Company No: 08147905 Charity Registered Number: 1149856 THE KAYS FOUNDATION (COMPANY LIMITED BY GUARANTEE) CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 CHAMBERLAINS UK LLP Chartered Accountants & Statutory Audttors 173 Cleveland Street London UK W1T6QR
THE KAYS FOUNDATION CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 CONTENTS Reference and Administrative Details Trustees, Report Independent Auditors. Report Consolidated Statement of Financial Activities Consolidated Statement of Financial Position 10-11 Company Ststement of Financial Position 12 Consolidated and Charity Ststement of Cash Flows 13 Notes to the Financial Statements 15-23
THE KAYS FOUNDATION CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 REFERENCE AND ADMINISTRATIVE DETAILS Status The Kays Foundation is a company limited by guarantee, incorporated on 18 July 2012 and registered as a charity on 21 November 2012. Company Number 08147905 Charty Number 1149856 R¢gister¢d Offi¢e 173 Cleveland Street London W1T 6QR Directors l Trustees Mr P N Nathwani Mr M G Gudka Mr M N Nathwani Mrs S M Kanani MrT M Kabuga Mr M M Gudka {2 April 2024) Auditors Chambedains UK LLP Chartered Accountants & Statutory Auditors 173 Cleveland Street London W1T6QR Administrators The Twst Partnership Ltd 6 Trull FaTh Buildings Tetbury Gloucestsrshire GL8 8SQ Bankers Habib Bank AG Zurich Habib House 42 Moorgate London EC2R &JJ CAF Bank Ltd 25 Kings Hill Avenue West Malling Kent ME19 4JQ Page I
THE KAYS FOUNDATION CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 TRUSTEES, REPORT The trustees, who are also the directors of the Foundation for the purposes of company law, are pleased to present their report and the consolidated financi ststements of the Kays Foundabon for the year ended 5 April 2024. Structure, govemance and management Governing document The Foundation is a charitsble company limyted by guarantee. incorporated on 18 Juty 2012 and registered as a charity on 21 November 2012. The company wa$ established under a Memorandum ol Assoaation which estsblished the objects and powers of the charitsble company and is govemed under tts Arhcles of Association. In the event of the company being wound up members are required to conlribute an amount not exedIng £10 each. Re¢ruitm¢nt and training of tru5tegs The directors of the company are also charity trustees for the purposes of charity law. A new trustee is appointed by a resolution ofthe board of ttees. Induction and training of the trustees is done by prowding them the Articles and Memorandum of Association. the latest set of accounts and various reading up references. If nded. speaal training sessions can be arranged with the existing trustees to provide guidan. The trustses consider the board of truslees to be the key management personnel of the charity in charge of directing and controlling, njnning. and operating the chartty on a day-traY basis. Public Benefit Statgmgnt In accordance with the Charities Act 2011, the trustees confimi that they have given due constderab'on to the Charity Commission Public Benefit Guidance as required by Section 4 of the Charities Act 2011. Objectives and activlties The charity's objects are speaficalty restricted to trje followng.. The advanment ofsuch charitable purpose or purposes andlorthe support ofsuch chaiitable institution or inslikntions in any part of the world as the directors of the company in their absolute discrets'on from b'me to time select, and in such manner as the d1ctorS of the company from time to b.me detemiine. During the year, the Foundation made donations totalling £150.000 (2023.. £609,161) to the following charity and is described as below.. - The Arsenal Foundation (£150,000) - The donation relates to the 'Coaching for Life. program at the Za'atsri Regee Camp in Jordan (in partnership with Save the Chiklrenl. This grant will be used for coaching children by recruib.ng coaches and enrolling children and building relationships for underprimleged children through sport. Page 2
THE KAYS FOUNDATION CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 TRUSTEES. REPORT Achievements and perfomiance During the year to 5th April 2024, the Foundation continues tts approach to support various charitable causes. In addition, the Foundation continues to focus on making investrnents to improve outcomes for all young people in Kenya, its attention focusing on the eady childhoc4J life-stage (defined as 'conpl"0n to 5 years old,). Furthemiore, during the year, the Foundation has continued to engage with philanthropic consultants and has sought guidance and advio from specialist chartty solicitors. The trustees feel that the use of bringing expert extemal adwce enables the Foundation to deliver its charitable aims and conb'nues to strengthen its intemal g0veMan structure. Going concern The trustees believe that due to the availabilty of serVeS. there are no material unrtaltieS about the charity's ability to continue for at least the nexi 12 months from the date of this repott Forthis reason, they continue to adopt the going conrn basis in preparing the financial statements. Risk rnanagement The Trustees recognise that there are risks to which the Charity exposed. The Trustees keep all major risks to the organisation under regular review and this is seen as integral to the achievement of our strategic goals. The trustees are satisfied that we have a formal rewew in pla and consider new and emerging risks and through their day-to-day aclivities the staff are encouraged and guided to ensure the risk management processes are effectively implemented. Systsms have been established to mits.gate known risks, induding financial controls, employment