Charlty reglstratlon number1144106 Company reglstralion number 07703610 (England and Wale5) THE ENERGY SAVING TRUST FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 THE ENERGYSAVING TRUST FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION TNstees M A Cobbold G Collinson D Crowfoot J E MetC81fe C L Nelkon J H Olivier Head of Foundatlon L Marsden Charity number 1144106 Company number 07703610 Reglstered office 223-231 Pentonville Road London United Kingdom N19NG Auditor Azets Audit Services Ashcombe Court Woolsack Way Godalming Surrey United Kingdom GU7 ILQ THE ENERGYSAVING TRUST FOUNDATION CONTENTS Page Chaiman's ststement Trustees, report 2-12 Sndependent auditorfs report 13-15 Slatement of financlal activtties 16 Balance sheet 17 Statement of cash flows 18 Notes to the financial statements 19-24 THE ENERGY SAVING TRUST FOUNDATION CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 It has been a busy and prcductive year for Ihe Foundation as we've accelerated i)ur work to put into action our strategy to empower young people to take action on the climate emergency. We have fdlowed up our pilot funding round with a UK wide round of funding and by the end of the 2023124 financial year we have committed £670,000 of funding to 18 organisalions who a￿ doing great work to support and empower young people in communities across Wales, Scotland, North East England, North West England and the West Midlands. Also, during the last year, w8 have continued to learn and adapt as we work with partners and delivery organisations across the UK. Our strategy sel out our ambitions to be a modem grant maker, to be flexible, open and trusting in the way we operate. We're proud to have signed up to IVAR'S open and trusting grantmaking prfnciples and continue to engage with others working in this space to help develop our practice and ensure we are continually improving what and how we do things. We've also made progress in other areas of our work. Our Trustee Board has continued to provide v81uable expertise and guidance to the Head of Foundation and been adively invofved in our grant making decisions. We have identffied gaps in our knowledge and training needs and actively addressed these through working with organisations such as Franks & Associates Ltd who supported the induction of new trustees, helped clarify legal and regulatory responsibilities for Trustees and helped us achieve clarity and focus for our priorities. We also worked WFth Impatience Earth who helped buibj on the work we did in the development of the strategy in 2022. We participated in a number of sessions to he￿ broaden our knowledge on the youth dimate action space and were challenged to Ihink about how our role in this space can evolve. All this work has helped us establish a strong foundation for the year ahead as we continue to make progress against our strategic goals. Our pri￿ltieS for the year ahead will focus on supporting our grantees in their work. leaming what works (and what doesn't), sharing best practice with our community of fellow grant makers and partners in this space and unlocking further support to enable more young people to take aclion on the climate emergency. Icalfe Chalr of trustees Date.. THE ENERGY SAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report and financial statements for the year ended 31 March 2024. Th8 financial statements have been preparecl in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Foundation's Articles of Association, the Compani8s Act 2006 and "Accounting and Reporting by Charities: Statement of Rècommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland {FRS 102)" (effective 1 January 20191. Objectives and activitiès The Energy Samng Trust Foundation's objectives are Yo promote and to advance the education ol the public In the conservation, protection, and improvement of the physical and natural environment so as to further the protection of the world's dimate systems. induding reducing and making sustainable the use of energy and water and ensuring the prudent use of non-renewable resources for public benefit.. The Foundation's Strategy The Energy Saving Twst Foundation is the charitable ami of Energy Saving Trust and was established in 2014. The Foundation shares Energy Saving Trust's mission to address the climate emergency and is a component of its growth plans for the future, focusing on supporting the UK to meet the 2050 c8rt)on targets recommended by the Committee for Climate Change. Our vision: A sustainable future for every child and young person. Our mission: We will help provide aC￿ss. opportunities and support to children and young people experiencing inequality to enable them take direct action in addressing the climale emergency. Our goals Children and young people experienung inequafity will be empowered and SLfjPPOrted to act on the issues that matter to them that positively contribute to tackling the climate emergency. Children and young people experienang inequality will have mad8 a measurable differenc8 in their Community in relation to tackling the climate emergency. Organisations supporting and empowering children and young people experiencing inequality. are equipped to thrive for the future. Our approach: Chlldren and young people care passionately about the dlmate emergency and want to act. But bts don't feel empowered to, or lack the access, resources. and support to do so. We hope the support of the Foundatlon will help remove those barriers by: Providlng longer temi grant funding directly to local organisations vtho are best placed to empower and support children and young people experiencing inequality to act. Providing additional non-monetary support to the organlsations we partner with to help them overcome the challenges they are facing as we want them to be around in the fLrture to Gontinue their good work. Committing to