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2023-06-30-accounts

Registered number: 05889426 Charity number: 1118916

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2023

LUBBOCK FINE LLP Chartered Accountants Paternoster House 65 St Paul's Churchyard London EC4M 8AB

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 7
Independent Auditors' Report on the Financial Statements 8 - 11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes to the Financial Statements 15 - 27

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS

FOR THE YEAR ENDED 30 JUNE 2023

Trustees Marc Balston
Ozan Tarman
Parvoleta Shtereva
Pontso Mafethe
Angela Labombarda
Cynthia Steele
Andrew Curran
Susan Dodge
Kunal Shah
Jeremy Llewelyn
Jonathan Bell
John Patton
Swatee Deepak
Toby West
Colin Reedie
Adeel Khan
Marcelo Assalin
Mary-Therese Barton
Company registered
number
05889426
Charity registered
number
1118916
Registered office
3rd Floor, Paternoster House
65 St Paul's Churchyard
London
EC4M 8AB
Company secretary
Cynthia Steele
Independent auditors
Lubbock Fine LLP
Chartered Accountants & Statutory Auditors
Paternoster House
65 St Paul's Churchyard
London
EC4M 8AB
Bankers
JP Morgan Chase Bank, N.A
125 London Wall
London
EC2Y 5AJ
Charities Aid Foundation
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ

Page 1

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 30 JUNE 2023

The Trustees present their annual report together with the audited financial statements of Empower - The Emerging Markets Foundation Limited for the year from 1 July 2022 to 30 June 2023. 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 Charity 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.

REFERENCE AND ADMINISTRATIVE DETAILS

Reference and administrative details are shown in the schedule of the members of the board and professional advisers on page 1 of the financial statements.

THE TRUSTEES

The trustees who served the charity during the period and since the year end were:

Marc Balston Cynthia Steele Jeremy Llewelyn Pontso Mafethe Parvoleta Shtereva Ozan Tarman Aditi Thorat (Resigned 1 July 2022) Bradley Wickens (Resigned 1 July 2023) Francisco Ybarra (Resigned 1 July 2023) Jonathan Bayliss (Resigned 1 July 2022) Kunal Shah Pierre-Yves Bareau (Resigned 1 July 2022) Peter Tolhurst (Resigned 1 July 2022) Michael Lekan (Resigned 30 January 2023) Angela Labombarda Andrew Curran Susan Dodge Jonathan Bell John Patton Swatee Deepak Toby West Colin Reedie Adeel Khan Marcelo Assalin (appointed 1 July 2022) Mary-Therese Barton (appointed 28 February 2023)

Page 2

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

EMpower - The Emerging Markets Foundation Limited is a company limited by guarantee and governed by its Memorandum and Articles of Association.

Appointment of directors

New Directors are recruited and nominated by the Executive Committee of the Board. The Executive Committee is composed of:

Kunal Shah, Board Co-Chair Swatee Deepak, Board Co-Chair Jonathan Bell, Treasurer Pontso Mafethe, Programmes Committee Co-Chair Parvoleta Shtereva, Programmes Committee Co-Chair Susan Dodge, Secretary

All of the Directors elected to the Board have a three year renewable term.

According to the Articles of Association, there is no limit to the number of directors appointed to the Board, and so the Board of Directors has resolved to continue to search for additional strategic directors.

The Board of Directors continuously reviews its competencies and is conscious of the need to maintain a balance of skills. Periodically, additional members are invited to join the Board, effectively becoming an additional director and this involves a careful vetting process by the Board to ensure that any new member is aware of his/her responsibilities towards the Foundation.

New Directors are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Board and decision making processes, the business plan and recent financial performance of the Charity.

Organisation

The Board of Directors administers the Charity. The Board meets once a year for the Annual General Meeting and convenes to meet when needed at different times of the year. The Secretary acts as a Chief Executive to manage the day to day operations of the Charity.

Related Parties

The sole member of the Charity is EMpower - The Emerging Markets Foundation, incorporated in the State of New York in the United States of America (EMpower US). While EMpower US manages the grantmaking operations of the Charity, the geographic focus and approval for all of the Charity's philanthropic distributions are decided by the Board of Directors of the Charity.