procedures. agreements with partners and volunteer training. The Trustees keep proper accounting records and take reasonable steps for the prevention and detection of fraud and other irregularities. Health and safety, equal opportunities and quality standards are priorits"sed. Records and archives are securely stored, and electronic data carefully protected. Related party The Charitable company holds 100% shares in Port Perry Investrnents Limtted, a Company registered in the Isle of Man. Reserrfes policy All the reseNes a unrestrtcted i.e. they can be applied at Ihe di$tion of the trustees. The charity has a policy of retsining £20,000 income reserves to ensure conbnuity of its operations and its own management These reseNes are not officially designated but rather maintained under general guidan. The charity has an expandable endowment for its general purposes. Level of reserves is reviewed annualty by the trustees. Financial review The consolidated Statement of Financial Actiwties (SOFA) on page 9 shows a net de¢ase in funds for the year of £1.500,68212022'. £3,193,454). The SOFA show5 the financial athity of the group distinguishing beeen endowment capital and unrestricted ftJnd5 and shov•3 Ihe results for the year. At the balance sheet date, the group had net assets of £29,588,342 (2023.. £31.089,024)- Plans for future periods The trustees of the Foundation are committed to continualty listening and leaming in order to ensure they are investing to achieve maximum impact This will involve an ongoing prsS of research into the chosen area of focus, continual development of the netsvork of peers, and an evaluation of how the Foundation's ftjnds can b6 best invested to create lasting impact Page 3
THE KAYS FOUNDATION CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED S APRIL 2024 TRUSTEES, REPORT Trustees responslbllities In relation to flnanclal ststements The tnjstees, who are also directors of the Foundab"on for the purpose ol company law. are responsible for preparing the Trustees, Report and Ihe Financial Ststements in accordance wrth applicable law and United lfj'ngdom Accounting Standards (United Kingdom Generally Accepted Accounting Practi). Company law requi$ the trustees to prepare financial ststements for each financial year and not approve the financial statements unless they are sat"sfied that the financial ststements give a true and fair view of the stste of the affairs of the charitable company and the group as at the balance sheet date and of its incoming reSoUrS and application of reSoUrs, including income and expenditure, for the year then ended. In preparing those statements, the trustees are required to". select suitable accounting policies and then apply them consistenly: observe the methods and principles in the Chatittes SORP; make Sound judgements and arrive at estimates that are reasonable and prudent: prepare the financial statements on the going concem basis unless tt 15 inappropriate to assume that the charitable company wll not continue in business. The trustees are responsible for maintsining prq)er accounting records which disdose wtth reasonable accuracy at any time the financial posits.on of the company and enable them to ensure that the finanaal statements comply with the Companies Act 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets of the company and taking reasonable steps for Ihe prevention and detection of fraud or other irregularib'es. Auditor Each of the persons who is a trustee at Ihe date of approval of this report confi5 that.. so far as they are aware. there is no relevant audit infoThation of vthich the charitable company's auditor is unaware,. and they have taken all steps that they ought to have tsken as a trustee to make themseives aware of any relevant audit infonnakn.on and to establish that the charitable companys auditor is aware of that infomia*"on. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. Small company provisions This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. altof the trustees Mr. P N Nathwani (Director) Date.. 18 December 2024 Page 4
THE KAYS FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE KAYS FOUNDATION YEAR ENDED 5 APRIL 2024 Oplnlon We have audited the consolidated finanaal statements ofThe Kays Foundation (the 'parent charity) for the year ended 5 April 2024 which comprise the Consolidated and Charity statement offinanual actimties, group statement of financial position, cashflow statement and the related notes, including a summary of significant aCrunt.ng policies. The financial reporting framework that has been applied in their preparation is applicable law and United 'ngdoM Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally ACpted Accounts'ng Practice). In our opinion the finanaal statements= give a true and fair wew ot the state of the charitys atrairs as at 5 April 2024 and of its incoming reSoUS and application of resources, including tls InMe and expenditure. for Ihe year then ended", have been property prepared in accordan with United lfjngdom Generally Accepted Accounting Practice.. have been prepared in accordan with the requirements of the Companies Act 20C6 and the Charltses Act 2011. Basis for oplnion We conducted our audit in accordance with Intsmational Stsndard5 on Audthng {UK) IISAS IUKI} and applicable law. Our responsibilities under those standards are fvrther described in the auditorfs responsibilities for the audit of the financial statements section ofour report. We are independent ofthe charity in accordan wth the ethical requirements that are relevant to our audit ofthe financial statements in the UK including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilib.es