2023-03-31-accounts

° VARKEY FOUNDATION CA4y y /wes tAW ed4¢4t￿n Annual Report 2023

Members Sunny Varkey Dino Sunny Varkey

Patrons Sunny Varkey Harsha Varkey

Charity Trustees Jay Sunny Varkey Sir Michael Lockett

Key Management Personnel Nicole Lui (Executive Director)

Principal Office First Floor, 10 Queen Street Place, London, EC4R 1BE

I ndependent Auditor Crowe U.K. LLP 55 Ludgate Hill London, EC4M 7JW

Bankers

Barclays Bank PLC Barclays East Midlands Corporate Team

Barclaycard House 1234 Pavilion Drive Northampton, NN4 7SG

Legal Advisors

Bates Wells Braithwaite London LLP 10 Queen Street Place London, EC4R 1BE

Company No. 07774287 | Charity No. 1145119

Table of Contents

Page 02. Trustees' Report

Page 06.

Strategic Report

Page 23.

Independent Auditors' Report

Page 28.

Consolidated Statement of Financial Activities

Page 29.

Consolidated and Charity Balance Sheet

Page 30.

Consolidated Cashflow Statement

Page 31.

Notes to the Financial Statements

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The trustees and directors of the company present their report and financial statements, which incorporates the Strategic Report, for the year ended 31st March 2023.

Structure, Governance and Management

The company (registration number 07774287) was formed on 14th September 2011 and was registered as a charity in England (registration number 1145119) on 16th December 2011. The company is limited by guarantee and has two members. The company is governed by a memorandum and articles of association.

The executive team is responsible for the implementation of the strategy set by the trustees. During the fiscal year, the executive team was led by Nicole Lui who has been the executive director since 1st November 2018.

The trustees are responsible for the overall direction, supervision and accountability of the Varkey Foundation (the foundation) and its projects. The trustees have delegated the day-to-day decision making to the executive director of the foundation, who reports back to the trustees. The trustees are responsible for:

• Furthering the overall purpose of the foundation, as set out in its governing document, and setting its direction and strategy.

• Ensuring that the foundation’s work is effective, responsible and legal.

• Safeguarding the foundation’s finances and resources and ensuring that they are used to further its purpose.

Trustees receive the appropriate training to carry out their duties at the commencement of their trusteeship. All new trustees receive an induction pack and complete a register of interests. They are also provided with opportunities for governance and sector specific training and development.

Recruitment of new trustees is based upon consideration of skills, always mindful of the need to reflect diversity and maintain a balance of individuals from different backgrounds. Depending on the gap to be filled, this may be achieved via existing networks, recruitment agencies or by advertisement.

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Charity Governance Code

By establishing good governance at the Varkey Foundation we ensure:

• Compliance with laws and regulations.

• That the organisation is well run and efficient.

• That problems are identified and dealt with appropriately.

• That our work has the desired impact and that the objectives of the foundation are advanced.

The Charity Governance Code, endorsed by the Charity Commission and other sector bodies, was introduced in 2017 and adopted by the Varkey Foundation. The code sets out a number of recommended practices for charities and encourages trustees to either apply these practices or explain why they have not done so, or what other measures they have taken instead – a principal known as “apply or explain.” The trustees of the Varkey Foundation believe that the foundation is substantially compliant with the code, but note that they have not applied the code’s recommendations in the following areas:

• Presently, due to the size of the board, there are no committees, and all matters are addressed by the full board. This will continue to be kept under review. The board is currently seeking additional trustees.

• The board does not presently review its own performance nor that of individual trustees. Consideration will be given to the introduction of a formal review process as prescribed by the code.

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SUBSIDIARIES AND BRANCHES

The Varkey Foundation has three subsidiaries: Fundación Varkey Argentina, VF Trading Varkey Limited and Varkey Foundation Ghana. Varkey Foundation Ghana was dormant during the year 2023, does not have any assets and is not included in the consolidation. The overall charity result is comprised of the results of the UK foundation only.

VF Trading Varkey Limited

01

VF Trading Varkey Limited was incorporated on 29th September 2016 as the 100% owned trading subsidiary of the Varkey Foundation. It is a company registered in England and Wales with company registration number 10402535. Its primary activity is generation of sponsorship for the Global Teacher Prize and Global Student Prize event.

Fundación Varkey Argentina

02

Fundación Varkey Argentina was established on 7th September 2016 as the 100% owned non-profit Argentine foundation of Varkey Foundation. Fundación Varkey Argentina was founded by the Varkey Foundation which reserves the right to appoint all of the members of its board of trustees. It operates various programs for education professionals in Argentina and Latin America.

Varkey Foundation Ghana

03

Varkey Foundation Ghana was a branch of the Varkey Foundation until it became a subsidiary company with the same name. It was incorporated on 6th December 2017. It became active from 1st April 2018 when the assets and liabilities of the Varkey Foundation Ghana branch were duly transferred in full.

Varkey Foundation Ghana is registered with the Social Welfare Department and the Registrar General's Department in Ghana with the name The Varkey Foundation. It is registered as an NGO with the Accra Municipal Authority and the Social Welfare Department.

From October 2019 all staff, assets and programmes were novated to Plan International Ghana. Varkey Foundation Ghana was dormant during fiscal years 2020-23 and will remain dormant until a further decision is made.

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SUBSIDIARIES AND BRANCHES

Continued......

Fresh Start Media Ltd

04

The foundation owned a 39% investment in Fresh Start Media Limited which was purchased for £100,000. Fresh Start Media is a video production company that was spun off from First News and First News Productions, to create non-fiction content for, or about, children. The investment in Fresh Start Media was sold to GEMS Eduventures Limited in July 2022.

REMUNERATION POLICY

The foundation looks at market comparisons in the charity sector as a method of benchmarking salaries, however some flexibility is applied to take into consideration the specific requirements for each post, including key management, and to ensure we can recruit the best candidate possible to meet the needs of the foundation. The foundation has implemented a performance management system, for all staff, through which salary reviews are aligned to performance.

PUBLIC BENEFIT

The trustees have referred to the Charity Commission’s published guidance on public benefit when reviewing aims and objectives and planning activities. As required by the Charities Act 2011, the trustees considered how the foundation's activities contribute to its aims and objectives. Our objectives and activities are set out on page 6. The trustees consider that the aims, objectives and activities they have put in place are for the public benefit and this is demonstrated throughout this report.

The end of the trustees’ report and their signatures are on page 22.

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The Varkey Foundation’s vision is for a quality education for every child. The foundation’s mission is to ensure that every child has a good teacher. Its objectives are set out in its articles of association, as follows:

• For the public benefit, the advancement of education throughout the world in such ways as the trustees think fit;

• The prevention or relief of poverty or financial hardship anywhere in the world by providing or assisting in the provision of education and training; and

• Such other purposes that are charitable under the law of England and Wales both within the United Kingdom of Great Britain and Northern Ireland and elsewhere throughout the world.

The Varkey Foundation's charitable activities for the year covered advocacy, programmes and partnerships and grant-making. These activities led to a range of positive impacts across four reporting benchmarks:

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REPORTING BENCHMARKS

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TEACHING

The Global Teacher Prize was not awarded in this year; however, the Varkey Foundation diligently continued its efforts to elevate the status of teachers worldwide and acknowledge their exceptional contributions. Throughout the year, the foundation's Global Teacher Prize extended its reach to numerous countries, sparking significant positive media attention for the teaching profession. Esteemed news publications across the globe featured extensive coverage of the prize, generating an astounding 6,500 stories and a remarkable Advertising Value Equivalent of £111,293,684, with a total PR value of £333,881,052.

Despite the prize not being awarded in the financial year, the foundation remained steadfast in its commitment to support teachers through various initiatives. Notably, the networks of Global Teacher Prize Ambassadors and National Teacher Prizes around the world continued to thrive, playing a vital role in uplifting, and recognising outstanding educators in their respective communities

SCHOOL LEADERSHIP

02

The Varkey Foundation's programmes continued to empower leaders across school systems . Training programmes run by Varkey Foundation subsidiary Fundación Varkey Argentina continued to build the capacity of school leaders in Argentina, as well as in programmes elsewhere in Latin America. The foundation reached a total of 16,500 educational leaders in Argentina.

POLITICAL LEADERSHIP

03

The Varkey Foundation is dedicated to championing teacher's voices and advancing education policymaking. Our commitment involves expanding our community of teachers, school leaders, and education experts to ensure broader representation. To achieve this goal, we launched a new digital platform, which significantly expanded our network's reach and impact.