EMpower - The Emerging Markets Foundation Inc. has three further subsidiary undertakings, EMpower - The Emerging Markets Foundation (Hong Kong) Ltd (EMpower HK), EMpower – The Emerging Markets Foundation (Singapore) Ltd (EMpower SG) and Empower Services Private Limited (India) (EMpower India). The grantmaking operations for these subsidiaries are also managed by EMpower US, though its own Board of Directors approve distributions and geographic focus.

All five organisations have the same mission and actively promote their common goals throughout the world.

Page 3

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

Remuneration management

Remuneration of key management personnel is set by the Trustees and is based on a combination of performance assessments, any promotion or change of duties during the period and a review of external market factors such as inflation rates.

Risk Management

The Board of Directors are committed to a regular review of the major strategic, business and operational risks which the Charity faces with a view to ensuring that appropriate systems and procedures are in place to minimise these risks.

Public Benefit

In setting the objectives and planning the activities of EMpower - The Emerging Markets Foundation Limited, the Directors have given careful consideration to the Charities Commission's general guidance on public benefit.

OBJECTIVES AND ACTIVITIES

The Emerging Markets Foundation is a global philanthropy focused on empowering at risk youth (ages 10 - 24) in 15 emerging market countries. The Charity believes that young people are a critical resource for every country and focuses on the essential building blocks for a young person’s future - education, livelihoods, health and well being.

With a world wide community of supporters, the Charity strategically invests in vital, local organizations who work to empower at risk youth, in the following three ways:

Empowering Youth Through Grantmaking

The Charity invests in local organizations that know their local communities and context, and are best positioned to discover and implement solutions that work. The Charity makes grants to organizations with a track record of successfully engaging and serving young people, solid organizational capacity and an interest in learning and growth.

Working with Grantees

Beyond financial support, the Charity works with grantee partners to expand their reach and/or improve their programs and services. The Charity encourages innovative approaches while sharing ideas and knowledge.

Multiplying Impact

The Charity brings together organizations focused on issues affecting youth, by developing and catalyzing forums for problem solving and exchanging ideas - making good ideas travel faster and further.

The Charity founded and fueled by finance professionals, serves as the bridge between the financial sector’s talent, energy, resources and knowledge of EM countries, to local organizations. The Charity’s Board, staff, committed Underwriters and generous supporters understand the inequities and opportunity gaps that young people face in EM countries, and want to do something about them. As an organisation, the Charity takes time to listen and from that listening and understanding comes learning, collaborative work and strategic use of their resources.

Aspects which make the Charity unique are:

Leadership - strong community of supporters and talented, committed leadership through its Board of Directors. A Joint Executive Committee, bringing together members of the Boards of EMpower UK, US, HK, SG and India steers the global strategy of the Charity and its regional partners.

Page 4

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

Efficiency - coupled with EMpower US, EMpower HK, EMpower SG and Empower India, the Charity has a global footprint that centralizes key functions and keeps administrative costs low, while remaining regionally nimble with offices in New York, London, Hong Kong and Delhi. The Charity’s operations are streamlined to create maximum impact, with less than 20% spent on fundraising and non-program related direct costs. The remaining 80% of the budget going directly to program work.

Underwriting - Our generous underwriters currently cover 100% of our fundraising and non-program related direct costs.

Effectiveness - monitor and measure impact on several interrelated levels. The Charity looks at direct and indirect impact, changes in individual lives and in their local partner organizations, and broader changes in the communities where it works.

Thought leadership and deep on the ground experience in youth development - identifies and partners with quality, local organizations for up to 10 years supporting their programming, development and growth, including leveraging additional support.

For more information please visit our website: http://empowerweb.org/

ACHIEVEMENTS AND PERFORMANCE

During the year ended 30 June 2023, the Charity disbursed $2,487,592 to 56 organisations. All of these grants helped to further the Charity's mission of empowering at risk youth around the world. The organisations funded with these grants are all dedicated to supporting programs advancing the health, education, and livelihoods development of marginalized young people. For a list of these grants, kindly visit www.empowerweb.org.

In addition, the Charity held awareness raising events in London to broaden the base of supporters as well as attracting others from continental Europe. The Charity was successful in forming an Underwriting Group of renowned professionals in the Emerging Markets financial sector that currently generously cover 100% of our fundraising and non-program related direct costs. To see the full list of Underwriters, kindly visit www.empowerweb.org.

FINANCIAL REVIEW

During the financial year the Charity recognised incoming resources totalling $4,264,483. This represented individual and institutional donations (including Gift Aid) and investment income.