in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concem We have nothing to report in respect of the followng matters in relation to which the ISAS (UK) require us to report to you where: the trustees. use of the going conrn basis of accounb.ng in the preparation of the consolidated financial statements is not appropriate; or the trustees, have not disclos8J in the financtal statements any identified material UnrtaIntieS that may cast significant doubt about the charity's ability to continue to adopt the going concem basis of accounting for a period of at least 1ve months from the date when the finanual statements are authori5ed for issue. Other infornation The other information comprises the infomation inCludj in the annual report other than the financial statements and our auditorfs report thereon. The trustees a spOnsIble for the other infonnation. Our opinion on the financial staternents does not cover the other infomiation and, expt to the extent otherwise explialy stated in our pOrt. we do not express any form of assurance conclusion thereon. In connection wtth our audit of the financial statements, our responsibility is to read the other infomiation and, in doing so, consider whether the other infonna'on is materially inconsistent the finanaal statements or our knowledge obtained in the audit or otherwise appears to be materialty misstated. If we identify such material inconsistencies or apparent material misstatements, we a required to determine whetherthere is a material misststement in the financial statements or a material rnisstatement ofthe other infonT)ation. If, based on the work we have perfomied, we conclude that there 1$ a material misststsment of this other infoThation, V are reqUId to report that fact. We have nothing to report in this regard. Page 5
THE KAYS FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OFTHE KAYS FOUNDATION YEAR ENDED 5 APRIL 2024 Oplnions on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the worf( undertaken in the course of the aud the infomiation given in the trustees. report for the financial year for which the financial statements are prepared is consistent vth the financial ststements" and the trustees. report has been prepared in accordan with applicable legal requirements. Matters on which we are requlred to report by exceptlon In the light of the knovledge and understanding of the charity and its enmronment obtsined in the C£*urse of the audit, we have not identified material misstatements in the trustees, reporL We have nothing to report in respect of the following matters in relation to which the Companies A¢t 2006 and the Charities Act 2011 requires us to report to you if, in our opinion= adequate accounting records have not been kept or rebJms adequate for our audit have not been received from branches not visited by us.. or the financial statements are not in agreement with the accounting records and retums: or certain disclosures oftnjstees. remuneration specified by law are not made", or we have not reiVed all the information and explanab'ons V require for our audit or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies. exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the trustees. responsibilities statement. the tnjstees {who are a0 the directors for the purposes of cornpany law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, ar for such intemal control as the trustees determine is neSSary to enable the preparation of financial ststements that a free from material misstatemenL whether due to fraud or error. In preparing the financial statements, the trust$ are responsible for assessing the charity's ability to continue as a going concem, disclosing, as applicable, matter5 related to going concem and using the going conrn basis of accounting unless the trustees either intend to liquidate the charity or to 8$e operations, or have no realistic alternative but to do so. AUdit0S responsibilities for the audit of the financial statements We have been appointed as auditor under Section 151 of the Charilies Act 2011 and report in accordan the Act and the relevant regulations made or hawng effect thereunder. Our objectives are to obtain reasonable assurance about vthether the financial statements as a whole are free from material rnisstatement, whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assuran is a high level of assuran but is not a guarantee that an audst conducted in accordance with ISAS {UKI will always detect a material misststement when li exists. Misststements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonabty expected to Influen the economic decisions of user5 taken on the basis of these financial statements. Page 6
THE KAYS FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE KAYS FOUNDATION YEAR ENDED 5 APRIL 2024 Auditorfs responsibilities for the audit of the financial statements (cont.... Irregularits'es. including fraud are, are Instan of non-Q)mplIan with laws and regula*"ons. We design procedures in line with our responsibilities, ouuined above. lo detect material misstatement in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularibes, including fraud is detsiled below. we obtained an understanding of the group and parent charity and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understaThYing in this regard through with trustees and managemen( industy research and experience of Ihe sector. we determined the principal laws and regulations relevant to the group and parent charity in this regard to be those arising from the Charities Act 2011, the Companies Act 2006 for the subsidiary as well as relevant tax employee legislat"on. we designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent charity with those laws and regula"OnS. These procedures included but were not limited to enquires of management and rewew of minutes. we also identified the risks of material misstatement of the financial statements due to fraud. We nSIdered. in addition to the non-rebuttable presumption of a risk of fraLKJ arising from management overrise of controls. that the valuation of investments to be an area of risk. as in all of our audits, we addressed the risk of fraud arising from management override of controls by perfomiing audit prOdureS which included. but were not limited to the following- _ the te51ing of joumals- reviewing accounting estimates for evidence of bias- and evaluating the business rationale of any significant transaction that is unusual or outside the nonnal course of the business. the engagement partner also ensured that the engagement team collectively had the approprtate competen. capabilities and skills to identify or recognise non<0mplian with applicable laws and regulaa"ons', and enquiries were made of management and the board of Trustees, intjuding ojnsideration of known or suspected InStanS of notKompliance with laws and regulab'ons and fraud. Page 7
THE KAYS FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE KAYS FOUNDATION YEAR ENDED 5 APRIL 2024 As part of an audit in accordance wth ISAS (UKI. V exerose professional judgment and maintain professional scepticism throughout the audit. We also." Identify and assess the risks of malerial misstatement of the finanaal statements, whether due to fraud or error, design and perfo audit procedures responsive to those risks, and obtain audit eviden that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecb'ng a material misstatement resulting from fraud is higher than for one resulting from error. as fraud may involve collusion, forgery, intenb'onal omissions, misrepresentations, or the override of intemal control. Obtain an understanding of intemal control relevant to the audit in order to design audit procedures that are appropriate in the circumStans, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriateness of accounting poliues used and the reasonableness of accounting estimates and lated disdosures made by the trustees. Conclude on the appropriateness of the trustees. use of the going conrn basis of accounting and, based on the audit evidence obtained, whether a material UnrtaInty exists related to events or conditions that may cast significant doubt on the charity's abiltty to continue as a going concem. If we conclude that a material uncertainty exists, we a required to draw attention in our auditors report to the related disclosures in the financial statements or, if such disclosu$ are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorfs reporL However. future events or conditions may cause the charity to cease to continue as a going cOnr. Evaluate the overall presentalion, Structu and content of the finanual statements, including the disclosures, and whether the financsal ststements represent the undetying transactions and events in a manner that achieves fair presentatson. We communicate with those charged govemance regarding. arnong other matters, the planned scope and timing of the audit and significant audit findings. induding any Signifint defiL?en¢ies in intemal control that we identify during our audiL A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Counal's website at" WWdV.frc or .uk'2udilorsr&s onsibilities. This description fomis part of our auditor's report Use of our rgport This report is made solely to the charity's trustees.. as a body. in accordance wrth seth.on 144 of the Charities Act 2011 and regulations made under section 154 of that Act Our audit work has been undertaken so that we might state to the charity's trustees, those matters we are required to stste to them in an auditorfs report and for no other purpose. To the Ile5t extent permitted by law. we do not acpt or assume responsibility to anyone other than the charity and the charity's trustees, as a body, for our audit work. for this repor( or for the opinions we have fomied. Chamberfalns UK LLP Chartered Accountants & Statutory Auditors 173 Cleveland Street London W1T6QR Date.. 19 December 2024 Page 8
THE KAYS FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 5 APRIL 2024 Endowment Unrestricted Capital Income Fund Funds 2024 2024 Total Group Funds Total Group Funds 2023 2024 Notes INCOMING RESOURCES Donations and legacies Investment Propety Rental Income Investment Income Bank Deposit Interest Total Incoming Resources 809,950 366,743 46 809,950 366,743 833,794 266,475 1,176,739 1.176,739 1.100,269 RESOURCES EXPENDED Charitable Activities Cost of Generating Funds Governance Costs 150,000 1,045,702 138,913 1,334,615 150,000 1,045,702 138,913 1.334,615 609,161 515,409 113,694 1,238,264 3b NET INCOMING RESOURCES Net (Deficit) I Income for the year Gainsl(loss) on Disposal Fixed Assets Foreign exchange gainsl(losses) Investment Revaluation gainsl(losses} Financial Instruments gainsl(losses) Provision against loan balance ProfiU{lossesl from Disposal of Fixed Asset Investments Nel Movement in Funds (157,876) (157,876) (21,006) (9,614) (512,834) 437,490 {1,236,842) (137,995) 12 (21,006) (9,614) 19,747) 989.113 (3,096.172) 12 12 {512,834) 437,490 {1,236,842) 12 938,653 (167.490) (1,500,682I {3,193,454) {1.333,192) ENtX)WMENT CAPITAL FUND & REVENUE RESERVES Brought forward 27.946,672 3,142,352 31,089,024 34,282,478 Funds at 5 April 2024 26,613.480 2,974,862 29.588,342 31,089,024 The statement of financial activities includes all gains and105ses recognised in the year. All income and expenditure derive from continuing actNities. The notes on pages 1 S to 23 forni part of these financial statements. Page 9
