Registered number: 05834838 Charity number: 1114574
FRANKS FAMILY FOUNDATION (A Company Limited by Guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022
| Trustees | G Avshalom |
|---|---|
| S E Franks | |
| Lord Mendelsohn | |
| C F Hodler | |
| HRH Princess Beatrice of York | |
| Company registered number 05834838 Charity registered number 1114574 Registered office 34 Percy Street London W1T 2DG Company secretary B Tarr Independent auditor Blick Rothenberg Audit LLP Chartered Accountants 16 Great Queen Street Covent Garden London WC2B 5AH Bankers Coutts & Co 440 Strand London WC2R 0QS |
FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 The chairman presents his slalemenl for the year. 18m very glad to report that by the lime the new ademiC year started in August of 2022, we were finally lafter almost 3 years of pandemic delays). able to lake control of our first school in Laos. Everyone al the foundation has worked super hard these past years to make this happen. We are enjoying that success bul have our eyes open that there are many potential roadblocks ahead that could derail NGS in L20S. The FFF through NGS Laos, is officially the first foreign organisalion lo manage a government school in Laos. This is 8 landmark for the New Generation Schools program and for education in Laos. The FFF team in Laos is now recruiting teacher trainers, curriculum experts and most importantly. teachers. None of whom are easy lo come by in Laos. Turning lo our investment aclivilies. In the context of a very changed economic environment the foundation can be happy with its performance. Our balance sheet {page 121 has over £8.2m of assets and no debt. This gives me and the board confidence that we will be able lo fund all our programs and initiatives for the foreseeable future, despite what I suspect are lurbulenl limes ahead for the UK economy and inlernalion81 financial markets. As always, I would like to thank my fellow Iruslees who do so much work on the foundation's behalf. And on behalf of all the Iruslees, I would like lo thank all of the direct and indirect employees of the foundation, whose eommilmenl and efforts we value so much and wilhoul whom we would not be able lo do the work we do. Simon Franks Dale.. 26 September 2023 Page 1
FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their annual report together with the audited financial statements of the Company for the year 1 January 2022 to 31 December 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
Franks Family Foundation (hereafter “FFF” or “the Company / Foundation”) is a company limited by guarantee, with charitable status and governed by its Memorandum and Articles of Association.
FFF was established on 1 June 2006 to serve as the primary charitable vehicle of the Franks family.
The Franks Family Foundation’s mission is to contribute to making the world a more educated, healthier, kinder, fairer place. Through its programmes, the charity hopes to create a generation of educated and healthy young leaders, committed to their respective countries and to help build a brighter future both for themselves, their communities and for the next generations.
The FFF also has a remit to support the arts and especially the promotion of the arts as a tool of enhancing social cohesion, creativity and self-expression.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Strategies for achieving objectives
The main strategy of FFF is to form partnerships with local institutions to address the root cause of poverty, of all kinds, in developing south east Asia. In some cases, where no local partner with the required technical ability exists, the Foundation will itself directly implement a programme alone.
We believe that fostering a dynamic civil society is one of the most important ways philanthropic organizations can engender real, systemic and progressive change in the world’s poorest countries.
We work to achieve this by developing and supporting partnership projects in south east Asia, which provide some of the region’s poorest children with the educational, healthcare and pastoral support required to maximise their full potential.
To finance the activities of the Foundation, the Foundation makes investments in listed and unlisted securities, and allocates funds to Venture Capital and private equity opportunities. This is done in partnership with Redbus Ventures Ltd.
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FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Objectives and activities (continued)
c. Activities undertaken to achieve objectives
Our primary area of focus is south east Asia. Whether it is through our New Generation Schools or our public health program, our teacher training or scholarships programs, we aim to equip young people to become change makers. We implement programmes ourselves, but also provide programme partners with grants, loans, strategic advice, business management support, collaborative networks and advocacy to foster systemic change.
d. Main activities undertaken to further the Company's purposes for the public benefit
In Laos, we are working with the Lao Ministry of Education & Sports to expand the New Generation Schools (NGS) programme into Laos. The aim is to replicate the substantial achievements of NGS in Cambodia, transforming educational outcomes through improved teaching, school governance and key subjects for the 21st century. NGSL aspires to drive key changes in governance, recruitment, management and teacher training, optimization of existing resources and improvement of schools’ facilities. One of its goal is to enable children from poor backgrounds, girls and the disabled to access 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 Cambodia, we are partnered with Kampuchean Action for Primary Education (KAPE) to 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 of NGS schools is to work with the government, within the existing education system, to develop academically excellent schools that are available to children from any socio-economic background.