On the expenses side, the Charity expended a total of $4,605,662, which was incurred directly to the fulfilment of the Charity's objectives, together with the support costs relating to these activities. The Charity donated $2,487,592 in grants to community based organisations in emerging countries dedicated to empowering young people.

The Charity held two fundraising event during the course of the year with expenditure totalling $197,361. The events generated $1,239,341 of fundraising income, consisting of $1,059,470 in donations and $179,871 of matched and supplementary funding from corporate and individual underwriters, as well as promoting an expansion of awareness of the Charity throughout its core constituency of financial professionals.

At the year end, the charity had total funds of $1,508,683 which is made up of unrestricted funds of $1,218,920 and restricted funds of $289,763 which are to be used for the purposes as detailed in note 15. The unrestricted funds consisted of Board designated reserves of $600,000 and a general reserve for operation of $618,920. The Board designated reserves have been set aside for the purposes of confronting operational expenses in case of a downturn in fundraising. The reserve policy of the Charity has been met at the balance sheet date as indicated by the separately designated Reserve fund shown in note 15.

Page 5

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

FUNDRAISING STANDARDS INFORMATION

The Charity adheres to current Fund-raising standards. We raise funds from the public using only our internal Development staff, our Directors and our Underwriters. We directly contact our donors and directly communicate with them, we use no intermediaries. We also develop our own marketing and communications resources internally. By using our internal resources we are able to protect against unusual intrusion and protect data privacy. Please visit our website to review our Policy on why we collect personal information, how we use it, the conditions under which we may disclose it to others and how we keep it secure. https://empowerweb.org/about-us/privacy

PLANS FOR FUTURE PERIOD

The Charity, through the UK VP of Development, the UK Development & Manager Corporate Partnerships and the UK Development and Engagement Manager, will continue to support the Board of Directors in its efforts to develop in London. Both the Board of Directors and staff will focus on raising the awareness of the Charity's work within its core constituency in the emerging markets financial sector, but also expand the reach to sectors outside finance, as well as continue to grow institutional funding and also identify individuals and firms with a keen interest in the 15 countries EMpower currently serves.

Pursuant to this end, the Charity will continue to have constituent dinners, Grants Meetings and explore participation in such high profile events such as the EMPEA global industry association for private capital in emerging markets conference, FT Investor for Good Conference and the London Marathon. To further diversify income, EMpower has also added online campaigns to help maintain and promote donor participation.

The Charity will continue to review geographic priorities and other programmatic imperatives so that the grantmaking is ensured to be impactful to the communities it seeks to serve and relevant to its supporters. The Charity will continue to distinguish itself by its participatory and transparent nature and will keep encouraging those interested to get involved in its work by attending Grants Meetings and by other means. If you would like to learn more about how to get involved with EMpower, kindly contact Francine de Boer, UK Development and Engagement Manager, at fdeboer@empowerweb.org.

TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

DISCLOSURE OF INFORMATION TO AUDITORS

In preparing this report, the Trustees have taken advantage of the small company exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the Trustees, and signed on their behalf by:

Cynthia Steele Company Secretary Date:

Page 7

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

FOR THE YEAR ENDED 30 JUNE 2023

Opinion

We have audited the financial statements of Empower - The Emerging Markets Foundation Limited (the 'charity') for the year ended 30 June 2023 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:

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.

Page 8

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

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 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:

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:

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.

Page 9

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

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 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Charities Act, Charities SORP 2019 and FRS 102.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or to avoid a material penalty.

As a result of these procedures, we considered the particular areas that were susceptible to misstatement due to irregularity, including fraud were in respect of the revenue recognition, unrecorded grant commitments and management override. Our procedures to respond to risks identified included the following:

Page 10

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

Hazra Patel (Senior Statutory Auditor)

for and on behalf of

Lubbock Fine LLP Chartered Accountants & Statutory Auditors Paternoster House 65 St Paul's Churchyard London EC4M 8AB

Date:

Page 11

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2023

Note
Income from:
Donations
2
Charitable activities
3
Investments
4
Total income
Expenditure on:
Charitable activities
5
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
$
2,680,454
1,239,341
7,158
3,926,953
4,231,551
4,231,551
(304,598)
1,523,518
(304,598)
1,218,920		 Restricted
funds
2023
$
337,530
-
-
337,530
374,111
374,111
(36,581)
326,344
(36,581)
289,763		 Total
funds
2023
$
3,017,984
1,239,341
7,158
4,264,483
4,605,662
4,605,662
(341,179)
1,849,862
(341,179)
1,508,683		 Total
funds
2022
$
2,737,035
1,569,101
159
4,306,295
5,275,547
5,275,547
(969,252)
2,819,114
(969,252)
1,849,862

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 to 27 form part of these financial statements.