THE KAYS FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL POSITION YEAR ENDED 5 APRIL 2024 GROUP GROUP 2024 2024 2023 2023 Notes FIXED ASSETS Tangible assets Investments Programme related investments 10,140,000 21,383,642 1,459,254 32,982.896 12,175,000 21,130,149 1,405,972 36,117,091 CURRENT ASSErs Debtors Cash at Bank and in Hand 266,945 745,419 1.012,364 580,636 357.421 938,057 CREDITORS Amounts falling due within one year 10 548,306 517,542 548.306 517,542 NET CURRENT LIABILITIES 464.058 420,515 TOTAL ASSETS LESS CURRENT LIABILITIES 33.446,954 35,131,634 CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR Bank loan 10 (3.858,612) (4,042,612) NET ASSETS 29,588,342 31,089,024 THE FUNDS OF CHARITY Endowment Capital Fund Corporate Revenue Reserves 12 26,613,480 2.974,862 27,946,672 3,142,352 TOTAL FUNDS 29,588,342 31,089,024 The notes on pages 15 to 23 form part of these financial ststements. Page 10
THE KAYS FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL POSITION YEAR ENDED S APRIL 2024 l¢ontinugdl The consolidated accounts have been prepared as required by the Charities Act 2011 and in accordance with the requirements of the Companies Act and wrth applicable financial reporting stsndards. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. The financial statements were approved and authorised for issue by the Trustees on 18 December 2024 and signed on Irhehalf by: Mr. P N Nathwanl (Director) The notes on pages 15 to 23 forni part of these financial statements. Pagell
THE KAYS FOUNDATION COMPANY STATEMEKf OF FINANCIAL POSITION YEAR ENDED S APRIL 2024 COMPANY 2024 2024 COMPANY 2023 2023 Notes FIXED ASSETS Investments Programme related investments 17,562,609 1,459,254 19,021,863 20,583,222 1,405,972 21,989,194 CURRENT ASSETS Debtors Cash at Bank and in Hand 10,120,933 472,262 10.593.195 9,078,031 47.896 9,125,927 CREDITORS Amounts falling due within one year 11 26.716 26,100 NET CURRENT ASSETS 10,566,479 9,099,827 TOTAL NET ASSETS 29,588,342 31,089,021 THE FUNDS OF CHARITY Endowment Capital Fund Corporate Revenue Reserves 17,739,458 11,848,884 16,598,760 14,490,261 TOTAL FUNDS 29,588,342 31,089,021 These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. The Company was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies, but as this company is a charity it is subject to audit under the Charities Act 2011. Directors, responsibilities- The members have not required to obtain an audrt of r(s accounts for the period in accordance with Section 476 of the Companies Acl. The directors acknowledge their responsibilities for comptying with the requirements of the Act with respect to accounting records and the preparation of accounts. The an ial statements were approved and authorized for issue by the Trustees on 18 December 2024 etroh tkei half by: Mr. P N Nathwani (Director) The notes on pages 15 to 23 forni part of these financial statements. Page 12
THE KAYS FOUNDATION CONSOLIDATED AND CHARITY STATEMENT OF CASH FLOWS YEAR ENDED 5 APRIL 2024 GROUP 2024 COMPANY 2024 2023 2023 Cash flows from operating activities: Net (expenditure)lincome for the reporting period Net{gains}l]osses on investments Foreign exchange movements in investments Add.. Non-operating investment management cost Less.. Non-operating investment income reinvested Decreasel(increase) in trade and other receivables {Decrease)lincrease in trade and trade payables Net cash froml(used in) operating activities (7,940,198) (7,940,198) (1,500,679) (3,193,452) 4,718,685 4.718,685 1,691,252 3,807,714 (1.946) (1.946) 17,898 (26,203) (306) {306) (306) 603,789 603,789 761,460 542,890 (2,536,454) (2,536,454) (1,101,461) (2,590,382) 2,306,998 2,306,998 617 3,902 2,849,432 2,849,432 130,913 1,463,641 Cash flows from investing activities Proceeds from sale of tangible assets Purchases of other investments other than loans Proceeds from sale of investments Net cash froml{used in) tnvesting activities 27,682 (12,506,359) (25,286,016) 1,093,564 12,524,473 11,412,795 12,733,861 (468,343) (2,319,603) 1.023,622 2,331,720 555,279 12,117 Bank loan and overdrafts Amount from credrtors amounts due for more than one year Net cash used in financing activities 13,784.812 12.840.255 13,784,812 12,840,255 Net increasel(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year 387,998 (2,743.038) 357,421 3,100,459 424,366 (1,451,524) 47,896 1,499,420 Cash and cash equivalents at end of year 745.419 357,421 472,262 47,896 Page 13
The notes on pages 15 to 23 fomi part of these financial statements. Page 14
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 la. General Infomiation The charity is a private company limited by guarantee, reg15tered as a charity in England and Wales. The address of the registered Offi is 173 Cleveland Street. London. WIT 6QR 1 b. Principal Accounting Policies ststement of compliance The company's own financial statements have been prepared in compliance with FRS 102. The Financial Reporting Standard applicable in the UK and the Republic of Ireland,. the Statement of Recommended Practice applicable to charities preparing their accounts in accordan the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (Charities SORP {FRS 102)) and the Charrties Act 2011. The consolidated accounts have been prepared in accordan Accounting ar Reporbng by Charities.. Statement of Recommended Practice applicable to chartbe5 pparing their accounts in accordan the Finanual Reporting standard applicable in the UK and Republic of Ireland {FRS 1021 {effective 1 January 20151- (Charibes SORP (FRS 1021), the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Advantage