Achievements and performance
a. Main achievements of the Company
A review of the Company’s activities is included in the Chairman’s Statement on page 2. During the period ended 31 December 2022 a total of £173,773 (2021: £182,975) was granted to charitable organisations. Further details of the donations made are included in note 3 to the accounts.
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing objectives and activities.
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
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(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
b. Reserves policy
FFF’s funding is dependent on donations from the Franks Family and their business interests. The organisation does not have substantial reserves tied to fixed assets. Revaluation reserves are not considered to be realised.
At 31 December 2022 general reserves, excluding revaluation reserves, were £4,812,815 (2021: £5,019,949) due to the accumulation of funds during the period.
The Foundation anticipates it will continue to spend at least 100% of its investment income each year. In years when the investment income is low or negative, the Foundation will spend more than its investment income using reserves to cover the deficit.
In efforts to increase its investment income the Foundation has continued to expand its investments in early stage listed companies and continues to actively manage its foreign exchange positions.
Structure, governance and management
a. Constitution
Franks Family Foundation is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
The Company / Foundation is constituted under a Memorandum of Association and is a registered charity number 1114574.
There have been no changes in the objectives since the last annual report.
The following were Trustees of the Company / Foundation during the year and subsequently:
G Avshalom S E Franks Lord Mendelsohn C F Hodler HRH Princess Beatrice of York D V Dorrell (resigned 28 September 2022)
b. Methods of appointment or election of Trustees
The management of the Company / Foundation is the responsibility of the Trustees who are elected and coopted under the terms of the Articles of Association.
c. Financial risk management
The Trustees have assessed the major risks to which the Company / Foundation is exposed, in particular those related to the operations and finances of the Company / Foundation, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
The trustees note that FFF funding is dependent on donations, and thus far donations have only been from Simon Franks or companies controlled by Simon Franks.
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FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Statement of Trustees, responsibilities The Trustees (who are also the directors of the Company for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally AcpIed Accounting Praclicel. Company law requires the Trustees lo prepare financial slalemenls for each financial year. Under company law, the Trustees musl not approve the financial slalemenls unless they are satisfied that they give a true and fair view of the slate of affairs of the Company and of Ils incoming resources and application of resources, including Ils income and expenditure, for that period. In preparing these financial slalemenls, the Trustees are required lo.. select suitable aoUntIng poliaes and then apply them consistently.. observe the methods and principles of the Charities SORP IFRS 1021., make judgments and accounting eslimales that are reasonable and ptudenl., stale whether applicable UK Accounting Standards IFRS 1021 have been followed. subject lo any material departures disclosed and explained in the financial slalemenls., prepare the financial statements on the going concern basis unless tt is inappropriate lo presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any lime the financial position of the Company and enable them lo ensure that the financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to auditor Each of the persons who are Trustees at the lime when this Trustees, Report is approved has confirmed that.. so far as that Trustee is awa. there is no relevant audit informats'on of which the charity's auditor is unaware, and that Truslee has taken all the steps that ought lo have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information. Audltor The auditor, Blick Rothenberg Audit LLP, has indicated his willingness lo continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. Approved by order of the members of the board of Trustees on 26 September 2023 and signed on their behalf S E Franks Trustee Page 5
(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
INDEPENDENT AUDITOR'S 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 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 2022 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 Auditor's 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.
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(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRANKS FAMILY FOUNDATION (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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 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
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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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.
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(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRANKS FAMILY FOUNDATION (CONTINUED)
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.
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FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRANKS FAMILY FOUNDATION (CONTINUED)
Auditor's 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 Auditor's 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 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 or 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.