Page 12

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee) REGISTERED NUMBER: 05889426

BALANCE SHEET

AS AT 30 JUNE 2023

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Creditors: amounts falling due after more
than one year
15
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 2023
$
352,421
2,166,830
2,519,251
(924,885)		 2023
$
5,317
1,594,366
(91,000)
1,508,683
289,763
1,218,920
1,508,683		 2022
$
137,389
3,283,641
3,421,030
(1,575,105)		 2022
$
3,937
1,845,925
-
1,849,862
326,344
1,523,518
1,849,862

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Kunal Shah Chair Date:

Marc Balston Treasurer

The notes on pages 15 to 27 form part of these financial statements.

Page 13

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2023

Note
Cash flows from operating activities
Net cash (used in)/provided by operating activities
18
Cash flows from investing activities
Bank interest
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
19		 2023
$
(1,120,255)
7,158
(3,714)
3,444
(1,116,811)
3,283,641
2,166,830		 2022
$
(452,173)
160
(1,416)
(1,256)
(453,429)
3,737,070
3,283,641

The notes on pages 15 to 27 form part of these financial statements

Page 14

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

1. Accounting policies

1.1 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.

Empower - The Emerging Markets Foundation Limited 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.

The accounts have been prepared in US dollars as this is the operating currency of the charity.

1.2 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.

1.3 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 Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.4 Going concern

The Trustees consider that it is appropriate to prepare the financial statements on a going concern basis. In formulating this assessment the Trustees have taken into consideration the strength of available reserves and fundraising forecasts.

1.5 Income

All monetary donations, grants and gifts are included in full in the statement of financial activities when receivable, provided that there are no donor/funder-imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the pre-condition has been met.

Gifts in kind and donated services are valued and included in income to the extent that it represents goods or services which would otherwise be purchased. An equivalent amount is charged as expenditure.

Fundraising income consists of donations received at events which are recognised in the year in which the event was held.

Page 15

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

1. Accounting policies (continued)

1.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

1.7 Grants payable

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the charity. The grants are accounted for where either the trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the charity.

1.8 Resources expended

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, which is charged on an accruals basis, is allocated between:

1.9 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into dollars at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into dollars at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

1.10 Pensions

The company contributes to a group personal pension scheme and the pension charge represents the amounts payable by the Charity in respect of the year.

1.11 VAT

The Charity is not registered for VAT and its expenses are therefore inflated by VAT which cannot be recovered.

1.12 Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Computer equipment - 20% straight line

Page 16

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

1. Accounting policies (continued)

1.13 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.

1.14 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.

1.15 Liabilities and provisions

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

1.16 Financial instruments

The Charity 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. Income from donations

Unrestricted
funds
2023
$
Donations and gift aid
2,680,454
Total 2022
2,401,164		 Restricted
funds
2023
$
337,530
335,871		 Total
funds
2023
$
3,017,984
2,737,035		 Total
funds
2022
$
2,737,035

3. Income from charitable activities

Unrestricted Total Total
funds funds funds
2023 2023 2022
$ $ $
Fundraising activities 1,239,341 1,239,341 1,569,101

Page 17

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

4. Investment income

Unrestricted Total Total
funds funds funds
2023 2023 2022
$ $ $
Bank interest receivable 7,158 7,158 159

5. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2023
$
Grant funding activities including management
fee
4,231,551
Total 2022
5,141,020		 Restricted
funds
2023
$
374,111
134,527		 Total
2023
$
4,605,662
5,275,547		 Total
2022
$
5,275,547

6. Analysis of expenditure by activities

Grant funding activities
including management fee
Total 2022		 Activities
undertaken
directly
2023
$
965,571
939,469		 Grant
funding
activities
2023
$
2,487,592
3,021,543		 Support
costs
2023
$
1,152,499
1,314,535		 Total
funds
2023
$
4,605,662
5,275,547		 Total
funds
2022
$
5,275,547

