Reglsterèd number-. 05834838 CharSty number.. 1114574 FRANKS FAMILY FOUNDATION (A Company Limited by Guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 FRANKS FAMILY FOUNDATION IA Company Limited by Guayantèal REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021 Trustees G Avshalom S E Franks D V Dorrell Lord Mendelsohn C F Hodler HRH Princess Beatrice ol York Company registered number 05834838 Reglstered office OnNell House 5th Floor 16-18 Berners Street London W1T 3LN Company secretary S L Haynes Independent Auditors Blick Rolhenberg Audil LLP Chartered A¢¢ounlants 16 Creal Queen Sfreel Covent Garden London WC2B SAH Bank6rs Coults & Co 440 Strand London WC2R OQS Page 1 FRANKS FAMILY FOUNDATION (A Company Llmitèd by Guarantee) CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021 I started my report last ye8r by saying that 2020 was a year many of us would like to forget. 2021 didn't gel much better. My 202Q report also said the following. The impaol of the Covid pandemic was fell lar and wide and our projects in South East Asia did not escape. The fear of the Pandemic running rile through lesser developed countries with very much less developed publi¢ health systems, was high. The corresponding severity of lock downs reflected this level of fear. The three m8in countries we operate in, Cambodia, Laos and Nepal have all witnessed protracted lock downs which have significantly hampered our pro9rams." Sadly, the lockdowns and boréer closures ¢ontinued all though 2021 and into 2022 and our programs continued lo be hampered. That said, in Cambodia our partners at KAPE manged brilliantly to navigate the hurdles placed in front of them by the pandemic and kept the NGS (New Generation Schotslsl operating as best possible. In Laos Sadly the 8iluation was more difficult and frustrating. After years ol planning. persuading and lobbying, 2020 was lo be the year we became the first fO￿Ign organisalion lo manage a governmenl sch￿1 in Laos, having been given the governrllenls support for NGS (New Generalion Schools) to operale in Laos, That start datè was pushed back again with Laos remaining effectively closed into Spring 2022. The good news is that Laos is now fully open and we have a new s¢hedule for the rollout of NGS. Ou¥ first school on the oulskirts of the Laos capilal, Vientiane, will come under our supervision in SeptÉmber 2022 and open as the flTsI Laos NGS school in late 2023. We are hL5gely excited. though also aculety aware of Ihe huge task shead of us. The FFF team in Laos are already working out of our school and wll bolstered over the coming months as we recruit teacher trainers, curriculum experts and most importantly, teachers. None of whom are easy to Gome by in Laos. There was also good news again on the finance fmnl. Our investment team continues lo have su¢¢ess in ils investments especially in backing entrepreneurs through its partnership with Redbus Véntures. Despite the volatility caused by the Pandemic, our finances are in good health and this will ensure we Gan Continue to fund all our programs and initiatives for the foreseeable future. As always, I would like lo thank my fellow Iruslees who do so much work on the foundation's behalf. And on behalf of all the trustees, I would like lo thank all of th@ direct and indirect employees of the foundation, whose commitment and efforts we value so much and without whom we would not be able to do the work we do. Simon Franks Dale.. ?_% SepT6(￿e*l zo- Page 2 FRANKS FAMILY FOUNOATION IA Company Limited by Guarantee} TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees present their annual report together wilh the audited 11nancial statements of the Company fof the year 1 January 202110 31 December 2021. The Annual Report serves the purposes of both 8 Trustees, report and a directors, report undef company law. The Trustees confirm that the Annual Report and finanual slalemenls of the charitable company comply with the current slalutory requirements. the requirements of the charitable compJny's governing document and the provisions of the Statement of Recommended Pra¢ti¢e ISORPI applicable lo Charities preparing their accounts in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS1021 (effective 1 January 20191. Since the Company qualifiès as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under Ihe Companies Act 2006 (Strategic Report and Dire¢lors' Report) Regulations 2Q13 ha5 been omitted. ObjeGtive$ and activltles Policies and objectlves Franks Family Foundation Ihereafter FFF" or'the Company l Foundation") is a company limited by gltaranlee, with charitable status and governed by ils Memorandum and Articles of Association. FFF was established on 1 June 2006 10 se￿e as the primary ¢h8rilable vehicle of the Franks family. The Franks Family Foundation's mission is to contribute lo making the worlcl a More educated, healthier, kinder, fairer place. Through ils programmes, the charity hopes lo crea18 a generation of educaled and healthy young leadèrs, commilled lo their respective countries and lo help build a brighter future both for themselves, their communiti@s and for the next generations. The FFF also has a remit lo support the arts and especialty the prornolion of the arts as a tool of enhancing swial cohesion, creativity and sell-expression. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission rèlating lo public benefit. Including the guidance 'Public benefit.. running a charity IPB21'. b. Strategies for achievlng oblectives The main slralegy of FFF is lo fonn partnerships With local inslilulions lo address the root cause of poverty, ol all kinds, in developing south east Asia. In some Cases, where no Eocal partner with the required technical ability exists, the Foundaliort will ilsell directly implemenl a programme alone. We believe that lost&ring a dynamic civil society is one of the mo81 important ways philanthropic organizalions can engender real, systemic antl progressive change in the world's poorest counlrtes. We work lo achieve this by developing and supporting partnership projects in south east Asia, which provide some of the region's poorest children with the edu¢81ional, healthcare and pastoral support required lo maximise their full potential. To finance the activities of the Foundation, the Foundalron makes investments in listed and unlisted secu¥ilies. and alloGates funds lo Venture Capital and private equity opportunities. This is done in partner8hip with Redbus Ventures Ltd. Page 3 FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee} TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Obleetives and actlvSties Iconlinuedl c. Activities und8rtaken to achieve objectives Our primary area of focus is south east Asia. Whether il is through our New Generation Schools or our public health, teacher training or scholarships programs, we aim lo equip young people lo become change makers. We implement programmes ourselves, but also provide programrne partners with grants, stralegic advice, business management support, collaborative networks and advo¢8cy to foster systemi¢ change. d. Main a¢tlvities undertaken to further the Company's purposes for the public benefit Iln Laos, we are working with the Lao Ministry of Education & Sports lo expsnd the New Generation Schools (NGSI programme into Laos. The aim is lo replicate the subsl8niial achievements of NGS in Cambodia, transforming education81 outcomes through improved leaching. school governance and key subjects for the 21st cenltsry. NGSL aspires lo drive key changes in goveman¢È. recruilmenl. managernenl and teacher training, oplimyzalion of existing resources and improvèment of schools, facilities. One of ils goal is to enable children from poor backgrounds, girls and th& disabled lo a¢¢ess a quality education, free of corruption or abuse through a fair admission process. The FFF is both the funder and implementer of the New Generation programme in Laos. In Camb(xlia, we are partnered with Kampuchean Action for Primary Education IKAPE) lo build, develop and scale a New Generation School. This is the leading educational project in Cambodia and is now uniquely supported financially by the Cambodian government. The basic premise ol NGS s¢hools is to work with the government, within the existing education system, lo develop academically Èxcellent schools that are available lo children from any socio-economic background. Achievements and performanc& a. Main achievements of the Company A review of the Company's aclivilies is Included in the Chaiiman's Statement on page 2. Ouring the period ended 31 December 2021 a total of £182,97512020.' £147,037) was granted to charitable organisalions. Further details of the donations made are included in note 3 to the accounts. The trustees confim) that they have referred lo the guidance contained in the Charity Commission's general 9uidance on public benefit when reviewing objectives and activities. Financlal review a. Going concem After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate Tesources to continue in operational existence lor the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial stalem8nts. Further details regarding the adoption of the going concern basis can be found in the accounting policies. Page 4 FRANKS FAMILY FOUNDATION {A Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 b. ReseNes policy FFF'S funding Is dependent on donations. The organisalion does not have subslanlial reserves lied lo fixed assets. Revaluation reserves are not considered lo be realised. Al 31 December 2021 general reserves, excluding revaluation reserves, were £6,070.677 12020.. £5,165,391) due lo the accumulation of funds during the period. The Fovndation's reserves policy continues lo rellecl the extremely low interest rate environment and the perceived low returns available in the public financial markets. In such an environment the Foundation 8nlicipales il will continue lo spend al least lo￿/0 of ils investment income each ye3r. In years when the investment income is low or negative. the Foundation wi15 spend more than ils investment income usin9 reserves lo cover the deficit. In efforts lo increase ils inveslm8nl incorlle the Foundation has continued to expand ils inveslrnents in early stage non-li81ed companies and continues to actively manage ils foreign exchange positions. Structure, governance and managomènt Constitution Franks Family Foundation is registered as a charitable company limited by guafantee and was set LEP by a hhemorandum of Association. The Company l Foundation is consliluled under 8 Memorandum of Association and is a registered charity number 1114574. There have been no changes in the objeclwes since the last annual report. The following were Trustees of the Company l Foundation during the yea¥ and subsequently". G Avshalom S E Franks D V Dorrell Lord Mendelsohn C F Hodler HRH Princess Beatrice of York b. Methods of appointment or electlon of Trustees The management of the Company l Foundation Is the responsibility of the Trtjslees who are elected and ¢o- opted under the terms of the Articles of Association. Flnanclal risk management The Trustees have assessed the major risks lo which the Company l Foundation is exposed, in particular those related to the operalions and finances of the Company l Foundation, and are satisfied that systems and procedures are in place lo mitigate our exposure lo the major risks. The trustees note that FFF funding is dependent on donations, and thus far donations have only been from Simon Franks or companie8 Controlled by Simon Franks. Page 5 FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Statement of Tru5tees' responslbilitiès The Trustees (who are also the directors of the Company fol the purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in ac¢ordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Praclicel. Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial slalemenls unless they are satisfied that they give a true and f8ir view of the slate of affairs of the Compally and of ils incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial slalemenls. the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 1021., make judgments and ac¢ounting estimAles that are reasonable and prudent", slate whether applicable UK Accounlinu Standards IFRS 1021 have been followed. subject to any material departures disclosed and explained in thè financial slalemenls., prepare the financial statements on the going concern basis unless il is inappropriate lo presume that the Company will continue in bvsiness. The Trustees are responsible for keeping adequate accoullling records Ihat are sufficient to show and explain the Company's transactions and disclose with reasonable accur8cy al any lime the fin8n¢ial position of the Company and enable thèm lo ensure Ihal the financial slalemenls comply wilh the Companies Act 2006. They are also responsible for safeguarding the assets ol the Company and hence lor taking reasonable steps for the prevention and detection of fr8ud and olher irregularities. Dl$closurè of informatlon to auditors Each of the peisons who are Truslees al the time when this Trustees, Report is approved has ¢onlirmed Ih81'. so lar as that TNslee is aware, there is no relevant audit information of whith the chariws auditors are unaware, and that Trustee has taken all the steps that ought lo have ba&n taken as a Trustee in to be aware of any relevant audit information and lo establish that Gharilys auditors are aware of that information. Audltors The auditors, Blick Rothenberg Audit LLP, hav8 indicated their willingness lo continue in office. The Trustees will propose a motion reappointing the audilDrs al a meeting of the Trustees. Approved by order of the members of the board of Trustees on 28 September 2022 and signed on thÈir behalf S E Franks Trustee Page 6 **(A Company Limited by Guarantee)** ## **FRANKS FAMILY FOUNDATION** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKS FAMILY FOUNDATION** ## **Opinion** We have audited the financial statements of Franks Family Foundation (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of financial activities, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 the Auditors' responsibilities 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 financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 Page 7 ## **FRANKS FAMILY FOUNDATION** ## **(A Company Limited by Guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKS FAMILY FOUNDATION (CONTINUED)** 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. ## **Opinion on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. - the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our 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 Trustees' Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report. ## **Responsibilities of trustees** As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditors' responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be Page 8 **(A Company Limited by Guarantee)** ## **FRANKS FAMILY FOUNDATION** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKS FAMILY FOUNDATION (CONTINUED)** expected to influence the economic decisions of users taken on the basis of these financial statements. 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: We identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatements in respect of irregularities, including fraud, and noncompliance with laws and regulations, our procedures included the following: enquiring of management concerning the charitable company’s policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the charitable company’s policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the charitable company’s policies in relation to the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the charitable company operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the charitable company. The key laws and regulations we considered in this context included the UK Companies Act 2006, the Charities Act 2011 and applicable tax legislation. One particular focus area was the risk of fraud through management override of controls. Our procedures to respond to risks identified included the following: performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; reviewing the bank statements of the charitable company for evidence of any large or unusual activity which may be indicative of fraud, enquiring of management in relation to any potential litigation and claims, and testing the appropriateness of journal entries and other adjustments. Another focus area was non-compliance with the rules of the Charity Commission. The charitable company was authorised and regulated by the Charity Commission throughout the period. Our procedures to respond to risks identified included the following: reviewing correspondence between the charitable company and the Charity Commission, reviewing in detail the grants made by the charitable company during the period, and discussion of regulatory matters with the appointed officers of the charitable company. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. Page 9 **(A Company Limited by Guarantee)** ## **FRANKS FAMILY FOUNDATION** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKS FAMILY FOUNDATION (CONTINUED)** ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance 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 Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Peter Scott (senior statutory auditor)** for and on behalf of ## **Blick Rothenberg Audit LLP** Chartered Accountants Statutory Auditor 16 Great Queen Street Covent Garden London WC2B 5AH 30 September 2022 Page 10 FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 DECEMBER 2021 Unrestricted funds 2021 Total funds 2021 Total funds 2020 Note Iiicome from: Donations and legacies Investments 25,000 70,031 25,000 70.031 25,000 87,670 Total income 95.031 95,031 112,870 Expenditure on: Charitable aclivilies.. Grants Paid Exchange rale Igainslllosses Govemance 182,975 121,350 165.846 182,975 121,350 165,846 182,179 186.825 64,831 Total oxpondlture 470,171 470,171 433,835 Net expenditure before net galns on Investments Nèl gains on investments Net movement in fuftds before other recognlsed gainsllloss8sl 1375.140} 1,323,764 {375,140) 1,323.764 1321,1651 1,869,172 12 948,624 946,624 1,548,007 other recognised gainslllossesl: Provision against investmenl gains 17 143.338) 143.3381 1450,0001 Net movement in funds 905,286 90S,286 1,098,007 Recon¢iliation of funds- Total funds brought fonMard Net movement in funds 7,006.365 905.286 