Registered Company No: 06451283 Reglstergd Charity No.. 1133206 Huo Family Foundation (UK) Limited Annual report and financial statements for the year ended 31 December 2023
Huo Family Foundation (UK) Limited Contents Charity details Trustees, annual report strategic report Independent auditors, report 9-11 Statement of financial activities 12 Balance sheet 13 Cash flow ststement 14 Notes to the financial statements 15-27
Huo Family Foundation (UK) Limited Charity details Tru8teo8 Yan Huo (Chairman) Xue Fang Philip Michaels IResi9ned on 8th September 20231 Sam Lowe Yu Qiao Nancy Montmarquet (Appointed on 8th September 20231 Registered offi¢0 Third Floor 20 Old Bailey London EC4M 7AN Independent auditors Pricewaterhousecoopers LLP 1 Embankment Place London WC2N 6RH Investment manag¢r Partners Capital LLP 5 Young Street 5th Floor London W8 5EH Bankers Citibank. N.A. 41 Berkeley Square London W1J SAN J. P. Morgan 1 Knightsbridge London SW1X 7LX Barclays Bank PIC 1 Churchill Place London E14 5HP Accountants Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP Solleltors Withers LLP 20 Old Bailey London EC4M 7AN Status Huo Family FoLJndation IUKI Limited is a private limited Company, company number 06451283. It is registered in the United Kingdom as a charity, number 1133208.
Huo Family Foundation (UK) Limited Trustees, annual report for the year ended 31 December 2023 The trustees, who ara also the directors of Huo Family Foundation IUKI Limited I the Foundation"). present their report lincluding thèir slralegic report) and audited financial stslements for the year ended 31 December 2023. which have been prepared in accordance with thè Charities SORP IFRS 1021 s8cond edition - effective January 2019. the Companies Act 2006 and the Charities Act 2011, and appliGable accounting standards in the United Kingdom. The Foundation details on page 1 form part of this report. The following information is shown in the strategic report instead of trustees, report under $414CI111 i.e. Review of a¢livities. review of transactions and financial position, year review of 2023, investment poli¢y and performance, policy statement on reserves, grant making, future plans for development, PLJblic benefit slalement, internal control and mitigation of major risk, slalemenl of trustees, responsibilities and independent auditors. Governing documonts The Foundation is a charitable Company limited by shares governed by ils Memorandum and Articles of Association as amended on 4 December 2019. It was incorporated on 12 December 2007 and registered with the Charity Commission as a charity on 9 December 2009. The Huo Family Foundation, a charity registered in the USA, owns the entire issued share capital of the Foundation. The Huo Family Foundation is a non-slock corporation incorporated in the Slate of Delaware and established exclusively for charitable PLJrposes. Yan Huo. Xue Fang and Philip Michaels are common trkjstees of both the Huo Family Foundation and the Foundation. Objects and strategy The objects of the Foundation are such exclusively charitable purposes as the trustees may in their absolute discretion detemine. The Foundation has been 8slablished as a grant making charity and the trustees intend to make grants primarily lo charities that support the advancement of arl, education and scientific research for the public b8n8fit. The Iruslees have referred lo the guidance contained in the Charity Commission's general guidance on public benefit, as required by Section 17 of the Charities Act 2011, whèn reviewing the obje¢ls and strategy of the Foundation and in planning future aclivilies. In particular. the IrLJStees consider how planned activities will contribute to the strategy of the Foundation. The trustees are of the view that the current grant levels meet th8 charitable objectives of the Foundation. Appolntmont of trustee$ As per the Articles of Association, the trustees shall be appointed by ordinary rèsolution of the sole shareholéer. The number of trustees shall not be less than two bul is not subject lo any maximum number. A trustee is elected to servè the time that he or she is appointed or. in absence of such an appointment, until r&moved or retirement. When selecting new Trustees, individuals are sought who can provide strong governance, oversight, and valuable skills. A skills audit of the board is undertaken to identify any gaps in expertise., and diversity is also considered lo ensure the board reflects the community it serves. Onc¢ appointed, Trustees are provided with a comprehensive induction which covers the Foundation's mission, slrat&gy, and current projects.
Huo Family Foundation (UK) Limited Trustees, annual report for the year ended 31 December 2023 (continued) Trustee Induction and training New Iruslees are briefed on their legal obligations uncser charity and company law. the content of the Memorandum and Articles of Association, the decision-making processes of the Foundation and the Foundation's future plans and objectives. The trustees are kept updal8d on any changes to their obligations and responsibilities. Organlsation The trustees are responsible lor the strategic direction and policy of the Foundation and make all decisions in relation to the Foundation. In furtherance of this, the trustees meet as and when required. The trustees may delegate any ol their powers or functions lo a 00mittee of two or more trustees, but the terms of delegation musl be agreed in advance. The Foundation has granted an indemnity lo one or more of its trustees against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying Ihird-party ind&mnity provision remains in force during the financial year and as at the date of approving the Trustees, Report. Fundraising activltles The Charities (Protection and Social Investment) Act 2016 requires Charities to make a ststement regarding fundraising activities. The legislation defines fundraising as 'soliciling or otherwise procuring money or other property for charitable purposes,. In relation lo this slalemenl, the Foundation does not undertake widespread fundraising from the gen$ral public and does not employ professional fundraisers lo do so. The Foundation is Iher&fore not bound by any regulatory scheme and does not consider il necessary to comply with any voluntary code of practice. The Foundation does not have policies in relation lo fundraising activities nor do we consider it necessary to design specific policies and procedures to monitor activities. The Foundation has not received any complaints relating to the subject of fundraising activities. Advl$ors The names and addresses of th8 Fokjndation's advisors are shown on page 1. STRATEGIC REPORT Reviaw of a¢tivltl&s The Foundation's mission is to support 8dLJcation. communities and the pursuit of knowledge. Ils current areas of focus are the arts. education, scientific research and public policy. In 2023, the Foundation continued its commitment to provide funding to charitable organisalions that support its mission, with a full list of beneficiaries shown in note 4 on page 20. In 2023 the Foundation published monthly interviews with some of its beneficiaries to highlight their work. The Foundation also released its third annual Impact Report, giving an in-depth review of its work. Through ils grants, the Foundation hopes lo improve the prospects of individuals, and to support the work of organisations seeking lo ensure a safe and prosperous future for all society.