sharing best practice, learning and evidence to advance the progress in tsckling the Glimate emergency. The TnJstees have paid due regard to guidance issued by the Charity Commission in deading whal aclivities the Foundation should undertake. THE ENERGY SAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and perfonnanco In January 2023 Lindsay Marsden (Head of Foundation) went on maternty leave and following a robust recruitment process we appointed Malt Litt18 as Interim Head of Foundation for a 12-month period. Trustees would like to thank Matt for his hard work establishing our grant making activity during Ihis 12-month period. We welcomed Lindsay Marsden back in January 2024. Progress against our goals Grant making 2023124 really saw the start of our active grant making after launching the pilot funding mund in the West Midlands in March 2023 where we awarded £164,500 grant funding to five organisations.. Craftspace, based In Birmingham, believe in crafts.vism - the power of arts and crafting to create social change. They have over 30 years, experience of developing innovative, socially engaged work on a range of issues. With this funding, they will engage Dldeaf and LGBTQ+ young people in dimate action through their 'Making ihe Climate Change, programme. Craftspace have experience of working with these two groups and understand Ihe barriers to participation in social action that they can face. Handsworth Association of Schools works with children. young people and families in north Birmingham. This funding will support a 'Green Mentor, who will Work across a network of schools with up to 800 sludents over the next two years. Students will leam about carbon reduction and how they can make practical changes in their sdiools. They will present and agree proposals with their schools and are supported by the Green Mentor to secure resources and co-operation to implement their ideas. Kingslanding Regeneration Trust works with young people vtho often have little opportunity to engage in nature and the climate emergen￿ due to the irnmediacy of the personal issues they face. The Trust provides accreijited entry level quallfications, work experience and Dne40-one support for NEET (not in education, employment or training) young people to secure jobs. They will partner with the 8irmingham & Black Country Wildlife Trust to provide practical outdoor conservation training for young people looking to jumpsiart their careers in the environment seclor. West BromwiGhthsed charity Multistory will work with local organisations in Sandwell to use creativty and the arts to get young people involved in climate activism. Mutiistory will expand their 'Green Roots. programme, which engages young people and racially rninoritised communities with their local environment. The projecl will aim to reach young people who face barriers to engaging in. and leading work on. dimate change. Activilies will include practical conservation activities, such as wood carving and pl8nting, creative sessions on storytelling and photography, and Workshops on eco-aclivisrn and environmental justi￿. Bimiingham & Black Country Wildlife Trust Y￿11 support the four grantee organisations by providing advice, connecting to other suitable organisations and providing introductions to the expertise available within the Wildlife Tnjst. This fvjnding will part fund a Youth Action for Nature Manager for 12 days of Work be￿een November 2023 and April 2024. THE ENERGYSAVING TRUST FOUNDATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Following a period of feedback and leaming, in the Autumn of 2023, we then launched our UK funding round focusing on the geographic81 8reas of Wales, Scotland, Northem Ireland. North East England and North West England. These areas were chosen for a number of reasons induding looking at the level of need induding ONS dala whlch hlghlighted thet the most deprrved regions are North East, West Midlands, Wales and North West. Combined data sets from all four natlons on indices of multiple deprivation also showed 840/0 of the top 100 most deprived local authorities (out of 382) are in the suggested target regions. We also looked at dats related to the avallablllty of funding includlng: 'Left behind, neighbourhoods with few cjvic assets and lower community engag8ment. These are often in the North, the Wesl Midlands, or coastal areas. England regions with fewest charities per popuFation - predominantly the North East and North West. Levds of funding provided in relation to levels of deprivation- highlighting Ihe need in the North West. Trustees awarded £505,059 to 13 organisations in totsS.' North West England Action for Conservalion, Working across Greater Manchester and Merseyside, inspires and ernpowers young people from diverse backgrounds to become the next generation of environmental leaders. They will be delivering a programme of workshops. inspiration days. residential camps, and ambassador programmes to over 300 young people. Made by Mortals CIC, based in Manchester will work with three primary schools in Tameside to ccpprodurE interactive audio slorieslpodcasts that explore environmental themes such as recycling, food waste, reuse and reduGtion and shopping altematively. More Music in Morecambe is a community music. arts and educatlon charity. They will deliver Workshops in schools and support young people lo deliver a climate change festival. North East England Auslismable based in South Shields, Tyne and Wear. will be delivering a series of workshops designed to raise environmental awareness, promote energy effiaency and knowledge of dean energy with aulistic young people in Iheir community. Young people will have the opportunity lo set up a small-scale renewable energy project within their community. Building Seff Belief CIO based in County Dutham, will deliver the 'Tow Law Eco-youth Ambassadors, project