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(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRANKS FAMILY FOUNDATION (CONTINUED)
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 Auditor's Report.
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 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Shaun Melvin (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
31 October 2023
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(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Income from: Donations and legacies 3 Investments 4 Total income Expenditure on: Charitable activities: 5 Grants Paid Exchange rate (gains)/losses Governance Total expenditure Net expenditure before net gains on investments Net gains on investments Net movement in funds before other recognised gains/(losses) Other recognised gains/(losses): Provision against investment gains Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ - 71,826 71,826 173,773 (131,652) 235,523 277,644 (205,818) 819,454 613,636 (304,240) 309,396 7,911,651 309,396 8,221,047 |
Total funds 2022 £ - 71,826 71,826 173,773 (131,652) 235,523 277,644 (205,818) 819,454 613,636 (304,240) 309,396 7,911,651 309,396 8,221,047 |
Total funds 2021 £ 25,000 70,031 95,031 182,975 121,350 165,846 470,171 (375,140) 1,323,764 948,624 (43,338) 905,286 7,006,365 905,286 7,911,651 |
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 14 to 27 form part of these financial statements.
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FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee) REGISTERED NUMBER: 05834838
BALANCE SHEET AS AT 31 DECEMBER 2022
| Note Fixed assets Tangible assets 11 Investments 12 Current assets Debtors 13 Investments 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Provisions for liabilities Total net assets Charity funds Restricted funds 18 Unrestricted funds General funds 18 Revaluation reserve Total unrestricted funds 18 Total funds |
- 2,364,247 1,664,824 4,029,071 (87,534) 4,812,845 3,408,202 |
2022 £ 16,200 5,060,888 5,077,088 3,941,537 9,018,625 (797,578) 8,221,047 - 8,221,047 8,221,047 |
212,959 2,879,842 1,837,233 4,930,034 (17,350) 5,019,949 2,891,702 |
2021 £ 979 3,491,326 3,492,305 4,912,684 8,404,989 (493,338) 7,911,651 - 7,911,651 7,911,651 |
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
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FRANKS FAMILY FOUNDATION IA Company Limited by Guarantee) REGISTERED NUMBER: 05834838 BALANCE SHEET ICONTINUEDI AS AT 31 DECEMBER 2022 The h'nanaal slalemenls were approved and authorised for issue by the Trustees on 26 September 2023 and signed on their behalf by.. S E Franks Trustee The notes on pages 14 10 27 form part of these financial slalemenls. Page 13
FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1. General information
Franks Family Foundation is a company limited by guarantee, incorporated in England & Wales, with its registered office at 34 Percy Street, London, W1T 2DG.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006
Franks Family Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.3 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it 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 activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
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FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.4 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.5 Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Statement of Financial Activities.
2.6 Taxation
The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2.7 Tangible fixed assets and depreciation
Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
Computer equipment - 25% per annum on straight line basis Furniture and fittings - 20% per annum on straight line basis
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FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.8 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities. Unrealised gains and losses on market value movements, including foreign exchange movements, are recorded as other gains or losses in a separate revaluation reserve, except to the extent that cumulatve unrealised losses exceed cumulative realised gains which are recorded in income and expenditure.
2.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.10 Financial instruments
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.12 Liabilities
Liabilities 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 estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
2.13 Pensions
The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
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(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
2. Accounting policies (continued)
2.14 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
2.15 Cash Flow
The Company is exempt from the requirement to provide a Cash Flow reconciliation under the small charities regime.
3. Income from donations and legacies
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2022 | 2022 | 2021 | |
| £ | £ | £ | |
| Grants | - | - | 25,000 |
4. Investment income
| Unrestricted funds 2022 £ Dividends receivable 50,325 Interest receivable/(payable) on cash holdings (1,757) Other investment income 23,258 71,826 |
Total funds 2022 £ 50,325 (1,757) 23,258 71,826 |
Total funds 2021 £ 58,292 (6,631) 18,370 |
|---|---|---|
| 70,031 |
Page 17
(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
5. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2022 £ Governance & Foreign Exchange costs 69,880 Contractor fees, donations and all travel costs 207,764 277,644 |
Total 2022 £ 69,880 207,764 277,644 |
Total 2021 £ 287,196 182,975 |
|---|---|---|
| 470,171 |
6. Analysis of expenditure by activities
| Governance & Foreign Exchange costs Donations to Institutions |
Activities undertaken directly 2022 £ 200,553 207,764 408,317 |
Support costs 2022 £ (130,673) - (130,673) |
Total funds 2022 £ 69,880 207,764 277,644 |
Total funds 2021 £ 287,196 182,975 |
|---|---|---|---|---|
| 470,171 |
All of the Company / Foundation's donations are made for charitable purposes.