Huo Family Foundation (UK) Limited Trustees, annual report for the year ended 31 December 2023 (continued) The impact of the Foundation's grant giving is monitored Glosely. The mission is lo support education, communities and the pursuit of knowledge. When each grant 15 made the anticipated output, outcome and impact of ea¢h programmè is agreed. Formal reports are receivod from each grant beneficiary on an annual LTrasis and shared with trustees. Additionally grant beneficiaries are invited lo meet in p8rson to discuss progress with the executive team and, from time to lime, present a report lo the trustees al a board meeting. An Impact Report is prepared annually and this is published on the Foundation's website. Review of transactions and financial position During the year, total income was US$22,744,460 {2022.' US$26,459.2131. This is represented by investment income of US$2,612,526 12022. US$1.349.7041, donations of US$16,000.000 12022.. US$20,000,0001 from Yan Huo, one of the Iruslees of the Foundation (refer to Note 16 for additional informalionl, gift aid on that donation of US$4.000,000 12022.. US$5,000,0001, and donations of US$131,934 12022.. US$109,5091 from Faculty Road Limited, an entity under the same management. The nel movement in funds for th& year, as shown in the slalemenl of financial activities. amounted lo a surplus of US $26,756.24912022'. US $4,959,005). The value of the Foundation's net assets al 31 December 2023 is US$208.066,78612022.. US$181,310,5371. Tho Foundation has received donation income of US$16,ODO,000 and gift aid on that income of US$4,000,000 after the year end, in January 2024. 2023 Review In 2023, the Foundation continued to support charitable institutions that are championing educational excellence, artistic brilliance and social impact. The Foundation made grant payments lo a number of museums and galleries in London.. The British Museum, The Courtau1d Gallery, National Gallery, Natural History Museum and the Royal Academy of Arts. Additionally, it made grant commitments lo the Tate Galleries, Royal Opera House, London Symphony Orchestra, Donmar Warehouse, National Theatre and The Old Vic. and made its first grant to the Mtslropolitan Museum of Art. The Foundation continued lo support organisalions that seek to provide an excellent education to all. Through its funding of Teach for China and grant payments lo Teach for All, Teach First and Youth Communication it helped lo enable these charities lo strive for societies wh8re educational opportunities and outcomes are not determined by a child's socilieconomic ststus. Further, in its support of scholarships and fellowships at Fudan University and payments lo Columbia University, the Foundation created opportunities lor post-graduate study. Additionally. the Foundation made a grant payment to the Oxford Internet Institute to support research into the impact of digital technology on adolescent brain development. Investmont policy and porfomiance In accordan¢8 with the Memorandum and Articles of Association, the trustees have the power lo invèst in such stocks, shares and investments as they see fil. The trustees can delegate the management of investments to a financial expert only on the terms set in the Articles of Association.
Huo Family Foundation {UK) Limited Trustees, annual report for the year ended 31 December 2023 (continued) The Trustees have established a Financé Commltt88, comprising a subset of trustees and Partners Capital LLP, an investment manager. The Finance Committee has sel out a porffolio asset allocation of publi¢ and private equities, hedgè funds. real assets and private and publi¢ debt, which are invested by Partners Capital LLP and th& Iruslees of the Foundation. The Finance Committee reviews on a quarterfy basis, the consolidated performances of the total investment portfolio and is actively engaged with Partners Capital LLP on tactical asset allocation and rebalancing based on market conditions. The Finance Committee also reviews the Foundation's cash flow and forèign exchange exposures of its cash balances and grant liabilities. During the financial year, the portfolio increased its value by US$22,882,01612022.' USS5,968,1871. This is comprised of net additions of US$4,684,71312022.. US$18,905,672}, nel gain on investments USS18,197,303 {2022'. US$12,937,485 nel losses). Pollcy statemont on reserves The policy of the trustees is lo maintain sufficient reserves in order to fulfil future expected funding requirements of projects that extend over several years. In determining the appropriate level ol reserves, the trustees lake into account the nature of the Foundation i.e. one-off giving as well as mulli-y&ar grants in the form of endowments and scholarships. as well as potential fluclualion of ils income stream in future years. Th8 policy is reviewed on an annual b8SIS. Having regard lo these considerations, taking into account ils foreseeable activity level and general operating environment, the Foundation currently largels fre& reserves representing the available cash balances lo sufficiently meet the upcoming year's grant payments and operating expenses which is expected lo be approximately US$11,600,000 for 2024. As al 31 D&c&mber 2023, this balance was US$7,459,913 12022.. US$8.216.2081. As al 31 December 2023, the Foundation has US$17,924,079 in investment - pending selllemenl, of which US$17.393,409 has been received in Q1 2024 to ensure the Foundation me&ls the grants payable and expected operational expenses in 2024. The Foundation's investments ar6 currently held primarily in liquid assets that ¢ou1d be called upon should the need arise. The Iruslees b8lieve the Foundation's reserves are suffiGienl lo meet fLJlure needs while leaving some flexibility to evalLJate new grant proposals and make new Commitments. The Foundation's long-lerm plan is to aim for grant expenditure of at least 5Q/o of its assets each year, or more where resources allow, and lo maintsin the real term value of the fund for future grant making activity. As at 31 December 2023, the Foundation has reserves of US$208,066,78612022'. US$181,310,5371, which 15 an increase of US$ 26.756,249, relative to last year en(t. This difference was primarily driven by donation income in the year, as well as investment performance, offset by grants awarded and operational expenses throughout the year. Grant maklng The Iruslees review applications and appeals, and then distribute funds in furtherance of the Foundation's charitable objects. During the year, the Foundation awarded grants of US$12,969,44412022.' US$6.981.2021, which excludes support ¢osts of US$932,77612022'. US$832,7311. The FoLJndation does not accept unsolicited grant applications from the public.
