FARA FOUNDATIQN IA COMPANY LIMITED BY GUARAMTEEI CONSOLIDATED ANNUAL REPORT & AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 p￿nCipAl Offi¢e:_ 2nd Floor 8 WoldegfAve Road Teddlnglon EnglaNI TW118GT Tel". 02089 730910 Webwto.. ww.FARACharity.erg RegiSte￿d Qharily No. 1139349 Re9i$tered Company No.. 074327Q8 FARA FOUNDATION (LIMITED BY GVARANTEEI CONTENTS OF THE FINANCIAL STATEMEMrs fcf thè Year Endod 31 0oc¢mbèr 2023 Page Trusiee$' Annual Rw¢Yt IlnrA)rpor8ting Strat•glc Report and Dio¢tor$' Reporti 11014 Report of the Independent Audilor5 151017 Consolidat8d St)lemènt of Finanaal ActI￿￿eS 18 Con501idotsd B8[ar￿ Sheet 19 Group cash Flow Stslernenl Notes to tho Consolfvjaled Flnancl8J Stsl8merts 21 t035 FARA FOUNDATION ILIMITED BY GUARANTEEI TRUSTEES. ANNUAL REPORT Incorp￿￿1￿9 tho Strat¢gl¢ R¢pc+rt and Dlr¢¢tor6' Roport lor tho Yo8r Endod 31 DeC￿bar 2023 INCoRPO￿TION The ¢harilable Gompany was in¢orporaied en 8 November 2010. REFERENCE AND ADMINISTRATIVE DETAILS Regfj8tsr8d Company numbar 07432706 IEngland and Wales) Roglstsred Charlty number 1139349 Relllstered ttlll¢e 2nd Floor Suite 1 6 wa￿egrave Road Teddlnglon Eryland TW118GT Kgy Management P8r50nnel Tru51095 Ioirfflorsl M$ S G Cr¢s$- Chair Mrs J Nlcho160n Ir881gn8d 15.12.231 Mrs L J Dawson MrRHCChalk Mr P W Grove5 M5 0 P E Rimb8rt Ir95igned 04.10.231 Mr R Da￿d$on- Twsurer Mr$ N Nowak Mrs E H A Middleton Mr R Lynas lappointad 25.03.241 Dr Y S H Johnson lappoinled 25.03.241 Company S&c*&tsry and Chl•f Op•roiin9 Offit•r ICOOI Mr R Phelan Chkf ExecuU¥t Offlcer ICEOI Ms E Gordon Admini$trator Mr S Addai Ire519fftd 30.06.231 M$ J Sugdon lapp(Mn¢fjd 06.11.231 P8trons HRH The Fomer Princ6 ofWd8s. Royal Palron Eugene Sarbu Senlor Maftag9rs of FARA Entorpr1$9$ Llmltfj DlrgGtors Mr R Ph8lan-Chlef Op8rallng Officer and Company Secralary Mrs L J Dawson Mr P WGroves Ms E H A MIdd￿10n Senlor hlanagor5 of FAKA Propgrtlqs Llmlted Dlrettors Mr R Phe18n (Drector and Comp8ny S8crelaryl MrRHCChalk Page I FARA FOUNDAYION IUMITED BY GUARANTEEI TRUSTEES. ANNUAL REPORT Incorporating tht Strateglt Report and DlrectOW8' Report fortho Year Endod $1 Decornbor 2023 Bank8 Bardays Bank PLC Sanlander UK PLC Flagstone Group Ltd Shawbrook Bank Limited Sollcitors and18gal advl8or8 Just EmplOY￿nI Law- Employment Fidd Seymour Parkes- Property Shield Safety- Healih & Safety Audltor8 Rothmans Audit LLP statuloryAuditors Chartered Accountants Chi￿Orth Point 1 Chi￿Orth Road Southampton S016 7JQ STATEMENT OF TRUSTEES RESPONSIBILITIES The Tru&tees (who 818 8180 the directors of FARA F¢unda￿On (Llmiied ty G￿rantee) for the puwses of ¢ompany lawl ar8 re$pon$lblÈ for preparing Report of the Trustees and the fin•neial 51aiements in artordarL¢e wllh applir2ble law and United Kingdt)m Accounting Standard5 (United KiTvJdom Geneially Accepted A¢¢ounling Pr8¢11￿1, in¢luding Financial Reporting Sta￿ard 102'The Financial R8POrtiw Standard ?ppliGable in the UK and Republic of Ireland" Corry)any law require$ the Tru$ts88 to prepare financial statements foreach financial year which 9ive > twe and fair view of thè $18le of affalr8 of the charllatle company and the group, and of t￿ iDwming resources and *pli¢ation of re$ources, including the Income and expenditure. of the ch8riiabk group for Ih8t perlod. In preparing Ihose flnan¢ial statements, the Tru81888 are required te'.- Sek¢t $uit¥We a¢¢¢untsng polk￿8 and then appty tharn con$islentty,' Observe the m8thod5 and yinciples in the Charity SORP". Make judgements and 66timafe6 that ar& rea$onabk and prudent., stste whether applicable UK Actounb"ng Stsn(Jard$ hav? been fdlowed. subJ8cl to any materK?I dep8rtur95 di5Ct05ed and explained in the fin8n¢ial $tstem8nts, and P￿part the nnan¢ial Slatements on the going concern ba8is unl855 11 is inaFvropriale to pre$ume Ibat the chorftaNe company win eonlinu8 In bu8ine8S. Th8 Trustee5 are respo￿b￿ for k8gping proper atsteunliNJ records whlch dlsdose with rnasonable accuracy al any lim8 th8 rinanci81 position of Ib& ch4rit#blo Company and lo enable them lo ensure th81 the financial slalemen15 comply with IF CompaniesA¢t2006 and thÈ Ch2rthe8Act2011. Theyarealso r8spon8iblefor safeguardln9the assets of Ihe¢haritsNe company and hence for18kit¥J re8$ona)Te step8 fLY the prevention and deiecbon of fraud and other Irregularltios. In 80 far a5 th8 Trustees are war•.. th¢re 1$ no itrlevanl audit information of whlch Ihe charitable companls auditor5 are ￿n￿are., apd the Trustees have tak¢n all step8 that they ought to have taken to make them5elv95 awar• of any rthvant audit informats.on and lo esta￿lSh thatthe audltors are awa￿ of Ihat infomation. STATEMENT AS TO OISCLOSVRE OF INFORMATION YO AUDITORS So far as fv Trustees are awarè, ihere L% no relevant infoimalion las defined by Section 418 of the Companies Act 20(￿} of which ¢haritsble company $ audiltsrs ara unaware, and each T1ts51ee has taken 011 the Steps that they ought to have taken a$ a Tfustee in order to make Ihem aware of any audit InfO￿all0￿ and to establish that the Gharilabk ¢ompany $ auditors are aware of that informatlon. Paoe 2 FARA FOUNDATION ILIMIYED BY GUARANTEEI TRUSTEES. ANNUAL REPORT In¢otpornWnll the Stratsglc Report and Dlrectors. Report for Ihe Year Ended 31 December 2023 PUBUC 8ENEFIT The 8oard of Trustees has given ￿g8rdtothe tegislative and regLlatory requirem*)Is for di￿1081n9 how rts charÈtable objectives have provided benefil to the public. The frust888 confirm that Ih8y have Gompli8d wlh their duty under the Charities Ad 2011 to have due iegaid to the public benefit guidance published by the Charily Commissim In determinik)g Ihe activitiès undertaken by the charrty. This report outlines our attit￿*￿entS during 2023 have benefited the publ￿, e￿the1 diTectty ar indirectly. BEHALF OF THÈ BOA s S G Cross- Trustee Dale.. Paga 3 FARA FOUNDATION ILIMITED BY GUARANTEEI TRUSTEES. ANNUAL REPORT Incorpor7Jting thtr Stratègic Report an(1 Dlrectors. Report for the Year Ended 310ecernbor 2023 statemeni from Ihg Chalr lest EU $tab$b"￿ $how once again that Romania remains by 50m¢ marg111 the Ewopean country wher8 thos? und8r the age of 1B are most at ri8k ofwverty aThY soualexclusion. wrth 41.5 % ofthis ffjegroupatsuchrl$k. Thi8underfin88 th8 import8nc? of th8 work of our partners Fundati2 FARA in Romanla. Durfng 2023. the proo¢ts we funded hel￿￿ mofe than 1,3tyJ dlrect beneficiarie8 and 8150 providgd wlal 5UPPQrt to their familie$ and ihe wider Gommunrty. Oui thre& Therapy and Rehabilitation wogrammes worked every week with more Ihan 280 ¢hlldren th dl$aNllb'es and their famili￿ lo provhJefr* and ￿lIa1 Iheraple5 to Tr￿1p the chlklren overcome thg Ilmitatbns of their dlsablllty and fa¢ililal8 Ir￿sU810n Into mainstream educath'on. Our Tackling Povorty Through Education programmes worked with 260 disadvantaged or marginalised primary. secondary and high schotsl $Wdonts by prowding educabonal support, after school actiwli85 and a hot meal, as well as providing Sotial and material $uN)ort to Ih¢lr families. ai aimed 8t prev8nUn9 school dTLY)-ouI. fi'ghting pov¢rty womo*ing tsocil inclu$ion. The hwJh1ight of 2023 for rr￿ was a vlslt to the project8 w8 fund the Suc88va reglon In the north of Romanla. It was dear. as aways is, that the woth in Romania 1$ done Wllh profes&ion81iÉm and expertLse, al80 Wlth love and kindneE$, and is maklng a re81 difference lo the lives of those we are helping. A paroni ora ¢hlld attendlng one ol the thwapy cenlres 5ald of her 50n."'BefDr8, only I could vndBrsland him when hè spokè, and ilh great dlfficully. My husbaThJ did understand him at oll. Now he 90¢$ lo s¢hool. $poaks well and th¢ teacher tells me he's hawng fun. FARA leaches me to help him and work Wllh him. 2023was n¢twithgUt¢hallenge$, w4ththe cosl-of41ving crNsi8 and infialion both in theUK #nd in Romanig affe¢tlngco$ts. Howev8r. Ihank5 10 Ihe dedIca￿"0n of our staff In the UK, the g6ne105ity of Ih05e who shop in and donate good$ to our $tor88. 8nd Ihosè whodonate financially oi raise funds for u5. in 2023 wewerfy ab￿ lo continue lo provtde suffiBiÈntfunding for the work in Remania. Thank you for difference you've thi5 year. I would also Ilke lo thank my fellow trustees foi generou51ygivirrtJ fvir t1￿￿, exp8rtise and wisdom tof(x tho bonefii of FARJi Atthe end ot2023. our Founder Jane Nichdson stepped downfrofn BoaTI of FARA Ftsundatk)n in thè UK. She (￿n￿"￿￿eS her WO￿ with the Romanian programmes. Her tirde$5 commitment to the poor and marginalised In Romania over 33 years will always b8 a Seurca of inspiration for all of us in the UK who strive t) ¢onlinue her mls$ion. guided by the v￿U?5 sh? d6veloped. Wa aro grat8fiJl that our link5 with her WIH be retained throwh her work in Romani8 and the Founder role which She will have in UK Slobh4n Cro$$. Cholr of thg Board of Trusts8s. FARA Foundatlon Pa9e 4 FARA FOUNK)ATION {LIAl￿ED BY GUARANTEEI TRUSTEES, ANNUAL REPORT Incorwatlng th8 Stratoglc Report and Dlr8Ctor8' R8POrt for the Yeor Ended 31 DeGembeF 2023 stst¢m¢ntfrom the CEO l am plèased to Introduce th& FARA Foundalion 2023 annual roporl. This year ha$ a9ain befyn a full ono In which the positiv& impa¢t of ourwoth ha$ been dire¢lly me8$urable. We 501d more thon million rtem$ *ia our ¢hority$hop$ ond soconlinue(I to raise the valuable fu￿8 for th8 lif8-chaNJlng programme$ that are dgliyewd by our partn?Fs Fundatia FPJW In Romanla. Supporting more than 1.300 people and Iheirf¥milies. Thls yearwes aLso signifi'c3nl for the charity a5 weworked with the TN5tees and the executive leadership teem le devebp our rirsl UK strategy. strategy. 9rw[￿e￿ in our Charilab￿ purpose and values. ains to del*ver w three key slralegic objectives over thè next three yeafs. Programme8= We wlll support Fundats"a FARA lo d81iver se￿￿5 of the highest quality to he￿ the most vulnerable chitdren, young people, 8•Julls and families inRomania, developing our Part￿rShiP loensure it effeclNe, wofessional and sustainable and ena￿88 them lo Implement Ihelr Ihree-year Straiegi plan. Publ¥c engagement.. We will consolKlale and grow the contributions from our retail operation to ensure ils continued $ucce55 arK* resilience. a15010(*ing to diversify our income base by increasing our public profib and communty ong09ement People.. Wewillcullivaie a IhriwTvJand producUvewotkforG65UPPOrtedby(kdtsknJa￿prOfe$8ionsl governance, united uniyer $hared value$. *i$ion and rni$sion. I remain inSpi￿d bythe work deli¥eredthrough th& programmeswe$upport In Romania", from seeing ¢thikl￿n frtynds#(fvanl to read, lo seeing disabled adults living full and happy Iiv8s. l am extrem8ty grateful to our hardworking tsams who ran our 40 &hops across London this year. To ensure Ihal this vital sourcè of Income continues 10 ralse the funds we need. we have Invested lime and effort Into slrtnglhening our ralwl operations and ￿sing the profile of our 8hops. One of the key hvJhlights was Ihe18unch olour WeAre FARA Fwnily, films, which showcased the wonderful Gommunity of peepkwho work In. donate lo and shDP in our store5. It has b8en a pbasure this yearte continue workirvJ alongside our hardworklng leadershlp team and Board of Trustees. Thank you lo all those who work so haid to generate the fund5 that Fundalia FARA uses lo delI￿r the excellent progr8mrne that make real chaTrJe happen for many of Romania's mvsi vulnerablp. Llbby Gordon, CEO FARA Foundauon Page 5 FARA FOUNDATION ILIMtfEO BY GUARANTEEI TRUSTEES, ANNUAL REPORT Incorporatlng the Strateglc Report and Dlrectors, Report lorth&Year Endod 31 Do¢¢mb¢r 2023 STRATEGIC REPORT WHO WE ARE AND OUR 08JECTIVES The FARA Foundation IFARA UK) 15 a regIStor￿ charity in tho UK and was fouThJ8d in 1991. 