This dynamic platform hosted a series of events and introduced innovative initiatives that continue to foster collaboration within our community. Efforts focused on tackling crucial educational issues that will shape the future, ranging from harnessing the potential of Artificial Intelligence (AI) and addressing the impact of climate change to enhancing teacher recruitment, retention, and school leadership.

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REPORTING BENCHMARKS

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INNOVATION

The Varkey Foundation shone a spotlight on innovative ideas created by young people and teachers.

The foundation’s second $100,000 Global Student Prize, awarded in September 2022, recognised the innovative work being done by students around the world to address key social issues, from climate change to sustainable energy. During the year, the prize generated over 2,000 media stories, an Advertising Value Equivalent of £22,182,426 with a total PR value of £66,547,278.

Throughout the year, members of the foundation’s Global Teacher Prize Ambassador network continued to do innovative work that positively affected their communities. That work ranged from giving deprived communities access to potable water and food, to supporting young people from indigenous communities to connect with their culture.

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ACTIVITES

Research

The Varkey Foundation did not commission any new research during the year. However, on several occasions' media outlets cited the foundation’s existing polling on the social status of teachers and the views of young people. Expenditure on research in the year was £0.

Advocacy

The Varkey Foundation continued to host and take part in events for education leaders, teachers and students that focused on key education issues, including girls’ education, educational technology and higher education. During the year, Varkey Foundation staff and Global Teacher Prize winners spoke at key events hosted by international bodies and met with policymakers, including presidents, prime ministers, and education ministers, to discuss key education issues.

• In April 2022, Jeremiah Thoronka, the winner of the Global Student Prize 2021 and Global Teacher Prize 2021 winner Keishia Thorpe took part in a panel discussion at ASU + GSV. Started in 2010 with a collaboration between Arizona State University (ASU) and Global Silicon Valley (GSV), the annual ASU + GSV Summit connects leading minds focused on transforming society and business around learning and work.

• In May 2022, we organised for Jeremiah Thoronka to meet with His Holiness Pope Francis through Scholas, the Pope’s education foundation based in Latin America, to discuss the many issues facing young people around the world.

• Also in May, Keishia Thorpe spoke at UNESCO’s World Higher Education Conference in Barcelona in their HED talk about “How one extraordinary teacher helped hundreds of refugees and migrants to get into college”.

• In September 2022, Keishia Thorpe took part in several high-level events in and around the United Nations as part of General Assembly week in New York. These included speaking roles at:

• UNESCO Teacher Taskforce event: Transforming Education Through Teacher Leadership and Innovation;

Project Everyone, part of their World’s Largest Lesson initiative;

• UN TES Leaders Day: Transforming education to transform the world & learning to live together sustainably;

• Salzburg Global Seminar about the future of education.

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Advocacy con't...

• In June, Top 10 finalist Jamie Frost took part in a three-day summit at UNESCO on transforming education that gathered education ministers, civil society, and young people from all over the world to think about the future of sustainable development in education.

• In October 2022, we hosted a European Summit for Global Teacher Prize finalists from the region. Almost 40 teachers attended the two-day event organised together with our National Teacher Prize partner Mentes Empreendedoras.

• Also in October, Keishia Thorpe spoke at Eshraqat Tolerance Enriched Learning Initiative by invitation of the U.A.E. Ministry of Tolerance and Co-existence, an event for the country’s students, parents, and educators to learn about human core values through an immersive experience in the different cultures and backgrounds held at the Abu Dhabi Cultural Foundation.

• In March 2023, the Varkey Foundation hosted the Global Student Summit, bringing together the finalist community of young activists and entrepreneurs of the Global Student Prize, to network and discuss the future of the higher education sector, together with keynote speeches from Chegg.org and the JED Foundation about mental health.

• The Varkey Foundation continued to virtually convene groups of its 300 Global Teacher Prize Ambassadors, to discuss key issues affecting education in their countries. The foundation continued to explore ways to incubate, fund and scale teacher-led projects for positive social impact.

• The foundation continues to partner with over 40 National Teacher Prizes around the world and at least 10 countries hosted prize ceremonies during the year.

• Keishia continues to take part in a range of advocacy activities in the USA and receiving several education dignitaries at her school, including federal officials and development leaders.

• The Global Student Prize community of 100 finalists, continue to forge ahead with their projects, studies, and activism with examples of their work including:

• Farhad Shamo Roto in France who has been doing some incredible work withBB his I Can Help Host initiative which has so far provided free housing for moreBB than 14,000 Ukrainian families fleeing war. His Voice of Ezidis campaign alsoBB continues to grow in prominence and he was selected asone of 14 winners ofBB the Marianne Initiative for Human Rights Defenders launched by PresidentBB Macron.

• Igor Klymenko, Jeremiah Thoronka and Shreya Ramachandran spoke duringBB the "Meet Outstanding Students Impacting the World" panel at the SXSWBB Conference in Austin, Texas about their projects and plans.

• Kenisha Arora from Canada continues to be busy with high-level events,BB meeting with the Red Cross Executive Director for International Response,BB speaking with India’s Finance Minister, Nirmala Sitharaman, during theBB G20India Finance Meeting at the World Bank and IMF Meetings.

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Advocacy con't...

• Faryal Ashfaq from Pakistan was invited to the Next Generation PakistanBB Conference in London by the British Council as one of the key panellists for itsBB roundtable discussion on the concerns of young Pakistanis.

Expenditure on advocacy in the year was £596,796 (2022: £1,401,977).

PROGRAMMES

Argentina

Fundación Varkey Argentina remained the only Varkey Foundation entity to deliver education programmes during the year, principally through its Leadership and Innovation Programme in Argentina. The foundation also delivered smaller education capacity-building initiatives in Colombia, the Dominican Republic, Ecudaor, Peru and Uruguay. Fundación Varkey Argentina also undertook other educational activities that complemented its programmatic work, including commissioning small-scale education research projects and publishing new thinking on education, including a book of interviews with former education ministers from around the world.

Leadership and Innovation Programme

During 2022/2023, Fundación Varkey Argentina continued its flagship programme to support school leaders in provincial districts in Argentina.

Over 31,500 school leaders graduated from the programme during the year. Total expenditure on Programmes in the year was £1,364,938 (2022: £1,436,770).

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PARTNERSHIPS AND GRANT MAKING

Grantmaking

Partnerships

The Varkey Foundation continued its formal partnership agreement with UNESCO and remained part of the UNESCO-led Global Education Coalition, a network of philanthropic

groups working to protect the right to education during the COVID-19 crisis. During the year, Fundación Varkey Argentina led the Global School Leadership Network, a grouping of over 350 school leaders and 100 experts around the world that worked to make school leadership

more effective. The Global School Leadership Network was launched in April 2021 as a joint initiative of the Varkey Foundation and Global School Leaders, and the network was part of UNESCO’s International Task Force on Teachers for Education. The on-line skills organization Chegg.org sponsored the 2022 Global Student Prize, as part of their three year partnership with the Foundation and throughout the year the Varkey Foundation partnered with them on a number of different initiatives, including the Global Student Summit (see above,

“Advocacy”) and joined the 2021 winner, Jerimiah and the Varkey Foundation team on its mission to the Vatican in April 2022. Chegg.org is the social impact branch of Chegg, a major US educational technology company.

The Varkey Foundation’s principal grant making during the year remained its US $1 million Global Teacher Prize, which aims at raising the status of teachers worldwide and celebrating the profession.

• The Global Teacher Prize remained the world’s most significant global education award. As noted above (“Teaching”), during the year the prize accumulated a total PR value of £178,662,114. In September 2022, the Varkey Foundation awarded its second $100,000 Global Student Prize to Ukrainian high school student Igor Klymenko, presented during UNGA week at the Clinton Global Initiative In New York.

Global Student Prize online news coverage April 2022 - March 2023 amounted to 1,110 online news stories from around the world. These had a combined Advertising Value Equivalency (AVE) of just over USD $26m. We are working with Meltwater on the £ sterling conversion.

Expenditure on partnerships and grant-making this year was £87,697 (2022: £1,133,140).

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FUTURE PLANS

The Varkey Foundation will continue to deliver on its mission to ensure that every child has a good teacher. Our strategy for the year will be based around three key objectives: raising public awareness of key education issues; connecting and supporting education changemakers; and building the capacity of education systems.

To achieve its targets, the foundation will partner with major stakeholders across the global education sector and continue to work to diversify its sources of funding. The foundation will deliver on its objectives through the following activities:

Awareness Raising

01

The Global Teacher Prize and Global Student Prize will be our principal activities for the year, and these flagship awards will continue to generate public engagement with key education issues around the world.

