THE CYRIL TAYLOR CHARITABLE FOUNDATION (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2023
THE CYRIL TAYLOR CHARITABLE FOUNDATION CONTENTS Page Reference and Adminislralive Details Report of the Trustees (including Strategic Report} Statement of Trustees, Responsibilities Independent Auditor's Report 9-11 Statement of Finan¢ial Activities 12 Balance Sheet 13 Statement of Cash Flow$ 14 Accounting Policies 15-18 Notes lo the Financial Slalements 19-24 Page12
THE CYRIL TAYLOR CHARITABLE FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS Trustees JMBerry A J Brookes JA8urg P Egan WLGertz E Hawksworth J Husband C D Joseph T O Kiechle M Kim (Appointed 15th June 20231 E O'Neill (Appointed 21 sl February 20241 R W Maas (Resigned 22nd February 2023) S Rasch C Tucker D G Wilson P Woodthorpe (Resigned 7th May 20231 Company Secretary D G Wilson Principal Office & Registered Office 37 Queen's Gate London SW7 SHR Foundation Number 1152058 (England and Wales) Company Number 08524472 (England and Wales) Auditor Buzzacotl LLP 130 Wood Street London EC2V 6DL Investment Managers UBS 5 Broad Gale London EC2M 2QS Fidelity Investments Operations Company Inc. 82 DeVonshre Street Boslon MA 02109 Fransad Geslion SA Place de I'universilé 7 Case Poslale 5054 1211 Genève11 UBS Financial Services 1285 Avenue of the Americas 1911 Floor, New York NY 10019 Legal AdvisoTS Loeb. Block & Partners LLP 505 Park Avenue New York NY10022 Penningtons Manches Cooper LLP 125 Wood Street London EC2V 7AW Page13
THE CYRIL TAYLOR CHARITABLE FOUNDATION REPORT OF THE TRUSTEES The Trustees present their annual report together with the financial statements and auditor's report of the charltable company for the year 1 January 2023 10 31 December 2023. The report serves the purposes of both a Trustees, report, and a Directors, report under company law. Structure, Governance and Manag8m8nt Governing document The Cyril Taylor Charitable Foundation {hereinafteT referred lo as the Foundalionl registered in England and Wales under charity registration nurNber 1152058, is conlro15ed by ils governing document, the memorandum and articles of association, and conslilules a limited company, limited by guarantee, as defined by the Companies Act 2006. The charitable company was incorporated on 10 May 2013 under registration number 08524472. Organisational structure The Foundation Trustees, who are also directors for the purposes of company law, are responsible for the general control and management of the Foundation. All Trustees give their lime freely and receive no remuneration or other financial benefits The Chairman of the Trustees is Stephen Rasch, who was appointed for an initial three year term, extended for a further three years which expired in July 2023. This was extended on 7 February 2022 to a further thTee years under the revised articles of association. The Foundation is adrninislered on a daily basis by a Iruslee who is an employee of American Inslilule For Foreign Study IUKI Limited IAIFS IUKI Limiledl. ATFS IUKI Limited is an indirect subsidiary of AIFS Inc., a company that specialises in educational and cultural exchange. William Gertz, a Iruslee of the Foundation, is also the chairman of ALFS Inc. Trustees currently meet l¢e a year, bul other meetings are convened when required. Appointment, induction and training of Trustees If a Iruslee vacancy arises, Ihe Chairman convenes the Nominations Committee lo review applications and make recommendations lo the Board. There musl be a minimum of 6 and a maximum of 16 Trustees. There are currently 14 Trustees. The leve5 of competence required of a Iruslee is explained in ils memorandum and articles of association New Trustees are inducted by an existing Iruslee, briefing from the chairman and trained through regular attendance al meetings as well. All Trustees undertook training al the annual Iruslees meetings held over the last 4 years and annually receive the Essentia5 Trustee published by the Charity Commission. Third party indemnlty provlsion for Trustees Qualrfying third party indemnity provision is in place for the benefit of all Trustees (who are also direclorsl of the Foundation at the reporting date and was in place throughout the twelve month period. Risk management The Trustees have a duly to identify and review