Huo Family Foundation (UK) Limited Trustees, annual report for the year ended 31 December 2023 (continued) Plans for future developments In the coming year, the Foundation plans lo provide charitsble support in accord8nce with its objectives and strategy as described on page 2. Its current area of focus are education, the arts, scientific research and public policy. Public benefit statèment In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including 'public benefit.. running a charity IPB21'. The trustees confirm that they have complied with the duty in s¢¢tion 17 of the Charities Act 2011 to have due regard to publi¢ benefit guidance published by the Charity Commission. The Foundation plans to provide charitable support for the public benefit in accordance with its objectives and slralegy a5 described on pag& 2. This is done through donations lo charities and other organisations that support the advan¢ement of art and education for the public benefit. Internal controls and the mitigatlon of major risks The Iruslees have identified and reviewed the major risks of the Foundation such as investment performance. the Foundation's cash flow position. foreign exchange movements and a cyber attack and have established internal controls to mitigate these risks. The Foundation maintains a diversified investment portfolio, which has an inv&stment objective of achieving a real retLJrn target of 4Qlo. The Finance Committee meet quarterly to review ils market risk exposure is in lin with the objective, as well as assess its asset allocation between liquid and illiquid investments for liouidily risk. Material GBP denominated liabilities. from grants awarded, are hedged lo ensure the Foundation's liabilities have little to no currency risk. The currency risk is monitored and reported on a quarterly basis lo the Board. The Iruslees confirm that the controls implemented are appropriate to the size of the Foundation and the nature of its operations. Statement of trustees, responsibilitles The trustees Iwho are also directors of Huo Family Foundation IUKI Limited the purposes of company lawl are responsible for preparing the Trustees, Annual Report (including the Strategic Report) and the financial slalements in accordance with applicable law and regulation. Company law requires the truslees to prtrpare financial statements for eaGh financial year. Under that law the trusteès have prepared the financial sta18ments in 8c¢ordance with United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Stsndard applicable in the UK and Republic of Ireland,, and applicable law (United Kingdom Generally Accepted Accounting Praclicel. Under company law the trustees must not approve the financial statements unless they are satisfied Ihal they give a true and fair view of the stale of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are r&qLJired lo. select suitsble accounting policies and then apply them consistently.,
Huo Family Foundation {UK) Limited Trustees, annual report for the year ended 31 December 2023 (continued) observe the methods and principles in the Slalemenl of Recommended Practice.. Accounting and Reporting by Charilies120191', make judgments and eslimales that are reasonable and prudent; stale whether applicable UK Accounting Standards, comprising FRS 102. have been followed. subject to any material departures disclosed and explained in the fin8n¢ial slalemenls., and prepare the financia5 statements on the going concern basis Ljnless it is inappropriate lo presume that the Gharitable Gompany will continue in business. The trustees are responsible for keeping adequ8te accounting records that are sufficient lo show and explain the charitsble company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable comp8ny and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safegLJarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitiès. The trustees are responsible for the maintenance and integrity of the charitable company s website. Legislation in the United Kingdom governing the preparation and dissemination of f1nan¢ial statements may differ from legislation in other jurisdictions. In so far as the trustees are aware.. a) there is no relevant audit information of which the company's auditors are unaware., and bl the Iruslees have taken all the steps that he ought to have taken as a trustee in order lo make himself aware ol any relevant audit information and to establish that the company's auditors are aware of that information. Eoualily, diversity and inclusion are important valuès of the Foundation. This is reflected in the make-up of the Board, staff appointments and the sele¢lion of grant beneficlaries. The Iruslees seek to treat each stsff member and grant beneficiary fairly and the same, respecting them for their age. race gender, cultural background. skills bèliefs. sexual orientation and career experiences. The Iruslees are kept up lo date on their obligations by regular briefings from the Foundation's external advisers, and guidance from the Charity Commission. Independent audltors The auditor Pricewaterhousecoopers LLP is d&emed to be re-appointed under section 487 121 of the Companies Act 2006. A resolution lo re-appoint Pricewaterhousecoopers LLP will be proposed al the annual general meeting. The Trustees, annual report is approved by the trustees of the Foundation. The strategic report, which forms part of the Trustees. annual report, is approved by the trustees in their capacity as trustees in company law of the charity.
Huo Family Foundation (UK) Limited Trustees, annual report for the year ended 31 December 2023 (continued) The Trustees. Report, Including thè Strategic Rèport, was approved and authoris•d by the board of trustees and signed on their behalf by-. Yan Huo Trustaa Dale.. 13 September 2024
Huo Family Foundation (UK) Limited Independent auditors, report to the members of Huo Family Foundation (UK) Limited Report on the audit of the financial statements Opinion In our opinion, Huo Family Foundation IUKI Limited's financial statements Ith& nanCIaL statem8nts"I'. give 8 true and fair view of the State ol the charitable company's affair5 as at 31 December 2023 and of ils incoming resources and application of r9sources, including its income and expenditure, and cash flow5, for the year then ended.. have bèen properly prepared in 8ecordanTr with United Kingdom Generally ACpted AountIng Practice (United Kingdom Aecounting Standards, including FRS 102'Th8 Financial Reporting Standard applicable in the UK and Republic of Ireland and applicable lawl., and have been prèpared in accordance with the requirements of the Companie5 Act 2006. We have audit8d thè financial slaternènts, included within the Annual ReFK)rt 8nd Financial Statern8nts Ithe'Annual Report'l. which comprise.. the Balance sh8et as at 31 December 2023., the Statement of financial activitles lincorporating the incomè and expenditure account) and Statement of cash flows for the yÈ8r then ended.. 