Page 18

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

6. Analysis of expenditure by activities (continued)

Analysis of direct costs

Management fees to EMpower - The Emerging Markets
Foundation (EMpower US)
Analysis of support costs
Staff costs
Depreciation
General support costs
Travel and communications
Fundraising expenses
Foreign exchange (gain)/loss
Total 2023
7.
Grants payable
Grant funding activities
Total 2022		 Activities
2023
$
965,571
Grant
funding
activities
2023
$
743,638
2,334
260,748
74,334
197,361
(125,916)
1,152,499
Grants to
Institutions
2023
$
2,487,592
3,021,543		 Total
funds
2023
$
965,571
Total
funds
2023
$
743,638
2,334
260,748
74,334
197,361
(125,916)
1,152,499
Total
funds
2023
$
2,487,592
3,021,543		 Total
funds
2022
$
939,469
Total
funds
2022
$
752,559
1,641
237,847
79,999
138,091
104,398
1,314,535
Total
funds
2022
$
3,021,543

Page 19

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

7. Grants payable (continued)

The Charity has made the following material grants to institutions during the year:

Name of institution
Abraco Campeao
Adonis Musati Project
Alternativa
Joint Operation for Social Help (JOSH)
Maya Foundation
Suna ve Inan Kiraç Vakfi (SVIKV)
Waves for Change
Other grants to institutions
8.
Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts (governance) - 2023 audit
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts (governance) - 2022 audit
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts (governance) - 2021 audit
All non-audit services not included above
9.
Staff costs
Wages and salaries
Social security costs
Other pension costs		 2023
$
17,807
-
-
8,903
2023
$
613,952
77,403
52,283
743,638		 2023
$
100,000
155,000
90,000
125,000
101,000
140,000
100,000
811,000
1,676,592
2,487,592
2022
$
-
16,830
4,561
6,760
2022
$
630,187
80,446
41,925
752,558

Page 20

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

9. Staff costs (continued)

The average number of persons employed by the Charity during the year was as follows:

2023 2022
No. No.
Average number of staff 6 6

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band $72,274 - $84,319 (£60,001 - £70,000) - 1
In the band $84,320 - $96,365 (£70,001 - £80,000) 2 1
In the band $144,548 - $156,593 (£120,001 - £130,000) 1 2
In the band $156,594 - $168,639 (£130,001 - £140,000) 1 -

Total remuneration paid to key management personnel was $489,427 (2022 - $387,419).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - $NIL).

During the year ended 30 June 2023, no Trustee expenses have been incurred (2022 - $NIL).

11. Taxation

There is no charge to corporation tax due to the nature of the activites carried out by the organisation.

Page 21

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

12. Tangible fixed assets

Cost or valuation
At 1 July 2022
Additions
At 30 June 2023
Depreciation
At 1 July 2022
Charge for the year
At 30 June 2023
Net book value
At 30 June 2023
At 30 June 2022		 Computer
equipment
$
9,882
3,714
13,596
5,945
2,334
8,279
5,317
3,937
13.
Debtors
Grants and donations receivable
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 2023
$
306,593
-
204
45,624
352,421		 2022
$
129,815
3,162
1,167
3,245
137,389

Page 22

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

14. Creditors: Amounts falling due within one year

Amounts owed to group undertakings
Other creditors
Grants payable		 2023
$
50,058
72,514
802,313
924,885		 2022
$
5,207
113,073
1,456,825
1,575,105

15. Creditors: Amounts falling due after more than one year

Grants payable 2023
$
91,000
91,000		 2022
$
-
-

16. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Reserves
Renew Fund
Restricted funds
Children's Investment Fund
Foundation
Ukraine Fund
Total of funds		 Balance at 1
July 2022
$
423,518
600,000
500,000
1,523,518
326,344
-
326,344
1,849,862		 Income
$
3,926,953
-
-
3,926,953
87,530
250,000
337,530
4,264,483		 Expenditure
$
(4,231,551)
-
-
(4,231,551)
(374,111)
-
(374,111)
(4,605,662)		 Transfers
in/out
$
500,000
-
(500,000)
-
-
-
-
-		 Balance at
30 June
2023
$
618,920
600,000
-
1,218,920
39,763
250,000
289,763
1,508,683

Page 23

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Reserves
Renew Fund
Restricted funds
Children's Investment Fund
Foundation
Total of funds		 Balance at
1 July 2021
$
1,344,114
600,000
750,000
2,694,114
125,000
2,819,114		 Income
$
3,970,424
-
-
3,970,424
335,871
4,306,295		 Expenditure
$
(5,141,020)
-
-
(5,141,020)
(134,527)
(5,275,547)		 Transfers
in/out
$
250,000
-
(250,000)
-
-
-		 Balance at
30 June
2022
$
423,518
600,000
500,000
1,523,518
326,344
1,849,862

Reserves

The reserves fund of $600,000 (2022 - $600,000) included within unrestricted funds is a Board designated fund set aside for the purpose of confronting operational expenses in case of a downturn in fundraising.