the risks lo which the Foundation Is exposed and lo ensure appropriate controls are in place lo provide reasonable assurance against fraud and Èrror. A number of internal controls have been implemented lo provide assurance against fraud and eTfoT. The Trustees also consider variability (rf investment returns, lo constitute towards the financial Tisk of the Foundation. This is mitigated by retaining expert Investment managers and having a diversified investment portfolio. Transfer of shargs during the year In December 2023 a new structure was created to hold the AIFS Inc. A Shares lo satisfy both the US Siale Department and the Charity Commission. The AIFS Inc. A Shares are currenlly held in the Cyri J H Taylor Capital Trust, New York with the sole beneficiary being the Foundation. The role of the CT Capital Purpose Trust is only lo own the shares of the Capital Trust LLC and has no other rights over them. Page14
THE CYRIL TAYLOR CHARITABLE FOUNDATION REPORT OF THE TRUSTEES (CONTINUED) Objectives and activities Objectives and aims The objectives of this Foundation, as set out in the Foundation's memorandum and articles of association, are as follows.. "To further such charitable purposes and lo make donations to such charitable institution, or instilulions. al such lime, OT limes, and in such manner as the directors may. in their absolute discretion, think f1t. For the public, by enabling citizens of the UK and other countries lo participate in educalionaS exchanges between those countries and support charities which promote international educational exchange and to make donations lo such institutions at such lime or limes and in such manner as the diTecloTS may in their absolute discretion think fil. On his death in 2018, Sir Cyril Taylor bequeathed the bulk of his Eslale lo the Foundation lo invest in order lo generate income for the Foundation. The adminislralion of Sir Cyril's Estate has not yet been completed so the full and final amount of the bequest cannot yet be quantified. The eslimaled nel fair value after fees of the remaining legacy as al 31 December 2023 totals $1 m. The major asset of the Estate was the holding ofA shares in AIFS Inc which conslitules a 99.9'/0 shareholding in that company. However, the rights of the B shareholders restri the ability of the Foundation lo dispose of ils shares in the company, which is why the A shares in AIFS Inc. has been held for investment purposes only and therefore shown on the balance sheet as a f1xed assel investment. The shares bequeathed lo the Foundation were valued al $274,929,908 as al 29 January 2018 Isee note 8). Although beneficial ownership rests wrth the Foundation. the title lo the shares is held in the Cyril J H Taylor Capital Trust, New York. strategic rgport Achievemenl and performance During the year ended 31 December 2023, the Trustees made charitable grants of $769,27512022.. $955,580). The donations made reflect the objective lo donate lo institutions as Trustees think fil land which support education, local work w((h vulnerable people, supporting research into how to improve educational opportunities elcl. Amongst the charities that have been SLJPPOrted during the year are the Buttle Trust, providing boarding school places for vulnerable young people which has given them stability and academic security., grants have been made lo support Ukrainian students displaced by the geo-political situation in Ukraine through thè IIE Emergency Sludenl Fund and Balliol College Ukraine Fund lo ensure their education is not inlerrupled. The Foundation has also supported educational exchange and expanding access lo intercultural education through AFS Inlercullural Programmes, IIE, CLJltur81 Vistas, and the UK-US Fulbright Commission. Locally, the Foundation provided support lo Norden Farm which provides educational and creative workshops for school age children land increasingly migrant Children} lo keep them occupied through holiday periods and lo Waging Peace which assists Sudanese genocide survivors lo re-train and rebuild their lives. A full list of grants is in note 5 to the accounts. Publlc beneflt The Trustees, as required by charity law. have paid due regard lo the Charity Commission's guidance on Providillg public benefit while reviewing the Foundation's aims and objectives, and while deciding what activities the Foundation should undertake and how the donations made will help the Foundation meet ils objectives. Page15