to enable and empower young people to preserve and enhance Iheir shared environment. Iminatlng in a communlty celebr8tlon event and documentary film to educate the wider community around environmentsl issues. Three 13 Training and Enterprise Ltd, based in Tees Valley will provide vocational training in the circular economy to care experienGe(J young people. EaGh year eight young people will engage in a work-based Iraining programme to gain vocab'onal qualifications as they establish a new circular economy loop in their neighboLrrhood, to improve local soil qualily and reduce waste. Triangular CIO will deliver a tW¢>year initiative to educate and empower young people age 16-25 from refugee backgrounds in Tyne and Wear. Focusing on climate change and displacement. they will delivèr a range of workshops and support and empower the young people to undertake community outreach work. THE ENERGY SAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Scotland SCORE Scolland is a multi we relled on utilising their networks to promote the funding opportunity. We'll reach out to prospective appKcanls that are underrepresented in the sector to encourage and support them to apply. Our grant making processes will be reviewed after each funding round, incorporats'ng feedback from applicants and the communities we aim to support, to ensure that our processes are proportionate and fair. We have undertaken this process after every funding round to date and a summary of our leaming is captured below. People inVo￿ed in grant making decisions will be provided with relevant training on unconscious bias and diversity and inclusion. This training for Trustees is planned for Aprillmay 2024 so will influence the decision making for the Northem Ireland funding applications. THE ENERGY SAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Data and transparency Action We'll publish all of our grants online on 360Giving and in our annual reports. Pro All our grants are online on 360 Giving and a document is also uploaded on our website pages. Tess We'll collect relevant demographic information about the organisations that we support and the young people thal they work with. This will help us to review if we're reaching our target partner organisations and communities. We have collated this for the organisations we have funded to date, and will continue lo do so. At Trustee meetings this infonnation will be reviewed and discussed, with leamings influencing future decisions. Feedback and Learning Over the last year we have leamt a great deal and implemented a number of practical changes to the application process including= Introducing a two-slage process with a short expression of inleresl and then full application. Ensuring a PDF of the application questions was availabie for applicants to view before starting an online application. Making it clear that we are open to other methods of applications if a written application is not suitable. RefleGting on and developing our articulation of what we mean by organisations being youth led. Exiending the application wlndow to allow organisations to carry OLrt sufficient youth engagement. Created a FAQS that are continually updated throughout the application process. Being clear about all timelines and decision-making points. Being open and honest about success rates at each stage of the application process. Providing support to organisations who require help during the application process. Revised the application questions each funding round to ensure we secured the most relevant informalion to help us make a funding dec¢sion. Updated the guidance each funding round to improve understanding of what we are looking to fund. Ensured all applicants invited to submit full application have access to Head of Foundation to discuss application before submitting. We will continue to capture feedback from applicants and grantees as we deliver our funding rounds, as well as looking to other funders delivering best practice. THE ENERGY SAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Commltment to becoming an open and trusting grant maker When developing the stralegy, we leant on the work of IVAR to help shape our approaches and we have signed up to these eight commitments to funding charsties in an open and trusting way. Y C**YW*r41* Energy Saving Trust Foundation has also signed up to the following organisationsl ne￿Orks.. Member of Association of Charitable Funders Member of NCVO Member of Enwronmenlal Funders Network Funder Commilment on Climate Chan Tralnlng and Development During 2023 we undertook some work with philanthropic consultants Im alience Earth to help us lo continue to refine our approach and improve our dimate expertise. They ran a sertes of six sessions that hdped us to better understand where we fit into the climate funding landscape in the UK and helped further our understanding anLI knowledge of youth climate action. Key takeaways from these sessions induded.. We heard that applying traditional grant-making approaches in the context of funding youth-led dimate aclion could become a recipe for potential failure, both for the grantees and the grant-making organisations. For us, three key areas of work came up.. Funders need to have a moretrust4)ased approach to fvlly understand the needs of grantees. For positive impacts from fijnding to be sustained in the long term. engagement and dialogue wilh the communtty is essential up front. Funders need to help wth capacity building and bringing a care-based approach to their funding. It's important to fund the support syslems that help sustain the motivated and driven young people working in the climate movement. Funders need to have a more inclusive and accessible grant process. You need to show more flexibiltiy when engaging witrt young people as grantees because they cannol and should not be expecled to have