1¢ Y& the grant-making partn8r ol Fundalia FARA Romonio, a norFprofil. non-govtrrnméntal org8nls8tton supporbng Flom8nia's poorest and m051 vulnerable chil(*en. young people and familie5. FARA and Fundatia FARAwork loward ¢ommon values. strategies and standards. Fund8ts8 FARA'S woik ￿ closely rn(￿11¢red and evaluated. wlth apwoprlate policies in place and results reported. Tre FARA Partnership compri$es Fwdalia FARA RDm8nla Igr8nt8el and FARA UK Igranlorl, fomTralisedthrough a Memorandum of Under818ndSngl P8rtnershipAgreemenl pul in place inJanuary 2022 and updated in 2023. Mlhtxwh indÈpèndenl of each other. these two orgaTh6alSons work to fulfil a shared vision. rni85ion, and 59t of valu85 aThl are governed by Nvo separate boards with (kfined remits and re5ponsiblllties. EBch buard is respon5i14e for impkmoniing its $trategi¢ oble¢tsve$. FARA UK remits funds to Fundatia FARA every quarter ba$9d on the approved annual grant, provldlng up lo 97% of the funds required by Fundalia FARAto deliver th8 Gore 5ervice5 In th& progi8mm$$. Fundatia FARA raises the remaining 3% in Romania, Whi￿ also raising funds lo provide additional Jervice$ over and above the 8WVW. The Romanian wtyd bra, means wilhout. and mony of Romat)ia's children and those with disablitie8 are still I1￿1￿ Wilhouv.. wltrtoul ¢are. nurture. a voice or sécurity. Despite being part of the EU, Many continue to face extreme povety. Fund)lia FAF cares for the motst vulner8ble Èoci81 groups facing extreme poverty by addressirrfj social inclusion and poverty reduction. vpef811n9 In TWO regions 07 Komania. Ir Tuin18 lives. Duiias wiur8s, ano 5pieao5 nope. InB worK Is I￿&(nan91n9 EOI rnany Tamil￿& living In poverty and for chlk1fen and adults with dsatllrtvas. Vlslon. Mlssion Valua8 Our wsion is ol a worlj in which ewryone can Iwe with freed￿ dignity in a lowffj. protedlve Ènvironm8nl. 8xp8r*ncing fLAfllad lives whalevor their ab11ty. Our mi55lOn IB to transform Ilw of th$ most vulnerable and disadvantaged chlklren, young paoW8, adutt5 and familie5 Iwing In Romanla'$ P￿reste0MM￿)1I￿. Our waluos underpin all the woth and are shared by all those involved in ¢orying out our mission both ir the UK 8nd Romania. FARI strive5 to build a ju5150riety 5er¥ing the Gommon goryj, b88ed on Chrisliat) values of love, justice. dignity and respect, WglrDming people of all faiths and none. We act with kir￿r*s8 aThJ comp8551on We respect the human dignity of evfyry wrson. We believe in practical hands-on care. We strive to ￿110 ajust 50GKIy. We r8spon8itly collaboral? across all sectson$ of $OGiety. Wa striv8 to ￿ a b851-praclico organisalion. STRUCTURE, GOVERNANCE AND MANAGEMENT FARA UK 1$ governed by b Board of Trustegs. who are legalty resp0￿1bte for dlre¢t4ng Ih? affairs of the charity. Th? Truste85 havefull legal re5ponsibilityforthea¢ti¢ns of the organl$alion. The Board of Trustee8 meets at k8Stthree11rn88 annuallyto rwriew 8nd direct $twtegy. bvdget and perfOrm8n￿. FAPA UK ha$ three main board $ubcommfftees, which aim to ensure that FARA and all rts subsidiary entities in the UK are prI￿ri¥ wjvemed and that funds remitted lo Fundab'a FARA a￿ spent appropriately. They meet in ad¥gnce of and typort on thèlrproceedings to thefvll board. Each subcornmitt80 has a separate ￿11. Swvic*s SubcomFFJitt99- respons0￿10rHR90V¢m0lIC0. $lrat8gy ¥d ovorsKJhtof$8rvice8 ddivared in Romanla. (Chalr.. L￿nda Dawson) Tr&ding Subcofftfflitt8e - r85pon$ibkd f¢r ¢harity rotail mattors and marketiNJ and communlcalion8. ICh81r'. Hannah Midd1elonl Financ8 & Risk Subcommilt&g- responsiwe for all finance and risk rnatters. (Chair". Robert Davldsonl Wrthin this ako an Invoslmeni Comrnittee that rwiew$ the investment portfolio (Chair. Nalalla Nowakl In addition, there 1$ also a Remunwèhon Commrft6e whlch meets annually and 15 responslble for revwiro the annual incroasEs lor all 6taff and everall psy prlnclpl85, and prov5ding recommondaiion$ ta th8 overall board. Page 6 FARA FOUNDATION {LIm￿E0 BY GUARANTEEI TRUSTEES, ANNUAL REPORT Incorporatlng tho Stratoglc Report and Dlr8ctors' Roport for the Y¢ar Ended 31 D¢¢eMber 2023 FARA was Incorporaled as a company limited by gU8fanlee, a8 defined by thè Companies Act 2(106, on November 8, 2010, and 1$ governed by Its Articks ofAssocialon. The A￿deS ofAssoclalien were updated in March 202410 ensure they are 4Fvropri818 and fil foi purpose, During the year. the charity had Iwowholty-owlled $ubsidiario6. FARA EnleTpri$e Limited IFELI operates a re1211 ch8rity busin8S$ Ihatdonales all of ils profits to FARA. Thi5crxnprise5 40 high Street $lore$ 22 genernl $tore$, 14 chiklwn's slor8s, bookstores, a hornwaro slore and a vintage store. In addition. il has an online slore selliry items suitable for sale onlinÈ. Three members of the Board of Tru5t905 Sit on th& board ¢f FARA Enterprises Limited alDng with the Chief Operatlng Offi(Èr I Company Secretary of FARA. FARA Prop8rti88 ￿MIled IFPLI is 8 pro￿rtY holdlng Company. It dk%pos8d of all its propty ￿ldIng$ durlng the Course of 2023. Appgintment of Tru¥tee8 The appointment of Trustaos is outlined in the Artid￿ of A550ciatlon and follows the adwce of the Charity CIYhmi5sion. Thg Art￿leS ofAssociation were updated In March 2024 to 8UPPOrt 8nd simplfy the process 8round the appointment. relremenl and r4moval of TnJsle8$ and lo brin9 It into Ill￿ wtth the Charits"e8Acl 2011. In 2023, the charity coMP￿ted rgcruiling thr•& additional Trustses to the Board. A specialist recrulter was used lo support th1& process to ensure robu$the$$ and tran$parenty. These Trusleos will formally join the bpard In 2024. Any new Trustee5 are putthrough an induction Irainirtg programme loen$ure Ihey undérstsnd Ihelr ra￿. how the organlsallon run8, and its Vision, rn15sion, anLI value5. Th8y wil 5P8nd Iirn& with Ihe Chair Of Trustees, the Foundef. th8 CEO and meet key executive members lo understand how the charity operates. They will be a member of al least one of the $ubcommitte8$, They wlll also be expected lo ￿$It the progiamme8 In Romania when the opportunity arises yo they under5t¥nd how the funds raised utJ"lised. Publlc benefit FARA UK Twstees ¢gnfirm Ihatthey meet the ChaiitlesAct2011 public benefit requirement. FARAfU￿1$ bygranlfunding to Fundalia FARA for Ihe relief of poverty. the improvement of the live5 01 people wllh disabilities, the provision of g home lo children without one 8nd its programm8 to tackk poverty thiough the ￿UcatiOn of school-aged Ch￿Id[￿n. Thp programmes dnd worf< are further oullinad betow. Executlve leAdershlp Ubby Gordon h85 CQntlnued a5 CEO ofthe FARA FourKlalion. shg, along lh8 &xecubve leadership team. has delegated athhority for running the ¢hanly an(J trading aim. working Wllhin 8 board-approved scheme ef delegations. The organ￿allOn's director roles In¢lude a Chief Operating Offi¢er. Trading Director, Marketing and COmmun￿allen8 Director. De¥elopmenl and Extemd Engagement Director, and Human Resowces Diraclor 811 working collec11ve￿ lo lead the organk%ation. Equal Opportunities Poli¢y FARA does npt discriminato on the bas1$ of 99e. dlsablllty, gender reasslgnrvanl, marital or cniil partner stat￿, pregnancy or malemity, race, colour, nab'onality, ethnicity or national origin, rellglon or belief, sex or sexual oiientab"on. Remuneratlon Poll¢y Our approach lo remuneraten Is des(qned to ertsure Ihatwe attr8Ct and retain staff and rnainiain *ffordabllity. Pay prindpks and tsa￿1￿9 were dgv01optrd and r(Abd out in 2022 to en$￿￿ faimess and consistency, and rotes are fomially benChMa￿ed every two years. The R￿umeratIOn Committe8 oversees this area on beh81f orth8 board. Page 7 FARA FOUNDATION ILIMITED BY GUARANTEEI TRUSTEES, ANNUAL REPORT Incorporatlng the Strategle Report and Dlr8CtOTS' Report fortheyoar End•d 31 ￿4￿mblI 2023 ACHIEVEMENTS AND PERFORMANCE Romania ￿ home to nearty four million children but, unfortunate￿, m￿Y of Iham are still slruggling wlh p)vefty, inadequate education and a lack efmedlcal services. Altheugh th8 economy is growing, the county 5tdl fac85 various Ch￿￿ng8s. aThY many Peop￿ find il hard le m*e eThJs meet. Despite some pro9re$$ Iowards refomi$, R(mania still ha6 a long way lo go in larms of provhaing support to vulnerable sodal groups. Thes8 groups conlinueto f8ce extreme poverty, soclal exclusion and ¢i5crimin8tion. Families living in povgrty often lack the necessary support, leawng children at riEk of dropping out of $Ghool or boirN pla¢ed in 5etial $¢rvi¢e provision. Childlen wllh dlsabilltles a￿ th)able lo access vital life-changing therap￿5 and educalion, and aduhs with learning disabilities also remain in in51ilutional cara. AJI Ihis further oxacerbates the cyd8 of poverty. Romania has the highesl nurn￿r of people at risk of pov•rty or social exclusion compared to the European Union. 34.4% c¢ynpared to 21.6%. and the hig*esl rab of Children at rlsk of poverty or s(￿181 exclusion in the EU, 41.5%, tt¥ice as hlgh as t EU average of 24.7'h IEurost812022 & UNICEF 2023). This amounts lo mLYe than 1.5 million children in need. Over 300.000 children do not cornplete compulsory edu¢Ollon, gnd nèarly SO% do not have basic Illeracy and nth)eraGy skills al Ihe age of 15 (UNICEF 2022?. Lea￿￿ school early tan al$0 lead to unemployment, social exclusion and poverty. Rcrn2nia ha$ the highest rale of Èady school lÈavÈrs within EU, with thi8 figure sitting 8t 15.6% compared to an av6r8ge of 9.60 IEvros1412022). 11 is knnwn that nAnn1A with disxhilitw& ar* mfsfp likp¢v In **thp.ripnr￿ MVPrtv nr Rnr.i31 Axr.IIiAinn In RfimAnlA Alnnp Ihgrg. arp. over 77.000 chIld￿n ￿l$l£red ￿1h di$abililie$. but Ihl$ number is belYdv¢d lo be an und¢r88ts"mats as many indivOuas rem*n un8e&n. Additionally, Mere are ieportedly over 18,OOD adutts %trilh d1sabi1￿.eY living In social care residential £enlre8 under the social proleclion system. (Wortd Bank 2023) Today, FAPA is one of the largest and most 8XP8rienc8d care providers in Run8nia. SuFVOrtln9 vulnefable children wrth or without disabilities, young people. and peopk wth d￿sbIlitieS and tt*ir families is #l the FARA'$ mls$iM. Thèir needs. chalknges 8nd future drive the organ￿al￿on's model of impacl. Fundatla FARA Sgryice$ In Romanla To support the work that Fundalia FARA Ss carrying wt, FARA UK apyoved a net budget of Lei 15.111,2241 Stg £2,708,105) In Decembw2022 to fund core piogrammes In Romaniafoi 2023. Additionally, il approved the funding ofa devolopmenl bursary programme ol Lei 150.000 I Slg £26.8821. Th959 fund5Wgrgthgn romittgd und8rthfj granlfunding arrkngemeni and partr￿rÈhIp agTrement throughout 2023. Fundatia FARA d8livered support and care in Romania acro88 various programme5 OU￿¥ned in rnore detsil belcw. In 2023. Fundalia FARA served more than 1.300 unique beneficiarie5 and demonstrated strong programmatic Schievemenls. exceeding targets, expanding serwice5, and layiry Ihe 9roundwork fer conliNed impact in the ye￿S a￿ad. THERAPY AND REHABILITATION We provided free 8cce85 to a range of Ihefapie5 for more than 280 children wrth disalx'lities fr¢m low-income familie6 andloi famIl￿S 8fftcted by poverty at Dur three cenlres. Rafael in Bucharest., Emmanud In Suc8a¥a'. and Sl T8r85a's in Falliceru. Suceava County. Theseinclude speech andpsychological treatment. physiolherapy, andcr8abvetherapies Isuch a5 artlhÈrapy, sen59ry. anirnal-a$sisled therapy, hydrolherapyl. Thework carried out across 811 of these aims to h8lp tha children overcom8 the Ilmltslions of thelr dlsabillty, fac41itate i￿USIon in mainstream ￿UcatiOn, and improv• their functionality al home. sthool. and in thalr communty. In 2023. therapy and rehabililalon $eM¢e$ wore $uttesÈfulty dlvÈr8if*d and 8Kpand8d, prov4dlng more Ih8n 18,500 iTrp8r80n therapy 5e5sions and reachity 4 range of beneflciar*s, In¢ludlng children wlth tli$abllitses. parents, profe$slonals. and 1unteers. DU￿Ngtheye8r. wes8w the Introduct￿n of now approach85 such 8spuppettheatrelherapy and th8rapeulic prderbs. A Grib'¢al part of this w¢rk 1$ &uFwortin9 parents ln Ihe Iheiap8tJlic process and so via these tenlres 14,229 couns811ing and feedb8¢k 8e$$ims were provKled lo more than 700 parents. The parents are hugdy appreciati¥e of the hdp they rec8iv8. Withoufst. T8re$8sSeTh￿•$lnottr&TeS, hundreds ofchlklr8n wllhdlsabllitl8s wouldhav8 bgen dgpriv8dolchanc8slorrecovwy and ￿h*￿IlIation.. Community stakeholders .1 seo in$pecialisfs a gen￿￿6 sourc& olinfm81ion. 18m 9rdl8lullo them J>ec&use Iheyhelp mebsttw Ihe sithring of myown thld8nd bec8us8 Iheyglvs m8 reallsllc hopes.. Parent Page 8 FARA FOUNDATION IUMITED BY GUARANTEÉI rRUSTEES' ANNUAL REPORT Incorporatlngth8 StrBteulc Report and Dlrgctors. Rgport fortheyettr Ended 311)¢¢¢mber 2023 L 1$ 8 Ihrstrye&r-oldglrl wllhmutstpkdefic￿ncl8S who attends Ihe speech