Changemakers

02

This year, the foundation will launch a new online global platform for teachers and expand its networks of National Teacher Prizes, Global Teacher Prize Ambassadors and the Atlantis Group.

Capacity Building

03

Finally, we will also deliver change in the classroom: our leading programmes in Latin America will continue their critical work to build the capacity of the region’s school leaders and public policymakers.

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In 2023-2024, the Varkey Foundation will consolidate and maintain its reach and impact worldwide. Throughout the year, the foundation will deliver on its mission of ensuring that every child has a good teacher by shining a light on the work of extraordinary teachers and students. It will also build change-making communities of teachers, school leaders and policymakers and seek to support groundbreaking new research into what the world thinks and feels about education. To achieve its targets, the foundation must enact far-reaching changes to its business plan, diversifying its sources of funding and changing the way it delivers some of its core activities to ensure its relevance continues whilst managing through restricted funding from our major donor.

The Varkey Foundation will continue to champion the cause of teachers around the world. To do that, we will announce an 8th winner in 2023 of our flagship Global Teacher Prize and a 3rd Global Student Prize winner, and aim to launch and co-fund a new Global Schools Prize to celebrate the critical work of school leaders. We will continue to challenge governments on education, through an expanded partnership with UNESCO and through supporting of new research on the global status of teachers. Our foundation will also support education change-makers at the grassroots, by growing our networks of National Teacher Prizes, Global Teacher Prize Ambassadors, and the Atlantis Group. We will explore new ways to amplify teachers’ voices and to fund and incubate their passion projects. Finally, our programmes in Latin America will continue to build the capacity of the region’s school leaders and deliver desperately needed change from the ground up.

To continue to deliver on this and in response to a reduction in funding from our major donor, the Varkey Foundation will make fundamental and lasting changes to the way it does business. We will need to build new partnerships across the global education sector to fund major activities, including prizegiving and research. We will also need to invest in community-building, to level-up the foundation’s global networks. Finally, and most significantly, we will need to change the way in which we run some of our core activities, including the Global Teacher Prize.

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In 2023-24, we also want to give our Global Teacher Prize winners and finalists a bigger platform to change education for the better. But today, our world is more divided than ever on how to address the key education issues that will affect our global future – from funding to learning technology. The pandemic and growing number of conflicts around the world also mean that there are fewer opportunities for the international community to come together to build a consensus for change. In previous years, our winners and finalists had just a few months to campaign on the issues that mattered to them before they were overtaken by the next prize cycle. With the international community increasingly divided, our winner and finalists will no longer have enough time in the spotlight to have a meaningful impact on global education policy.

To address these challenges, a decision was taken to award the next Global Teacher Prize in 2023 rather than in the 2022 calendar year, and we will continue this timing after that by awarding the prize every two years. This move will enable us to significantly increase the number of applications and nominations for the next cycle of the prize. It will also ensure that our prize winners and finalists are able to advocate for change more effectively, by remaining in the public eye for longer. In the interim year, we will sustain our foundation’s relevance and impact through our annual Global Student Prize.

At this time of great global division and uncertainty, it is more critical than ever that the world listens to the voices of teachers. The international community must not lose sight of the importance of education to securing our global future. We believe that our strategic plan will enable us to ensure that teachers are a part of the global agenda. To ensure that every child has a good teacher, we must first show the world how important they are.

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Total income received in 2023 was £1,674,748 (2022: £3,564,405 from continuing operations). This included restricted income of £179,751 (2022: £1,179,195). Of the total income received £450,892 (2022: £2,095,458) was received from Varkey Group Limited.

The balance of funding was received from other parties for use on the foundation’s charitable activities, including sponsorship income of £298,941 (2022: £314,546) from Chegg Inc., USA, consultancy fees £42,650 (2022: £9,500) from Jacobs Foundation, Switzerland, and administration fees £158,669 (2022: £Nil) from Global Independent Schools Association (GISA), UK. The reduction in income in comparison to the prior year was due to there being no Global Teacher Prize ceremony in the fiscal year.

Total expenditure for the year was £2,164,201 (2022: £3,971,887). This included restricted expenditure of £179,751 (2022: £1,179,195). The reduction in expenditure is primarily due to there being no Global Teacher Prize ceremony in the fiscal year. The next is scheduled for November 2023.

The foundation has reported a deficit of £381,708 for the year (2022: deficit £407,482), of which the parent charity's deficit was £133,605 (2022: deficit £182,176), the VF Trading Varkey Limited deficit was £56,762 (2022: deficit £153,508), and the deficit for Argentina was £191,340 (2022: deficit £71,798).

The result without Argentina would be a deficit of £190,368 (2022: deficit £335,684). This was primarily due to higher costs of the Global Student Prize ceremony and operating costs exceeding income largely as a result of the economic conditions.

The reduction in income and expenditure and the overall deficit in Argentina are mainly attributable to the very high inflation – the annual rate was 94.8% in 2022.

As a result of the group deficit for the year ended 31 March 2023 the foundation’s reserves reduced to £848,748 (2022: £1,230,456) all of which was unrestricted (2022: £1,164,184 unrestricted, £66,272 restricted).

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The Trustees have assessed the foundation’s ability to continue as a going concern. The Trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements. This includes reviewing the updated forecasts to 31st March 2025 and considering key risks such as the impact of high inflation, the political situation and cost of living crisis in the UK, that could negatively impact the foundation and the funding agreements in place, including adherence to the timing of payments set out in the agreements. The high-level forecasts have been extended to 31 March 2025 to take these risks into consideration.

Funding agreements include Deeds of Donation in relation to major activities (such as the Global Teacher prize) and an Annual Grant Framework Agreement to provide the future funds required for the residual funding requirements of the foundation for all other activities. This includes funds for the long-term liability for the remaining years of the 2015 to 2021 Global Teacher Prizes. The foundation is dependent on the cash from these agreements to meet its obligations and running costs.

Over the past 18 months the income from these agreements has been erratic. Whilst obligations have generally been met, working capital management has been challenging and there has been some delay in payments being made to suppliers and GTP winners.

Management continues to look to reduce cost and streamline operations whilst also working on a pipeline of new initiatives and income sources so that the foundation may become less reliant on donations from Varkey Group Limited.

The Trustees have prepared budgets and forecasts based on expected funding. However, the budgets and cashflows remain highly sensitive to small changes in the timing of receipt of income and to the receipt of amounts below levels set out in funding agreements. Recognising the reduced level of free reserves, and the reduced headroom to absorb the impact of uncertainties, the Board has considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements.

These include:

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• Cash management controls are in place to ensure that sufficient working capital is always available. Cashflow forecasting has been completed to March 2025, however this remains reliant on the receipt of funding from the Varkey Group, with which there is continuous dialogue. Varkey Group Limited has provided letters committing to providing working capital to the foundation to enable it to meet its operating expenditure requirements up to 31st March 2025.

• Ongoing costs of the foundation reflect the reduced cost base of the organisation and assumes that GSP and GTP ceremonies will be held in September and November 2023 respectively. For the financial year 2024/25 it is assumed that the GSP ceremony will be held in September 2024. The current assumption is that there will be a GTP ceremony in March 2025. As the precise details regarding funding source and location etc. are not currently known no cash inflows or outflows have been included on the assumption that the total cash outflow will equal the total cash inflow for GTP.

• Reserves in Argentina are shown as designated funds in the group accounts. The programme is planned to continue during the period of review without the need for additional funding from UK operations. The forecasts do not assume any remittance of funds between Argentina and the UK. Alternative funding sources are being secured by the subsidiary entity.

• Income, expenditure and cashflows will continue to be closely monitored, with regular reporting to the Board.

After considering these factors, the Trustees have concluded that the foundation has a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future and have therefore prepared the accounts on a going concern basis but there are material uncertainties as discussed above.

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FINANCIAL CONTROLS

Reserves Policy

As of 31st March 2023, the foundation had total reserves of £848,748 (2022: £1,230,456) all of which as unrestricted (2022: £1,164,184 unrestricted, £66,272 restricted).

The policy of the foundation is that unrestricted funds should be at a level suitable to sustain the activities of the Foundation for a period of at least three months after taking into account committed funds from other sources. This is calculated to be circa £75k.

In assessing our level of free reserves fixed assets and funds held in Argentina are excluded. Funds held in Argentina are designated as repatriation of the funds from Argentina is not possible under current Argentinian Government regulations. As at 31st March 2023 designated funds held in Argentina were £803,084 (2022: £985,580) leaving free reserves of £45,664 (2022: £178,604) which is below the target level of £75k.