the same fundralsing or monitoring and evaluation experience as an adutt. To truly make a dlfference, your dellnition of impact and risk needs to change. THE ENERGYSAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Following the sessions. we're considering our position on.. If we should and how we can fund young people direclly pooled funding models how young people are more explicitly involved as we develop and grow offering more capacity building support and starting a community of support for grantees offering unrestricted funding. We also worked wlth Franks & Assoriates Ltd in May 2023 who undertook some development work with our Board of Trustees including.. Light touch board skills and effectiveness review Discussion around the Foundation's new strategy and irnplementation plan A review of the Foundation's grant making processes and plans Supported Trustees to understand their legal and regulatory responsibilities. Flnanclal revlew The total income received by the Energy Saving Trust Foundation during the 2023124 financial year was £238k (2022123 £521 k). The Energy Saving Trust Foundation's expenditure for the year w85 £825k12022-23- £136k). Going concern After making appropriate enquiries, the trustees have a reasonable expectation that the Charity has adequate resources to conlinue in operational existence for the foreseeable future. For this reason. they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concem basis Can be found in the accounting policies. ReseThes policy In December 2022 the board of trustees approved a new reserves policy. The policy slates that the Foundation will hold back £5,000 as reserves. The reasons for this decision are based on a judgement of low rbsk, and only needing to hold back reserves to support the wind-up costs of the Foundation, should this ever be needed. The Foundation will work within confirmed budgets and only commit grant funding based on funds 8vai18ble. As at 31 March 2024 the reserves amounted to £232k. The reseNes policy is reviewed annually. Risk management The Trustees hav8 assessed the major risks to which the Foundation is exposed and are satisfied that systems are in place to mitigate exposure to the major risks. We have a risk register that is reviewed and updated by the Head of Foundation each quarter and is reviewed by the board of trustees every six months. Risks are proactively managed and mitigation plans put in place. THE ENERGYSAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Plans for future periods In summer 2024 we plan to select and announce the grantees from our Northern Ireland r¢)und of funding. As the year progresses and our grantees (from all funding rounds) continue with delivery we will be working with them lo capture stories of their impact and learning from their Work. We'll also begin to make progress against our other objectives. Providing additional non4nonetary support to the organisations we partner wlth to help them overcome the challenges they are fa¢ing as we want them to be around in the future to continue their good work. This work is already underway with some initial conversations with grantees to better understand their needs and where we might add value. Alongside this we are working with intemal teams within Energy Saving Trust to identify and unlock opportunities to deliver on this commitment. Committing to sharing best practice. learning and evidence to advance the progress in tackling the climate emergency. As we capture impact and learning we will begin to openly share this. We are already members of some environmental and climate change networks and will continue to build our connections across the sector to identrfy opportunities to deliver ￿ this commitment. Structure, governance and management Constitution The Energy Saving Trusl Foundation is registered as a Charitable Company limited by guarantee and was set up by a Memorandum and Articles of Association. The Trustees, vtho are aFso the directors for the purpose of company law. and who served during the year and up to the date of signature of Ihe financial statements were: M A Cobbold G Collinson D Crowfoot J E MetGglfe C L Nelkon J H Olivier Methods of app￿ntment or election of tnjstees The management of the Chanty is the responsibility of the trustees who are elected and c(>opted under the terms of the Memorandum and Articles of Association. The Foundation has policies to recruit trustees who have an appropriale level of skiH and expenence to enable them to fulfil the role and provide appropriate trustee training as required. 10- THE ENERGY SAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Twstee board and organisational structure According to the Foundation's Articles of Association, trustees also hold the offic8 of director. The Trustee Board must be made up of a minimum of three non*xecutive trustees. One third (or the number nearest one thirdl of the Trustees must retire after th8ir first term (of three years). Retuming Trustees are eligible for reappointment save thal no Trustees shall serv8 for more than thre8 conseculive terms each term compromising three years (nine years in totall. Th8 Board of Trustees is responsible for th8 strategic direction, policy and overall governance of the tharity. The implementation of slralegy and the day to day running and management of the charity's activilies is delegated to the Head of Foundation. The Boarcl of Trustees meet5 four times a year. with two of those Meetings in person. For their induction, tnjstees are provided with the Foundation's agreed stralegy and implementation plan and any other necessary documents. New trustees meet with the Head of Foundalion to discuss the Foundation's plans for the coming period, and the Head of Foundation aims to catch up 1-2-1 with each Trustees at several points throughout the year. Trustees a￿ made aware of changes to Charity