Ihewyprogr8mm8. HerMo1her￿￿..'1¢ was a ￿nCle her&. There aro won(brful poiw10 heTr. She is our onty child She ¢om&s h818 joy 8ndis very hwpy. She progress. sh& thcln'l spesk 8t Now she says sentgnces, 8nd managg lo communlcale, wg hove gy8 ¢ont&i, Shg answor$ questions. As 8 rtrsuttof Ihi$prow8$$, ￿ ¢ould¢nroll h&rin klAthrgarten.' HOMES FOR LIFE AND OUTREACH Thls programme ha$ ¢ompongnts.' residential and community outr&ach. It is Implemented In Suceava Coufity in ¢ommunilies. at St Mary's Home in Vadu Moldovei 8ncl al Elisabeth Home in Caaca, and in Popesli-Leordeni, BuGhgre51. Re$idenlial The aim of thlÉ Is to create a loving 8nd supportive 18mily Ibfe for 19 adults with disath14ti8s who have a history of Inslitutsnali8ab'on, are permènenlly depiived of family cara and hav8 a dlsability re9Uiiing 5UPPOrt over Ihwr fifel¥noS. Comrnunity". This work airns lo reduce barriers and foster $o¢ial In¢lusion for ￿ adult$ with di$abilit*s who live wlh ther f•nili8s In Vadu Mdtlovei and ¢a¢l¢a, through Social Inleraclons, non-lomial education, and community awarawss. In 2023. Fundalia FARA obtained care liGen￿S for 115 two residential hrAnes and Continu￿j to prowde onwlno support for the indwidua15 living in th859 homos, including $pe¢iali$ed he¥llhc#re. p$ythologi¢al Coun$￿11￿ and emotional 8UPPOrt. and cyeallve arKI l•1$ur• a¢tiMbe$. Imthin the community, support Was g￿en lo paople with disabilit￿5 and th*rfaMIl￿5. This support indudod hdding 5e$$iorts on Independent livlng, occupatlonal therapy and providing food and other Iiems to $upport daily Iwe. One of the Mti¢al olemonl$ ￿ thi$ prOgramff￿ is provkling the beneficiari8s with onwng OFVOrtunitks to 8xpres$ th8ir thoughts and oplnion$. $upportlng thwn in making deci8ions 8brAJI thair lives and aN4)lfyin9 Iheir voice%. Thls programme h88 8 %b3nificant impact on the Iwes of peO￿e with disabililie5. This 1$ often descrtbed by those who ho￿ seen the irryaclc*th?worfK as"Irf&s8ving'; .8 lrf&wifhdignilK. '&lile wher8th8ycandrgam aga￿1.. '8pl6Ge where Iheyy8ln8 newsense ofhope 8ndgr8fitude°. 'Ilis $0 ￿le And we do nol wènl lo le8ve ItAs ￿see, never. Itls nlc8 during lldnter8ndsumm8r. W8 h8ve a g&rdgn, a so18r. a MIc￿l8r￿n. Thi$ 1$ our W8 lov6 ill"Beneficlary, St. Mary's Home TACKLING POVERTY THROUGH EDUCATION This comfflunity-ba5ed programme 1$ delivered in Bai8 and Preutesb., two ¢ommunesln Suc88vaCounty. and in PoFesli-Leordani, BuGharosl. It aim$ to prevent s¢hool dropout. ¢ombal poverty, promote SOC￿81 Inclusion arKJ integration, and 5￿pOrt growth through edu¢ollon. wmmuniiy involvement. and access to opportunitbes. The pri¥wnTNo Gonlriixjlos to implemenllng national and Inl¢rnatl¢nal pdlcies, strategies 8nd kglslation regarding poverty reduction, promoting soci81 inclusion. promobng antl rg$ppGting the iighl$ of ¢hlldren and young people, including those with di$abilllles, and buildlng SU$tsin&blÈ communities. Italms 10 imwov8well-b@Ing, helpvulnerable Indlvidualsthrive, facllilaleacc855 loeducalion 2nd employmènt, improvequalily of cara, strengthen cornmunity-bas8d seMce8 and amplfy benefiGiarie5' VOiGe$ in deck8ion8 r8181ing lo their liv6$. During 2023. 100 kindergarten and 200 prlmary school.age ¢hlldren were 8UPPOrted through the 8fter-schcol programm8 in Suceava, whi¢h prttvidod more th*) 45,￿0 hot meals and 4.460 hours of support for homeworf( and after-5chwl activit￿$. Th8Te Wa$ 0 100% graduallon rate for primary school ￿t￿ents. Ihln the wider cotnmunity, 2.230 and $wport pa¢ka￿S were di$tsibuted lo families. and 220 famity membe18 recelved aCC956 to quBIth'¢8tion Goursos ond otlw l&arnlng OPP¢rtunitles (including par8nt-¢hild relation8hip5, parental competsnci8s, and fin#n¢lal edu¢ationl. Lenovo ¢onbnu8d to 8UPPOrt work wthin Ihls ¢wmwity, 88Uing up gslabli8Nng a STEM 8ducalonal room and suworbng the runnitvJ of 8 Te¢h Camp. Th8 PO￿5￿-L¢Ordefti pregrammeprowded 146edu¢gllon81 kits. 2601nformaUon81 $e8$1ons, and m8teTr818S8*lanc8 lovulnerable cornmunilies in the a￿a and indi￿dy31$ across Rt)mania. h 81so supported 12 ycxjng who exited the care ¥ystem, 14 people with disakn'lities Ihrough Creati￿ aGlwth$. and 12 pegple with dtsatslilie$ with access lo a day center wh8r8 aclivile5 aTh supportwere wDMded. In 2023, we saw the launch of the Fundatia FARA Etlu¢alional Bursado8 programme, whlch 2warde¢S 28 scholarships lal80 supported by the Lenovv Foundation who lund00 5 of the bur$8ne$l to high-aehietring $tudenls from disadvantaged backgrou￿8 tOSLVPOrt thelrconlinued edu¢8tii)n. Lenovo volunteers atlwely p8rtkip8bJ in thg$ekdion process and provkl8d menlorshipgnd profes$lonal development opportun￿￿8 lo the bursary recap*nts. Page 9 FARA FOUNDATION IUMITED BY GUAFiANTEEI TRUSTEES, ANNUAL REPORT Incorporatlng tho Strateg1¢ Report and Dlrectat o ttrRug88 wish loral thi$ m¢)mèrtl. Thanks loyourhelp Funé81i8 FARA, mylamlty8ndlh8velh8 luck ofyoub￿ngP&rt0[ ourli¥es. Th& FARA larnily has become ourlamily."Refugee from Ukrwn8 A FAMILY FOR THOSEwrrHouT.. St Nlcholas Fundalia FAPA ha5 provided a loving and $upportwg famity4tyle home for vulnorab￿ ond wleded chikjren Since 1997. Our programm& helps ¢hildren without parental care by providing education, life 8kilL% dev8lopm8nt, and a nvrturing environment We aim to help Ihem overcome traumas cau5eJ by ne9lecl and abuse. ino¥ea5e their educational perforrnarTr. and improvo thoir an¢es forfamlly reurtficollgn and communlty Intsgratkn. Th8 Iraum&infom)ed approach ensure5 Ihatth8 children gw up in a safe and nurturing environment. In 2023, staff supported the reinlegration of five thildren and young pe4)le ba¢k into thelr famllie$ or Independent Ilvlng whlle voMdin9 5S0 hour$ ol httméwoik Support, 291 discu&6ien& about 8chool attendance and parfomianco, and v8riw5 coun8elling, therapy. and Independent livin9 skllls se￿ceS to the six remaining r88id8nts. As the progr8mrne manag8r ouuines.. °Fundalia FAR4 Itssp GOmFnilfflenl lo (wrb8nFfAGiary05, WBPathy andsol￿an1y. all at bringing Joy. ¢uttiv8ting Tr$ponsibillty. ¢ouragp, ofirrili8two, and suppoltng involvement in every aspect ol lil&. Even wh8n a childh8s gone throLwh a diifKuttchlldhood, a tgafftgifted wilh patlgnce andpgrSewer4￿e woths h8rdtt>ensu stability, and help 8veryehlldbKome 8 Tr4)on•l)16 8dult." One of the children who lived at st Nicholas said.. "I'm h8ppyI I feel lulfilled 8nd gratfrfull kvhy? Dug lo many thin9s. I th8Trk God for 811fh8t I ha￿. I'm h8&llhy, Ih8ve almost norm811ile, even rfl donylive Mypa￿n(s Ilive a I￿n11y-typ0 houÈe ￿(￿ tèn otherchildren who hève bKornepart ¢f my life. ondlhis ffl8k66 mtr hèppy. Wl(h h8lp of ths p60p18 who t&ke c8r8 of us, tths hous& h8s h￿m8 8 b&8ulifulpl8C6, 8 pl￿@ th81 I can c811 home.'S, 17 yaars okl Overarchlng workand plan5 for 2024 In 2023 Fundalia FARA signrf1can￿Y axp8ndad its communication and fundr*sing efferts. gr￿￿l￿g its social Media presence, producing 8 *ide r8we of promots"on81 materlaLs, and securing additional in-kind and financial sUPPOrt from CO￿orate partne15 such as Lenovo and Carrefeur. On the advo¢a¢y front, Fundatk2 FAFW1gv¢raged its partici￿￿n in projects 8u¢h 0$ l)ARE and SafetyNel lo organlse d8bat88, workshops, and community event8 focused on the rlghts of people disabilities and the prevention of abuse. explDitalion. vIo￿nce and humlllatbn. They also faalltated the parbdpofjon of bgn&fi¢larles In varlous dedslon-maklng aclvlties and provld8d OPPDrtunrt*s for Ih8lr volces to be ￿8rd. Looklng8h&adto2024, FundatSa FARA h88581 someambili0usslralegico￿'ecIiv?s. In Iherapyand rehabilitation, ilgims loexpand Ihelr mebik team concept to increase wral acce55, pilot 5ummgr camps combining th8rapi85 with re5yl* al￿ eap¥ity building. #nd Islablish partnor$hips wilh Wl s¢hods. Page 10 FARA FOUNDAYION ILIMITED BY GUARANTEEI TRVSTEES. ANNUAL REPORT In¢oiporntlng th• str¥¢•gl¢ R•port and DlrK¢orn' R•port for tha Year Ended 31 December 2023 The Hornes for Lrfe al￿ Outreach programs continue lo con501Klate their work in the ￿MMunity and expand pathrships. vihilelheTa¢kling Poverty Through EduGalion progrnmme Mlfurlher G￿￿tOMiSe1ts servicesto meetlhe spècific needs of chlldren, young peop￿. people with disabilit￿& and thèir families. Thè Educational Bursarlés progr8mme will grow 28 to 40 $cholarshps, with opportunits.os for currgnt rellow$ lo bo r¢-award&d. Across 911 areas. Fundalia FARAwill wotk tO8lrenglhenthe integration of benefiL?8ry voice and parbGipgtion. incr&o$0 visibility and reach through &nhan¢8d ¢ommunitabon and marketing. divwsify parln8rships and ¢onlinue advocabngforthe rigms and induslon of vulnerable populats"ons. IN THE UK.. ENGAGEMENY WITH THE FARA WORKFORCE The FAPA wNlrforce c¢mprI5es *proximalety 300 p8KJ $tsff, 180 who art fulklme. vdunteers arnl Tru$te8$. The charfty ¢ommuni¢ate$ rts staff volunteers in mult1p￿waY8, in¢luding 8 monthly intern81 newsletter and regular proj8dlteamlar88 meetings. Trè shDP8 receive regular vlslts from the Area Manager8 and ad hoc visits from m@mbers of the Executiv? Leadership team and Trusl885. During 2023, all staff were given a ch8rity ernail address 8nd an inlran&t silo was dgvgloped to $haig kgy o¢ument$ antl futlher improve commvniGaiion. An annual apprai$al process is Carried outfor all $laff. Itse8ks lo undwsland professIon￿ and personal de¥elopmefil requlrements and how Ihay rnwht use other ski115 8nJ expertise to support the charity. This infurnalion is used lo understand career aspiration6 and further enhance staff development. Our HR Pollcl88 have been u￿lated lo ensLKe they are rd8Yanl and fit for purpose, and 8-￿arnIng h86 been introduced for all shop staff. We conducted our flrst4ver staff sur¥ey. Thi$ showed us th81 staff satisfaction 8nd EngagemBnl levels are high. and stsff feel dosely aligned with our purpose. We wll continue to constsntty improve and enhgnce our staff eX￿rIenCe. In Seplember 2023, a Trading Acsrfemy was opened In an uThlerulilised space wthin our151inglon shop. Thls has been set up to mod818 Shop and Is used for basic training wh8n someone first Btsrts with FARA, r&fr8sh8r trainiw gnd 8d hoG training wh¢n required. Al th& bèglnnlw of2023, the ¢harty 1Th￿￿¢8d an enhanced $kk pay offor to all staff, the value ofwhlth Increases with length of S8Nce. FINANCES AND RESERVES Duriry 2023 FARA recei¥Kd £23.87912022.. £41,316) from spon$or$. donations. ¢haritsble Iru$l$ and GiftAid. Investment inccme wa$ £287.37e 12022 £166.1461 whib the unrealised galrts on fund Invgstments amounted lo £183,84212022.. 