In order to address this, funds were transferred by VGL to meet the reserves cover per the Policy. The Trustees and management will ensure that reserves are maintained in line with the Policy going forward.

Costs associated with the GTP are excluded from the calculation of the funding required to sustain the activities of the foundation for three months as they are covered by a separate Deed of Donation.

Principal As noted above, the principal source of funding is from Varkey Group Limited. The funding is covered by Deeds of Donation and an Annual funding Grant Framework, further details of which are included in the Going source Concern section on pages 17.

The Foundation does not presently raise funds directly from the public. Fundraising The funds to cover the advocacy expenditure, research activities and other overheads of the foundation are donated by the Varkey family. The charity had no fundraising activities that require disclosure under S162A of the Charities Act 2011 during the fiscal year.

Grant The foundation has specific agreements in place for the provision of grants for furtherance of its charitable objectives. Grants payable are making made in line with the foundation’s strategic objectives. The policy foundation monitors grants in accordance with the relevant grant agreement

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Risk Management

Risk is considered in key decision processes in the foundation at executive and board level. The board reviews the major risks faced by the foundation on an annual basis. The review includes the adequacy of actions being taken in response to each risk. The trustees have reviewed the major risks and uncertainties which the foundation faces and are satisfied that appropriate steps have been taken to mitigate these risks. The major risks and uncertainties facing the foundation and the action being taken to mitigate them are as follows:

Funding and Cashflow

Risk:

• Funding and cashflow are insufficient to support ongoing operations.

Mitigation:

• Detailed budgets and plans produced annually for board approval.

• Budgets and cashflow forecasts produced to ensure sufficient funding at all times, with ongoing monitoring and monthly reporting.

• Budgeted and unbudgeted expenditure controlled and managed through approvals processes.

• Financial commitments are only entered into once the source of the funding has been confirmed.

• Seek to cover central overheads from revenue generating activities.

• Deploy strong planning and financial management controls to manage the impact of any change in funding.

• Seek partnerships and sponsorships as supporting sources of finance.

• Continuously review the value for money of each component of the foundation's operations to preserve resources and plan for redesign in response to funding changes. Ensure that staff are aware and have regular training on the plan and are supported in the aftermath of any event.

• Create an informal support network in each operating country.

• Create a pipeline of alternative income sources.

Cyber Crime

Risk:

• Loss of business days impacting business performance through system unavailability or data loss.

• Reputational damage and legal costs through data security breaches.

• Direct financial loss due to cyber fraud or ransomware.

Mitigation:

• I dentify critical data to help define and implement a business continuity plan. Develop and implement a cyber-security policy.

• Train and regularly remind all staff of key cyber-security issues and responsibilities. Continuously work with IT specialists to make cyber-security protection more robus t.

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Inappropriate Use of Funds by Receipents or Misue through Fraud

Risk:

• Inappropriate or ineffective use of donations/grants/prizes by recipients. E.g., funding illegal activities, inappropriate or fraudulent use of donor funds in country operations.

Mitigation:

• Thorough due diligence carried out on all potential recipients.

• Funds transferred to organisational (not individual) bank accounts (except for the Global Teacher Prize).

• Recipient bank accounts require two signatories (except for the Global Teacher Prize).

• Clear expectations of how funds will be used agreed at the outset and usage monitored.

• Establish robust fiscal management systems and procedures throughout the organisation, and resource appropriately with in-country and head office support.

• Monitoring by local senior management and central finance through regular monthly reporting.

• Ensure all staff are aware of the Bribery Policy.

Oranisational capacity & loss of key personnel

Risk:

• Organisational capacity is insufficient to scale up and deliver quality programmes and loss of key personnel causing disruption.

Mitigation:

• All new programmes planned thoroughly to ensure clear understanding of resources required, risks and mitigations.

• Recruitment prioritises quality, balancing timelines and funding risk.

• Establish strong, cohesive management team with individual and collective responsibility, knowledge sharing, collaboration and flexibility.

• Ensure clear strategic and operational plans to set direction and provide a framework for business continuity.

• Effective succession planning for key roles and organisational knowledge bank created.

• Invest in continuing professional development and provide rewarding job opportunities and career progression for key staff where possible.

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Trustees /Directors

The trustees/directors during the year or appointed since the year end are those listed on company information page.

Statement of Disclosure to Auditors

The directors and trustees of the company have, individually, considered their responsibilities to provide information to the company’s auditors and in so far as each of them are aware there is no relevant audit information of which the company’s auditors are unaware and each trustee has taken all the reasonable steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

Statement of Trustees' Responsibilities

The trustees who are also directors for the purposes of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations. Company and charity law requires trustees to prepare financial statements for each fiscal year. Under the law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (GAAP – United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the net movement of funds for the period. In preparing those financial statements, the trustees are required to:

• Select suitable accounting policies, following UK GAAP, and then apply them consistently; Observe the methods and principles in the Charities SORP;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

For and behalf of the board

Jay Varkey Trustee Date: 31st January 2024

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I ndependent Auditor's Report to the Members of The Varkey Foundation

Opinion

We have audited the financial statements of the Varkey Foundation (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Consolidated Cashflow and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The financial statements:

• give a true and fair view of the state of the group's and the charitable company’s affairs as of 31 March 2023 and of the group’s income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to the accounting policy in relation to going concern on page 32 in the financial statements, which indicates that during the period The Varkey Foundation has faced a number of challenges including cash flow and working capital management, limited external sources of funding, a reduced level of free reserves and inconsistent cash contributions from the Varkey Group Limited in meeting the amounts committed. There is a Deed of Donation in place with Varkey Group Limited for major activities to provide future funds to The Varkey Foundation as required. Over the past 18 months the receipts from these agreements has been unpredictable. Whilst The Varkey Foundation's obligations have generally been met, working capital management has been affected leading to delays in payments to suppliers and prize winners. The lack of any material free reserves further limits the charity's ability to respond to these challenges.

As stated in note 1 d), these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

h������� �� ����� ������� ���������� �� ��� /�������� !�� ����

L� ��� ������� ����� �� ��� ���� ���������� �� ��� ������ of our audit

• the information given in the trustees' report, which includes the directors' report prepared for the purposes of company law, for the fiscal year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

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Matters on which we are required to report by exception

Considering the knowledge and understanding of the group and charitable company and their 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:

• adequate and proper accounting records have not been kept; 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 information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 22, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could be expected to influence the economic decisions of users taken based on these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members and significant component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection and Taxation legislation. We also considered compliance with local legislation for the group’s overseas operating segments.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of contract income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Dipesh Chhatralia Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Date: 31st January 2024

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The Varkey Foundation Annual report 2023

Consolidated Statement of Financial Activities (incorporating the income and expenditure account)

Year ended 31st March 2023

Note Income from: Donations 2 Charitable activities 2 Other trading activities 2 Other income 2 Total Expenditure on: Charitable activities: Advocacy 4 Partnerships & Grant-making 4 Programmes 4 Projects/Trading 4 Total Net expenditure Unrealised foreign exchange gain taken to reserves Transfers between funds 12 Net movement in funds Reconciliation of funds: Total funds brought forward 12 Total funds carried forward 12	Unrestricted Funds Restricted Funds 2023 Total Funds £ £ £ 271,141 - 271,141 723,061 179,751 902,812 457,610 - 457,610 43,185 - 43,185 1,494,997 179,751 1,674,748 373,081 223,715 596,796 131,661 (43,964) 87,697 1,364,938 - 1,364,938 114,770 - 114,770 1,984,450 179,751 2,164,201 (489,453) (489,453) 107,745 - 107,745 66,272 (66,272) - (315,436) (66,272) (381,708) - - - 1,164,184 66,272 1,230,456 848,748 - 848,748	2022 Total Funds £ 377,476 2,869,553 314,546 2,830 3,564,405 1,401,977 1,133,140 1,436,770 - 3,971,887 (407,482) - - (407,482) - 1,637,938 1,230,456

Registered Company No. 07774287

The notes on pages 31 to 53 form part of these financial statements.