THE CYRIL TAYLOR CHARITABLE FOUNDATION REPORT OF THE TRUSTEES (CONTINUED) Financial review The nel income before gains on investments for the year ended 31 December 2023 is $224,40812022'. $2,482,584). Income from donations and legacies tolalled $Nil12022'. $2,375,3161, this was due lo the not recognising the remaining portion of the remaining legacy. The Foundation received a dividend from AIFS Inc. during the year lolalling $1,000,000 12022.. $796,408). Total expenditure for the year was $1.345,02412022'. $,1,383,8581, this includes grants made lo inslilLJlions lolalling $769,275 {2022.' $g55,5801. Total expenditure also includes $269,25212022'. $256,634) of legal and professional fees in respect of the work involved in dealing with the new slructure of the AIFS Inc. A Shares and the 2023 AIFS Inc. valuation. The total gain on investments was $24,587,87012022.. $11,105.2711 including a nel gain on the investment of AIFS Inc., amounting lo $22,794,18912022'. $13,096,661) and a nel gain on listed fixed asset investments of $1,793,681 12022.. $1,991,390). The Iruslees are of the view that the financial position of the Foundation remains strong with a nel assets of $329,094,947 {2021 $304,282,669) Reserves policy The Iruslees have been advised that the shares in AIFS Inc bequeathed by Sir Cyril Taylor constitute permanent endowmenl. The Iruslees have resolved lo regard the remainder of the bequest from Sir Cyril as expendable endowment available for distribution. The Iruslees do not see a need al the present time lo build up further reserves. As at 31 December 2023, the Foundation has lolal reserves of $329,094,94712022'. $304,282,669) of which $300,382,92712022'. $277,588,739) was represented by the permanent endowment fund. Following the death of Sir Cyril Taylor, his donations lo the Foundation have ceased leaving the Foundation reliant on ils investments lo continue to pay substantial dividends lo enable the Foundation lo pursue ils objectives. The Foundation's resetves will include the remaining legace$ that are yet lo be transferred lo the Foundation, dividends from AIFS Inc. and fixed asset investment growth. With the strong growth in AIFS Inc., the Foundation expects lo CeIve annual dividends. Current general unreslricled reserves are $28.712,01912022.. $26,693,930). Investment policy and objectives The objective of the Foundation's investment policy is lo achieve a rising income for use in accordance with the Foundation's principal objectives. The value of unquoted fixed asset investments increased by $22,794,189. this was due to the rise in the valuation of AIFS Inc., as the 31 December 2023. Unrealised gains on the quoted fixed asset investments tolalled $1,714,940 during the year. The investment committee will continue reviewing performance annually with investment managers. Through a diversrfied portfolio Trustees hope lo contain any losses and be poised for growth. Investment performance is measured against certain benchmark indices. The Foundation priorilises trades in ethical securities. Grant making policy and fundraising The Trustees apply the funds of the Foundation at their discretion and in accordance with the ¢harilable purpose and objectives of the Foundation. The grants committee is particularly interested in grant requests from charities which offgr scholarships and special educational programmes for young people and sludenls," as well as from those whose activities enhance the life chances of young people and students who may be socially or financially disadvantaged. The grants committee, which is made up of 9 Trustees, and meets once a year typically in May, receives proposals for grants both from charities and from the other Tmslees. The proposals are then evaluated against its criteria above, and recommendations made lo the main Board for approval al ils annual meeting. The Foundation does not undertake any fundraising activities and il uses no third parties to do so either. Refer lo note 5 for details of causes supported during the year to 31 DeceTnber 2023. Page16