1088 £575.7191. The Inve8tmentCommitle6 again recommended the aFpmval ol an investrnenl p￿1¢Y designed lo kY0dU￿ above inflation relums ever longer tsmi while adhering lo Ihfr 8thK81 concern5 of the charity. The contribub'cfifrorn trading h&5 decreased lo £2,759,800 dufsng thoyoar12022. £2.798.4311. The reserves w$l￿on of the charity has $hifted frotn £ 11.12m ID 2022 to £11.77m in 2023. The accounting poliaes &Jopted by the charity ar8s81 out In Note 1 tothe accounts. FARA UKfundraisino 2023 was a strong year for trading following the post-COVlD surge in sales that took pjaee in 2022, although the rale of growth was sllghuy lower in 2023. This enabled FARA Tr&Jing 0￿r￿￿On8, which covers both relwl shops and online operations, to generate a surplu5 of £2,759,890 which il was able lo covenant to FARA UK duriry 2023. This ensured that FARA UK coukl ¢oninue 10 fully grani fund Fundatla FARA¢ore and development programmes in 2023. FARA TradiThJ Operats"ons continue to gen8rat8 almost 90% of FARA UK8 annual IrKome. and the r8rnaining 10% comes from a small set of generous regular UK givers and investment return5. Durin9 2023, 11)come ￿¢￿Ved from IL%ted Investments 3nd bank deposit accounts amounted lo £287,376 I2￿2.. £166.1461, reflecting an improvem8nl In dividend yields and Interest rates. At the same time, the unrealised gain5 made on invesknents ounled lo £183.8421105ses 2022.. £575,719). Income generatlon oulsbY8 orth8 Shops is an kipyknttepic of conversation as part of the d8vdopment of tho thr*e-year 202 2026 Strate9y. Work was commlssioned at the end of the year to undersiand furthw how thi5 afea could be devdoped. Page 11 FARA FOUNDATION (LIMITED BY GUARANTEEI TRUSTEES. ANNUAL REPORY Incorporatlng th? Stratoglc Report gnd Dir•clor8' Roport lorthe Ygor Endgd 31 0￿￿￿11•[ 2023 Plan$ ltsrth• Futuro Dursng 2023. tho Gharity's fitsl slrate9ywa$ devdoped to define wh81 the (wnisallon w8nts to achieve ovarthe Ihree-yearperiod 2024Q026. Tr1$ looked to ¢onlnue the alL4nmenl of FARA Foundallon and its trading subsidiary lo continuè supporting Fundatia FWW'$woik and focusing on three stratsgic areas. Programm08'. We wll supwt Fundali3 FARA lo deliver serv4ces of the highe$t qualty to help the most vvlnerable children. young people, adutts and faThilies in Romaryi¥. d8v¢lopiw our Part￿r$h￿t0 ensur$ il is elteclive. profè95ional and sustainable and end￿88 them to iMp￿rnent their Ihr8e-year 51rategic plan. Publlc ongagemont.. We will consolk1ate and grw the contributions from our retsil OPBration to ensure btB continued SUCC8ss and resilience. whil8 al80 looking lo dwersify our income base by increasing our pUb￿.C profile and comrnunity engagement. People.. We will ¢ultivats a Ihriwng and produclNe workfor¢e $upport6O by dedicatèd and prvfe881onal governan¢e, united under shared valu95. vision and rnission. FARA Ft)undation, underlts PartnershIp￿￿mentvjilh FiJnd2tla FARA,16 expected 10 provk1e Fundala FARAbettveen £2.5m- £3.Om ea¢h year over the thre&year strategy pgriod 20242026 to fund existing programmes Isubiect to the continuing neèd In Romaniaforlho$e programmesl and new develowi8nls. Fund8tia FARA itselfwil conlinu8 to make all reasonable efforts le raise In Europe. Post Balance Sheet Event lfj the early part of 2024, FARA UK suffered a 5eriou$ hathing incidÈnt. te8ding lo 8 non-m8teri8110s8 ef ch8fity funds. Folk)wing its prolotoL%. il reported the matter lo Actlon Fraud, Ihe Charty Commission and. as It involved potenlial acce55 to per50nal data. th¢ ICQ A$ a wn$equen¢& of this event. FARA UK 1$ taking slw le Improve lis IT security through improved internal controls and more regular Iralning on data and IT security. Financial rèvlew and rl#ks The ch8rity mèlnlains and. al each Board me?ling, reviews ils risk r6gi5ter aThY upla￿8 il whew nec856ary. It possible r*ks fac•J by FARA UK, inclL¥Jing finandal rksks, current contr￿5 aT¥J #ny furtlwr action5 r8quireLI to pro¥wi or miligatg S￿h rkk6. The key Btrategic risks InGlude'. An over-reliance on FARA tr8ding aCti￿tieS lo centlnue to generate sufficlenl fund8 (both because of a d￿ntUrn In tr8diw revenues or because of infi8tion4)usts"ng cost incr8a8881 annually lo anab￿ FAPA UK to fund FuTrd8ts"a FAJ progratnmes lu15y An over-relian¢e on key staff and volunteers in FARA UK and Fundalia FARA. A lath of approwate $kill$ on the Board of FARA UK and Fundalia FARA. A charity strategy that lack$ c￿rty, dlrtction. and planning 8ndlor is not tommunitated effectively to all. y programmes funded by FARA UK in Romanij nol being effective orgtrvernance of Fundalia F*RAbeing Inadequate. Risk a550clated with Inadequ8le flnaDcial Olhei control$ towjino lo fraLKI. theft. hathlng, and monoy los$ in FARA UK. The curr￿1 investment strategy adopted by FARA UK being inapproprialo Th8 current reseryes policy adopted by FARA UK being inappropri8te. That the ongoing war ￿Nveen Ukraine aT¥J Russia may 4dveT5ely impact on the opefalion of prograrnmes in Romania The rl$k re9l$ter l$a standitYJ Item al ell subtommlttees and board rneetings 8Th1 Is revvdwed in depthonce a year in March. FARA seeks to diversrfy the risk associated with High Street retail by developing ils online Operat*)￿ while also broadening its fundraising capabiliti05 In the UK over the medium lerrn lihree years). Fundalia FARA 15 a150 hoping to further devdop rts rundrai5ing capabilit￿. which Ihg FARA Foundation will 5UPPOt* where appropriate. Robust ￿ld90t￿ry processes are In place arKJ will conlnue. These will be subject to review from time to time to ensure that all prop8r finamal controls are in pl8c8. All reasonable steps are taken to ensure that FARA UK only invests in UK projects Ihat wrfl support t18diry aclwities and furKJr818ing capacity Whi￿ also en5Ufing Ih81 fund5 art only gr4nted to effective and much-needed programmes In Romania. Fundalia FABA will gpply to the FARA UK developrnenl fund for any proposÈd prejects and will complete applicat40nproGes5 provyling information Onw￿Ch infomedderision5 aboulthe need for antl eff￿acY ofthe propo$ed developmeni ¢an be taken by the exe¢uiiv& and Trustee& of FARA UK. Thé grant funding *Jreement and th? Partrbership Agreanenl b8kneen FARA UK and Fundatia FARA sets out the flnancial contrds and th& reportiru and monitoring processes which are IkE baBk* for Ihe funding and which #re designed to ensurè funds granted by FARA UK are spent efkntiveiy and appropriatety by Fundstia FARA Page 12 FARA FOUNDATION ILIMITED BY GUAFiANTEEI TRUSTEES, ANNUAL REPORT Incorporatln9 the Strateglc Report and Dlrecton. Roport for th8Year Ended 31 D8comber 2023 Tho inve5trngnt slrategy ￿ rggularty dtscussed gt Invesimont Commrtiee meotsngs in advanc8 of the Finance meatings and re*iewed 8nd 8pproved by Ihe hjll bo8rd 8nnualty. The FlnatKe 8nd Rlsk SubcommRtee annualy rev￿5 the re8eNe8 polcy lo ensure its appropriatoress. Trustees actively cen8ider the major risks that the charity facas at each subcommitt8e me&ting before reporting to the full board 8nd beFieve that maiThtaining free reserves 8t the level di5CU5sed below, combined with an annual review of the ￿ntrol$ over key financhql systems, wll provide sUffI￿ent resources in the advent of adverse condition5. The Tluslees Mll continue to investwhere approprwts in investment lund$ with the ofy'e¢live of achieving retums above Inflation in the long tem arKI k$$eniny dependen¢e on existing 8ources of Incom8 Whi￿ also adhering to FARA UK'S ethical re4yirements The inv¢stment poli¢y is revydwed annually to ensure sufficient cash reserves remain availsble so that the in¥estrnenls will not need lo be encashed in thg short term. Tf* inveslmenl$ themselve5 are alw reviewed annually by the I￿VeStInent Cotnmittee. ReseThes Policy The position on cash reserves is rtviewed ahead of eaeh Finants and Risk Syb¢orr*rittee meeting befo￿ rerM)rtlng lo I￿1 FAPA UK board while Ihe reserves policy is examined annualty when the fit)8n¢l81 $tslÉmènls ar£ being finalised. The (xucial fflga5urg gf th8 tharity's abilily 10 toniinue its care prDWSiOn in Romania is its level of I1q￿dty eover. Accordiroly, in owing and &$tablishing Iho res&Nes poli¢y, Ih&Tru8te8s have considered the requlrement le 581 aside funds for the next thro8 years lo fund the core programmes establishad in Remania, a further four yeafs for Ihe long-teim sutport for th050 who ore in long-tem care, and the 5hort-lern requirements for the nèxt eight months. The funding requirements a￿ based on Ihe approved 2023 budget. FABA recogni5e5 trrfD types of re5erve5'. Reslrithed Funds and Unie¥tri¢Aed Funds. R¢slrl¢led Funds- thesè are funds recal￿ lor spec￿¢ purpose& subject to dOnDr-S￿Clfi8￿ re6tricllons. No 5wh funds were held or reGelved during the financlal ye8r 2023. Uni95tricleil Fulld$~ these are funds that alè not subject to dtsnor-specthc restrlctlon& and are aval18￿8 lor the general purpose5 of FARA UK. Unre5triGted funds a￿ Gla5sthed as designated Funds or Ggn¢ral Re6erv8$ in lirva with th? Gen8T81 R￿e[VeS Policy Os approved by Ibe Trustee5. General Reserves Pollcy Gen8ral Reserves arethe Poftson ofthe unrestricted funds rernaining oncethe Tru51ee5 havesel a$ide any amounts a$ de$l9nated fund515ee below). Tho board of FARA agrged to th¢ G&nero1 Rssorvo$ Pdl¢y. This roquiros FARA lo hold general reseN8s of approximatoly elghl months of n8t grant funding forthe programmes In Romania at any wilhin the year. In 2024 this amounts lo£1.676,136 of Gangral R&serves. The Yrusteas judged this level of reseNes was appropnale to.. bo resi1￿￿nt lo financial Shocks en8ure ralail operation5 can continue in Ihv $hort lem 1$ Si9nifi¢anlly restricted for a short period of time.. and ensure chantable Incoma is 8P8nt In a timely manner whiL8t balancing tho need for re511itnee. Ger*r•l Reserves Ge￿[al resetve5 are nvt restristed to. sel a$ide. or designated for 8 particular purpos8. On 31st Decembe¥ 2023, General Reserves were £1.878,136. within the 18rgèl range of eight months of net grant funding required by Fundalia FARA to fund the current programme8 for on? year Deslgnated Fvnds t*$ignated funds are unrestricted fund$ that have been 811wl8d atthe Tru$t¢e8' dlscrelon for partlcular purpos￿. Underthe PartnershipagreèmÈn( the Trustees and Fundati8 FARA8gr8ed that FARA UK should held Ihreeyearsefgranlfunding based on the Fundatia FARA 2024 annual netbudgel as a designaled fund lo a5sur8 FARA'S CQrnfflitmenl lo continuity offurKling le Fundalla FARA on a rolling thre8-year b8sis. On 271h Novgmbgr 2023. tho genoral bydgel 0[￿,756,700 was approved by the board of FARAUK, allowing the bDard to allocalethres years of Ih$t n&tsp&nd lode$i9nated reser¥esof £8.270,100. YheTruslaes have also designated funding of £1,619,649to be Sel asldetofund the two Home5 for Life for four years beyond the ¢urrènl 2024- 2026 Ihree-year funding cyc￿. Page13 FARA FOUNDATION ILIMITED BY GUARANTEEI TRUSTEES. AhlNUAL REPORT In¢orpot*ln9 lh¢ Strat•gl¢ R¢pt)rt and Dlr•¢¢ors' Roport lorth8Year Ended 31 December 2023 Investment Policy The chgrity continues to inv68t 115 surplus r8EeNes In a mix of high and low n&k inv86tments. bonds and c88h dep06bts and thos8 Inve$imenlS adhere lo its ESG c¢Tnmiimeni$. Thk% poliGy is designed to enswe higherthan average 9ro%th, with 86SOCk8ted hig $k. 5-to-10.year lime horizon. Thi$ 1$ Underpinn￿ by thejudgeTnenl Ihal the Ghantywould be unlikdy to need Ihe5efunds in the short term and that the ch£rity I￿refore, needed some investments directed to higher 9rowth and with h￿her risk lor th& longer-tem) need5. FARA UK continues to hav? holdings In low-rfsk furKls sel up expressly to mel the req￿rernents ofeharÈbe$. These funds track th8 UK steck and bond market. Th• Wdlue tsf FARA UK1Is1od inv•$trnènts Stood at a Ittue Mr£6.21rn as of 31 December 2C12312022.. £4.82ml. Th¢ Annual report. incorporating th¢ Strategic r0POrt and firectorfs repcrt ha5 been gpproved by Ihe Board of Trust8OB on and signed on theSr behaff by".- MsSGCros Ch*r of Trustees Dated.. Pagg 14 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARA FOUNDATION ILIMITED BY GUARANTEEI Oplnlon W8 have 8uditsd the financial ststements of FARA Foundation ILirnited by Guarant801 Ith& 'par8nt cha￿ta￿@ company'l and its subsidiaTl85 Ithe'group'l for the year ended 31 De￿mber 2023 which comprise the Consolidated Statement of Financial Activib8$. tha Consolidatad and Charity Balanc8 Sh88ts, th8 Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies The financial reporting Iramewort( that has been applied in their preparats.on 13 8ppli¢able law and United Kingdom Accounts'ng Standards, induding Financial Roporting Stand8rd 102 Tha Financial Reporting Standard applicabl8 in the UK and Republic of Ireland IUnKed Kingdom G¢norally Awgpted Accounting Pradiol. In our opinion. the financial statements.. give a true and fair iiew ol the state of the group's and tsf tha parènt charitable company 8 affairs as 8t 31 December 2023 and tsf thè group'8 incoming resour¢es and application ol re50ur¢es, includiry its income and expenditure, forthe yearthen ended., have been pr4)erly p￿Parad in accordancè ￿1th Unitgd I￿.n￿orn Generally Acceptsd A￿oUntIng Pra¢tice.' have begn prepared in accordance with the requirements of the Companvas Act 2006 and tha Charities Aet 2011. Basls for oplnlon We conducted our audit in accordance with International Standards on Audith"ng IUKI IISAS IUKII and applic8ble 18w. Our responsibilities under those standards are further described in the Auditor's r85ponsibilitle5 for the a￿dit of th8 financial ststementS section of our teport We are independent of the group and the parent charitable company In accordance with the ethical reqU1￿meThts that are relevant to our audit ol the financial statements in the UK, Including the FRC'S Ethical Standard. and ￿ have fulfillod our otherethical responsibilrtigs In a¢ctsrdan¢e with requirements. We believe Ihatthe audrt evidence w6 have