VARKEY FOUNDATION I ANNUAL REPORT 2023

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The Varkey Foundation Annual report 2023

Consolidated and Charity Balance Sheet

Year ended 31st March 2023

Registered Company No. 07774287

Note Fixed assets: Intangible assets 7 Tangible assets 8 Investments Investment in subsidiary undertakings Current assets Debtors 9 Cash at bank and in hand Liabilities: Creditors: Amounts falling due within one year 10 Net current assets Total assets less current liabilities Creditors: Amounts falling due after more than one year 11 Total net assets The funds: Restricted funds 12 Unrestricted funds 12 Total funds	2023 2022 £ £ - 2,353 3,586 - - - - 2,353 3,586 3,233,127 3,148,572 1,033,581 1,386,430 4,266,708 4,535,002 (1,208,564) (803,368) 3,058,144 3,731,634 3,060,497 3,735,220 (2,211,749) (2,504,764) 848,748 1,230,456 848,748 66,272 1,164,184 848,748 1,230,456 Consolidated	2023 2022 £ £ - - - - - - 4,171 4,171 4,171 4,171 3,867,439 3,644,458 16,545 378,607 3,883,984 4,023,066 (1,027,415) (751,498) 2,856,569 3,271,567 2,860,740 3,275,738 (2,188,057) (2,469,450) 672,683 806,289 - 66,272 672,683 740,017 672,683 806,289 Charity

The deficit for the financial year 2023 of the parent charity was £133,605 (2022: deficit £182,176).

The notes on pages 31 to 53 form part of these financial statements.

The financial statements were approved and authorised for issue by the Board and were signed on its behalf by:

Jay Sunny Varkey Trustee

Date: 31st January 2024

VARKEY FOUNDATION I ANNUAL REPORT 2023

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The Varkey Foundation Annual report 2023

Consolidated Cashflow Statement

Year ended 31st March 2023

Note Cash flows from operating activities: Net cash provided by (used in) operating activities A Cash flows from investing activities: Proceeds from the sale of investment Purchase of property, plant and equipment Purchase of investments Net cash provided by (used in) investing activities Movement on foreign exchange Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period B A Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charges Revaluations Loss on Sale of Fixed Assets Non-cash movement (Increase)/Decrease in debtors Increase/(Decrease) in creditors Net cash provided by (used in) operating activities B Analysis of cash and cash equivalents Cash in hand	2023 £ (460,594) - - - - 107,745 (352,849) 1,386,430 1,033,581 2023 £ (489,453) - 1,070 163 - - (84,555) 112,181 (460,594) 2023 £ 1,033,581	2022 £ (381,429) 100,000 (1,847) - 98,153 - (283,276) 1,669,706 1,386,430 2022 £ (407,482) - 4,477 826 - - (385,676) 406,426 (381,429) 2022 £ 1,386,430

The notes on pages 31 to 53 form part of these financial statements.

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The Varkey Foundation Annual report 2023

Notes to the financial statements

Year ended 31st March 2023

1.�Accounting policies

a)�Charitable company status and background

The Varkey Foundation is a not-for-profit organisation established to improve the standards of education for underprivileged children throughout the world.

The Foundation is a company limited by guarantee, registration number 07774287 and a charity registered with the Charity Commission of England and Wales, charity number 1145119. The liability of the members of the company in respect of the guarantee is limited to £1 per member of the company.

The Registered Office of the Foundation is at: First Floor, 10 Queen Street Place, London, EC4R 1BE

b)�Basis of preparation

The financial statements have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the�UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1st January 2015.

The Trustees have referred to the Charity Commision's published guidance on public benefit when reviewing aims and objectives and planning activities. In particular, as required by the Charities Act 2011, the Trustees� considered how activities contribute to the aims and objectives set. The Trustees consider that the aims,� objectives and activities they have put in place are for the public benefit.

The financial statements are prepared under the historical cost convention.

c)�Basis of consolidation

The consolidated Statement of Financial Activities and Balance Sheet consolidate the results of the Charity and its wholly-owned subsidiary undertakings, VF Trading Varkey Limited (company number� 10402535) and Fundacion Varkey Argentina. The results of the subsidiaries are

consolidated on a line-by-line basis. Intra group transactions and year end balances are eliminated on consolidation. In accordance with section 408 of the Companies Act 2006 no separate Statement of Financial Activities has been presented for the The Varkey Foundation (excluding its subsidiaries).

VARKEY FOUNDATION I ANNUAL REPORT 2023

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The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

d) Going concern

The Trustees have assessed the Foundation’s ability to continue as a going concern. The Trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements. This includes reviewing the updated forecasts up to 31st March 2025 and considering key risks such as the impact of high inflation, the political situation and cost of living crisis in the UK, that could negatively impact the foundation and the funding agreements in place, including adherence to the timing of payments set out in the agreements. The high-level forecasts have been extended to 31st March 2025 to take these risks into consideration.

Funding agreements include Deeds of Donation in relation to major activities (such as the Global Teacher prize) and an Annual Grant Framework Agreement to provide the future funds required for the residual funding requirements of the foundation for all other activities. This includes funds for the long-term liability for the remaining years of the 2015 to 2021 Global Teacher Prizes. The foundation is dependent on the cash from these agreements to meet its obligations and running costs.

The Board have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements.

Over the past 18 months the income from these agreements has been erratic. Whilst obligations have generally been met, working capital management has been challenging and there has been some delay in payments being made to suppliers and GTP winners.

Management continues to look to reduce cost and streamline operations whilst also working on a pipeline of new initiatives and income sources so that the foundation may become less reliant on donations from Varkey Group Limited.

The Trustees have prepared budgets and forecasts based on expected funding. However, the budgets and cashflows remain highly sensitive to small changes in the timing of receipt of income and to the receipt of amounts below levels set out in the funding agreements. Recognising the reduced level of free reserves, and the reduced headroom to absorb the impact of uncertainties, the Board has considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements.

These include:

i) Cash management controls are in place to ensure that sufficient working capital is always available. Cashflow forecasting has been completed to March 2025, however this remains reliant on the receipt of funding from the Varkey Group, with which there is continuous dialogue. Varkey Group Limited has provided letters committing to providing working capital to the foundation to enable it to meet its operating expenditure requirements up to 31st March 2025.

ii) Ongoing costs of the foundation reflect the reduced cost base of the organisation and assumes that GSP and GTP ceremonies will be held in September and November 2023 respectively. For the financial year 2024/25 it is assumed that the GSP ceremony will be held in September 2024. The current assumption is that there will be a GTP ceremony in March 2025. As the precise details regarding funding source and location etc. are not currently known no cash inflows or outflows have been included on the assumption that the total cash outflow will equal the total cash inflow for GTP.

iii) Reserves in Argentina are shown as designated funds in the group accounts. The programme is planned to continue during the period of review without the need for additional funding from UK operations. The forecasts do not assume any remittance of funds between Argentina and the UK. Alternative funding sources are being secured by the subsidiary entity.

iv) Income, expenditure and cashflows will continue to be closely monitored, with regular reporting to the Board.

After considering these factors, the Trustees have concluded that the foundation has a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future and have therefore prepared the accounts on a going concern basis but there are material uncertainties as discussed above.

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The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

e) Incoming resources

All incoming resources are included in the Statement of Financial Activities when the company is legally entitled to the income and the amount can be quantified with reasonable accuracy and there is probability of receipt. Incoming resources received that do not meet the criteria for recognition in the Statement of Financial Activities are accounted for as deferred income and included as liabilities at the balance sheet date.

Grants are recognised where there is an entitlement, probability of receipt and the amount can be measured with sufficient reliability.

Gifts in kind for use by the charity are included as income at their approximate fair value at the date of receipt. Fair value is deemed to be the market value the charity is willing to pay for the service. An amount equal to the value of receipts at the point received is included as charitable expenditure.

Donations receivable represent funds receivable committed by the representative donor at the yearend.

f) Resources expended

All resources expended are included on an accruals basis.

Charitable activities comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those associated with meeting constitutional and statutory requirements of the charity and would include audit fees and costs linked to the strategic management of the charity.

Costs are allocated to activities, including grant making, where they can be directly attributed to them based on the actual expense incurred. Support costs are allocated to activities on the basis of time spent on them.

Redundancy costs (termination benefits) are recognised as an immediate cost and charged to the SOFA on a demonstrable commitment to termination, with provision for future redundancy costs measured at the best estimate of the expenditure that would be required to settle the obligation at the reporting date.

g) Fund accounting

Restricted funds are to be used for particular restricted purposes within the objectives of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Unrestricted funds are those funds that can be used in accordance with the company's charitable objectives at the trustees' discretion.

Designated funds are the funds of Fundacion Argentina and separated from the general unrestricted funds because the repatriation of this fund is not practically possible due to changes in Argentina's regulation.

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The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

h) Fixed assets

Fixed assets, both tangible and intangible, are capitalised and depreciated/amortised over their useful economic life to the charity. The cost of minor additions or those less than £1,000 are not capitalised.