has been tsken of paragraph 3(3) of Schedule 4 of the Companies Act 2006 to allow the foat of the financial statements to be adapted to reflect the speual nature of company's operations as a charity. Re¢onclliation with previous Genernlty Accepted Accounling Practi¢0 In preparing the accounts, the trustees have considered whether in applying the aoxsunting policies required by FRS 102 and the Charities SORP the reststement of comparative items was required. Preparation of accounts on a go¢ng concern basis The trustees believe that due to Ihe availability of reserves, there a no material UnrtaIntieS about the charity's ability to continue for at leastlhe next 12 months from the date of this reporL For this reason. they continue to adopt the going concern basis in preparing the financial statements. Group financial statefflents The financial statements consolidate the resutts of the charity and its wholly owned subsidiary, Port Perry Investments Limited on a line-by-line basis. A separate Statement of Financial Ath"vities and Income and Expenditure Account for the charity has not been presented because Ihe charity has taken advantage ofthe exempb.on afforded by section 408 of the Companies Act 2006. The surplus of the parent charity was £1,087,882 {2023.' £535.8071. Critical accounting Judgements and estimates In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charities accountsng policies and the reported assets. liabilitss, income and expenditure and the disclosures made in the financial ststements. Estimates and judgements are continually evaluated and are based on historical experien and other factors. induding expectations of fijture events that are believed to be reasonable under the circumstances. The particular accounting F)oliues adopted are set out tselow. Accounting ¢onvention The financial statements are prepared under the historit21 cost basis as modified by the revaluation of certain )Inanc¥al assets and liabilities and investrnent properties measured at fair value through income and expenditure, The financial statements are prepared in sterling. which is the fvncbonal currency of the entity. Incoming resources All incoming resources are recognised once the thaTity has enttuement to income, it is probable that income will bè received, and the amount of income r1Vable can be measured feliably. The following Sc1C policEs are applied to particular categories of income: Page 15
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED S APRIL 2024 1 b. Principal Accounting Policies Rentsl income is recognised when due. Donations are recognised when gift is made. Where donations are reiVed otherwise than in cash. they are valued at the market value of the undertying assets as at the date of gift. as required by the Charities SORP. Rocognition of liabille$ Liabilities are recognised on accruals basis in accordan with the Charibes SORP. Resources ex nded Charitsblo expenditure Charitsble expenditure indudes all expenditure directly related to the objects of the charity and comprises the following., Cost of generating charitable activities The cost ofgenerating charitable acliwties includes charitsble payments made and any latj support costs for making such payment. Governance cost Governance costs indude those costs asswated with meeting the cons*'tutional and ststutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Unrealised and realised gains Realised gains and losses are included in the accounts on the date at which a contractual obligation is entered into. Unrealised gains and losses are computed by referen to the matket value of Ihe investments at the balance sheet date. compared to the brought fomard cost or valuation. and gains and losses arising on similar categories of investrnents are netted off. TaxaOn The company is a registered charity and as such is entitled to the exemption from tax to the extenl that the income falls within section 505 ICTA 1988 and section 256 CGTA and is applied for charitable purposes only. Value Added tax is not recoverable by the company and is therefore included in the relevant costs in the Statement of Financial Activities. Finance and operating leases Rentals payable in respect of operating leases where substantially all the beneffits and risks of ownership remain with the lessor are charged to the Statement of Financial ath"vities as incurred. Finance leases are accounted for in accordan with the requirements of FRS 102. Investments Listed and other marf(etable investsments which are indud8J wthin current assets are measur8J at fair value wth changes in fair value being recognised. Other unlisted equity investrnents induded within fixed asset investrments are inib'ally recorded at cost. and subsequently stated at cost less any a0mulated impaient losses. Profits and losses on the realisation of investments are sho1 as realised gairs and losses in the Statement of Financial Acts'vities. Realised gains and losses on investrnents a calculated between sales proceeds and their opening caryir¥J values or their purchase value rf acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the differen betsveen the fair value at the year end and their carying value. Realised and unrealised investment gains and losses are shovm in the Ststement of Financial Acbvibes under Net Incoming Resourtss. Investment properties Investments properb.es are shown at their fair values. Movements in the fair values of investrnent properties are shown 8S unaliSed gains and losses in the Statement of Finanaal A¢tswbe$. Page 16