THE CYRIL TAYLOR CHARITABLE FOUNDATION REPORT OF THE TRUSTEES (CONTINUED) Pay policy for senior staff The board of Trustees are considered to be the key management personnel of the Foundation, in charge of directing and controlling, running and operating the Foundation on a day lo day basis. All Trustees give up their lime freely and no Trustee received Temuneralion in the year. Certain Trustees are employed by ATFS Inc group and receive remuneration for the services they provide lo the AIFS Group. There is no senior management team. Princlpal risks and uncertalnties Th8 main form of financial risk faced by the Foundation is the reliance of dividends from AIFS Inc. Other risks are the volatility in equity markets and investment markets due lo wider economic conditions, the allilude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors, and adverse foreign exchange movements. This is mitigated by investing in a diversif1ed investment portfolio. Plans for future perlods Thè Foundation is reliant on the generation of income from ils investment portfolio, particularly from AIFS Inc, lo enable the Foundation lo pursue its objectives. With the strong growth in AIFS Inc., the Foundation expects lo receive annual dividends from AIFS Inc. Going concern The Trustees assess whether the application of going concern is appropriate, i.e. whether there are any material uncertainties related lo events or conditions that may cast signif1cant doubl on the ability of the FoLJndation lo continue as a going concern. The Trustees make this assessment in Tespecl of a period of al least 12 months from the dale of aulhorisalion for issue of these financial statements and have concluded that as the Foundation has adequate resources lo continue in operational existence and for the foreseeable future there are no material uncertainties about the Foundation's ability lo continue as a going concern. Thus, they continue lo adopt the going concern basis. In making the assessment the Trustees have taken into consideration the strong gTQWth in AIFS Inc., and an expecl8tion of receiving future dividends on an annual basis. The Foundation has unrestricted general reserves. that are held in highly liquid assets, lola11ing $28,712,019 al 31 December 2023, and the Iruslees consider that Ihis1evel of reserves is adequate for the needs of the Foundation. Audttor In accordance with section 485 of the Companies Act 2006, 8 resolution proposing that Buzzacotl LLP be reappointed will be pul lo the Annual General Meeting. Buzzacott LLP have expressed their willingness lo continue in office. In so far as the Trustees are aware al the lime of approving our Trustees, annual report.. there is no relevant aucjil information of which the charitable cornpany's auditor is unaware., and the Trustees have taken all steps that they ought to have taken lo make themselves aware of any relevant audit information and lo establish that the charitable company's auditor is aware of that information. The Report of the Trustees, which includes the directors report as required by company law and the strategic report, is approved by the Trustees in their capacity as the directors. ON BEHALF OF THE BOARD l< Lo> S Rasc Trustee Dale Page17
THE CYRIL TAYLOR CHARITABLE FOUNDATION STATEMENT OF TRUSTEES, RESPONSIBILITIES For the year ended 31 December 2023 The Trustees {who are 8180 directors of The Cyril Taylor Charitable Foundation for the purposes of company lawl are responsible for preparing the Trustees, Annual Report and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accounting Praclicel. Company law requires the Trustees lo prepare financial statements for each financial year which give a true and fair view of the stale of affairs of the charitablè company and of the incoming resources and application of resourTrs, including the income and expenditure, of the charitable company for that period. In preparing these financial stalemenls. the Trustees are required lo.. select suitable accounting policies and then apply them ¢onsistently', observe the rnelhods and principles In the Charities SORP FRS102., make judgements and estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explain8d in the financia1 stalemenls., and prepare the f1nancial statements on the going concern basis unless il is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with Teasonable accuracy al any lime the financial position of the charitable company and enable them lo ensure that the financial slalemenls 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. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Foundationlcompany's website. Legislation in the United Kingdom governing the preparation and dissèmination of financial slalemenls may drffer from legislation in other jurisdictions. BY ORDER OF THE BOARD OF TRUSTEES Rasch Trustee Dale Page18