8nd the notes to thg financial statement5, which include a description of significant accounting policies. Basis for opinion We conducted our audit in accordan with International Standard5 on Auditing IUKI I'ISAS IUKI") and applicable law. Our responsibilit185 under ISAS IUKI are further described in the Auditors, responsibilities lor the audit of the financial statements section of our rèport. We believe that the audit evidence wa have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remained independent of the charitable company in accorcsance with the 8thical requirement5 that a relevant to our 8udit of the finan¢i81 stataments in the UK, which includes the FRC'5 Ethical Standard we have fulfi118d our other ethical responsibilitles in accordance with these requiremgnts. Conclusions relating to going con¢arn B8S8d on the work we have performed. we hav8 not identified any material uncertaint18s relating lo events or conditions that, individually or collectively. may Cast significant doubt on the eharitable company's ability to continue as a going concern lor a period of at lèast twelve rnonths from the dale on whieh the finan¢i81 statements are authorised lor issue. In auditing the financial stat8mènts, we have concludèd that the tru5t8e5' use of the going concern basis of accounting in the preparation of thè financial slatemènls is appropriat8. However, b8causè not all futur8 8V8nts or conditions C8n be predicted, this conclusion is not a guarantee a8 to thè charitable company's ability to continu& as a going concem. Our responsibilities and the responsibllllies ol the trustèes with respeGI lo golng concern 8re descritsed in tha relevant 88Ctions of this report. Reportlng on other information The other inforrn8tion comprises 811 of tha information in the Annual Report other than the financial statements and our auditois, report thereon. The trustees are responsible for the othèr information. Our opinion on th8 financial statem8nts does not cover the other information and. accordingly, we do not expr85s an audit opinion or. except to the exlenl othemise explicitly stated in thi5 report, any lonm of assuran thereon. In connection with our audit ol the financial statements, our r8sponsibilily is to read the other information and, in doing $0, nsider whether the other information is m8terially Incon$tent with the financi815tatements or our knowledge obtained in the audit, or otherwise appears to be mat8rially misslaled. If we identify an apparent material inconsistency or material misstateffl8nt, we are required to perform procedures to conclud8 whether there 15 a material mis5t8lement of th8 rinancial statements or 8 material misstatemènt ol the other information. If. based on the work we have performed. we
Huo Family Foundation (UK) Limited Independent auditors, report to the members of Huo Family Foundation (UK) Limited conclude that there is a material tnisstatement ol this othar Inlorrn8tion, we arè required to port that fact. Wè have nothing to report based on these responsibilities. With respect to the Strategic Report and Trustees. annual r8POrt. we also considered wh8ther the disclosures required by the UK Companies Act 2QK)6 and Charities Act 2011 have been included. Based on our work undertaken in the cours& of the audit. the Companies Act 2006 requires us 8150 to report certain opinions and matt8rs as described below. Strategic Report and Trustees. annual report In our opinion. based on the work undertaken in the course of the audit the information gIV8n in the Strategic Report and the Trustees. annual report for the period ended 31 December 2023 is consistent with the financial slat8ments and h8S been prepared in accordance with applicable legal requir6menls. In light of the knowledge 8nd understanding ol the oharltable cotnpany and Its environment obtained in Ihg course of thè audit. we did not idenlify any material misstalem8nts in the Strategic Report and thè Trustees. annual report. Responsibilitios for the flnancial statèments and the audlt Responsibilities of the trustees for the financial slatem8nls As explain8d more fully in the Statemènt ol trustees. responsibilities. the trustees Iwho a also the directors of the charitab18 company for the purposes of company lawl ar8 responsibl8 for the Preparation of the financial statements in ocordance with the applicable framework and for being satisfied that they give a true and lair view. The trust8es are also responsible for such internal control as they determine is necess8ry to enable the preparation of financial stalem8nts that are fre8 from material tnisstalement, whether due to fraud 01 error. In preparing Ihg financial statements, th8 trustees are responsible for ass8ssing the ¢haritable company's ability to continue as a going concern, disclosing, as applicable, rnatt8rs related to going ooncern and using the going concein basis of accounling unless the trustees eithér intend to liquidate th8 charitab18 company or to cease operations, or have no realistic alternative but to do so. Auditors, responsibilities for the audit of the financi81 slalemenls Our obieclive5 are lo obtain reasonable assurancè about wh8ther the financial statements as a whole ar8 free from material misstatement. whether du8 to fraud or èrror. and to issue an auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, but is not 8 guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misstatement wh8n Il exists. Misstatemènts can 81ise Irorn fraud or error and are considered material if, individually 01 in the aggregate. they could reasonably be &xpected to influence the economic decisions of usèrs taken on the basis of these fin8ncial slalements. Irregulaiities, including fraud, are instances of non-compliance with 18ws and regulations. We design procedur85 in Ilne with our responsibilities, outlined above, to detect material misstatement5 In respect of brgularitIes. including fraud. The extenl lo which our procedures are cap8b18 of detecting Irregularities, Including fraud. is detailed below. Based on our understanding of thé charitable company its induslrylenvironrn8nt, we idèntified that the princip81 risks of non-compli8nce with laws and regulations related to the Charities Act 2011. and we consider8d the exlenl to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such 85 the Companies Act 2006. We evaluated rnanagemenl'5 inc8ntives and opportuniti8s for fraudulent manipulation of the fin8ncial statements lincluding the risk ol overiide of controls), and det8rmined that the principal risks were related lo posting inappropriate journals lo manipulate financial results or Con81 th8 misappropriation of ass8t5 and potential management bias in accounting estimal85. Audit procedures p8rtormed by the en9ag8ment team included.. idèntifying and testing jOLJmal entries. in particularjournal entries posted with unusual awount combinations to incotne or expenditure a¢couNts". obtaining independ8nt confirfflations ol cash balances and material investrnènt valuations as at 31 Dernber 2023.. testin9 the recognition ol grant 8xp6ndilure in line with tarms of the grant awards., 10