The Renew Fund of $Nil (2022 - $500,000) included within unrestricted funds is a Board designated fund set aside for specific programs. The Renew Fund is focused on COVID related health and wellness.

Restricted funds

During the year, the Charity received income of $87,530 (2022 - $335,871) from Children's Investment Fund Foundation to support an organized base of diverse leaders in their personal transformation to change dominant institutions by leading local initiatives with decision makers aimed at advancing girls' rights in Rajasthan, India.

During the year, the Charity received income of $250,000 to support young Ukrainian people.

Page 24

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

17. Analysis of net assets between funds

Analysis of net assets between funds - current year
Unrestricted
funds
2023
Restricted
funds
2023
$
$
Tangible fixed assets
5,317
-
Current assets
2,229,488
289,763
Creditors due within one year
(924,885)
-
Creditors due in more than one year
(91,000)
-
Total
1,218,920
289,763
Analysis of net assets between funds - prior year
Unrestricted
funds
2022
Restricted
funds
2022
$
$
Tangible fixed assets
3,937
-
Current assets
3,094,687
326,344
Creditors due within one year
(1,575,105)
-
Total
1,523,519
326,344
18.
Reconciliation of net movement in funds to net cash flow from operating activities
2023
$
Net expenditure for the year (as per Statement of Financial Activities)
(341,179)
Adjustments for:
Depreciation charges
2,334
Interest income
(7,158)
Increase in debtors
(215,031)
Increase in creditors
(559,221)
Net cash (used in)/provided by operating activities
(1,120,255)		 Total
funds
2023
$
5,317
2,519,251
(924,885)
(91,000)
1,508,683
Total
funds
2022
$
3,937
3,421,031
(1,575,105)
1,849,863
2022
$
(969,252)
1,641
(160)
(26,995)
542,593
(452,173)

Page 25

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

19. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2023
$
2,166,830
2,166,830		 2022
$
3,283,641
3,283,641

20. Analysis of changes in net debt

Cash at bank and in hand At 1 July
2022
$
3,283,641
3,283,641		 Cash flows
$
(1,116,811)
(1,116,811)		 At 30 June
2023
$
2,166,830
2,166,830

21. Pension commitments

The Charity contributes to a group personal pension scheme.

The pension costs per the Statement of Financial Activities represent contributions due from the company and amounted to $52,283 (2022 - $41,925).

At the year end the charity had a pension liability of $14,395 (2022 - $10,995).

Page 26

EMPOWER - THE EMERGING MARKETS FOUNDATION LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

22. Related party transactions

At the balance sheet date $nil was due from (2022 - $3,162) EMpower - The Emerging Markets Foundation, a not for profit organisation incorporated in the United Stated of America (EMpower US), which shares common directors. The balance is unsecured, interest free and repayable on demand.

During the year, management fees of $965,571 (2022 - $939,469) were payable to EMpower - The Emerging Markets Foundation for providing operating support.

At the balance sheet date $nil (2022 - $185) was due to Empower HK - The Emerging Markets Foundation, a not for profit corporation based in Hong Kong (EMpower HK), which shares common directors. The balance is unsecured, interest free and repayable on demand.

At the balance sheet date $50,000 (2022 - $4,964) was due to Empower - The Emerging Markets Foundation (Singapore) Ltd, a not for profit corporation based in Singapore (EMpower SG), which shares common directors. The balance is unsecured, interest free and repayable on demand.

At the balance sheet date $58 (2022 - $58) was due to Empower Services Private Limited, a not for profit corporation based in India, which shares common directors. The balance is unsecured, interest free and repayable on demand.

The aggregate donations received from related parties for which there are no conditions during the year was $765,264 (2022 - $1,097,975).

23. Parent entity

The parent entity of the Charity is EMpower USA, a charity incorporated in the USA, by virtue of EMpower USA being the sole member of the Charity.

Page 27