7,006,365 905,286 5,908,358 1,098.007 Total funds carried fon￿ard 7,911,651 7,911,651 7,006,365 The Stslemenl of ftnancial 8clivilies includes all gains and losses recognised in the year. The notes on pages 14 10 26 form part of these financial slalemenls. Page 11 FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) REGISTERED NUMBER: 05834838 BALANCE SHEET AS AT 31 DECEMBER 2021 2021 2020 Note Tangible assets Investments 11 12 979 3,491,326 2,142,836 3,492.305 2,142,838 Current assets Debtors Investments Cash al bank and in hand 13 14 212,959 2,879,842 1,837,233 169,218 2,484.650 2,876,941 4.930.034 5.530,809 Creditors.. amounts falling due within one year 15 117,3501 1217,280) Net current assets 4.912,684 5,313.529 Total assets lèss current liabllltles 8,404,989 1493,3381 7,d56,365 Provisions for liabilities 1450.0001 Totsl net assets 7,911,651 7,006,365 Charlty funds Restricted funds Unrestricted funds Ggn8ral funds Revaluation TeseNe 18 5,019,949 2,891,702 5.165,391 1,840,974 Total unrestricted funds 18 7,911.651 7,006,365 Total funds 7,911,651 7,0[￿.365 Page 12 FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) REGISTERED NUMBER: 05834838 BALANCE SHEET ICONTINUEDI AS AT 31 DECEMBER 2021 The Trustees acknowledge Iheii. responsibilities for complying wlh the requirements of the Act Mrilh respect lo accounting records and preparalion of financial statements. The financial statements have been prepared in accordance with the provisions applicable lo entities subject lo the small companies iegime. The financial slalemenls were approved and aulhorised for issue by the Trustees on 28 Seplember 2022 and signed on their behaEf by.. S E Franks Trustee The notes on pages 14 10 26 form part of thes8 linancial stalemenls. Page13 FRANKS FAMILY FOUNDATION (A Company Limited by GLEaranteèl NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 General information Flanks Family Foundation is a company limited by guarantee, incorporated in England & Wales, with its registered Offi￿ al 5th Floor, ONell House, 16-18 Berners Stleet, London W1T 3LN. Accounting pollcles 2.1 Basis of preparatlon ol finan¢lal stalements The financial slalemenls have been prepared in accordan￿ with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Statement of Recommend¢d Practi￿ applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Ad 2006. Franks Family Foundation meets the definilion of a public benefil énlily un(Jer FRS 102. Assets and liabilities are initially Tecogniged at historical cost or transaction value unless otherwise staled in the relevant accounting policy. 2.2 Income All income is recognised once the Company has entillemenl to the income, il is probable that the income will be received and the amount of income re¢8ivable can be measured reliably. Grants are included in the Statement of Financial Activities on a receivable basis. The balanGe of income received for specific purposes bul not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance ol enlillement of receipt, ils recognition is deferred and included in creditor5 as deferred income. Where enlillement occurs before income is re¢eived, the income is accrued. Income lax recoverable in relation lo investment income is recognised al the tima the investment income is receivable. 2.3 Expenditure Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit lo a third party. il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The Costs of each adivily are made up of the lolal of direct costs shared costs, including support costs involved in undertaking each activity. Direct costs allribulable lo a single activity are allocated directly to that aclivily. Shared costs which contribute lo more than one a¢livily and support ¢osls which are not atlribulable lo a single activity are apportioned between those s¢tivities on a basis consistent with the use of ¥esou¥ces. Central staff costs are allwated on the basis of lime spent, and depreclalion charges allocated on the portion of the assèt's use. Expenditure on charitable activ￿leS is incurred on directly undertaking the activities which further the Compallls objectives. as well as 8ny associated support costs. All expenditure is inclusive of irrecoveiable VAT. Page 14 FRANKS FAMILY FOUNDATION IA Company Llmltod by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng policies Icontinuedl 2.4 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured feliably by the Company., this is normally upon nolificalion ol the interest paid or payable by the inslilulion with whom the funds are deposited. 