Huo Family Foundation {UK) Limited Independent auditors, report to the members of Huo Family Foundation (UK) Limited enquiring ol management and the board of trustees, inc1udin9 consideration of any known or suspected instarts of non-complian with laws regulation and fraud", reading minutes of meetings ol the board of trustees., as$es5illg significant accounting judgetnènts and estimates, particularly those relatèd to the valuation of investments in debt and equity sècurities.. and assessing financial statement rlisclosur88, and lesling to supporting documentstion, lor cornpliance with applicable law5 and gULatIOnS. Th8ie are inherent litnitations in the audit procedures described above. We 8r8 less likely to become aware of instancès of non-compliance with laws and regulations that are not closely related to events and trans8Ctions fieCted in financial statement5. Aso, the risk of not detecting 8 material misstatement due to fraud is higher than the risk of not det8cling one r8sulting from error, as fraud rnay involve deliberate con¢ealm8nt by, for example, forgery or intentional miSpreSentatiOnS or through collusion. A furthèr description of our responsibilities lor the audit of the financial statements is Iwated on the FRC'S website at.. w.Irc.org.uklauditorsresponsibilities. This d8scriplion forms part of our 8uditors' report. Use oflhis pOrt This report, including the opinions. ha5 been ppared for and only for thè charitable company's m9mbers as a body in accordance with Chapter 3 of Part 16 of the Cornpanies Act 2006 and for no other purpos8. We do not, in giving these opinions. accept or assume r8sponsibilily for any other purpose or to any other person to whom this report is shown t)r into whosè hands it may come 3av8 where expressly agreed by our prior consent in writing. Other required reporting Companlas Act 2006 exception roporting Under the Companies Act 2006 we are required to report to you rf. in our opinion.. we havg not obtained all the information and explanations we reouir8 for our audit., or dèquate accounting records hav8 not been kept or returns adequate for our audit have not been reoeiv6iJ from branches not visited by us", or Certain disclosures ol trustees. rèmuneration specified by law a not rnade,. or the financial sl818mÈnts are not in agreement with the accounting records and retums. We have no 8xceptions to rgPDrt arising from this spOnsibl11ty. CA 08ni&l Chan (Senior Statutory Auditor) lor and on behalf of Pric8WaterhouseCoopers LLP Chartered Accountants and Statutory Audilots London 13 September 2024
Huo Family Foundation (UK) Limited Statement of financial activities for the year ended 31 December 2023 (incorporating the income and expenditure account) 2023 2022 Notes Unrestricted Funds us$ Unrestricted Fund$ us$ Ineome from: Donations Investments 20,131,934 2,612,526 25,109,509 1,349,704 Total 22,744,460 26,459,213 Expendlture on: Charitable activities Raising funds 113,902,220) 1299,2361 17,793,933} 1288,5481 Total 14 201,456 8,082,481 Nel gainslllossesl on investments Net gains on cash and cash eouival8nts 18,197,303 112,937.4851 86,421 Nèt Incomo 26,826.728 5,439,247 other recognised losses Foreign exchange losses 170,479) {480,2421 Not movemènt in funds 26,756,249 4,959,005 Fund balances brought forward at 1 January Fund balan¢gs carrl&d forward at 31 Dacemb•r 181,310,537 176,351.532 208,066,786 181,310,537 All of the Foundation's activities are derived from continuing operations. The Foundation has no re¢ognised gains and losses other than those shown above and therefore no separate income and expenditure account has been presented. The notes on pages 15 to 27 fomi part of the financial slalements. Hu¢ Family Found8tlon IUKI Limited Registered Company No.. 06451283 Registered Charity No.. 1133206 12
Huo Family Foundation (UK) Limited Balance sheet As at 31 December 2023 Notes 2023 us$ 2022 us$ Fixed assets Investments 190,421,108 167,539.092 Current assèts Debtors Cash at bank and in hand Total current a$sots 19,429,587 7.459,913 26,889,500 11,945,687 8,216,208 20,161,895 Credltors.. amounts falling due within one year 10 18.803,8221 13,969.4001 Not current as$èts 18.085,678 16,192,495 Total assets less current liabilities 208,506,786 183,731,587 Creditors.. amounts falling due after more than one year 1440.0001 12,421,050) Net assots 208,066,786 181,310,537 Th¢ funds of the foundation Share capital Unrestricted funds 12 13 208,066,784 181,310,535 Total foundation funds 14 208,066,786 181,310.537 The notes on pages 15 to 27 form parl of the financial statements. The financial statements on pag6s 12 lo 27 were approved by the trustees on 13th September 2024 and were signed on 131h Sepl&mber 2024 on their behalf by.. Yan Huo Trustee Huo Family Foundation IUKI Limitad Registered Company No.. 06451283 Regisler&d Charity No.. 1133206
Huo Family Foundation (UK) Limited Statement of cash flows for the year ended 31 December 2023 2023 us$ 2022 us$ us$ us$ Cash flows from operating activltles Net cash provided by operatlng activities 1,319,877 20.132,841 Cash flows from investlng activitias Investment income- bank interest Investment income - dividends Capital gain dislribulions Bank interest and charges Purchase of investments Sale of investments 116,158 2,273,081 223,287 13,9851 198,597,587) 93,912,874 53.741 891.758 404,205 13,0431 1100,009, 1891 81,103.516 Nat cash used in invèstlng activities 12,076,172> 117.559.0121 Change in cash and cash equivalants 1756,295} 2,S73,829 Cash and cash equivalènts at the boginning of the year 8,216.208 5.642,379 Cash and cash equlvalants at the end of year 7459913 8,216,208 Reconciliation of net Incomg to net cash inflow from operating activitios 2023 us$ 2022 us$ Net income Interest received Bank interest and charges Dividend receivable Capitsl gain distributions Net Igainslllosses on investments Foreign exchange losses IlncreasellDecrease in debtors Increasel in creditors 26,826,728 1116.1581 3,985 12,273,081) 1223,2871 118.197,3031 170,4791 17,483.8991 2.853,371 5.439,247 153,7411 3,043 1891,758) {404,2051 12.937,485 1480,2421 1.623.503 1,959,509 Net cash inflow from operating activities 1319 877 20 132,841 Foreign Exchang¢ Movement 2022 us$ Cash Flows us$ 2023 us$ Analysls of change$ in nèt debt us$ Cash al bank and in hand 8,216,208 1920,365) 164,070 7,459,913 14
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 1. Principal accounting policies Company inforniation Huo Family Foundallon IUKI Limited is a limited company domiciled and incorporated in England and Wales. The reglstered office is Third Floor, 20 Old Bailey. London, EC4M 7AN. It is also reglstered as a charty foundation based in London for giving grants. Registered Charity No.. 1133206. Accounting Conventlon The charity conslilules a public benefit entty as defined by FRS 102. These financial $lalemenls have been prepared in accordance with Charities SORP IFRS 1021 second edition - effective January 2019 applicabSe lo charities preparing their financial statements in accordance with FRS 102 °The Financial Reporting Stsndard applicable in the UK and Republic of Ireland. I'FRS 102.1, the Charities Act 2011 and the requirements of the Companies Act 2006. The financial statements have been prepared on the historical Cost convention. modified by the recognition of ¢ertain financial assets and liabilities measured at fair value. The princip81 accounting polic¢es adopted are sel out below. Functlonal currency The financial statements are prepared in US$, which is the fijnclional currency of the Foundation, since this IS the currency of the primary economic environment in which the Foun¢Jation operates. All donations receivable are expected lo be denominated in US$. Going ¢on¢em The Foundation has adequate financlal iesources., specifically, the Foundation has set aside the cash needed to pay grants and operating expenses for the upcorning year and the Foundation's investments are currently held primarily in liquid a5se15 th81 could be called upon should the need arise. The trustees have discretion over the Foundation's grant making. As a consequence. the trustees believe Ihal the Foundaliori Is well placed lo manage Ils business risks succe55fully. The Iruslees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the going concern basis has been adopted in preparing these financial statements. In¢ome Income, which includes both donations and gift aid, is credited to the ststement of financial activities on a receivable basis and valued on date of receipt. Investment income is stsled inclusive of recoverable taxation. Dividends are recognised when declared, whereas interest is recognised on an accruals basis as earnl. 15