THE CYRIL TAYLOR CHARITABLE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION Opinlon We hav8 audited th8 accounts of The Cyril Taylor Charitable Foundatlon Ithe '¢haril8ble company'l for the year ended 31 Decembèr 2023 which comprise the statement of financi81 activities, the balan¢& sheet, the statement of cash flows. the principal accounting polioies and notes to the accounts. The financial reporting IFamework that has been applied in their preparation is applicable law United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, Iunited Kingdom Generally Accepted Accounting Practice). In our opinion, the accounts.. give a true and fair view of the slate of th8 Gharitable company's affaiTS as al 31 December 2023 and of ils income and èxpondilure for the year then end6d., have been PToperfy prepared in accordance with United Kingdom Gènorally Accepted Accounting Praetice-, and have been prepared in accordance wth the r8quir8rnents of the Companigs Act 2006. Basls for opinion Wè conducted our audit in accordance wrth Inlemalional Standards tsn Auditing IUKI IISAS IUKII and applicab18 law. Our responsibilities under those standards are further described in the audilorfs responsibilities for the audit of the accounts seetion of OUT report. We are independent of tre charitable company in accordan wilh the ethical requirements that are relevant to our audit of the accounts in th8 UK, including Ihe FRC'S Ethical Stsndard. and w8 have fulfilled our other ethical responsibiliti8s in accordance with thesè requirements. We believe that the audf( èvid8ncg we have obtained is sufficient and appropriate to provide a ba$ for our opinion. Concluslons relatlng lo golng concern In auditing the accounts. we have concluded that the Iruslees use of the going eon¢em basis of accounting in thè preparation of th8 acoounts is appropriate. Based on the work we have perfomied, w& havè not idgntifieLI any material uneertainlies relating to events or condilions that, indlvidually or collgctive1y. may cast SanIficant doubl on the charitable company's ability lo continue as a going concern for a period of 8t1east twelve months from when the aLLounts are authoris8d for issue. Our responsibilitias and the responsibilities of the truste8s with respect to going coneeTn 8re described in the relevant sections of this rgport Other Infomiltsn The other inft>rmalion cornprises the infom)ation included in the annual report othèr than the financial ststemenls and our auditorfs portthere0rn. The trustees are responsible forthe other information contained within the annual report. Our opinion on the financial statements does not cover the other infom)ation and. except to the extent otherwise expliciuy stated In our roport, we do not express any form of assurance condusion thereon. Our responsibllity is to read the other infomiatlon and, in doing so. consider whether other inforrnation is malorially incorisistent with the flnan¢i81 Statements or our knowledge obtsined in the course of the audit or otherwise appears to bè materially mis6tated. If we identfy such merial inconsistencies or apparent rnaterial misstat8menls, we are required to detem)ine whather this gives rise to a malarial mi88tatement in the finanGi81 statements themselves. If, based on Iheworkwe have perfomèd, wa conclude thatthere is a malgrial mi88t8tement of this other infomation, we are required to report tral fact. We have nothing to report in this regard. Page19