2.5 Foreign currencles Monetary assets and liabilities denominated in foreign currencies are translated inlo sterling al rates of exchange ruling at the reporting dale. Transactions in foreign currencies are translated into sterling al the rate ruling on the dale of the transaction. Exchange gains and losse5 are re¢ognised in the Slalemenl of Financial Aclivilies. 2.6 Taxation The Company is consideied lo pass the tests sel out in Paragraph 1 Schedule 6 of the Finance Act 2Q10 and therefore il rneels the d61inilion of a charitable ¢ompany for UK corporation lax purposes. Accordingly. the Company is polenli8lly exampl from taxation in resped of income or Capital gains received wilhiri categories covered by Chapter 3 Part 11 01 the Corporation Tax Act 2010 or Seclion 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusivety to charitable purposes. 2.7 Tangible fixed assets and depyeclatlon Tangible fixed assets cosling £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value ol the asset c2n be measured reliably. Tangible fixed 8ssets are initially recognised at cost. After recognilion, under the cost model, tangible fixed assels are measured al cosl less 8cGumulated depreciation and 8ny accumulated impairment losses. All costs incurred lo brin9 a tangible ftxed assèt into ils intended working condition should be included in the measuremenl of cost. Depreciation is Charged so as to allocate the cost of tangible fixed assets less their residual value over their eslimaled useful lives, Depreciation is provided on the followsng basis= Computer eqtjipment 50% per annum Page15 FRANKS FAMILY FOUNDATION IA Company Limlted by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting poli¢ies Icontlnuedl 2.8 Investments Fixed asset illvegtmenls are a form ol financial instrument and are inillally recognised al thair transaction cost and subsequer¥lly measured at fair value al the Balance Sheet dale, unless the value cannot be measured reliably in which case il is measured al cost less impairment. Investment gains and losse8, whether realised or unrealised, are combined and presented as 'GainsllLossesl on investments, in the Slaternenl of Financial Aclivities. Unrealised gains and losses on maikel value ovaments, including foreign exchange movements, are recorded as othew gains or losses in a separate revaluation reserve, except lo the exlent that cumul8lve unrealised losses exceed cumulativè realised gains which are recorded in income and expenditure. 2.9 Debtors Trade and other debtor8 are recognlsed al the selllemenl amount after any trade discount offered. Prepayments are valued at the amount prepaid nel of any trade discounts due. 2.10 Flnancial instruments The C(¥npany On￿ h¥s financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised al Iransadion value and subsequently measured al their settlemenl value with the exception of bank loans which are subsequently measured al amortised wsl using the effective interest method. 2.11 Cash at bank and in hand Cash al bank and in hand includ88 cash and short-temi highly liquid investments with a short maturity of th￿e months or less from the dale of acquisition or opening of the deposlt or similar account. 2.12 Llabilities Liabilities and provisions are recognised when there is an obligation al the Balance Sheet dale as a result of a past event, il is probable Ihal a transfer of economic benelil will be required in selllemenl, and the amount of the settlement can be estirnaled reliably. Liabi5ilies are rewgnised at the amounl that the Company anticipates it will pay to sellle the debt or the amount il has received as advanced payments for the goods or services il musl provide. Provisions are measured al the best estimate of the amounts required lo sellle the obligation. Where the effect of Ihe time value of money is material, the provision is based on the present value of those amounts, di$¢ounled al the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is ￿Cognised in the Statement of Financial Aclimlies 8s a finance cost. 2.13 Penslons The Company operates a defined conlTibulion pension scheme and the pension charge represents the amounts payable by the Company lo the fund in respect of the year. Page 16 FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 A¢counting policies Icontinued 2.14 Fund accountlng GerTeral funds are unrestricted funds which are available for use al the discretion of the Trustees in furtherancè of the general objedives of the Company and which have not been designated for other purposes. Investment income, gains and1058e8 a￿ allocated lo the appropriate fund. 2.15 Cash Flow The Company is exempl from the requirement lo provide a Cash Flow reconciliation undeT the small charities regime. Income