Further details of the Company / Foundation's donation-giving activites are disclosed in the Trustees' report
Advertising space provided relates to the costs of purchasing advertising space from related companies (see note 15) which is then provided free of charge to other charitable insitutitions. Costs incurred were £60,000 (2021: £44,000).
Page 18
FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
7. Governance Costs
| Staff costs Consultancy, Legal and Professional fees Auditors Remuneration Bank Charges Other Operating Costs |
2022 £ 146,206 17,651 9,600 7,498 19,598 200,553 |
2021 £ 98,393 24,620 16,000 5,908 20,925 |
|---|---|---|
| 165,846 |
8. Auditor's remuneration
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Company's auditor for the audit of the Company's | ||
| annual accounts | 9,600 | 8,000 |
9. Staff costs
| Salaries Costs included within Governance costs Wages and salaries Social security costs Contribution to defined contribution pension schemes Temp Staff Costs |
2022 £ 127,064 13,488 4,704 950 146,206 |
2021 £ 89,512 5,892 1,689 1,300 |
|---|---|---|
| 98,393 |
The average number of persons employed by the Company during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Employees | 3 | 3 |
No employee received remuneration amounting to more than £60,000 in either year.
Page 19
(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 December 2022, expenses totalling £5,459 were reimbursed to Trustees (2021 - £2,061) in relation to travel, accomodation and other general matters.
11. Tangible fixed assets
| Cost At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
Fixtures and fittings £ - 16,200 16,200 - - - 16,200 - |
Computer equipment £ 1,958 - 1,958 979 979 1,958 - 979 |
Total £ 1,958 16,200 |
|---|---|---|---|
| 18,158 | |||
| 979 979 |
|||
| 1,958 | |||
| 16,200 | |||
| 979 |
Page 20
FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
| 12. Fixed asset investments Cost or valuation At 1 January 2022 Additions Revaluations At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 13. Debtors Due within one year Other debtors 14. Current asset investments Listed investments |
2022 £ - 2022 £ 2,364,247 |
Unlisted investments £ 3,491,326 426,271 1,143,291 |
|---|---|---|
| 5,060,888 | ||
| 5,060,888 | ||
| 3,491,326 | ||
| 2021 £ 212,959 2021 £ 2,879,842 |
The historic cost of investments was £2,283,406 (2021: £2,437,615).
During the year the Company/Foundation recognised losses on current asset investments in relation to market value movements, including exchange rate movements, of £323,072 (2021: gains of £177,877)
Page 21
FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
| Book Value of Investments Equity Securities - UK Equity Securities - Non UK Commodities - Non UK Creditors: Amounts falling due within one year Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
2022 £ 1,263,909 924,045 176,293 2,364,247 2022 £ 60,898 7,193 3,443 16,000 87,534 |
2021 £ 1,671,006 1,051,069 157,767 |
|---|---|---|
| 2,879,842 | ||
| 2021 £ - - 1,350 16,000 |
||
| 17,350 |
15. Creditors: Amounts falling due within one year
16. Financial instruments
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 9,089,959 | 8,208,401 |
Financial assets measured at fair value through income and expenditure comprise all Investments and Cash equivalents held as at the financial year end.