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 1. Principal aceountlng policies Icontinuedl Exp•nditur8 Liabilities are recognised as expenditure when there is a legal or Gonslructive obligation Gommilling the Foundation lo the expenditure. Grants, both single and mulli-year, are rognISed in the financial statements as liabilities after they have been approved by the Iruslees, the recipients have been notified and there are no further terms and conditions to be fulfilled which are within the control of the Foundation. In these circumstances there is a valid expectation by the recipients that they will receive the grant. even if the recipients musl meet further reporting conditions, which are not considered performanc& obligations. Governance costs includg those costs associated with meeting the constilulional and stalulory rèquirements of the Foundation and ar& included with support costs allocated lo the Foundation's charitable activity. Management fees included within support costs Comprise of re-charged costs from Faculty Road Limited under a service agreement which are recognised on the basis laid out in the 'Key accountin9 eslimales and assumptions, section below. No support costs are allocated lo raising funds. Invg$tm•nts The Foundation has elected lo apply tho provisions of Section 11 and Section 12 of UK GAAP FRS102 in full. All investments are at fair value through the Statement of Financia1 Activities upon initial recognition and are measured al subsequent reporting dales al fair value. The fair value of listed security investments is bid value. The fair value of unlisted investments uses valuation techniques determined by the trustees on the advice of the Investment Manager Partners Capital LLP. These valuations are on Ihe basis of the latest information available from the relevant fund manager. Purchases and sales of investments are accounted for on a trade dale basis. Investment gains and losses Nel gains and losses on investments includes both realised and unrealised gainsllosses during the financial year. Realised gains and losses are calculated based on the average share price during thè year being reported on. All 9ains and losses are taken to the Statement of Financial Activities as they arise. Foreign curren¢i¢s Transactions in foreign currencies arts translated into US$ at the rate of exchange ruling at the dale of the transaction. Assets and liabilities in foreign currencies are translated into US$ at the rate of exchange ruling at the balan¢e sheet date. Exchange differences are chargedlcredited lo the statement of financial activities and hence are laktrn into account in arriving at the net movement in ftjnds. 16
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 1. Prlncipal accountlng policies {contlnuad) Financial instruments The Foundation has elected lo apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Olher Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financia1 instruments are reco9nised in the Foundation's balance sheet when the foundation becomes party lo the conlraclual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the fin8n¢ial statements. when there is a legally enforceablfj right to sel off the recognised amounts and there is an intention to settle on a nel basis or lo realise the asset and sellle the liability simultaneously. Basic financial assets Basic financial assets. which include trade and other receivables and cash and bank balances, are initially measured at transa¢tion price including Iransa¢lion costs and are subsequently carried al amortised cost using the effective interest method. Other financial assets Other financial assets. including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in The Statement of Financial Activities. Impalrmènt of financial as$¢t$ Financial assets, other than those held al fair value through Slalemenl of Financial Activities, are assessed for indicators of impairment al each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future ¢ash flows have been affected. The impaimenl loss is recognised in the Statement of Financial Activities. Dorecognition of flnanclal assets Financial assets are derecognised only when the conlraclual rights lo the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership lo another entity. Finan¢i81 liabllltles The Foundation recognises grants payable at the point the grant offer is made.. any grants unpaid al the year- end are presgnted within creditors until drawn down. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as curr&nl liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 17
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 1. Prlnclpal accounting policies Icontinuedl Derecognition of flnanclal Ilabilltie5 Financial liabilities arè derecognised when. and only when, the Foundation's obligations are discharged, cancelled. or they expire. Derivatives Derivatives ar8 comprised of foreign currency hedging instruments that are initially recognised al fair value at the date a derivative contract is entered into and are subsequently measured lo fair value al each reporting end dale. A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. Fund accounting The unrestricted fund comprises general funds, which may be used towards meeting the charitable objects of the Foundation al the discretion of the trustees, and share capital. Cash at bank and in hand Cash at bank and in hand includes cash in hand, deposits held at call with banks, other short-lerm liquid investments with original malurilies of throe months or less. Taxation The Foundation is a registered charity, and therefore is not liable for income tax or corporation tsx on income derived from ils charitsble activities, as il falls within the various exemptions available lo registered charities. VAT is included within expenditure where it is not recoverable. However, tax on investment income may be due in the US on an annual basis. as the Huo F8mily Foundation IUKI Limited is controlled by Huo Family Foundation. a charity registered in the USA. Judgements and key sources of estimation un¢ertalnty In the application of the Foundation's accounting policies, the trustees are required to make judgements, estimates and assumptions about the Carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical oxperience and other factors that are considèred to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo acGounting eslimales are recognised in the period in which the estimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods. 18