from donations and lègacies Unreslyicled funds 2021 Total funds 2021 Total funds 2020 Grants 25,000 25,000 25.000 Investment income Unrestricted funds 2021 Total funds 2021 TolBI funds 2020 Dividend receivable Interest receivablellpayablel on cash holdings Other investment income 58,2S2 {6,6311 18,370 58.292 16,6311 18,370 29,163 12,5101 61.017 Total 2021 70,031 70,031 87.670 Page 17 FRANKS FAMILY FOUNDATION IA Company Limitèd by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Analysis of expenditure on charitable actlvStios Summary by fund type Unrestricted funds 2021 Total funds 2021 Total funds 2020 Governan￿ & Foreign Exchange cosls Donations lo Inslilulions Travel costs- capital project resèarch 287,196 182.975 287.198 182,975 251,656 172,037 10,142 470,171 470,171 433,835 Analysls of expÈndlture by activities Support Cost6 2021 Total funds 2021 Total funds 2020 Dlrect Costs 2021 Governance & Foreign Exchange costs Donations lo Institutions Travel costs- capital pro1￿1 research 164,8e6 182,975 122,330 287,196 182.975 251,656 172.037 10,142 347,841 122,330 470,171 433,835 All of Ihe Company l Foundation's donations are made for charitable PUTposes. Further details of the Company l Foundation's donation￿1VIll￿ aclivites are disclosed in the Trustees, report Advertising space plovided relates ta the costs ol purchasing advertlsing space fiom related comp8nies Isee note 151 which is then provided free of charge to other charitable insitulitions. Costs incurred were £44.00012020. £92.0001 All travel costs arose from reirnbursing trustee's expenses Page 18 FRANKS FAMILY FOUNDATION IA Company Llmitèd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Governance Costs 2021 2020 Staff costs Consultancy, Leg81 and Professional fees Auditors Remuneration Bank Charges OlheT Operating Costs 98,393 24,620 16,000 5,908 20,925 53,029 1,050 5,801 5,151 165,846 64,831 Auditors. remuneration 2021 2020 Fees payable lo the Company's auditor for the 8udil of the Companvs annual ac¢ounls 8,000 8,000 Staff costs 2021 2020 Salarles Costs included withln Governance costs Wages and salaries Social securily costs Contribution lo defined contribution pension schemes Tèmp Staff Costs 89,512 5.892 1,689 1,300 46,189 5,948 892 98,393 53.029 The average number of pwsons employed by the Company during the year was as lollows. 2021 2020 No. Employees No employee re￿iVed remuneration amounting lo more than £60,000 in either year. Page 19 FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 10. Trustees, rèmuneration and expenses During the year, no Trustees received any remuneration or other benefils12020 - £NILI. During the year ended 31 December 2021, expenses lot811ing £2,061 were reimbursed to Trustees 12020- £1 Q,1421 in relab'on lo travel, aawmodalion and olher general malters. 11. Tanglbl8 fixed assets Computer equipment Cost or valuation Additions 1,958 Al 31 Decembèr 2021 1,958 Depreclatlon Charge for Ihe year 979 Al 31 December 2021 979 Net book value Al 31 December 2021 979 Al 31 De¢8mber 2020 Page 20 FRANKS FAMILY FOUNDATION IA Cornpany Limited by Guayanteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Fixed asset investments Unlisted investments Cost or valuation Al 1 January 2021 Additions 2,142,836 498,139 {22,5001 872,851 Disposals Revaluations At 31 Decamber 2021 3,491.326 Net book value At 31 December 2021 3,491,326 At 31 ￿e￿mber 2020 2,142,836 Commltments The CompanylFoundalion has committed £814,266 {2020.. £639,137} in respect of investments in unlisted funds that are not yel drawn down. 13. Debtors 2021 2020 Dua within one year Other debtors 212,959 169,218 2q 2.959 169,218 14. Current asset investments 2021 2020 Listed investments 2.879,842 2,484,650 Page 21 FRANKS FAMILY FOUNDATION {A Company Limlled by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 14. Current asset i17vesÉments Icontlnuedl The historic cost of inveslménts was £2,437,61512020'. £1,909,791). Dtjring the yeaf the CompanylFoundalion recognised gains on current asset investments in relation lo market value movements, including exchange rale movements, of £177,87712020'. £340,077) 2021 2020 Book Value of Investments Equity Securities - UK Equity Securities - Non UK Cornmodities- Non UK 1.671,006 1,051,069 157,767 1,198,327 1,123,204 163,119 2,879,842 2,484.650 15. Creditots- Amounts falling du8 within one year 2021 2020 Other creditors Accruals and delerred income 1.350 16,000 7,280 210,000 q7,350 217,280 16. Financlal instruments 2021 2020 Financlal assets Financial assets measured al fair value through income and expenditure 8,208,401 7,504,427 Financial assets measured al fair value through income