obtair 1$ sufficiont and appropriate to provide a basis for our opinion. Concluslon$ relatlng to golng coneem In audrting the financial statements, we have concluded thal th& trust8•s' use of th6 going concsin basls of accounts.ng in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identrfped any material uncartaintieg rè18ting to events or condftions that, IndiV￿uallY ore01￿CtivelY, may cast significant doubt on the group and the parpnt company's ability to conbnue 8$ a going o)ncern lor 8 p•nod of at168s112 months from when the financial ststements are authorised for issue. Our responslb1l￿.es and thè rasponsibilits'¢s of tha trustao$ wrth iespect lo going concem are described in the relevant sections of this report. othgr Infom)atlon The trustees are responsible for the other infomiation. The other inlormat¢on comprises the informab.on Included in the TwstFes' Annual Report, other than the financial statements and our auditors ￿port the￿On. Our opinlon on the financial statements does not cover the other information and, éxcapt to thè èxtènt olherwi5e eXpli￿tlY slated in our report. we do not express any form ol assurance ¢onclu$ion thpreon. In ¢onnection with our audit ol th& hnancial statements, tsur r6sponsibility is to read the olher infonnab'on and, in doing so. consider whÈth8r th8 othei infonnation is rnalerially in¢onsistent with the financial statements or our knowledge obtainecs in the audit or otherwise appear$ to be materially misstated. If we identify such material Inconsistenciès or appartnt material misstatements. are required to detemiine whether there is a material misstatèment In tho financial staternents or a material misststement of the other information. If, based on the work we have performed, we conclude that there is a matsrial misstatement of this ott)sr information, we a￿ required to report that fact We have nothing to report in this regard. Oplnlon6 on othor malt•r8 pr•serl￿d by th• Compan1•# A¢t 2006 In our opinion, based on the work undertaken in the course of the audrt.. the information gI￿n in th8 Tru5teeg' Réport Iincorporating thè Str81ègi¢ Report 8nd Directors, R•port prepared for the purptss&s of company lawl for the fin8ncial y8aT for which the financial statements are prepared is consistent with the financial statements,. and tho Trustèas. Report lincorpoiattng thè Strat8gic R8POrt and Dir8clors' Report prepared for the purposes of company Eawl h8s been prepared in accordance wth applicable legal requirements. Matters on whlch we aro r•qulr•d to r•port by oXe8PtSon In the light of the kno%￿edge and understanding of the group and the parent CharItab￿ company and ts environment obtained in th& Course ol the audit. we have not identified material misstatements In the Trustees, Report lincorporafjng the Strat6gic R*ptsrt arK* Directors. Reporti. We have nothing to report In respect of the followng matters in relation to ¥vhlch Ihe Comp8nies Act 2006 rèquires us lo report to you if, in our opinion. adequate 8¢00unting records have not been kept by Ihe parent charitable company, or retums adequate forour audrt ha not been receivad frcxn branches not Msited by us,. or the parent charitablo company's finaneial statèments aT8 not in agreement with the ac¢ounb'ng records and returns., or C8rtain disd05ur8s of tru8tees'ldirectors' r8mun8ration specified by law are not made,. or we have not received all the infomiation and explanations w& r8quir* for our aud Page 15 INDEPENDENT AUDITOR'S REPORT TO THE MEM8ERS OF FARA FOUNDATION (LIMITED BY GUARANTEEI RosponslbllWe6 of trustO98 As explained more fully in the trustees, re6ponsibilitie5 3tatsrnent 8gt out on p8ge 2. the trusts95 Iwho are also th8 directors of ihe charitable ¢omp8ny for the purposas ol Company Lawl are responsible for the preparation of the financi81 statements and for being sat15fied that they give a true and fair view, and foi such intarnal control as the trustees detennine is necessary lo enable the preparation ol financial statements th8t are fre8 from m8t8rial mi$st8tÈrnènt. whÈthtr due to frauLI or error. In preparing the financial 3tst8mènts. the trustees are responsible for assessing the group's and th& p8rent charitablè eompany's ability lo continue as a going concern. disclosing, as app1￿Cable. m8tlgrs related to goitYJ concem and usin9 the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to ￿ase operations. or have no ￿alistIC alternative but to do sts. Auditor's r•$ponslbllI￿e$ for the audit of the finaneial statèments Our objectives are to obtsin r8880n&blè assurance about whether the financial staiernents as a wholg aT& freo from matèrlal misstatement, whether due to fraud or error, and to Issue an auditor's ￿port that indudes our opinion. Reasonable as$uranc6 1$ a h￿gh level ofa8suianee, butis not a guarantse that an auditconducted in accotdanoe with ISAS IUKI wll a￿ayS detect a material misstatement when it exists. Misstatements ean arise from fraud or error and are considered materi81 if. individu811y 01 in the aggi￿ate, they could reasonably be ewected to influencg th8 ewnofflic decis￿nS of users taken on the basis ol these financial statements. Irrègularrties, Including fraud. are instances of non-compliance ￿th 18W5 8nd regu18tions. We design procedures in line with our responsibilit￿s, ouuinèd abtsve, to detect material misstatements in resped of irr8gul8rities. ineluding fraud. The extent to which ourprocedures are Capable 0fdet8cti￿ srragularities, induding fraud is detailed below. In Klents'fying and ass08$1ng iisk tsl mateilal misstatement in respect of irregularities, induding fraud non-complian￿ wth laws and regulats'ons. our procedurtrs Indude the following.. > Enqulring of management ￿nCe￿Ing ihe c¢ynp4ny'5 polioas and prtscaduras rdating to.. idgnb"fying, evalijating and complying wilh laws and regulations arLd wh0t￿r thoy were awa￿ ol any instances ol non- ¢ompliance', dèl6ding and responding to the rtsk8 of fraud and whèthèr thay havo kno￿￿edge of any actual. suspected OT alleged fraud., 4nd > Discussing among the engagemerit learn how ond whar& fraud mlght oeour in tha Finanual Statements and any potential indicatots ol fraud. > Obtaining an underslandiro ¢f tht legal and regulatory framewofks that the company operatss in, focusing on tho¥9 laws and r￿UlatiOnS that had a direct efFect on Ihe Financi81 St8tem8nt$ or that had a fundarnantal effect on operats'ons. The key laws and regulab"on5 wa considered in this context included the UK Companies Act 2006 and the 8ecountsng standard. The engaggment tearn is familiar wkith thes6 and has resources available to support the review. Other relevant law5 and regulations ats those concerned w4th the retail a¢tivily ol the company. for which the management's assumptions and decisions were reviewed. Due to the differences in the activities betweeTr th8 various comptswnts of thè group, these were rewewed individualty for each component. We Identified the greateBt risk of material imp8d on the fin4ncio1 statemsnts from irregular￿199, including fraud. to be wAthin the rècognition Of income and the override of controls by man898rnent. To addwss thè risk of fraud in these a￿3$. we.. > rewiewed all material estirnates 8ffecb.ry Incom•. Includlng recoverabS11ty of debtors and completeness and accuracy of dèfèrred and accrued income., > selected a sarnpl¢ of transactions from material income streams and compared expected incorne to that racordad vAthin the financlal statements., > performed analytical prO￿dUre8 to identify any unusual or unexpected r8lationships', > tested jourllol &nlriès duri￿ the year and at the year4nd to Identify unusual transactions". > assessed whether judgements and assumptions mado in datèmiining thè accounting estimate5 were indicative of potential bi85". investKJated the rationale behind significant or unusual transaelons,. Reviewed minutes of rn8etings of thosè thArg8d ￿￿th govam&nce and obtained an understanding ol Risk Assessrngnls and Polici&s introduced by management., > Compared results of 8stimates previously made to actual outcomes to eonsider rf there were indicab'ons of mlsal8tement due to bias, including but not limitsd to dilapKlations prowsioning. The pro¢eduras cairi$d tsut whieh rolatg to d8tecting errors in the application ol the laws and regulations arè thought to be capable ol detecting. and advising the ¢orrsction of, any material irregularitses. Page 16 INDEPENDENT AUDITOR'S REPORT TO THE MEM8ERS OF FARA FOUNDATION ILIAfjtTED BY GUARANTEEI Misstatements Ihat aiise due to fraud can be hard8r to d8t8Ct than those that arise from error as they may involve delibèrats concealment or collusion. How8v8r. audit procedures were designed to account for Iha manag$rnènt OV8rrid8 of contro15 being onsiderod a hKJh ri8k. A furthèr dascription of our r8sponsibilili&s is available on the Financial Reporting Coundl's wèb8ite at.. http'1l¥￿w.tr¢.or9.￿k1audltorSresponslbI1lts$ . This degcripts.on fomis part of our audrtor'8 Qport. Use of our rgport This report ￿ made solely to Ihe charitable cornpany's members, as a body, in accordanc8 Wth Chapter 3 of Part 16 01 the Companies Act 2006. Our audit work has be&n undertaken so that we might stste to the charitable wmpany's m6mbars those matters we are 16quiiéd to State to them in an auditors report and for no other purposè. To Ihe fullest extènt pèmitt8d by law. we do not accept or assume ￿SponsIbl11ty to anyone other than the chatrtablo company and the ch8ritable company's members as a body, lor our audit work, for th1$ i*port, orfor th9 opinion3 we have fomied. Lisa Wilson FCA (Senior Slatutory Auditorl For and on behalf ot Rothrnans Audit LLP Statutory Auditors Chartered Accountants Chilworth Point 1 Chilworth Road Southampton S016 7JQ Date.. ..l.Q....S.op.t.emb.e.r....2 0 2 4 Rothrnans Audit LLP 1$ eligib￿ to 8Ct a5 an auditor in temis of section 1212 01 tha Compani8s Ad 2006. Rgthrnans Audit LLP is a limited liability partnership registered In England and waes (registered number OC4282001 Page 17 FARA FOUNDATION ILIMITED BY GUARANTEEI CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For th• Year Ended 31 D•tèmb•r 2023 Not•$ 2023 ITotall Unrestrl¢ted Funds 2022 Ifotall Unrestricted Fund INCOME Donats"ons and legac￿$.. Donabons and other volunt8ry income 23.880 41,316 Income from other trading activities Retail income Propèrty management charg8S 12,364,119 1,400 11.873,720 2,000 Investment incom8 287,376 166,146 TOTAL INCOME 12.676.77S 12083 182 EXPENDITURE Co$t$ of raising funds. Retail costs Portfolio manaoement 9.498,620 18,884 8.939.102 18.977 Expendf(ure on charitable aCtiV￿"e9.. Provision of Funding lor Child, Youth, Adult Care & Educational Services 2,693.536 2,082,634 TOTAL EXPENDITURE 12,211.040 11040713 Nèt ineomè I lexpèndlturel forthe ygar bgfgrg galn¥ and 10s$0$ 465.735 1,042.469 Net gains I Ilossos) on r&valuation gf fixed 85set investments 165.000 Ng1 gains I Ilossasl on inv8sknents 183,842 1575,7191 NET INCOME I IEXPENDITUREI FOR THE YEAR 931 111 R•¢oncllSatlon of fund¥'. TOTAL FUNDS BROUGHT FORWARD 11.116,308 10,484,558 NET MOVEMENT OF FUNOS FOR THE YEAR 649,577 631,750 TOTAL FUNDS CARRIED FORWARD 11,765 885 11.116,308 The Statement of Financial Adivitie5 indudès 811 gains and losses recognised in the 12 month period. All arnounts rokta to ontinuing 8Ctivities. Tt* notss on pages 21 to 35 fomi part of these financial stst8m8nts. Page 18 FARA FOUNDATION ILIMITED B Y GUARANTEEI CONSOLIDATED BALANCE SHEET As at 31 D•c•mb•r 2023 Notes Group 2023 Charity 2023 Group 2022 Chorlty 2022 FIXED ASSETS Tangible 858et8 Investments 10 198,220 6,794,046 12,463 6,879,049 625,710 5.322,217 24,420 5,370,791 DEBTORS.