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 1. Principal accounting policias Icontinuedl Critical Judgèments In applying the Foundatlon's accounting policles The trustees do not consider granl reporting requirements within grant agreements lo be grant perfom)ance related conditions as defined by the Charities SORP. Grant payables are not discounted due lo the effect of discounting being immaterial lo the financial statements. K¢y A¢eounting estimates and a$$umptions The main e81imale that has a significant risk of Causing a material adjuslmenl lo the carrying amount of assets and liabilities within the next financial year is related to the valuatlDn of the Foundation's investments and, in particular, those classified as Level 2 and Level 3 of the fair value hierarchy. Explanation of the method for determining the valuation of investments is included within the investrnenls accounting policy above and within note 8. Management fees comprise of re-charged Costs from Faculty Road Limited under a service agre8menl lor staff lime and oul-of-pockel expenses. These are re-charged based on an estimate of the percentage of stsff lime spent on the Foundation's activities in line with the methods prescribed by the Charities SORP. Details of this allocation are included in Note 5. 2. Donations 2023 Unrestricted Funds us$ 2022 Unrestricted Funds us$ Monetary donations Gift aid recoverable 16,131,934 4,000,000 20,109,509 s,000,000 20.131.934 25 109.509 In the year, monetary donations of US$16,000,00012022.. US$20,000,DOOI represent donations received from Yan Huo, one of the trustees of the Foundation. Included within the monetary donations balance is US$131,934 12022= US$109.5091 which represents donab'ons received from Faculty Road Limited, a related party company. 3. Investment Incom¢ 2023 us$ 2022 us$ Bank interest receivable Dividend receivable Capital gain distribution 116,158 2,273,081 223,287 53,741 891,758 404,205 2,612,526 1,349,704 Disclosures in relation to the risks arising from financial instruments and how these are managed by the Foundation are included within note 8. 19
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 4. Charitablè activities and raising funds Charitable actlvities 2023 us$ 10,000,000 500,000 494.768 494,768 383,585 318,216 275,000 255,723 247,384 2022 us$ The Melropolilan Museum of Art Teach for China The National Theatr8 The Old Vic Royal Opera House Tate Galleries Fudan University London Symphony Orchestra The Donmar Warehouse Teach First The Courtauld Institute Teach for All British Museum The National Gallery Natural History Museum Science Museum Royal Academy of Arts Youth Comrnuni¢ation Help Musicians Theatre Development Trust Support costs (Note 51 500.000 363,000 422,273 95,000 1,814,998 1.059,424 750,000 546,361 309,924 309,251 267.821 242,000 150,000 65,575 65.575 832,731 932.776 13,902,220 7,793,933 AII 912022.. 171 grants made payable during the year were lo inslilLJtions. In 2022. the Foundation made two grants payable to The Courtauld Institute and Tate Galleries. which are presented combined per institute above. Ralslng funds 2023 us$ 2022 us$ Advisory and operating fees Bank interest and charges Investment management profession81 fees Overseas lax on investment income 37,381 3,985 119,785 138.085 37,500 3,043 227,901 20.104 299.236 288,548 20
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) S. Support costs 2023 us$ 2022 us$ Accountsncy fees Audil fees Event Legal fees Consultancy expenses Management fees Tax fees 65.136 98,804 49,786 34,954 47,083 79,822 71,760 67,904 70,245 439,101 25,656 630,277 9,835 Total governance costs 888 792 801.571 Advertising and promotion Insurance Office expenses 13,443 12,195 18,346 4,062 11,871 15,227 932,776 832,731 6. Nat income Nel income for the year is slated after charging.. 2023 us$ 2022 us$ Auditors. remun&ration lexcluding VATI Audit Tax advisory services 78.997 14.100 72.595 93,097 72,595 7. Staff costs, trusteos. remuneration and Kèy Management Personnel No staff were employed by the Foundation during the year12022'. none), hence the trustees are the only key management personnel. The trustees received no remuneration in respect of their services lo the Foundation during the year12022'. US$nill. There were expenses paid by Yan Huo on behalf of the Foundation amounting to $nil which were reimbursed during the year12022.' US$5,326)- 21
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 8. Inv¢?tm¢nt¥ 2023 us$ 2022 us$ Movement in market value Opening market value Additions al cost Disposal proceeds Net gainslllossesl on investments Closing market value 167,539,092 98,597,587 193.912,8741 18,197,303 190,421,108 161,570.904 100,009,189 181,103,516) 12,937,485 167,539,092 Nel gainslllossesl on investments includes both realised and unre81ised gains and losses during the financial year. Realised gains and losses are calculated based on the average share price during the year being reported on. Investments included in the following asset ¢lasses'. 2023 us$ 2022 us$ Global Equitiesl11 Private Debt Private Equity Hedge Fund Other real assets 33,667.140 21,333,213 29,141,875 102,901,713 3,377,167 fj90,421,108 32,811.326 17,189,452 20,233,468 93,919,254 3,385,592 167,539,092 111 Equities asset class includes Capula Tail Risk Fund Ltd, which is a hedge fund with long only equities exposure. The historic cost of these investments is US$170,415.35512022.. US$155,211,5671. Analysis of fair value hierarchy.. 2023 us$ 2022 us$ Level 2 Level 3 155,526,779 34,894,329 142,354,770 25.184.322 190.421.108 167,539,092 22
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 8. Invostmants Iconlinu&dl Investments included in the above tsble with a market value grealer than S /0 of the lolal portfolio market value are as follows.. 