and ewendItU￿ comprise all Investments and Cash equivalents held as at the financial year end. Page 22 FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 17. Provislons Provision Al 1 January 2021 hAovement on provision 450.000 43,338 493,338 Further details of the above provision are given In note 21 Page 23 FRANKS FAMILY FOUNDATION IA Company Limlted by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3q DECEMBER 2021 18. Statement of funds Statement of funds - current yaar Balance at 31 Gainsl December Losses) 2021 Balance at 1 January 2021 Tyansfers inlout Income Expenditure Ui)restricted funds Reserves Revaluation reserve 5,165,391 95.031 1470,1711 11,050,728) 1.280,426 5,019,949 1,840,974 1,050.728 2,891,702 7.006,365 95,031 1470,1711 1,280,426 7,911.651 Statemont of funds- prior year Balance at 31 Gainsl December {Lossesl 2020 Balance al 1 January 2020 Transfeis inloLbl In¢om8 Expenditure Unrestrlctgd funds Revaluation reserve 241,076 1,59S,898 1,840,974 Income and expenditure reserve 5,667.282 87,670 1408,835} 11,599.8981 1,419,172 5,165,391 5.908,358 87,670 {408,8351 1,419,172 7,006,365 Page 24 FRANKS FAMILY FOUNDATION IA Company Limited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 19. Summary of fuiids Summary offunds- current year 8alanGe at 31 Gainsl December ILossesl 2021 Balance at 1 January 2021 Transfers inlout Incomè Expenditure General funds 7,006,365 95.031 1470,1711 1.280,426 7.911,651 Summary of funds - prior year Balance al 31 December 2020 Balance at 1 January 2020 Transfers inlout Gainsl {Lossesl Income Expenditure General funds 5,908.358 87.670 1408.8351 1.419.172 7,006,365 Analysls of net assets between funds Analysls of n¢t assets betwean funds- current year Unrestricted funds 2021 Total funds 2021 Tangible fixed assets Fixed asset investments Current assets Creditors due Mqthin one year Provisions foi liabilities and chargès 979 3,491,326 3.491,326 4,930,034 4,930,034 117,3501 117,3501 {493.338} {493,338} 979 Total 7,911,651 7.911,851 Page 25 FRANKS FAMILY FOUNDATION IA Company Llmited by Guarantèé) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 20. Analysis of ftet assets between funds Icontinuedl Analysis of net assets between funds - prior y8aY Unrestricted funds 2020 Total funds 2020 Fixed assel inveslmenls Current assets 2,142,836 2.142,836 5.530,809 5.530,809 1217,280} 1217,2801 1450,000) 1450,0001 Creditors due within one year Provisions for liabilities and charges Total 7,006,365 7,006,365 21. Related party transactions The Company l Foundation has accrued an amount of £44,00012020." £92,000) in respect of advertising costs chatged lo il during the year by E￿hIeen-24 Limited. a cornpany under the control ol 8 trustee. Al 31 December 2021 the oulstanding amount related lo the charge included in accruals (see note 91 was £nil12020.' £210,000). Also during the year. an amount of £2,000 12020." £nil) was charged lo the Company l Foundation for services provided by Pocketon Limited, a company under the control of a trustee. for legal advice provided. During the year ended 31 December 2Q20 an amount of £10.000 Charged lo the Company l Foundation for services provided by a trustee was botne by Redbus Ventures Limited I'RVL.). a Company under the control of a trustee. Accoidinuly, this amount has not been recognised as an expense in the Company I Foun(Jalion's records. No equivalent amount was charged in the year ended 31 December 2021. During the year ended 31 December 2021. salary and pension costs of £Nil {2020'. £41.1891 relating lo employees engaged on the Company l Foundation's a¢livtlies have been borne by RVL where required under the Tules of the Charity Commission, Any future repayment of this amount to RVL is subject lo permission from the Charity Commission., accordingly, this amount has not b&en recognised as an expense in the Company l Foundation's records. In Order to save ¢osts RVL and the Company l Foundation share a payioll. Outstanding amounts under this arrangement are regularly reimburs8d. An amount of £4,000 was owed by RVL al the balance sheet dale12020.. £147,293 due to RVL). Under an arrangement entered into when certain fixed asset investments were donated to the Foundation a proportSon of the proceeds relat8d to the future of realisation of those investments is due lo be paid to RVL and Eighleen-24 Limited. Based on the fair value of the investments at 31 December 2021 8 provision of £493,33812020'. £450.0001 h8$ been recognised in these accounts to reflect this obligation. An amount of £43,338 12020.. £460,000) was Charged as an expense lo the Slalemenl of Financial Activities during the year. P8gé 26