Commission guldance and updates as well as developrnents in the sector and applied practice. Training is provided specifically on being a trustee for a corrorate foundation. Trustees are surveyed about their experience and skills to inform further training and development. Energy Saving Trust Group provide support for the Fountlation through use of office space, IT equipment and associated administratsve. financial, IT and HR staff as required. Statement of Trnstees. responsibllltles The Trustees. who are also the directors of The Energy Saving TTUSt Foundation for the purpose of company law. are responsible for preparing the TfUStees' Report and the financial ststements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Praclice). Company Law requires the Trustees to prepare financial statements for each financial year whith give 8 true and fair view of the state of affairs of the Foundation and of the incoming resources and appliGation of resources, including the income and expenditure. of the charitable company for that year. In preparing these financial statements, the Trustees are required to: - select suitable ac￿unting policies and then apply them consistently., observe the methods and princiFdes in the Charities SORP,. make judgements and estimates that are reasonable and prudent: and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Foundation will continue in operation. The Trustees are responslble for keeplng adequate accountlng records th8t disclose with reasonable accuracy at any tlme the financial positlon of the Foundation and enable them to ensure that the financial statements compty with Ihe Companies Act 2006. They are also responsible for safeguarding the asset5 of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Tnjstees are responsible for the maintenance and integrity of the charity and financial information included on the Foundalion's website. Legislation in the United Kingdom goveming the preparation and disseminalion of rinancial statements may differ from legislation in other jurisdictions. Auditor In accordance with the company's artides, a resolution proposing thal Azets Audit Services be reappolnted as auditor of the company will be put at a General Meeting. 11 THE ENERGY SAVING TRUST FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Disclosure of infomiatlon to audltor Each of the Trustees has confimied that there is no infomiation of which they are aware which is relevant to the audit. but of which the auditor is unaware. They have further confimied that they have taken appropriate steps lo identify such relevant information and to establish Ihal the auditor is aware of such infomiation. The Trustees, report was approved by the Board of Trustees. JEM Ife Chair of Trusteos Date.. 12- THE ENERGY SAVING TRUST FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ENERGY SAVING TRUST FOUNDATION Oplnlon We have audited the financial statements of The Energy Saving Trust Foundation (the 'Foundation') for the year ended 31 March 2024 which comprise thè statemènt of financial activities, the balance sheet, the slatement of cash flows and notes to the financial statements, including signiflcant accounting poliGies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Slandard 102 The Financial Reporting Slandard applicable in Ihe UK and Republic of Irel8nd (United Kingdorn Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 hAarch 2024 and of Fts incomlng resources and application of resources, induding its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accept&d Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We condLscled our audit in accordance with Intemational Standards pn Auditlng (UK) (ISAS (UK)) and applicable law. Our responsibilities und8r those standards are further described in the Auditorfs r8sponsibilities for the audit of the financial statements section of our report. We are independent of the Foundalion in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fuffilled our other eihical responsibilities in accordance with these requirements. We beleve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclu51ons relatlng to golng concern In auditing the finanoal statements, we have conchJded that the Trustees, use of the going concem basis of accounts'ng in the preparation of the financial statements is appropriate. Based on the work we have perfomed, we have not IdentSfied any materfal uncertaintles relating to events or conditions that. individually or collectively, may cast significant doubt on the Foundation's ability to contlnue as a going con￿rn for 8 period of al least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this report. Other Inforniatlon The other information comprises the infonnation included in the annual report other than the financial statements and our auditorfs report thereon. The Trustees are responsible for the other infomation contained within the annual report. Our opinion on the financial statements does not cover the other infomation and, ex￿p1 to the exient otherwise explicitly ststed in our report. we do not express any fomi of assLJrance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the olher infonnation Is material inconsistent with the financial statements or our knowledge obtained in the course of the audlt, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misststements, we are required to detemiine whether this gives rise to a material misstatement in the financial statements themse￿eS. If, based on the work we have perfomied. we conclude that there is a material misstatement of this other infcKmation, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters presGrlbed by the Companles Act 2006 In our opinion, based on Ihe work undertaken in ihe course of our audit: the infomation given in the Trustees. report for the financial year for which the financial statements are prepared, which includes the directors, report prepared for the purposes of company law, is consistent with the financial statements; and the directors, report included wthin the Trust8es' report has been prepared in accordance with applicable legal requirements. 