THE CYRIL TAYLOR CHARITABLE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION ICONTINUED) Opinions on othtsr matters prescribed by the Companies Act 2006 In our opinion, based on the wotl( undertaken in the course ol the audit.. thè infom)ation given in the trustees, report, which is also the dir8thr5' report for the purposes of company law, for the financia1 year for which the financial slalemenls are pr&par8d is consistent with the financial statements., and the trL5Stees' pOrt, which is also the directors. rsport forthe purposes of company law. has been prepared in accord8ncts wlh applicable legal requirements Matters on which we are requirtrd to roport by exeeptlon In the light ol th8 knoedge and understandiry ol Ihe charitable cornpany and ts enviTonment obtained in the course of the audit, we have not identified material misstatements in 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 POrt lo you if, in our opinion.. adequate accounting record5 havg not been kept. or retums adequate for our audit have not been received from brdnches not visi18d by us., or the financial statements are not in agement with the accounting records and retum8', or certain disclosures of tnjstees. romuneraQn spec1fied by law are not made.. or we have not rec8wtsd all the informadon and explanations we require for our audf(. Responslbllltlgs of trust••$ As explained rnore fully In the trustees, responsibilities statement. the trustoes (who 8ra also Ihe d1r&ctors of the charrtable companyforthe purposes of company18wI are responsible forthe preparation of the f1nancial staternents and for being satisfied that they give a true and lair view, and lor such intemal control as the trustees deterrnine is necessary lo gnabl8 the preparation of financial statements that are free from material rnisslatBment, whether due lo fraud or orror. In preparing the financial statements, the trustees are responsible for assessing the ¢harilabl$ ¢ompany's ability to continue as a going concern. disclosing. as applicable, matters related to going concem and using the going concem basis of accounting unle$5 th& trustees either intend to liquidate the Charitse company or lo cease operations, or have no realistic 8lt9m81ivè but to do so. Auditor's r*sponslbllltl•s for the audlt of the flnanclal statements Our objectives are to obtain reasonable assur8llGe about whethèr thè financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assur8n¢g is a high level of assurance but is not a guarantee that an audit conduoted in ac¢c>rdan¢e with ISAslUKlwill always detecta material rnisstaternenlwhen ilexists. Misstatements can arise from fraud or error and are considered material if, individually or ir? the aggregate, they could reasonably be expected to influence the $¢onomlc dec1sions of users taken on the basis of thase finan¢ialstataments. Irwularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our respon51bilili&s, outlined above, to detect material misstatements in respect of irregularities, including fr8ud. Tho oxlontto which our procedures are capable of detecting irrg9ularitie5, including fraud isdetailed below.. We oblaingd an undèrstanding of the legal and regulatory frarneworks that gTe applicab18 to thè charitable ¢ompany and determined Ihal the m051 significant ar8 the Companies Act 2006, the Charities SORP FRS 102 and the Charilies Act 2011. Page | 10
THE CYRIL TAYLOR CHARITABLE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE PhEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION ICONTINUEDI We understood how the charitable company is compIng wrth those legal and regulatory frameworks by making inquines to management and those responsible for legal, compliance and govemanca proc8dures. We com)boraled our inquiries through our review of trustee meetings and papers provided to the tnjstèès. We assessed the SUSPilb1lity of the charitablè ¢ompany's financial statern8nts to rnaterial misstatements, including how fraud might occur. Audil proCedUS perfomed by the engagemtsnl team included.. Identifying and assessing the (58sign and implementation of controls in place to prevent aTxI deteol fraud; ChallgngirvJ assurrptions and judgments made by managern¢nt and the Iruslees in its signrficant a¢counling estimates., Identifying and tèsting joumal gnlries, in particular adjustments made at the year-end for flnanci81 statement preparation". and Assessin9 the extent of complianc8 with relevant laws and regulations by reviewing corresFrt)ndencè with regulators and legal advisors. A further descrfptlon of our responsibilities for the audr( of the accounts is located on the Financi91 ReportiThJ Council's website at www.frc.o .uklauditorsTes