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 1b. Principal Accounting Policies fc Programme related investments Programme related investments are made exdusively to fijrther the charity's aims by funding specific activibes. Equity instruments are measured at their fair value at the porting date if this can be measured reliably, or at cost less irnpaiment. Concessionary loans are either initialEy measured at the amount received and paid and then adjusted in subsequent years to reflect repayments, interest and any impainnent. or they are initially measured at the fair value and subsequenuy at their amorbsed cost using Ihe effecbve interest method. Programme related investments that are measured at cost or amortised cost are assessed for objective evidence of impaiment at the end of each reporting period. Any impaimient losses are recognised immediately as a cost within 'expenditure on charitable activities, in the statement of financial alties. Defined contribution plans Contributions to defined contribution plans a recognised as an expense in the period in which the related seNice is provided. Prepaid contributs.ons are recconised as an asset to the extent that the prepayment wll lead to a reduction in future payments or a cash refvnd. Creditors and provislons Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to setue the obligation can be measured or estimated reliably. Creditors and provisions are nomially recognised at their settlement amount after allowing for any trade discount5 due. Cash at bank and In hand Cash at bank and cash in hand indudes cash and short teTh highty liquid investments with a short maturity of Ihree months or less from the date of acquisition or opening of the deposit or similar account Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments. induding trade and other debtors and creditor5 are initially recogni5ed at transaction value and subsequently measured at their settlement value. Funds Unrestricted frJnds are donations and other income re1vable or generated for the objects of the charity. Designated funds are unrestricted funds eamiarked by the Irustees for parbcular purposes. Restricted fijnds are those fijnds which are to be used in aCrdance wtth specthc instructions impos&J by the donor or trust deed. Related party transactions The company has taken advantage of the fact that disdosure is not required oftransactions entered into beeen two or more members of a group, provided that any subsKJiary undertaking which is a paty to the transaction is wholly owned by a member of that group. Foreign cUencY translation The charrties functs'onal and presentab'on currency is pound stet1ing. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balan sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recognised in the SOFA. Legal status The Kays Foundation is a company limtted by guarantee and has no share capital. In the event of the charity being wound up, the liabilty in respect ofthe guarantee is limited to £10 per member of the charity. Page 17
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED S APRIL 2024 Incoming Resources Endowment Unrestricted Capital Income Fund Funds Total Funds 2024 Total Funds 2023 Investment Property Rental Income Investrnent Income Bank Deposit Interest 809,950 366,743 809,950 366,743 46 1,176,739 833,794 266,475 1,176,739 1,100,269 3a. Charitable Activities End0Yent Funds Unrestricted Funds Total 2024 Total 2023 Grant making Charity and Group Total 150.000 150,000 150,000 150,000 609,161 609,161 3b. Cost of Generating Funds Estate Management Costs Ground Rent Insurance Property management fees Letting Fees Administration expenses Directors salaries & Nl Travel and subsistence Legal Fees Total Estate Management Costs 20,988 7,087 16,242 9,361 63,777 143.457 4,548 23,403 31.707 140 19,821 616,849 17,761 1,437 711,118 23,403 31,707 140 19,821 616,849 17,761 1,437 711,118 265,460 Finance Costs Financial Costs Bank Charges Bank Loan Interest Investment management cost Total Finance Costs Group Total Cost of Generating Funds 543 8,116 325,925 543 8,116 325,925 931 16,586 231,006 1.426 249,949 515,409 334,584 334,584 1,045.702 1,045.702 Governance Cost Professional Fees Accountancy Fees Auditors, Remuneration (Charity) Charity and Group Total 100,313 26,000 12,600 138,913 100,313 26,000 12,600 138,913 80,294 23,200 10,200 113,694 Page 18
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 Group Tangible Fixed Assets Investment Properties At Fair Value 6 April 2023 Additions Disposal Revaluation 12,175,000 (2,035,000) 5 April 2024 10,140,000 The fair value of the investment properties has been arrived at by adjusting for any movements as deemed appropriate by the directors to 5 April 2024 by reference to a professional valuation Carrted out. No depreciat.on or amortisation is provided in respect of these prOpe"eS. The historical cost of these investsment properties amounted to £11,196,910 {2023'. £11,1 g6.910) at the balan sheet date. Investments Group Investments Listed Investments Other Company Subsidiary Investments Total Unlisted Investments Shareholdin At 6 April 2023 Additionsltransfer Disposallother movement 15 15 (a) 15 15 Loan Advances At 6 April 2023 Advanced in the year Repaid in the year At 5 April 2024 Total unlisted investments held at cost as at 5 April 2024 1,811.078 1,811,078 1,297,745 513,333 1,297,745 513,333 (b) (a+b) 513,348 513,348 Listed investments At 6 April 2023 Net Cash injection during the year Movement in cash balances Movement in fiduciary deposits Movement in shares I bonds Movement in time loans Total listed investments held at fair value as at 5 April 2024 1.851,022 17.468,033 18,510 (5.771) 19,319,055 18,510 (5,771) 159,627 1,378,873 1,538,501 {c) 2.023.388 18.846,906 20,870,295 Page 19