13- THE ENERGY SAVING TRUST FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE ENERGY SAVING TRUST FOUNDATION Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the Foundation and its environment obtained in the course of the audit. we have not identified material misstatements in the directors, report included within the Trustees. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequale accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees. remuneration specified by law are not made- or we have not received all the intormation and explanations we require for our audit,. or the Trustees were not entilled to prepare the financial statements in acC￿danCe with the small companies regime and tske advantage of the small companies, exemptions in preparing the Trustees, report and from the requirement to prepare a strategic report. Responsibilities of Trustees As explained more fully in the statement of Trustees, responsibillties, the Trustees, who are also the directors of the Foundation for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparalion of financial slalements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Foundation's ability lo continue as a going concem, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the Tnjstees pither intend lo liquidate the charitable company or to cease operations, or have no realistic altemative but to do so. Auditorfs responsibilities for the audlt of the financlal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a malerial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonabty be expected to influence the economic decisions of users taken on Ihe basis of these financial statements. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https'.11 www.frc.org.ukl3uditorsresponsibilities. This description forms part of our auditor's report. 14 THE ENERGYSAVING TRUST FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE ENERGY SAVING TRUST FOUNDATION Extent to which the audit was considered capable of detecting Irrogularities, including fraud I￿egularitIes. including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, ouuined above and on the Financial Reporting Council's website, to detecl material misstslements In respect of irregularities. including freud. We obtaln and update our vnderstanding of the entity, its activities. its control environment, and likely future developments, inGluding in relation lo the legal and regulatory framework applicable and how the entity is comp￿Ing with thal framework. Based on this understanding, we Identty and assess the risks of material mlsstal8ment of the financial statements, whether due to fraud Of error, design and perfom audii procedures responsive to those risks, and obtain audit evidenGe that is sufficient and appropriale to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response lo the risk of irregularities and non-complian￿ with laws and regulations, including fraud, we designed procedures whith included: Enquiry of management and those charged with govemance around actual and potential litigation and claims as well as actual. suspected and alleged fraud- Reviewing minutes of meetings of those charged with govemance,. Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operalions of the entity through enquiry and inspection; Reviewing financial statement disdosures and testing to supporting documentstion to assess compliance with applicable laws and regulations; Performing audit work over the rtsk of management bias and override of controls, including testing of joumal entrtes and other adjustments for approprialeness, evaluating the business rationale of significant transactions outside the nomal course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit, ther8 is a risk Ihat we will not detect all irregularities, induding those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance wilh a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The rFsk of not detecting a materFal misstatement resulting from fraud is higher than for one resL*liing from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentstions. or the override of intemal control. Use of our report This report is made solety to the charitable companys members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditovs report and for no other purpose. To the fullest extent pem7itted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body. for our audit work. for this report, or for the opinions we have formed. Debra Saunders Bsc FCA Isenlor Statutory Audltorl for and on behalf of Azets Audlt Servlces Zo2* Chartered Accounlants Statutory Audltor Ashcombe Court Woolsack Way Godalming Suffey United Kingdom GU71LQ 15- THE ENERGY SAVING TRUST FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Unrestrieted funds funds 2024 2023 £OOO's £OOO's Notes Income from: Donations and legacies Investrnents 230 521 Total incon 238 521 enditure on: Charitable activities 798 130 Olher 27 Total expendlture 825 136 Net (expenditurevincome for the yearl Net movement in funds (587) 385 Fund balances at 1 April 2023 819 434 Fund balances at 31 March 2024 232 819 The ststement of financial activities includes all gains and losses recognised in the year. All income and expenditure deTive from continuing activities. The ststement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 16- THE ENERGY SAVING TRUST FOUNDATION BALANCE SHEET ASAT31 MARCH 2024 2024 2023 Notes £OOO's £OOWs £OOO's £OOO's Current assots Debtors Cash at bank and in hand 10 301 314 350 655 615 1,005 Creditors: amounts falling due wlthin one year 11 (304) (186) Net current assets 311 819 Creditors: amounts