- Due after one year 12 43.824 43.824 479,198 CURRENT ASSETS Debtors Stock C8sh at bank and in hand Investments 12 1,249.810 60,980 2,657,234 1,934,333 5.902.357 955.831 688.S99 288,863 2.423,153 1,934,333 5.313,317 4,276.467 1,428.029 6,373.095 4,091.576 1,428.029 5,808.468 13 L•i$'. CURRENT LIABILITIES Creditors". Due within one yèar 14 483,334 30,652 479,379 273,324 NET CURRENT ASSETS 5.419.023 5.282.665 6,393,716 6,035,144 TOTAL ASSETS LESS CURRENT LIABILITIES 12.455.113 12.218.001 11,841,642 11,409,552 Lass: PROVISIONS FOR LIA81LITIES 16 689.228 379,925 725,334 262,933 NET ASSETS 11,765,885 11,838.076 11.116.308 11.146.619 FUNDS Unr8strictsd In¢ome Funds D85ignated fijnds General fund$ 9,889,749 1,876,136 9,889,749 1,948,327 9.398.728 1,717,580 9,398.711 1,747.908 TOTAL UNRESTRICTED INCOME FUNDS 17 11.765.885 11.838,078 11,116,308 11,146,619 Thè notes on pages 21 10 35 fomi part of these financial statements. No charity St8tem8nt of Financial A¢b'vilie$ is presented as permitted by section 408 of the Companio8 A¢t 2006. The charity's surplus for the financial ￿rIOd is £891,456. Approved by the Board ofTruste6s on ........ ........ and signed on their behalf by'.- 4Lo4 Ms S G Cross Ch8imian Mr R Davldson Trustsè Page 19 FARA FOUNDATION (LIMITED BY GUARANTEEI GROUP CASH FLOW STATEMENT For th• Y•ar End•d 31 Dec•mber 2023 2023 2022 Cash flows from opèratlng aetlv5tle8: Not cash PTovSdgd byllusèd In} operatlng acUvltl•$ (Nots A) 1410.829 1.369,719 Cash flows from Investing acti¥iti•a'. Additions of tangible fixed assets Proceeds of sale of tangible fixed aBsets Purchase of investments Movement in current asset invastm•nts Sale of investrnent8 Diwdends r8tain6d within cash portfolio Interest rec*ived 1102,3931 423,449 11.124.818) 1506.3041 116,0351 7.245 1821,3691 1504,4761 283,323 38,408 31,863 101,662 Net cash provided byllus•d Inl Investlng a¢tlvide8 11,20B,4041 981,041 Change In ¢a8h and cash equlvalgnts In th9 r•portlng ￿rIod 1,619,233) 388,678 Cash and cash eqUIva￿nt9 Ot th& baglnning ol tha roporting period 4.276,467 3,887,789 Cash and ca8h equivalents at thg •nd of the rèportlng perlod 2.6S7,234 4.276,467 Noto A Ca8h IIow8 from operatlng actyvltles.. Nèt Incomellexpendilurel for the rpporting period par thè SOFA Net10s5esllgainsl on r8valuat￿n of fixed assèts Depreriation Lossllgainl on s818 of fixed asset N*1 losse￿{gaInS1 on investments F￿$ Charged retained within portfolio Cash interest received Investrnent incom& r8invest8d Movement in provisions Movoment in stock Movement in debtors Movement in creditors 649.595 631.750 1165,0001 69.195 11.2701 575.716 84,057 22,377 1183.8421 22,544 1101.6621 1185,7141 136,1241 60.980 1746.9941 3.954 1166,1461 246,867 82,589 96.018 Not ¢a$h provld•d byllused IDI operating activitie$ 410,8291 1.389.719 Page 20 FARA FOUNDATION IUMITEO BY GUARANTEEI NQTES TO THE FINANCIAL STATEMENTS For th• Ytar Endgd 31 Dg¢ernber 2023 ACCOUNTING POLICIES The following are the main accounting policies adopted by the Charity'.- Bas18 of preparatlon The finanual 51atèments ofthe Ch8ri1y. which is a public bgnefil8nlity undèr FRS 102, have begn p￿partsd in accordance wth the Statement of Recommended Practice applicable to charitie8 preparing their 8ocounts in accordance with the Financi81 Reporting Standard applicabb in the UK and Republic ol Ireland IFRS1021 and the Financial Reporting Standard applicable in the United K'rodcm and Rewblic ol Ireland IFRS1021 and the Companies Act 20(￿. The chanty meets the defin￿"on of a public benefrt entity under FRS102. The charity has p￿pared the financial stètements in compliance wth the Charity's governing documents gnd in aecordane8 wrth the following accounth.ng policiès. All monètary v8lue3 are csltu18tèd under the histori¢ cost c¢nvenlion. a$ mr*ified by thè rèvaluatson of invttstrnents. Going ¢on¢om The Trustees have not identified any material Un￿rtaIntieS and a￿ not aware of any specthe or general event that would pla￿ significant doubt on the chanty's ability to continue as a going concern. The Trustees, forecasts and ongoing assessment ol operations, actmties and reserves forms the basis ol their assessment of going concem, which covers a period of at le8St fv4èlvè months from the date of approval of thèso fin8ncial statemÈnts. Onè of thè trading subsidiariés. FARA Propèrtie$ Limitsd. financial statements havè bèen prèparèd on the basis of other then going cMc6m. However. this does not affed the basis that the consolidated accounts are prepared on as the m8jority of the trading wthin FARA PropertEs Limited is inter-group trading and is removed on consolidation. therefore the impad on the external trade is immaterial. Accordingly the gOi4)g con￿rn b8Si8 ol accounting has been adopted in preparing these financial statements. Group financial $tstements The financial statements consolidate the resutts Of the charty and its ¥vholly owned subsidiaries. FARA Enterprises Limited and FARA Properties Limited, on a line by line basis. A separate Statemènt of Financial Activits"es for the charity has not bèen presanted because the chanly has taken advantage of thè exempbon afforded by section 408 of the Compan1è5 Aet 2006. Slgnlfleant E$tlmat•$ and Judgèments Inherent in the application ol many of the accounting polic￿$ used in preparing the financial st8tements is the need lor directors to make judgements, estimates and a5SUrnPtions tr)at affect the reported amount of assets and liabilrties at the date of the financial statement and the reporting amounts ol revenues and expenses during the year. Actual outcomes coukl differ from those estimates and assumptions used. The accounting ju(Jgements estimates that could have significant impact on the resuKs olthe company are set out below and should be read In conjunction with the infom)atson provkjed in the notes to the financial statements.. Crltl¢al Judgements Managernenl delemiine whelhÈrfinan¢ial in$lrument$ arè basi¢ or8dvanced and when to dÈalwth recognising. derecognising. measuring and disd05ing financial instruments. These derisions depend on an assessment made ol the accounl'ng standards. Management detemiine whether ￿rtain entities are controlled or not. These decisions are based on several factors including, but not limited to., the pe￿ntage of Sha￿ capital owned and the number ol d1￿CtOrS the company is able to appoint to the board of any subsidiaries or associated entities. Income Is recognised when the charity has enb"tlement to the fuThYs, rt is probable that the income will be received and the amount can be measured ￿lIablY. Mansg6ment dètèrminè whether leases enterèd into by thè charity Èrthar 85 a lessor or a lessee a￿ an opeobng188s$ or financi81 lèasè. Thesè dacisions depènd on an 83s&ssmenl ofwhelh?r tho ri$ks arvj reward$ of ownership have been tr8n$ferred from the lessor to the lessee on 8 lease by le8so basis. Management detemine whether a dilapidation cost 13 likety to be incurred on ￿8￿n9 the rental prop8rties. Page 21 FARA FOUNDATION IUMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS For th• Y•ar End?d 31 D￿ernher 2023 ACCOUNTING POUCIES IContlnu•d...} Slgnlflcont Estirnat88 To d8termine whether there 8re indic4tots ol irnpairmant ol the Company's tangible assets. Factors tsken into consideration in reaching such a decision includè the economic Msbilily and oxpected future financial perfomiance of the asset. To determine tho provision fordilapidations rnanagemenl re￿ieW the 8CtU81 cost5 incuriod on lea*ing properties vacated in the last years to calculate an average ¢¢￿t per Square metre. Ineom• All incorning ￿sourceS 8re iF￿lUd￿d in thè Statement ol Financial Athvities when the Group is legally entitled to the incomè, tha recèipt of such income is probable and the amount can bg measured wth suffith6nt accuraoy. Donations and othervoluntsry incorna roprosents donab.ons and is reetsgnised when the charity is entitkd to receive the donats'on. Shops income generated by Ihe charity's trading subsidiary 18 included under Retail Income and aecounted for on an accruals basis. Gifts donated for rèsale In the charity shops are reported as income once the goods are sold and assoclat8d GiftAid income is estinated and accrued basgd upon Ihe point of sal8. No amounts are included in the financial statemgnts for $oM¢8s donatod by vduntsars. No grants have been r0¢0gnised elther In the year under review or the preceding year. Investment income repr8s8nts intarèst from cash hdd and income from listed investments. Interest receiv8bl8 il recognised on an accruals basi$ and diwdtrnd and other Inveslment income Is recognised upon receipt. Expenditure Expenditure ￿ recognised on an accTual$ ba81$. Costs are allocatèd to thè eA)st of rASslng funds and expenditure on Charitab￿ 8Ctiwtias on the basis ol direct allocation together with an allocation ol support costs. Support Costs are of general na￿re and indud8 thos8 functions that assist the work of thè chanty butdo notdirectly undertake charitable actwities, induding charity back office costs. fin8n¢i81 costs and governance costs incurred in 9Dveming the Charity's assets. primarity a580cialed with consts"tutional and statutory requirements ol operating the Charity. Suppgrt co¥ts arg analysed more fully with the basi$ of 811oc81ion detaI￿d in note 7. Costs of raising funds comprisè costs Incurred in attracting voluntary incom8 together with undertaking trading activthes in th8 subsidiary Company to raise fvnds and costs incurred in man8ging the charity'5 investment portfolio to generate a turn ¢n invèslment. Ratail costs do not include any valuation of goods donated for r8¥a￿, and no slo¢k 1$ r•eognis6d on the balance sheet relating to donated goods, as permitted by the SORP FRS 102. Grants payablè arè paym6nts made to Fundatia FARA in the furtheran￿ of the charitable objgcts of thè eharity. Single or mulli-year grants ar8 accountad for when eithèr the recipient has a ￿aSOnable expectation that they will receive a giant and the trustees have agreed to pay the grant without wndition, Of the recipient ha5 a rBa50nable 8xpoetatitsn that they will re￿1ve 8 grant and any eondition attaching to the grant is outside ol the control of the charity. Funds unreStri￿ad IGan8rall Funds f&p￿s8Tht general reserves of accurnulated unrestricted surpluses and d8ficrt5 aftèr tran8fer8 belwgen lund$. 11 such funds have been specsfically earmarked lor a particular project gr us8 by the Trust885, the fvnds are denoted as Designated Funds. Rèstricted funds are set asid& ard used in accordan¢e with the Conditions stipulated by the donor. At lh8 reportsng data, the charity h8ld no restricted funds. Pa98 22 FARA FOUNDATION ILIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEME￿5 Forth• Y•Ar Ended 31 D•¢wnbgr 2023 ACCOUNTING POLICIES IContinu8d...I Taxatlon The company is a charty within the meaning of Part 1 of Schedule 6 tu tha Finance Act 2010. Accordingty Ihg charity is pottrntially exernpl from taxation in re3pect ol income or capitsl gains wthin categories covered by Chapter 3 of Part 11 of the Corporatson Tax Act 2010 or Seetson 256 01 the Tsxation of ChSrgèab￿ Gains Act 1992, to the extent that such incoma or gains are appli8d èxclusively to charitabl8 purposes. No tax charge arose in the periods under review. The subsidiaries, corporation tax charges on profit on ordinary activities for the year gmountad to £nil12021." £rnill. Irrecoverable VAT is charged to the Statementol Financial Activitiès wh8n incurrad and is I￿lUd8dWlthin tha èxpèn¢Jiturtr category to vthich it relates. Tax recovered from voluntary incom6 récaivod undar Gift Aid is r8cognised when the related income is considered re¢eivable and is allo¢aled to the income category to which it relates. Both ol the subsidiary companiès, FARA Enterprises Limited and FARA Propèrties Limited. havè Deeds of Covenant in place wrth the parent Charity to covenant thèir annual profits lo Charity under Gift Aid rules. Tangible a88ets Tangible fixed assets are st8tsd at historirAI c05t18s5 accurnu18t8d depreciab'on. wrth the exception of freehold land and buildings Wh￿cth is d8tailÈd bèlow. Tangible fixed assets are reviewed annually for indicators ol any impaim)ent losses. Historical cost includes expenditure that 1$ directly attributable to bringing the asset to the location and condition necessary for it lo be Capable of operating in the manner intended by management. Depreciation on assets heFd at cost less depreciation is ehargad as to allocate the cost of ass8t5 less their r85idu81 value over theirestimated useful lives. Depreciation ratès rango as follows".