Page 22
(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
| 17. Provisions At 1 January 2022 Additions Further details of the above provision are given in note 21 |
£ 493,338 304,240 |
|---|---|
| 797,578 | |
Page 23
FRANKS FAMILY FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
18. Statement of funds
Statement of funds - current year
| Balance at | ||||||
|---|---|---|---|---|---|---|
| Balance at 1 | 31 | |||||
| January | Transfers | Gains/ | December | |||
| 2022 | Income | Expenditure | in/out | (Losses) | 2022 | |
| £ | £ | £ | £ | £ | £ | |
| Unrestricted | ||||||
| funds | ||||||
| Reserves | 5,019,949 | 71,826 | (75,292) | (516,500) | 312,862 | 4,812,845 |
| Revaluation | ||||||
| reserve | 2,891,702 | - | - | 516,500 | - | 3,408,202 |
| 7,911,651 | 71,826 | (75,292) | - | 312,862 | 8,221,047 | |
| Statement of funds - prior year | ||||||
| Balance at | ||||||
| Balance at | 31 | |||||
| 1 January | Transfers | Gains/ | December | |||
| 2021 | Income | Expenditure | in/out | (Losses) | 2021 | |
| £ | £ | £ | £ | £ | £ | |
| Unrestricted | ||||||
| funds | ||||||
| Reserves | 5,165,391 | 95,031 | (470,171) | (1,050,728) | 1,280,426 | 5,019,949 |
| Revaluation | ||||||
| Reserve | 1,840,974 | - | - | 1,050,728 | - | 2,891,702 |
| 7,006,365 | 95,031 | (470,171) | - | 1,280,426 | 7,911,651 |
Page 24
(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
19. Summary of funds
Summary of funds - current year
| General funds | Balance at 1 January 2022 £ 7,911,651 |
Income £ 71,826 Income £ 95,031 |
Expenditure £ (75,292) Expenditure £ (470,171) |
Transfers in/out £ - Transfers in/out £ - |
Gains/ (Losses) £ 312,862 Gains/ (Losses) £ 1,280,426 |
Balance at 31 December 2022 £ 8,221,047 |
|---|---|---|---|---|---|---|
| Balance at 31 December 2021 £ 7,911,651 |
||||||
| Summary of funds - prior year | ||||||
| General funds | Balance at 1 January 2021 £ 7,006,365 |
Page 25
(A Company Limited by Guarantee)
FRANKS FAMILY FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
20. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Tangible fixed assets 16,200 Fixed asset investments 5,060,888 Current assets 4,029,071 Creditors due within one year (87,534) Provisions for liabilities and charges (797,578) Total 8,221,047 |
Total funds 2022 £ 16,200 5,060,888 4,029,071 (87,534) (797,578) 8,221,047 |
|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Provisions for liabilities and charges Total |
Unrestricted funds 2021 £ 979 3,491,326 4,930,034 (17,350) (493,338) 7,911,651 |
Total funds 2021 £ 979 3,491,326 4,930,034 (17,350) (493,338) 7,911,651 |
|---|---|---|
Page 26
FRANKS FAMILY FOUNDATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
21. Related party transactions
The Company / Foundation has accrued an amount of £60,000 (2021: £44,000) in respect of advertising costs charged to it during the year by Eighteen-24 Limited, a company under the control of a trustee. At 31 December 2022 the outstanding amount related to the charge included in accruals (see note 9) was £Nil (2021: £Nil).
Also during the year, an amount of £Nil (2021: £2,000) was charged to the Company / 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 2022, salary and pension costs of £94,687 previously borne by RVL were recharged to the Company / Foundation relating to employees engaged on the Company / Foundation's activities in 2020 and 2021. These salary and pension costs were temporarily borne by RVL until receiving permission from the Charities Commission that these costs can legitimately be recognised as an expense in the Company / Foundation's records.
In order to save costs RVL and the Company / Foundation share a payroll. Outstanding amounts under this arrangement are regularly reimbursed. An amount of £nil was owed by RVL at the balance sheet date (2021: £4,000 due to RVL).
Under an arrangement entered into when certain fixed asset investments were donated to the Foundation a proportion of the proceeds related to the future of realisation of those investments is due to be paid to RVL and Eighteen-24 Limited. Based on the fair value of the investments at 31 December 2022 a provision of £797,578 (2021: £493,338) has been recognised in these accounts to reflect this obligation. An amount of £304,240 (2021: £43,338) was charged as an expense to the Statement of Financial Activities during the year.
Page 27