Depreciation of tangible assets is provided for as follows:

Computer and other equipment	33% straight line
Furniture and equipment	25% straight line
Motor vehicles	20% straight line
Amortisation of intangible assets is provided as follows:
Computer software	33% straight line

i) Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Due to hyperinflation in Argentina all transactions (including income and expenditure) are adjusted by indexation at the year-end for local reporting purposes. On consolidation these foreign currency transactions are translated at the rates of exchange ruling at the balance sheet date. All differences are taken to the general reserves.

j) Financial instruments

The Foundation has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequentlymeasured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise, trade, other creditors and accruals.

k) Critical accounting judgement and key sources of estimation uncertainty

In the application of the Charity’s accounting policies, which are described in Note 1, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

A key source of estimation uncertainty is the discounting rate of the long term commitments for GTPwinners as they are paid over a period of ten years. The discount rate is based on management assumption on the future value of money and is based on forecast inflation predictions over the same period.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

l) Taxation

The Charity's activities fall within the exemptions afforded by the provisions of ICTA 1988. Accordingly,�there is no tax charge in these accounts.

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VARKEY FOUNDATION I ANNUAL REPORT 2023

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

2. Incoming Resources - Group

----- Start of picture text -----
Donor Unrestricted Restricted 2023 2022
£ £ £ £
Donations:
Donations from VGL VGL 271,141 - 271,141 377,476
Total Donations 271,141 - 271,141 377,476
Charitable Activities:
Global Education and Skills Forum VGL - - - 27,433
Global Teacher Prize VGL - 179,751 179,751 1,690,549
-
PLIE - Argentina 723,061 723,061 1,151,571
Total Charitable Activities 723,061 179,751 902,812 2,869,553
Other Trading Activities:
Administration Fees 158,669 - 158,669 -
Sponorship Received Various 298,941 - 298,941 314,546
-
Total Other Trading Activities 457,610 457,610 314,546
Other Income:
Other Income Various 43,185 - 43,185 2,830
Total Other Income 43,185 - 43,185 2,830
Total Incoming Resources 1,494,997 179,751 1,674,748 3,564,405
----- End of picture text -----

Total actual income for the year from continuing operations was £1,674,748 (2022: £3,564,405).

Of total income of £1,674,748 VGL funding amounted to £450,892 (2022: £2,095,458), Argentina income was £723,061 (2022: £1,151,571) which was received from various sources including the online platform "Atenea" and Chegg sponsorship totalled £298,941 (2022: £314,546).

There were no Grants received (2022: £Nil) and no unrestricted donations in 2023 (2022: £Nil).

VARKEY FOUNDATION I ANNUAL REPORT 2023

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The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

3. Staff Costs

Group 2023 Group 2022 £ £ Wages & salaries 997,025 960,922 Social security costs 172,899 144,350 Pension costs 27,997 34,330 Total direct staff costs 1,197,921 1,139,602 The average number of employees including part time workers, analysed by function was: Group 2023 Group 2022 Programme delivery staff in Argentina 28 30 Support staff in the Dubai 1 1 Support staff in the UK 5 5 Total employees 34 36	Charity 2023 £ 310,919 19,211 27,997 358,128 Charity 2023 - 1 5 6	Charity 2022 £ 352,146 24,741 34,330 411,217 Charity 2022 - 1 5 6

Wages and Salaries include £Nil (2022: £Nil) temporary staff costs.

A reduction in Charity direct staff costs was due to £100,111 (2022: £90,542) of recharges to the trading subsidiary in respect of the Global Student Prize project.

£4,156 of termination settlements were paid in Argentina during the year (2022: £16,577) and are included in wages and salaries above.

The number of employees whose total employee benefits (excluding employer pension costs) for the period exceeded £60,000 were as follows:

	Group 2023	Group 2022
£60,000 to £69,999	-	-
£70,000 to £79,999*	3	2
£80,000 to £89,999*	-	1
£90,000 to 199,999	-	-
£100,000 to 109,999	-	-
£110,000 to 119,999	-	-
£120,000 to 129,999	-	-
£130,000 to 139,999**	-	1
£140,000 to 149,999	-	-
£150,000 to 159,999	-	-
£160,000 to 169,999	-	-
£170,000 to 179,999**	1	-
£180,000 to 189,999	-	-
£190,000 to 199,999	-	-
£200,000 to 209,999	-	-

• One employee in 2023 and one in 2022 is paid in Argentina, and fully funded from the income generated in Argentina.

** This employee is paid in Dubai, and fully funded by GEMS Global LLC Dubai. The employee works for VF pro-bono and is treated as a Gift in kind.

VARKEY FOUNDATION I ANNUAL REPORT 2023

36

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

3. Staff Costs (Continued..)

The gross salary, including employers' National Insurance and employers' pension, of the key management personnel for the financial year was £171,739 (2022: £136,465).

No trustees/directors were either remunerated for their services or for reimbursed expenses incurred during the current or preceeding year.

VARKEY FOUNDATION I ANNUAL REPORT 2023

37

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

4. Charitable Activities - Group

GES/GTP Event Global Teacher Prize - Running Costs GSP Event Global Student Prize - Running Costs Advocacy and Policy Support Costs Total Advocacy GTP - Prize Money GSP - Prize Money Rockefeller Advisors grant Clinton Global Initiative Support costs Total Partnerships and Grant-making PLIE - Argentina Support Costs Total Programmes Projects/Trading (GISA) Support costs Total Pojects/Trading Total charitable activities Total charitable activities from continuing operations Total charitable activities from discontinued operations

Support Costs Grants Made Project Costs Total 2023 Total 2022 £ £ £ £ £ - - 264 264 233,503 - - 200,446 200,446 615,547 - - 39,210 39,210 192,201 - - 152,463 152,463 104,359 - - - - 13,477 204,413 - - 204,413 242,889 204,413 - 392,383 596,796 1,401,977 - (43,964) - (43,964) 764,573 - 83,635 - 83,635 72,254 - - - - 100,000 - 29,608 - 29,608 - 18,418 - - 18,418 196,314 18,418 69,279 - 87,697 1,133,140 - - 1,022,146 1,022,146 1,223,369 342,792 - - 342,792 213,401 342,792 - 1,022,146 1,364,938 1,436,770 - - 90,668 90,668 - 24,102 - - 24,102 - 24,102 - 90,668 114,770 - 589,725 69,279 1,505,197 2,164,201 3,971,887 589,725 69,279 1,505,197 2,164,201 3,971,887 - - - - -

*These items relate to discontinued activities.

Support costs are comprised as follows:

GSP staff cost - directly attributable to Advocacy Computer and telephone costs Exchange (gain)/loss Governance costs Legal and professional fees PR and advocacy costs Office rental and other costs Staff costs - direct Staff costs - other Travel and subsistance Total support costs	Total 2023 Total 2022 £ £ 100,111 - 36,524 29,498 52,134 6,239 28,761 35,233 5,689 5,862 4,463 59,717 (9,129) (18,458) 358,128 501,759 1,297 2,080 11,747 30,674 589,725 652,604

VARKEY FOUNDATION I ANNUAL REPORT 2023

38

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

4. Charitable Activities - Group (Continued..)

Total charitable activities for the year were £2,164,201 (2022 - £3,971,887 from continuing operations).

There were no restricted programme costs (2022: £Nil) and no discontinued operations in the year (2022: £Nil).

There was no Global Teacher Prize ceremony in 2022 the next being in November 2023.

Governance costs of £28,761 (2022: £35,233) included in support costs, include £24,100 (excluding VAT - 2022: £19,000) for the statutory audit.

In addition to the audit fees, a further £3,300 (excluding VAT - 2022: £7,150) was incurred with Crowe U.K. LLP in the financial year for tax, VAT and other advice.

Total support costs of £589,725 (2022: £652,604) were met by VGL on behalf of the Foundation.

VARKEY FOUNDATION I ANNUAL REPORT 2023

39

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

5. Related Party Transactions

On 3rd December 2015, the Foundation formalised its funding arrangements with Varkey Group Limited (VGL) through Deeds of Donation and an Annual Grant Framework Agreement to provide the future funds for the Global Teacher Prize, key programmes and the residual funding requirements of the Foundation for all other activities, with GEMS Global Schools Limited. This will fund the long term liability for the remaining years of Global Teacher Prizes.

£461,200 of cash donations were received in the year from VGL (2022: £1,470,691). It is more than the total reported VGL funding of £450,892 as the £450,892 includes accrued income. There was a net reduction in accrued income in the year resulting in the total funding being less than the cash physically received.

VF Trading Varkey Limited received no donations or sponsorships from Varkey Group Limited companies.

The Foundation did not receive Gift-Aided donations from individuals or companies.