- Leasehold land and buildings F1Xtures and fittings Motor Véhi¢￿S Website Over the terni of the ￿8$e 33V4 ori reducing balance 25°1tr on reducing balance Straight line over 3 yea The 8ssets' residu81 values, useful lives and depreciation methods are reviewod and il appfopriat• ère adjust*d if t￿re is an indication of 8 significant change the last reporting date. The freeholl propetty was sold during the year ended 31 December 2023. In Ihè prior y8ar th8 propèrty was recognised under tr)e ￿ValUa￿'0n model. The property was CArried 8t fair valuè, dètem)ined at regular int8rv8L8 by external experts and the Trustees, and was derived from the rants &nd yield5 from comparable real e$tats. 8dju$ted if necessary for any difference in the natu￿, location oreondition ofth8 S￿cIfiC 8SS8t. Changes in fairvalue were reco9nised in the Statement of Finanual Activthès. Thè Tru5te8s g8ve consideration to the Tesidu81 value lits suap or residual value at the end ol its ectsnomic lifel, 85 this value d8termined the depreciation charge to be applied to the property for each year ol its rem8iThing usekjl econom￿ life. The Trustees were ol the opinion that the residual value of the property, being the esb'mated amount the charity would obtain on disposing ol the propety less costs oldisposal, if tho propèrtywas already ol the age and condition expected al the end ol its useful economic life, w8$ not significantly different to the fair value reported in the balarn￿ sheet. Accordingly, no depreciation was cttar￿d on the freehokl property in the prior year. C¥$h and cash equivalents Cash and short-tem deposits indudad In thè Statem8nt of Financial Position comprise c8sh in hand and short-temi (Seposits with an ori9inal maturity of Ihr80 months orless. Current assét Invèstmènts Current a8sel investments cornprises ol saviros with an original maturity of more than thre6 months but lass than ona year. Page 23 FARA FOUNDATION ILlhllTED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 D￿ernber 2023 ACCOUNTING POLICIES Icontlnutd...) Fix•d assèt Investmènts Investments are sh¢)wn at market value whore thèra Is rèadily identifiabltr market value. Unlisted shares. where there is SKI ￿adIlY identifiable market valu8, 8ra r8cord8d at cost or a norninal amount. Inv&stments are revalued at the BalaTh￿ Sheet date so that wh8n investments are sold, gains or ltsssès which arose balorè th& previous year end have already been recognised. Movernen15 in valu& arising from invèstmènt ch8ng8s or rèvaluation, together wth profits on disposal of investrnents. have been recogni88d In the StatÈmtnt of Financial Acti*it*s. Forèign Currency tran8actlon8 The functional curi8ncy ofthè chanty is Sterling ¥thich is also the presentational currency. Transactions involving foreKJn cUr￿nCle3 are translated into sterling equivalents using rates ol exchange prevailing at the transaction date. Assets and liabilities held in foreign currency at the bal8nc8 she8t datè arè valuad at th8 rata pravailing at that date. Differences on &x¢hange are taken lo the Statement of Firsancial ACtIMt￿s. Penslon costs The group mak6s contrlbutions into a re￿gniSed UK d8fin8d wntribution schem8. Contributions payable to the group's pension schèmè art charged to profit or loss In the period to which Ihey ￿late. Obligations for conthbutions to defined contribution pension schernes are ￿cOgnised 0$ an gxp&nse in the profil and10ss account in thè periods ¢JuritKJ which se￿￿$ a￿ rendered by employees. A liabilrty is recognised to the extent of any unu58d holiday pay 8ntitlement which has aecrued at the balance sheet dats and carriad forward to futu￿ periods. This is measured 81 the undis¢ounted salary cost of the ftjture holiday 8￿tIt￿mÈnt so accrued at the balance sheet date. Oporatlng lèa60s Rentals payab18 under gparating leasès whère substsntially all of the b&nelits and risks ol ownership remain with the lessor are ch8rggd to the Ststamant of Financial Activitses on a straight4Ine basis over the tem ol the ￿aSe. The aggregate benefit oflgase incenliv9s afa recognised as a reduction to the expense recognisod over the lease terrn on a 5travJht line basis. Provi8lons for dllapldatlon Provisions represenlthe beslestimale of the liabilny atthe balance sheet date of probable ILrtur& costs ol restoring rented properties lo their required condition at the $nd ultimate expiry of the 1&8$0, Galculaled by reference to avorago dilapidations costs pef souare loot for propert¥s iecenlly va¢algd by the group. Expectations ol discounted liabilities ara revised at each period end unl'l the actual liability aris95. with any diltsren¢e accountsd for in thts period in whieh th& vision is made. Stocks Donated ltsms of stock for rasale or distribution are not included in the financial statements as pgmiitted by the SORP FRS 102. Stock wthin th6 balance sheet is that of consumables held lor distribution at no consideration gr norninal ¢onsideration, and has bean valued at cost as permitted by the SORP FRS 102. Dèbtors Debtors recsivablg within onè yèar or upon damand ar& recordad at transaction prica ¥vh6th8r or not a rate of interest is charged on thg balancg. Trade and oth81 dBbtors alè rècognisad at thè setuemant amount due after any trade discount offered. Prepayments are valugd at the 8mount pr8paid net of any trad8 discounts Llua. Crgdltors Creditors and provisions are recognised whorg Ihe charity has a pre5&nt obligation rèsulting from a past 0￿nI that wll probabty result in the transfer of funds lo a third paty and Ih8 arnount due to settle the obligation can bè mèasurad or estimated reliably. Creditors and provisions within one year or upon demarKI are ngrrnally racognis8d atth8ir s8ttlèmtnt amount after allowing for any trade discounts due. Page 24 FARA FOUNDATION (LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS For thè Yèar End•il 31 D•e•mb•r 2023 ACCOUNTING POLICIES IConUnuèd...I Flnan¢lal instrumènts The ch8rity only has financial assets and financial liabilities ol a kind that qualify as basie financial insttuments. Basic financial instwments are initially ￿tog￿l$ed at transacts.on value an¢J subsequently mèasurèd 8t their sèttlement value th the excepbon ol bank loans which are subsequently measured 8t amort15*d c05t using the effective inter881 method. LEGAL STATUS OF THE CHARITY The Charity is a eompany lirnit&d by guarantee and has no share capitsl. In the event of tharity bein9 wound up, the liability in respect Df the guarantee is limited to £10 per member of the charity. RETAIL ACTIVITIES IN GENERATING FUNDS 2023 FARA Foundatlon FARA Entorprl88¥ Totsl 2023 Retail ineomè Ishop 5alesl Retsil expenditurÈ Ishop cost81 Support cost$ 5.219.763 15.126.071) 15,5641 7,144.356 14,372.5491 17,6151 12.364,119 19,498,820) 113,1791 NÈt fund5 generated from retail a¢trwtie5 88.128 2,764,192 2,852,320 2022 FAIiA Foundatlon FARA Entsrprf$•8 Total 2022 Retail income Istiop Sa￿$) Retail expenditure (shop costs) Support Costs 4.804,715 14,672,433) 14.4211 7,069.005 14,255.7441 16.5041 11,873.721 18.928.1771 110.9251 Net funds gener8tod from rèt811 acb.wt 127,881 2,808.757 2.934.819 Retail income includes donations from supporters and the Gift Aid which has be&n claimed from tha proceeds arising on the sale of the donorfs goods through the shops of FARA Enterprises Limited. INVESTMENT INCOME Total 2023 Total 2022 Income from listed inv8stments 1reinv￿tedl Interest from cash held 185,714 101,662 134,283 31,863 Total irwestrnent incomè 287.376 166.146 Page 25 FARA FOUNDATION {LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOT thg Yèar End•d 31 D袕mbèr 2023 GRANTS PAYABLE Thè charrty is a grant-making organisab'on, 88 mor8 fully outlined In th• Trusté•$' Roport. Grants payable to Fundatia FARA in a¢cord8nc# with thè ch8rity'g grAnt-m8king policy were as follows during the year.. 2023 2022 Child, youth and adult carè 2.382,850 1,794.199 Total grants payable 2.382,850 1,794,199 ANALYSIS OF EXPENDrruRE ON CHARITA8LE ACTIVITIES 2023 Grnnt fundln9 progr•mme Support costs Totsl Grants Payablè Child, youth and social care 2,382,850 297,507 2,680.357 Totsl expenditure on ¢haritabb activities 2,382,850 297.507 2.680.357 2022 Grant fundlng programme Support costs Total Grants Payable Child. youth and soci81 c8re 1,794,199 288,438 2,082.634 Total expenditure on charitable 8Ctiviti8s 1,794,199 288,438 2.082.634 ANALYSIS OF SUPPORT COSTS 2023 Cha￿tY admln CharSty Staff costs Gov•m- ane• Flnancg ¢osts Dgprgcl- atlon Tolal Gronts Payable: Child. yoth and sou81 Care Ralslny funds.. Shops, costs 39,312 186.999 25,771 8.889 36,536 297,S07 13,179 13,179 Total 39,312 186,999 38,950 8,889 36.536 310,686 2022 Charfty 8dmln charlty staff eogts Govern- an¢e Fln?n¢o cogts D•pr•el- ation Totsl Grant¥ Payabh.. child, youth and soaal care Ral8lng funds: Shops, costs 73,128 164.146 31,002 11,7331 21.892 288,438 10.925 10,925 73,128 164,146 41.927 {1.7331 21,892 299,361 Page 26 FARA FOUNDATION ILIMITEO BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS For thg Y83r Endèd 31 Dgcembèr 2023 SUPPORT COSTS (Continued...} Support ¢0sts are charity head office costs %yhich are alloc8tgd as follows.. Support ¢￿ts Charity admin Charity staff costs Gtsveinance Fin8nee costs Depr&ciation Allo¢atlon Allocated on cost wthin FARA Foundation Allocated on cost vAthin FARA Foundation Allocated on cost wthin FARA Foundation and FARA Enterprlses Allocated on cost vrithin FARA Foundation Allocated on wst wthin FARA Foundali¢n Govèinance costs includè audit and accountancy f6•s of £24,90212022." £17,95018nd *al feas of £14,04812022. £23.9771. EXPENDITURE Total resour￿$ expended for the year ts stated after charging.. Total 2023 Totsl 2022 Operating lease rentals Ilgnd and buildings) Depr6C4ation chargas for year Audstorfs ramu￿ration Non-audit Complian(￿ seMce$ 1,727,919 84,058 15,812 9,090 1.648,235 19,014 10.000 7.950 1,836,879 1,685.199 STAFF AND TRUSTEE INFORMATION 2023 FARA Foundatlon FARA Ent•rpr1698 Total 2023 Staff ¢o$ts Salaries Social sacurfty Pensions 107,635 11,798 2,278 5,598,622 474.095 121,328 5,706.257 485,893 123.606 Total 121.710 6,194.046 6,315.756 2022 FARA Foundatlon FARA Entsrprl$g$ Total 2022 Stsff costs Salaries Social s8curity Pènsions 92,650 8,741 1,577 3,793,452 431,695 100,791 3,886.102 440,436 102,368 Total 102,968 4,325,938 4,428,906 The aver8ge nurnber of staff employed under contracts ol service during the periixl for FARA Enterprises Limited was 279 12022.. 227}, Tho nwiber ol staff ampk)￿l for FARA Foundatson (Limited by Guarantsel was 212022.. 11. Page 27 FARA FOUNDATION (LIMITED BY GUARAMfEEI NOTES TO THE FINANCIAL STATEMENTS For thg Y¢ar Ended 31 Dgcèmber 2023 STAFF AND TRUSTEE INFORMATION IContlnutd...I The number gf employees whosè èmployae benefits lexduding employer pension costs) exceeded £60,000 was.. 2023 2022 £60,001- £70,000 £70,001- £80,000 £80,001- £90.000 Totsl During the period expenses totalling £2,065 were reimbursed to Trustees12022'. £2.351 19 two Tru$teé$l in rèlats.on to travol ¢osts tts Romani8 and office expenditure. No remuneration was paid to the Trustees in the period. Thè key management personnel ol the Pa￿Trt charity comprise the Trustees and the Chief Operatiryj Officer. The lolal ernployee benefits of the ¢h8rity's kèy managèment personnel were £94,11112022'. £81,0211. Th8 key management personnel of the group comprise Iho$g of thè parent charity 2nd the key management personnel ol rts wholly owned $ubsidiary, FARA Entsrpnsès Limited. The key management personnèl tsf FARA Enterprises Limited are the executive and nortrexecutive Directors whose employee beriefit5 total £329,03812022.. £336.1191. The employee benefits of key man8gemènt porsonnèl for thè group ere the￿f0￿ £423.14912022'. £419.1401. 10. TANGIBLE FIXED ASSETS 2023 Froghold land and bulldlng8 L•a8ohold land and bvtldings Fixture8 and flttlngs Motor Y•hi¢l•s W•b$lt• Total Cost or valuation At 1 January 2023 Additions Disposals Revaluation 435,000 88,822 7,729 114,011} 1,046.600 94,663 56,022 66,466 1,692,910 102.393 1482,0731 1435.0001 133,C621 At 31 Dècèmb•r 2023 82.540 1,141,263 22,960 66,466 1,313,229 Depreciation At 1 January 2023 Charge forthe year Eliminated on disposal 81.731 9.12S 910.652 51,756 50.506 1,022 131,6331 44.311 22.156 1.067.200 84.058 14.6151 136.2481 At 31 DtC8mb$r 2023 68.241 962,407 19.895 66,466 1.115,010 Not book valugs At 31 D8cemb8r 2023 16,300 178,855 3.065 198,220 At 31 Dac•rnb8r 2022 435.000 27,092 135,948 5,516 22,155 625,710 Pagè 28 FARA FOUNDATION ILIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS For thè Yo•r Endèd 31 D•cgmbgr 2023 10. TANGIBLE FIXED ASSETS IContlnuèd...