2023 us$ 2022 us$ Capula Mulli Strategy Fund Ltd Capula Tail Risk Fund Ltd Partners Capital Greyhawk Cayman Feeder Fund Partners Capital Phoenix Fund 11 Ltd Capula Global Relative Value Fund Ltd 42,148,440 21.542,476 37.784,563 14,985,522 11,903,735 17,184,779 37,707,287 16,946,843 43,090,092 123,727.851 119.565.886 Markèt risks The Foundation's exposure lo market risks is in line with ils inveslrnent objective of achieving a real return target of 4/. To achieve this aim, the Foundation maintains a diversified portFolio invested across asset classes, both liquid and illiquid. To manage the level of risk within the portfolio across asset classes. the Foundation utilises a risk metric based on expected bela lo equity markets, we called this beta "equivalent nel equity b818'. The Foundation's portfolio is, as set out in the investment policy statement, managed lo a risk level, as represented by equivalent net equity bela, of c. 650/0. This means the portfolio has a risk level similar lo a portfolio 65010 invested in public equities and 350/0 in cash. Accordingly, the Foundation's Portfolio is expected to have significanl mark-to-market volatility in pursuit of the return target. If equity markets were lo decline by 100/0, we would expect the Foundation's portfolio lo decline by 6.50/0. In addition, the Foundation invests in illiquid assets. Ov&r the long term. the Foundation aims lo build a private markets portfolio representing 500/ts of the total portfolio value in order lo maximisè investment returns. This portfolio will take several years to build, and the current allocation is significanlSy lower. The Foundation acknowledges that additional risks relating to accurate valuations, cash flow requirements and underlying illiquidity exist within private ass&1 classe5 and holds sufficient liquid ass&ls lo meet any resulting capital calls andlor grant payments. Currency risks The Foundation lakes a long-lerm view lo risks arising from currency exposure. The Foundation's exposure lo non-USD denominated investments is comparatively small and, as a result the Foundation does not hedge foreign crnCY exposure within the investment portfolio. How8v8r, once grants have been awarrjed, any material G8P denominated liabilities resLJlting from grants are hedged to ensure the Foundation's liabilities have little lo no curroncy risk. The currency risk is monitored and reported on a quarterly basis to the Board. Crèdlt rlsks The carrying amounts stated above represent the Foundation's maximum exposure lo credit risk. Therefore. further dis¢losure is not required. 23
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 9. Dèbtor$ 2023 us$ 2022 us$ Amounts falling due within one year Investmenls-Pending selllement Inveslmenl.in-Iransil Prepayments, a¢¢rued income and other debtors 17,924,079 1.500,000 5.508 11.944.D95 1.592 19,429,587 11,945,687 10. Creditors: amounts falling due within one year 2023 us$ 2022 us$ Trade creditors Grants payable Accruals and deferred income 329,263 8,225,076 249,483 172,628 3,663,802 132,970 8 803,822 3.969,400 11. Creditors.. amounts falling due after more than one year 2023 us$ 2022 us$ Grants payable 440,000 2,421,050 Due in one lo years DLJe within two to five years 265,000 175,000 2.181,050 240,000 440,000 2,421,050 2023 us$ 2022 us$ Opening grants payable Grants awarded Grants p8id Foreign exchange 6.084,8S2 12,969,443 110,527,628) 138,409 4,120,295 6,961,202 14.802,4001 1194,2451 Closing grants payable 8 665,076 6,084,852 24
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 12. Share capital 2023 us$ 2022 us$ Allottod and ¢all•d up 2 Ordinary share of £1 each 13. Unrestricted funds Other re¢ognl$od income 31 1 January 2023 us$ Docember 2023 us$ Income Expenditure us$ us$ us$ Share capital Unreslri¢led funds 181,310,535 22,744,460 114.201,4561 18,213,245 208.066,784 Total 181,310,537 22,744,460 14.201,456 18,213,245 208,066,786 Other recognised expense 31 December 2022 us$ 1 January 2022 us$ Income us$ Expenditure us$ us$ Share capital Unrestricted funds 176,351,530 26,459.213 18,082,481) 113,417,727) 181,310,53S Totsl 176,351,532 26,459,213 8.082,481 13,417,727 181.310,537 14. Total foundation funds 2023 Unrestricted Funds us$ 2022 Unrestricted Funds us$ Fund balances al 31 December are represented by-. Investments Debtors Cash at bank and in hand Creditors.. amounts falling due within one year Creditors.. amounts falling due after more than one year 190,421,108 19,429,587 7,459,913 18.803,8221 1440,0001 167,539,092 11,945,687 8,216,208 13.969,4001 12.421,0501 208,066,786 181,310,537 25
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 15. Raconciliation of movements in funds 2023 us$ 2022 us$ Net movements in funds 26,756,249 4.959,005 Net addition to funds 26,756,249 4,959,005 Opening funds 181,310.537 176,351,532 Closing funds 208,066,786 181,310,537 16. Related party tran$a¢tion$ During the year, the Foundalion received a donation of US$16,000.00012022.' USS20,000,0001 from Yan Huo, a Iruslee of the Foundation. The Foundation paid a total of US$nil 12022.. US$375,0001 lo Princeton University, where Yan Huo was Trustee during 2023. No new grants were awarded lo Princeton University in 2023 and there is no oulslanding amount payable at the year end to Princeton University12022'. US$nill. In 2023, the Foundation paid US$290,000 12022.. US$335,0001 and awarded grants of US$275,000 12022-. US$95,0001 to Fudan University, where Yan Huo is a Trustee with the oulslanding amount payable al year end being US$705,00012022'. US$720,0001. The Foundation awarded grants of US$10,000,000 12022." US$nill lo The Metropolitan Museum of Arl l The Mel") in 2023. Subsequent to the grant awarded, Yan Huo was appointed as a Trustee lo The Mel. There is an outstanding amount of US$5.000,00012022.. US$nil} payable al the year end to The Mel. Further, the Foundation awarded and paid grants of US$500,000 12022.. US$500,0001 lo Teach for China, where Xue Fang was a Director during the year. There is no oulslanding amount payable al the end of the year lo Teach for China USSnil12022.. Ussnill. During the year, Faculty Road Limited paid expenses on behalf of the Foundation amounting to US$37.542 12022.. US $1231, which were reimbursed during the year. Yan Huo and Xue Fang were Directors of Faculty Road Limited during 2023. The Foundation has a service agreement with Faculty Road Limited for the procurement of adminislralive services lo the Foundation. The total charge by Faculty Road Limilgd was US$667,819 12022.. US$439,1011'. the amount of oulslanding payrllenl included within Gredilors al 31 Decemb&r 2023 was US$319,891 12022.. US$160,5431. During the year, the Foundation received a donation of US$128,27712022.. US$109,509} from Faculty Road Limited. an entity controlled by the same management. A Deed of Covenant exists beeen the Huo Family Foundation and Faculty Road Limited which so far as lawful will allow Faculty Road Limited to make a donation lo the Foundation which is equal to the dislribLJtsble profits. For the year ended 31 December 2023, further distributable profit5 lor Faculty Road Limited not already donated during 2023 were US$3,657 12022.. US$7,4151 and il was agreed lo be paid out lo the Huo Family Foundation in 2024. 26
Huo Family Foundation (UK) Limited Notes to the financial statements for the year ended 31 December 2023 (continued) 16. Related party transactions Icontinuedl The Foundation made additional subscriptions lo the same fee-free share Class of the Capula Tail Risk Fund Ltd, Capula Global Relative Value Fund Ltd and Capula Mulli Strategy Fund Ltd in 2023. 17. Ultimata Controlling party The ultimate controlling party is the Huo Family Foundation a charity registered in Delaware, USA. It owns 1 OOVO of the Huo Family Foundation IUKI Limited and il has no other assets. Yan Huo, Xue Fang and Nancy Monlmarquet are also trustees of the US entity. 18. Post balan¢e sheet events Subsequent to the year end, in January 2024. a further donation of US$16,000,000 has been received from Yan Huo, grft aid of US$4,000,000 is recoverable on this. FLJrther, the Foundation has received the US$17,393.409 in investment- pending Settlement amount which has subsequently been used lo meet grants payable and operational expenses as well as invested in multiple asset classes. 27