The Foundation did not make any recharges to VGL entities and all balances are carried forward from prior years.

None of the Trustees received any payments from the Foundation in the form of employment or reimbursement of expenses.

Related party transactions for the Year ended 31st March 2023

SUBSIDIARIES

----- Start of picture text -----
Amount of Balance as at
Ownership Related party (entity) Nature of transaction
transactions 31.03.2023
100% VF Trading Varkey Limited UK Inter company payments 137,813 273,317
100% Fundación Varkey Argentina Inter company payments 8,843 377,183
Total payments made 146,656 650,500
DEBTORS
Amount of Balance as at
Trustee Related party (entity) Nature of transaction
transactions 31.03.2023
Jay Varkey GEMS Skills Africa (PTY) Limited Write of off irrecoverable amount 2,907 0
Jay Varkey SSV Investment Settlement of old debt 50,306 0
Jay Varkey TMRW Digital Limited Settlement of old debt 18 0
Total payments made 53,231 0
Jay Varkey Global Independent Schools Association Administration fees 158,669 287
Jay Varkey Varkey Group Limited VF total funding from VGL 450,892 3,186,936
Total funding received 609,561 3,187,223
----- End of picture text -----

40

VARKEY FOUNDATION I ANNUAL REPORT 2023

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

6. Investments in Subsidiaries

On 7th September 2016, Fundación Varkey Argentina was incorporated in Argentina (with 80,000 ARS (£4,170)) share capital) as a wholly owned formal subsidiary of the Foundation with File Number at the Registry of Commerce of 1904703, approved by Registry Resolution Number 0001752 and Registered Number 414 of Book 1FU relating to foundations. Its registered address is Marcelo T. de Alvear 684, Piso 6, C1058AAH, Buenos Aires, Argentina.

On 29th September 2016, VF Trading Varkey Limited was incorporated (with £1 share capital) as the wholly owned trading subsidiary of the Varkey Foundation. It is a company registered in England and Wales with company registration number 10402535. Its registered address is: Oakwood Estate, Chertsey Road, Windlesham, Surrey, GU20 6HY, UK.

Company Registration Number Income Expenditure Operating surplus/(deficit) Gift Aid Net surplus/(deficit) Unrealised foreign exchange gain taken to reserves Net movement in funds	Period to 31st March 2023 Period to 31st March 2023 Fundación Varkey Argentina VF Trading Varkey Limited 7774287 10402535 £ £ 723,061 457,610 1,022,146 514,372 (299,085) (56,762) - - (299,085) (56,762) 107,745 - (191,340) (56,762)	Period to 31st March 2022 Period to 31st March 2022 Fundación Varkey Argentina VF Trading Varkey Limited 7774287 10402535 £ £ 1,151,571 314,546 1,223,369 468,054 (71,798) (153,508) - - (71,798) (153,508) - - (71,798) (153,508)

VARKEY FOUNDATION I ANNUAL REPORT 2023

41

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

Investments in Subsidiaries (continued)

Company Registration Number Fixed assets Debtors Cash at bank and in hand Total current assets Creditors: amounts falling due within one year Creditors: Amounts falling due after more than one year Total net assets or liabilities Capital Unrestricted Funds Restricted Funds Total capital and funds	Period to 31st March 2023 Fundación Varkey Argentina 7774287 £ 2,353 15,903 842,441 858,344 (434,797) - 425,900 4,170 421,730 - 425,900	Period to 31st March 2023 VF Trading Varkey Limited 10402535 £ 287 - 174,595 174,882 (396,854) (23,692) (245,664) 1 (245,665) - (245,664)	Period to 31st March 2022 Period to 31st March 2022 Fundación Varkey Argentina VF Trading Varkey Limited 7774287 10402535 £ £ - 3,586 7,959 - 1,001,729 6,094 1,009,688 6,094 (396,034 (159,681) - (35,315) 617,240 (188,902) 4,170 1 613,070 (188,903) - - 617,240 (188,902)

VARKEY FOUNDATION I ANNUAL REPORT 2023

42

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

7. Intangible Fixed Assets

Cost At 1st April 2022 Revaluations Additions Disposals At 31st March 2023 Depreciation At 1st April 2022 Revaluations Charge for the year Disposals At 31st March 2023 Net book value At 31st March 2023 Net book value At 31st March 2022	Group Total Computer Software £ 3,160 - - - 3,160 3,160 - - - 3,160 - -	Charity Total Computer Software £ - - - - - - - - - - - -

VARKEY FOUNDATION I ANNUAL REPORT 2023

43

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

8. Tangible Fixed Assets

Cost At 1st April 2022 Revaluation on cost Additions Disposals At 31st March 2023 Depreciation At 1st April 2022 Revaluation on depreciation Charge for the year Disposals At 31st March 2023 Net book value At 31st March 2023 At 31st March 2022	Group Computer Equipment £ 34,160 102,538 - (9,081) 127,617 30,694 102,650 1,001 (9,081) 125,264 - 2,353 3,466	Group Furniture & Equipment £ 5,052 25,518 - - 30,570 4,931 25,570 69 - 30,570 - 121	Group Total Fixed Assets £ 39,212 128,056 - (9,081) 158,187 35,625 128,220 1,070 (9,081) 155,834 - 2,353 3,587	Charity Computer Equipment £ 9,081 - - (9,081) () 9,081 - - (9,081) - - () -	Charity Furniture & Equipment £ - - - - - - - - - - - - -	Charity Total Fixed Assets £ 9,081 - - (9,081) () 9,081 - - (9,081) - - () -

VARKEY FOUNDATION I ANNUAL REPORT 2023

44

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

9. Debtors

Accrued income and prepayments Due from group companies Trade debtors VAT Recoverable Other debtors Total amounts due in less than one year Accrued income due in more than one year Amounts due in more than one year Total Debtors	Group 2023 £ 1,004,821 - 287 23,840 16,122 1,045,070 2,188,057 2,188,057 3,233,127	Group 2022 £ 540,342 - 62,731 67,972 8,077 679,122 2,469,450 2,469,450 3,148,572	Charity 2023 £ 1,004,540 650,500 - 23,840 502 1,679,382 2,188,057 2,188,057 3,867,439	Charity 2022 £ 539,960 503,844 62,731 67,972 501 1,175,008 2,469,450 2,469,450 3,644,458

The increase in accrued income is due to income relating to the Global Teacher Prize due from VGL.

The increase in the amount due from group companies is due to recharges made from the Foundation to the Trading subsidiary for Global Student Prize related costs, which were not paid by the year end.

10. Creditors: Amounts falling due within one year

Accruals and deferred income Amounts payable in relation to the Global Teacher Prize Amounts payable in relation to the Global Student Prize Social tax and security Pensions Trade creditors VAT Payable Other creditors Total amounts falling due in less than one year	Group 2023 £ 82,121 828,736 80,852 46,047 2,317 142,497 17,377 8,617 1,208,564	Group 2022 £ 129,676 532,222 18,091 27,386 2,454 90,130 - 3,409 803,368	Charity 2023 £ 59,485 828,736 - 7,582 2,317 125,026 - 4,269 1,027,415	Charity 2022 £ 124,407 532,222 - 6,893 2,454 81,369 - 4,153 751,498

VARKEY FOUNDATION I ANNUAL REPORT 2023

45

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

11. Creditors: Amounts falling due in more than one year

Amounts payable in relation to the Global Teacher Prize: Due within up to five years Due after five years Amounts payable in relation to the Global Student Prize: Due within up to five years Due after five years	Group 2023 £ 1,664,050 524,007 23,692 - 2,211,749	Group 2022 £ 1,999,580 469,870 35,314 - 2,504,764	Charity 2023 £ 1,664,050 524,007 - - 2,188,057	Charity 2022 £ 1,999,580 469,870 - - 2,469,450

The Global Teacher Prize of $1 million is payable over a period of 10 years. The portion relating to more than one year in respect of the 2015 to 2022 winners, payable in equal annual instalments of $100,000 per winner, has a present value of £2,188,057 (2022: £2,469,450) discounted at 3% and at exchange rate as at 31st March 2023.