} An agreement for sale of the freehokl land and building was enter6(l into during the yèar for a sum of £435,000. The property sales was adrnini5t8red by Sn8118r Comm8rc181, an independ8nt, professionally qualified. RICS accrgdrted ch8rter8d Surveyor. Th8 58le completed on 30 Jun8 2023. Thè £16,30012022." £27,092) InclL¥Jad wthin kas8hold18nd 8nd buildings rd81es entirely tQ short le8sehdd property assets and improvements. Short leasehold 885eis held by the parent charity have a nel book value of £12,46412022.' £7,850). These w6ro acquired at a cost of £20,073, and had brought fofward accumulated de￿rAatiOn of £12,223, and dep￿Cia￿.0n of £3,116 was charg6d during thè y88r. Website assets own&d by the parènt chanty Wortr acquired at a cost of £49,709 8T￿ had brought fotwaid 8CCLJtnulated d*preci8tion of £33.140, wth d8pr8ri8tion Of £16,570 charged during the year. leaving a carrying value of£nil in the books of the parent charty at the year end. FIXEO ASSET INVESTMENTS GROUP Unllstgd Investhients 2023 Ll¥tod Inv•stm•nts 2023 Totsl 2023 Total 2022 MARKET VALUE AS al 1 January 2023 Purchase of investments at ¢osl Diwdends reinvested Disposal ol investrnents Net investment gainlllossésl 500,000 78,195 4,822,217 1,046,622 185,714 118,8841 180.182 5,322,217 1,124,817 185,714 118,8841 180,182 5.264,011 821,369 95.879 1283.3231 1575.7201 As at 31 Decembar 2023 578,195 8,215.851 6,794.046 5.322.217 Listed investments include overseas investments of £2,197,52012022." £1,561,7901. No sharehoklings of over 5% were hèld by FARA Foundation in any on6 company whos6 sharès are included in th8 above Portfolio. The cash ￿SerVeS of the Charity continue to be considered an Integral part of thè ch8rty's ovÈrall invèslmenl portfolio and thè TIu5toas kè6p the Inv8Stm8nt policy under regular review to 8n5ure the equity investments will not need to be encashed ifi the Short temi. CHARITY Unllsted Invesknents Ll8ted Inve$tments 2023 Total 2023 Total 2022 2023 MARKET VALUE As at 1 January 2023 Purchase of investments 8t ¢osl DiMd6nds ieinvestèd Reversal of itnpaitment in investments Disposal of invg8tments Net investment gainlllossesl 548,574 78,195 4,822,217 1,046,622 185,714 5,370,791 1.124,817 185,714 36,429 118,8841 180,182 5,312,585 821,369 95,879 36,429 118,8841 180,182 1283,3231 1575,7201 As at 31 Decembgr 2023 663,198 6,215.851 8,879,049 5.370,791 Page 29 FARA FOUNDATION (LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS For th• Year Ended 31 De¢ember 2023 FIXED ASSET INVESTMENTS Icontlnued...) The company's investments al the balance $heg1 datg in thg 8hatg Capital ol compani•s Include the lollowro.. The Charity owns 100% of the 5,LK)012022'. 50001 issued ordinary sharèÉ of FARA Enterpris8s knmited, a company incorporated on 16 Msrch 1992 Inumbèr 026974671. The principal activity of this ts)mpany is the sale ol donated goods through a thain of Charty shop8 forthè purpose ol making charitabb donab"on5 to FARA Foundation ILimrted by Guaranleel. The company's nel assets as at 31 De￿[nber 2023 amounl to £14,51112022' £14,511). In addition to the trading subsidiary FARA Enterprises Limited, tha Charity owns 1009k ol the 2 issued ordinary sharès of FARA Properties timited Inumber 035428251. The company was incofporated on 2 April 1998. FARA Properties Is a property holding company. tt disposed of all its pro￿rtY holdings during th6 course 012023 and is due to be dissolved. The company'5 net liabilities as at 31 December 2023 amount to £1,70012022. nèt liabilil'es £65.3221. 12. DEBTORS Group 2023 Charlty 2023 Group 2022 Charity 2022 Amounts falling Ilue wrthin one year: Trad8 debtors viii¥i (ieuivr¥ ariu PlVPHWllUlllb Amounts owed by group undertakings 28.536 22,669 430.085 14,016 962.673 955 831 668.599 288.865 Amounts falllng due after one year: Rental deposits Amounts owed by group undÈrtakn'ngs 43,824 43.824 479,198 479 198 At the balan¢e sheet date FARA Proptrrties Limrted owed the Charity £nil12022.' £479,198). 13. CURRENT ASSET INvesTMENTS Group 2023 Charity 2023 Group 2022 Charlty 2022 Oeposf( accounts 1,934,333 1,934.333 1.428,029 1,428,029 1,934,333 1,934.333 1.428.029 1,428,029 Page 30 FARA FOUNDATION ILIMITED BY GUARANTE£} NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 De¢ember 2023 14. CREDITORS Group 2013 Charfty 2023 Group 2022 Charity 2022 Amounts fallln9 duo wlthln ono y•ar: Trad8 C18dito Taxation and soryal security Other creditors and accruals Amounts owed to group undertaking8 181.832 118,646 183,056 133,￿9 148,724 196,687 15.985 6,025 251.315 30,652 483.334 479,380 273,325 15. PENSION COMMITMENTS At the balance sheet date, unpaid pension conlribtrtions within FARA Ent&rpris•$ Limrtèd amount8d to £23.74712022.. £24.9841. This amounl is included in other creditors. 16. PROVISIONS Group 2023 Charity 2023 Group 2022 Charlty 2022 As al 1 January 2023 Arising in the year 725,352 136,1241 262,933 116,992 478,485 246.867 57,195 205.738 As at 31 Decernber 2023 689,228 379,925 725,352 262.933 Promsions are for dilapidalion8 8ri3ing where propety leases oblige the group to cover the cost ol ￿$tOring retail and offi properties to their original condition when ending its occupats.on as those leases teminste. Page 31 FARA FOUNDATION (LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS Forthe Year Endgd 31 D0¢em￿r 2023 17. ANALYSIS OF GROUP CHARITABLE FUNDS 2023 At1 January 2023 Transfers bètw￿￿ funds At31 December 2022 Incoming re8our¢e8 Outgoing resourc Galns and lo¥$ Unre¥trl¢tsd fund• Designated funds General funds 9,398,711 1,717,597 491,038 1491,0381 9.889,749 1,e76,136 12,676,775 112.211,0401 183.842 11,116,309 12.676.775 112.211,0401 183.842 11,765,885 2022 Tran8f•f8 bèthwèèn funds At31 D¢¢ember 2022 January 2022 In¢oming rosourcos Outgoing resourc Galns and 108$•8 Unrestrl¢ted tund¥ Dgsignalsd funds General fund 8,785,244 1,699,314 613,467 1613.4871 9,398,711 1.717,597 12,083,182 111,040,713) 1410.7191 10,4B4,bb 141v.ii¥i ii,iit5,iU¥ Designated funds represent unrestrictsd funds that have been allocated at the Trustees, discretion for particular purposes. The d6signated funds indude three years ol grant hjnding based on th8 Fundati8 FARA 2023 annual net budgat 6qualling t8.270.1￿ as well as £1.619.649 to fund the 2 Homes for ￿fe for four year3 beyond the current threg-year funding cyde. l assets and liabilities relate ¥obly lo unre$trictad lunds. 18. LEASING AGREEMENTS Minimum ￿ase payments under nOn-Can￿lIable operating leases fall due 85 follow8.. GfOUP Charfty 2023 2023 Group 2022 Charity 2022 Within one y64r Belween ono and fivo After more than five years 1,599,798 3,378,477 758,SOO 1.035.098 2,951,511 758,500 1,001.815 1,793.470 193,212 477.270 882,655 180.994 5 736 775 4.745 109 2.988.497 1 540.919 Page 32 FARA FOUNDATION (LIM￿E0 BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 De¢•mber 2023 19. TRADING SUBSIDIARIES The Charity owns 100¥4 of the S.(N)012022.. 50001 issued ordinary shares ol FARA Enterprises Limited, a Company incorporated on 16 March 1992 Inumber 028974671. The principal acti¥ity of this company is the sale of donated goods through a chain ol Charity shops for the purpose ol donating its profits to FARA Ftsundation. The Charity also owns 1000% ofthe 2 is$￿￿ ordinary sharès ol FARA Propèrt￿$ Limit•d Inurnbar 035428251, a company ineorporated on 2 Apnl 1998. FARA Piopert188 is a property holding company. It disp088d of all its pro￿rtY holdings dvrtng the course of 2023 and is due lo be dissolved. The assets. li8bililies and trading results ol FARA Enterprises Limrted and FARA Propertses Limited are provided below.. 2023 FARA Prop•rtfi•8 Limited FARA Erttèrprl$ Limited Total 2023 A88ets and liabilitie8 Tangible ffixed ass&ts Debtors Cash at bank and in hand Credilorg.. Amounts falling due within one year Amounts falling due after one year Prowsion for liabilities 185,757 497,906 234.081 185,757 497.906 234.081 11,7001 1593,9301 1595.6301 1309,3031 1309,3031 N&t ass•ts 1,700 Capital and re$erve$ Called up share capital Other reserves Retained eamings 5,000 5,W2 11,7021 9,511 7,809 Net assets 1,700 12,811 FARA Prop8rti•# Llmltod FARA Entsrprise¥ Llmlt•d Ttstsl 2023 Tradlng r•sults Tumovgr Other incorrva 16.650 11.069.126 95,463 11.085,776 95,463 Total incorning resources Cost of sales Administratson and overhgads Revaluats'on ol investment proparty 16.650 11.164,589 8,421.519 116.8211 11.181,239 8.421,519 163,7931 146.9721 Net incoming resourcBs Donth"on to FARA Foundth"on 130,3221 19.569.287 12,759.8901 19,538,965 12,759,8901 Net movement In shareholders, fijnds 30,322 16,809,397 16,779,075 Page 33 FARA FOUNDATION (LIM￿ED BY GUARANTEE} NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 DocembeT 2023 19. TRADING SUBSIDIARIES IC(Trntln¥ed. .) 2022 FARA Propertleg Llmltèd FARA Entery)r18e8 Llmltod Totol 2022 As8•ts And Ilabllltle8 Tangiblg fixed 85set8 Debtors Cash at bank and in hand Creditors.. Amounts falling due within year Arnounts falling due after one yoar Provision for liabilil'es 435.000 4,264 100,301 166.290 678.134 84,590 601,290 682,398 184,891 1125.6891 1479.1981 1452,0841 1577,n31 1479,1981 1462,4191 1462,4191 Net assets 65.322 14.511 50.811 Capltal and r•$?rvo8 C811*d up sharè capital Other rgsgrvés Retained garnings 5,000 5,002 164,6801 8,867 164,6801 16441 9,511 Nat assets 65,322 14,511 50,1511 FARA Propertles Llmltèd FARA Entsrpii8e8 Total 2022 Llmlted Tradlng re8uIt8 Tumovar (Xhèr incom8 32.7CK) 10,390,246 376,592 10,422,946 376,592 Totsl Incoming resources Cost of sales Admini¥trdtion and ovèrheads Revaluation of investrent property 32.700 10.766,838 16,083,616) 11.884.791) 10,799,538 16,083,616) 11,913,169) 1165.0001 128,3781 1165,0001 Net incorning rèsourees Donation to FARA Foundaton 1160,6781 14,3221 2.798.431 12.798.431) 2,637,753 12,802.7531 Net rnovern•nt in shar*hold•rs' funds 185 000 165,000 20. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS At 31 December 2023 and 31 D￿mber 2022 there werg no ¢ofilingont liat¥lilig$ or c8pital ¢ommitments arising for th8 gioup. Page 34 FARA FOUNDATION (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 Dec•mb&r 2023 21. REL4TED PARTY TRANSACTIONS During th8 year, FARA Enterprises Limited made transfers under Gift AKI ol their trading profi'ts amounting to £2,759,89012022." £2,798,431). FARA Properties Lirnited did not make any transfars under Gift Aid in the year $nd6d 31 Decèrnber 202312022.. £4.3221. Costs recharged by FARA Enterpri3es Limited lor the use olthe chaity shops in connèction with the Retail Gift AKI Sch8m8 arnounted lo £4.026,76412022.' £2,092,338). At th8 reporting date. the charity was owed amounts from one ol Its Subsidiary undertakirvas, the details of which are roported moro fully in note 12. During the year Mrs J Nicholson, the foundor and a Iru$tee of FARA Foundation ILimiled by Guaranteel received rent totalling £1,21012022. £1.2001. The rent charged Is below market rat6. th9 ygarend Mrs J Nicholson has $inr£ r8sign8d from her post as Trustee. During tho pèriod èxpenses totslling £1,601 12022.. £2,351) wore reimbuisèd to Iwo12022". ￿) key managemw P9rsonnel. who were not serving as Trustees, in relation to trAvel costs lo Romania. 22. PRIOR YEAR ADJUSTMENT Thè accounts ft)r tho year ended 31 December 2022 have been re$tated to reclassify deposit balances from cash and c85h equivalènts lo currgnt asset investments and fixed asset Snveslments based on the length ol their original maturity. The reclassification has decreased the cash and c8sh equivalents by £997.750, and increased current 8S58t investm8nts by £497,750 and fixed asset inveslments by £500,000. As thi8 is purely a redassific8tion b¢tWottn balance sheet headings, restatement has resutted in no ch8nge to brought forward funds for the yèar èndèd 31 Dècember 2022 or funds held at the ￿porting date. Page 35