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5APRIL 2024 Investments Listed investments Iconbrnied) Listed Investments Other Company Subsidiary Investments Total Balance carried foThvard At 5 April 2024 At S April 2023 2.023.388 1,851,022 18,846,906 17,468,033 513,348 1,811,094 21.383,642 21,130,149 Company Investments Unrestricted Endowment Funds Funds Total Funds Year to SApr24 Total Funds Year to 5Apr23 Group undertakings {Profit}Iloss on revaluation of investment in subsidiary undertaking Other investments 16.921,108 16,921.108 20,640,620 (1,895,235) (1,895,235) (3,719,513) 513,348 1,811,093 (a+b) {¢) 513.348 Listed investments 2.023.388 2,536.736 2,023,388 17,562,609 1,851,022 20.583,222 Total Company investment 15,025,873 Analysis of Investments (i) Other Investments- Grou and Com an Loan Shareholding Cost of Investments Advances shares as at 5 April (Repaid) I 2023 advanced Total Investments as at 5 April 2024 Company Edinburgh Sainsbury Group Holdings Limited Royal Docks Hotel Group Holdings Limited Marine Point Group Holdings Limited M22 Portfolio Propety Limited Theobalds Park Propety Limited Project Spirit Property Limited Marine Point Freehold Group Holdings Limited 10% 50 5% 100 10 513,333 513,343 5% 4% 1,297,745 (1,297,745) {a+b) 15 1,811,078 1.297.745 513.348 Page 20
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 {iil Listed Investments- Grou and Corn The listed invesbnents relate to portfolios hekl wrth a financtal institution and it comprises of cash. listed and marketable investrnents less borrowings from Ihe same financial institution. The fair value of listed and mafketable investrnents has been induded within the portfolio detemiined with reference to the quoted market pri at reporting date. (li) Endowment funds-com an The above investh)ent in the company represents a gift reiVed in the fo of an expendable endowment of 100% shareholder in Port Pery Invesknents Limited of 2 Ordinary Shares. Port Pery Investment Limited is a company incorporated in the Isle of Man and its prinapal actiwty is that of propety and other investments. The valuation of the investment was carried oui at the balance sheet date by the directors. on net asset basis. Programme Related Investsnents Social investment Cost At 6 April 2023 Additions 1,405,972 53,282 At S April 2024 Impairment 6 April 2022 and 5 April 2023 Carrying amount At 5 April 2024 At 5 April 2023 1,459.254 1,459,254 1,405,972 The above social investsnent is in A(ili Ne0 USA LLC. Akili NeOrk USA LLC was created to bring learning and inspiration to the children of Kenya with a goal of creating a positive social impact for children, their families and caregivers. The strategy of Akili Netsvork USA LLC is to provide the broadest free aCsS to the most positive, relevant programming available and to Produ shows that Kenyan children see themselves in. promoting content that models posits've academic outcomes, values soaal-emotional awareness. introduces and supports gender equality, and advances health. wellness, job awareness, Communty and the creative arts. At the year end, the Foundab'on has an investment of£1,459.25412023-. £1,405,972) in Akili Network USA LLC. The investrnent is spltt beeen shares and converbble debt. At the balan sheet date, an amount of £53,281 12023.. £42,808) had been accrued as interest on the convertible debt Group Debtors 2024 2023 other Debtors Prepayments and Accrued Income 235,352 31,593 266.945 529,779 50,857 580,636 Page21
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 Company Debtors 2024 2023 Other Debtors Loan receivable from group undertaking Prepayments and Accrued Income 230.000 10,110.200 8,797,643 10.733 50,388 10,120,934 9,078,032 10. Group Creditors Amounts falling due within one year 2024 2023 Bank Loans Social security and other taxes Derivative financial liability Other creditors Accruals and deferred income 184,000 52,017 184,000 49,564 232,534 79,756 548,306 212,875 71,102 517,541 The following liabilities disclosed above under credrtors falling due within one year are secured by the group.. Bank Loans 184,000 184.000 Group Creditors Amounts falling due after more than one year 2024 2023 Bank loans 3.858,612 3,858,612 4,042,621 4,042.612 The following liabilities disclosed above under creditors falling due after more than one year are secured by the group.. Bank Loans 3,858,612 4,042,612 11. Company Creditors Amounts falling due within one year 2024 2023 Accruals and deferred income 26,716 26,101 26,101 Pag¢ 22
THE KAYS FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 5 APRIL 2024 12. Group Endowment Capital Fund 2024 2023 Balance brought forward Provision against loan balance Investment Revaluation gainsl{losses) Financial instrument gainsl(losses) Share of Profits/(Losses) from Investments Gainl(loss) on disposal of tangible asset Gainl{loss) on disposal of fixed asset investments 27,946,672 31,991,244 (1.236,842) (512,833) {3,096,172) 437,489 (938,653) (9,747) 21,006 26,613,480 27,946,672 13. Auditors remuneration 2024 2023 Fees payable for the audrt of the financial statements 12,600 10,200 14. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows: 2024 2023 Wages and salaries 616,849 616,849 143,457 143,457 The average number of persons employed by the group during the year amounted to 1 (2023.. 1). 15. Related Parties During the periixl, the charity has provided an interest-bearing loan to its subsidiary. The balance outstanding at the balance sheet date was £10,110,200 (2023- £8,797,643), and interest of £680,710 (2023.. £351,597) was charged on the outstanding balance. No remuneration was paid to the trustees during the year (2023= £Nil). No expenses were reimbursed to the trustees during the year (2023.. £Nil). Page 23