VARKEY FOUNDATION I ANNUAL REPORT 2023

46

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

12. Analysis of Funds

Group:

Funded By Restricted Funds CEI R4D Global Teacher Prize VGL Pratham (NGO Partner) Total Restricted Funds Unrestricted Funds General Fund Designated Fund (Argentina) Total Unrestricted Funds Total Funds Charity: Funded By Restricted Funds CEI R4D Global Teacher Prize VGL Pratham (NGO Partner) Total Restricted Funds Unrestricted Funds General Fund Total Unrestricted Funds Total Funds**

As at 01/04/22 Incoming Resources Outgoing Resources Foreign Exchange Transfers As at 31/03/23 £ £ £ £ £ £ 21,270 - - - (21,270) - - 179,751 179,751 - - - 45,002 - - - (45,002) - 66,272 179,751 179,751 - (66,272) - 178,604 771,936 971,148 - 66,272 45,664 985,580 723,061 1,013,302 107,745 - 803,084 1,164,184 1,494,997 1,984,450 107,745 66,272 848,748 1,230,456 1,674,748 2,164,201 107,745 - 848,748 As at 01/04/22 Incoming Resources Outgoing Resources Foreign Exchange Transfers As at 31/03/23 £ £ £ £ £ £ 21,270 - - - (21,270) - - 179,751 179,751 - - - 45,002 - - - (45,002) - 66,272 179,751 179,751 - (66,272) - 740,016 314,326 447,931 66,272 672,683 740,016 314,326 447,931 66,272 672,683 806,288 494,077 627,682 - 672,683

• There were no Restricted funds at the year end (2022: £66,272).

On 10th August 2023 permission was received from Pratham to unrestrict the £45,002 balance held. On 21st August 2023 permission was received from R4D to unrestrict the £21,270 balance held.

** Argentina funds are designated as repatriation of the funds is not possible. The restriction was made by the Government of Argentina in response to hyperinflation in the country.

VARKEY FOUNDATION I ANNUAL REPORT 2023

47

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

13. Analysis of Net Assets Between Funds

Fixed assets Current Assets Creditors < 1 year Creditors > 1 year Total Funds	Unrestricted £ 2,353 1,145,371 (298,976) 848,748	Restricted £ - 3,121,337 (909,588) (2,211,749) - Group	Total Funds £ 2,353 4,266,708 (1,208,564) (2,211,749) 848,748	Unrestricted £ 4,171 867,191 (198,679) 672,683	Restricted £ - 3,016,793 (828,736) (2,188,057) - Charity	Total Funds £ 4,171 3,883,984 (1,027,415) (2,188,057) 672,683

VARKEY FOUNDATION I ANNUAL REPORT 2023

48

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

14. Grant Commitments

Grant commitments included in the financial statements are as follows:

Grant Global Teacher Prize Global Student Prize Total	Opening £ 3,001,672 53,406 3,055,078	Additions £ - 83,635 83,635	Payments £ (304,127) (39,000) (343,127)	Novation £ - - -	Exchange Closing £ £ 319,247 3,016,792 6,503 104,544 325,750 3,121,336

There was no Global Teacher Prize ceremony in 2022. The next is scheduled for November 2023.

The 2022 Global Student Prize was won by Igor Klymenko, a Ukrainian high school student.

The total value of the Global Student Prize is $100,000 and it is paid within 2 years, $50,000 in each calendar year from the date of the award.

15. Government Grants

No government grants were received in the year (2022: £Nil).

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The Varkey Foundation Annual report 2023

16. Prior Year Comparatives

a) Prior Year Detailed Group Statement of Financial Activities

Consolidated Statement of Financial Activities (incorporating the income and expenditure account) Year ended 31st March 2022

Note Income from: Donations 2 Charitable activities 2 Other trading activities 2 Other income 2 Total Expenditure on: Charitable activities: Advocacy 4 Partnerships & Grant-making 4 Programmes 4 Total Net income / (expenditure) Transfers between funds 12 Net movement in funds Reconciliation of funds: Total funds brought forward 12 Total funds carried forward 12

Unrestricted Funds Restricted Funds 2022 Total Funds 2021 Total Funds £ £ £ £ 377,476 1,189,674 1,690,358 1,179,195 - 377,476 2,869,553 (147,243) 314,546 - 314,546 88,962 2,830 - 2,830 49,096 2,385,210 1,179,195 3,564,405 1,180,489 987,355 414,622 1,401,977 348,573 368,567 764,573 1,133,140 (295,774) 1,436,770 - 1,436,770 2,179,206 2,792,692 1,179,195 3,971,887 2,232,005 (407,482) (407,482) (1,051,516) - - - - (407,482) (407,482) (1,051,516) - - - - 1,571,666 66,272 1,637,938 2,689,454 1,164,184 66,272 1,230,456 1,637,938

VARKEY FOUNDATION I ANNUAL REPORT 2023

50

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

16. Prior Year Comparatives (Continued..)

b) Prior Year Analysis of Group Funds

Group: Funded By Restricted Funds CEI R4D Global Education and Skills Forum VGL Global Teacher Prize VGL Pratham (NGO Partner) Total Restricted Funds Unrestricted Funds General Fund Designated Fund (Argentina) Total Unrestricted Funds Total Funds c) Prior Year Analysis of Charity Funds Charity: Funded By Restricted Funds CEI R4D Global Education and Skills Forum VGL/Atlantis Global Teacher Prize VGL Pratham (NGO Partner) Total Restricted Funds Unrestricted Funds General Fund - Total Unrestricted Funds Total Funds**

As at 01/04/21 Incoming Resources Outgoing Resources Transfers As at 31/03/22 £ £ £ £ £ 21,270 - - - 21,270 - 27,433 27,433 - - - 1,151,762 1,151,762 - - 45,002 - - - 45,002 66,272 1,179,195 1,179,195 - 66,272 509,544 1,233,639 1,564,579 - 178,604 1,062,122 1,151,571 1,228,113 - 985,580 1,571,666 2,385,210 2,792,692 - 1,164,184 1,637,938 3,564,405 3,971,887 - 1,230,456 As at 01/04/21 Incoming Resources Outgoing Resources Transfers As at 31/03/22 £ £ £ £ £ 21,270 - - - 21,270 - 27,433 27,433 - - - 1,151,762 1,151,762 - - 45,002 - - - 45,002 66,272 1,179,195 1,179,195 - 66,272 922,193 919,093 1,101,269 - 740,016 922,193 919,093 1,101,269 - 740,016 988,465 2,098,288 2,280,464 - 806,288

• Total Restricted funds £66,272 (2022: £66,272) consist of remaining balances of CEI (£21,270) and Prathan (£45,002) projects. Funds have been expended in full for dedicated projects, it is planned to request lifting of the restriction.

** Argentina funds are designated due to repatriation of the funds is not possible. The restriction was made by Argentina Government as a response to hyperinflation in the country.

51

VARKEY FOUNDATION I ANNUAL REPORT 2023

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

16. Prior Year Comparatives (continued)

d) Prior Year Analysis of Net Assets Between Funds

Fixed assets Current Assets Creditors < 1 year Creditors > 1 year Total Funds	Unrestricted Funds Restricted Funds Total Funds £ £ £ 3,586 - 3,586 1,413,652 3,121,350 4,535,002 (253,054) (550,314) (803,368) -(2,504,764)(2,504,764) 1,164,184 66,272 1,230,456 Group	Unrestricted Funds £ 4,171 955,122 (219,276) - 740,017	Restricted Funds £ - 3,067,944 (532,222) (2,469,450) 66,272 Charity	Total Funds £ 4,171 4,023,066 (751,498) (2,469,450) 806,289

VARKEY FOUNDATION I ANNUAL REPORT 2023

52

The Varkey Foundation Annual report 2023

Notes to the financial statements

at 31st March 2023

17. Controlling Party

The ultimate controlling party is Mr Sunny Varkey and his immediate family members.

18. Members' Liability

The company is limited by guarantee and has no share capital. The liability of the members is restricted to £1 each. The members are: Sunny Varkey and Dino Varkey.

19. Post balance sheet events

On 10th August 2023 permission was received from Pratham to unrestrict the £45,002 restricted fund balance held.

On 21st August 2023 permission was received from R4D to unrestrict the £21,270 balance held.

20. Discontinued operations

There were no discountinued operations in 2023 (2022: Nil).

21. Prior period adjustments

During the preparation of the 2023 financial statements it was discovered that some transactions and an adjustment for hyper inflation in Argentina had been omitted from the 2022 financial statements in error. The adjustment below is to ensure that this is correctly accounted for.

The adjustments affect programme income and expenditure.

	Inflation £	Missing Transactions £	Net impact on 2022 figures £	Net impact on 2023 figures £
Income	(205,000)	-	Increase income 205k	Decrease income 205k
Expenditure	319,216	(114,216)	Increase expenditure 205k	Decrease expenditure 205k
Debtors	(114,216)	114,216	No impact	n/a

VARKEY FOUNDATION I ANNUAL REPORT 2023

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