228,849) 31,800 (61,804) (446,490)
Maximum commitment at
28 February 2023 9,997,724 54,000 85,000 10,136,724
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Matched and conditional funding commitments are available under agreements which expire between 2024/25 and 2026/7.

13. Related parties

The Foundation did not enter into any transactions with related parties during the financial year (2023 None).

The February Foundation 35