falling due after more than one year 12 {79) Net assets 232 819 Income funds Unrestricted funds 232 819 232 819 The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. These financial statements have been prepared in accordance with the provlsions applicable to cixnpanies subject to the small companies regime. The financial statements were approved by the Trustees on etcalfe Trustèe Company reg15tratlon number 07703610 17 THE ENERGY SAVING TRUST FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Nota8 £OOO's £OOO's £OOO's £OOO's Cash flows from operatlng actlvltles Cash (absorbed by)Igener8ted from operations 14 {349) 495 Investing activities Investment income received Net cash generated froml(used in) investing activlties Net {decrease)hncrease in cash and cash equivalents (341) 495 Cash arsd cash equivalents at beginning of year 655 160 Cash and cash equivalenls at end of year 314 655 18 THE ENERGY SAVING TRUST FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accountin9 policies Charity infomiation The Energy Saving Trust Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 223-231 Pentonville Road. London, N19NG. United Kingdom. 1.1 Accountlng conventlon The financial statements have been prepared in accordan￿ with the Charities SORP IFRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practrce applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in Ihe UK and RepU￿1C of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard app￿.cabTre in the UK and Republic of Ireland IFRS 102) and the Companies Act 2006. The Energy Saving Trust Foundation meets the definition of a public benefit entiiy under FRS 102. Assets and liabilities are initialty recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are prepared in sterling, which Is the functional currency of the Charity. Monetary amounls in these financial statement5 are rounded to the nearest £OOO's. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Golng concern The Found8tion has more than adequate cash rese￿e$ relative to its budgeted expenditure and can meet its obligations as they f811 due, hence the Irustees believe that the organisalion can continue lo operate as a going concem for at least twelve months from the date these financial statements are approved. 1.3 Charitable funds General funds are unrestricted funds which are avallable for use at the discretion of the trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. 1.4 Income All income is r6cognised once the Charity has entitlement to the income, it is probable that the income wÉll be received and the amount of income receivable can be measured reliab￿. Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of Ihe donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the Foundation has been notified of an impending distribution, the amount is known. and receipt is expected. If the amount is not known, the legacy rs treated as a conlingent asset. Donated services or facilities are recognised when the charity has control over the item, any conditions associated wth the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefrt can be measured rdiably. Donated services and facilities are included in income at the estimated value of the gift to the charity when received, based on the amount that the charity would have been prepared to pay for these services or facilities had it been required to purchase them, with a corresponding entry in the appropriate expenditure heading for the sarne amount. Donated fixed assets are similarfy taken to incom8 at the value to the charity with the other eniry being capilalised in fixed assets. 19- THE ENERGY SAVING TRUST FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles (Contlnuod) 1.5 Expendlture Expendllure is recognlsed onGe there Is 8 legal or constructive obligation to transfer ecxjnomic beneffll to a third party, It is probable that a transfer of economic benefits will be required in settlemenl and the amount of the obligation rAn be measured reliabW. ExpendFture Is classified by acts'vity. The costs of each activlty are made up of the total of direct costs and shared ¢osls, induding support costs invoFved in undertaking eath activity. Direct costs attributable to a single aclivity are allocated dlrectly to that activity. Shared costs whith contnbute to more than one activity and support costs which are not attributable to a single activity are apportioned be￿een those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent 1.6 Cash and cash equivalents Cash and cash equivalents indude cash in hand. deposits held at call with banks, other short-temi liquid investments with original rnalurities of three months or less, and bank overdrafls. Bank overdrafts are shown within bo￿owing5 in current liabilities. 1.7 Flnancial instruments The Chartty hold5 only basic financial instwments. Financial assets and financial liabilities are recognised when the Charity becomes a paty to the contractual provlsions of the instrument. All finanaal assets and liabilities are initlally measured at transaction price (induding transactlon costs) and re-measured at amortised cost. Basic financial assets Basic financial assets, which indude debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangemenl constitutes a financing transaclion. where the transaction is measured at the present value of the future receipts discounted at a rna￿et rate of interest. Financial assets d8ssified as receivable wthin one year are not amortised. Bosic financial liabilities Basic financial liabilikn'es, induding creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where Ihe debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are nol amortised. Trade creditors are obligations to pay for gojds or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as cu￿ent liabilities if payment is due within one year or less. If not. they are presented as non