onsibilities. This description foms part of our auditorfs Teport. Use of this report This report is made solely to the charitable mmpany's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit wort( has b88n und8rtak8n so that we might state to ihe charitab ctsmpany'5 rll8mb8TS Ih05e rn8tters w8 are required to state lo them In an audilc>rfs roport and for no other purpose. To Ihe fullest extent pemitted by law, we do not accept or assume responsibility to anyone otherthan the eharilable company and the chariiable companys members as a body, for our audit work, for this report, or for the opinions we have fornied. Edward Finch (Senior Statutory Auditr)rl For and behalf of Buzzacott LLP. Statutory Auditor 130 Wood Street London EC2V 6DL 16 July 2024 Date Pagel 11
THE CYRIL TAYLOR CHARITABLE FOUNDATION STATEMENT OF FINANCIALA1VITIES linclLvlin8 Inccthe expenditure accountl For the year Ènded 31 Decem 2023 Unrestricted Funds Endowment Funds Total Total Year ended 31 Oecember 2022 2023 2023 2023 Note5 INCOME FROM". Dat15 and legacies 1375.316 Investments 1,569,432 1.569.432 1,491,126 TOTAL INCOME 1,569,432 1,569,432 3,866,442 EXPENDITURE ON.. Raising funds 185,810 185.810 138,385 Charitable actmties 1,159,214 1,159.214 1.245,473 TOTAL EXPENDITURE 1,345,024 1,345,024 L383,858 NET INCOME AND NET MOVEMENT IN FUNDS BEFORE GAINS ON INVESrMEf5 224,408 224,408 2,482,S84 Net gainson investment5 1,793,681 22,794.189 24.587.870 11.105.271 NET INCOME 2,018,089 22.794.189 24,812,278 13,587.855 Reconclllation of fund Total funds brought forward 26,693,930 277,588,739 304,282,669 290.694,814 TOTAL FVNDSCARRIEO FORWARD 28,712,019 3m,382,928 329,094.947 304.282,669 The staternent offinancial attivities includes all gain5 and1055e5 inthe year. All inci)rnin8 reurCeS and resources eXpend derive frcrfn continuing activities. Page | 12
THE CYRIL TAYLOR CHARITABLE FOUNDATION BALANCE SHEET At 31 December 2023 Cotnpany number.. 08524472 Registered charity number.. 1152058 2023 2023 2022 2022 Notes FIXED ASSETS InvÈstments 328,795,718 304,415,485 328,795.718 304.415,485 CURRENT ASSEtS Sundry debtors •$hatnk8ndinh3nd 652,159 110,483 31,192 267,7rK) 762,642 298,892 CURRENT LIABILITIES CREDITORS.. Amounts falling dL within one yÈar Trade creditors Accruals 101,691 361,722 64,029 367.679 463.413 431,708 NET CUFiFiENT LIABILITIES 299,229 1132.8161 NET ASSErs 329,094,947 304,222,669 THE FUNDS OFTHE FOUNDATION.. ENDOWMENT FUNDS UNREStRicfED FUNDS General Funds 300,382,928 277,588,739 28,712,019 26,693,930 TOTAL FUNOS 329,094,947 304,282,669 The financial statements on pages 12 to 24 We approved by the Trusrees and aurhortsed for ISS on.... nd a signed on their khalf by. MSRa Trustee Page | 13
THE CYRIL TAYLOR CHARITABLE FOUNDATION STATEMENT OF CASH FLOWS For the year ellded 31 Decernber 2023 Year ended 2023 Year ended 2022 Nores CASH FLOWS FROM OPERATING AcmvmES Net incomefor thefin3ncial year 24,812.278 13,587.855 Adjustments for.. Intert receivable 1233,5121 1185,2141 Dividend I ncome 11.335.920> 11,305,912) 111,105,271) Net gains on Investments 124,587,8701 Decreasellincreasel in debtors 1620,9681 17,2521 Increase/ldecrea5el i n creditors 31.705 1617,6191 Donation of inve5trnenls frorn Sir Cyril TayloT'S Estate 12.122.172) NET CASH USED IN OPERATINGACTrVThIES 11,934.2871 11.755.585> H FLOWS FROM INVEsnNG ACTNMES Purchase of inve5tmwts 19,156.5541 118.272.9391 Proc$ from saleof Investments 7.343.295 19,059,802 Movement in investment cash account 2,020,897 11,332,011] Interest 233.512 185.214 Oividends received 1,335.920 1.305,912 NcAsH GENERATED FROM INVESllNG Acllv 1,777.070 945,978 DECREASE IN CASH AND CASH EQUWALENTS 1157.2171 1809,6071 CASH AND EQUIVALENfs ATTHE BEGINNING OF ThE YEAR 267,700 1,077,307 TOTC4SH AND EQUIVALENTS AT THE END OF THE YEAR 110.483 267.700 ANALYSIS OF CHANGE IN NET FUNDS l January 2023 Cash Flows 31 Dernber 2D23 Cash 267,700 1157,2171 110.483 Page114
THE CYRIL TAYLOR CHARITABLE FOUNDATION ACCOUNTING POLICIES For the yoar onded 31 December 2023 The financial statements have been prepared in accordance with applicable UK accounting standards and the Companies Act 2006. The principal accounting policies adopted, judgements and key sources of eslimalion in the preparation of the financial statements are as follows.. BASIS OF PREPARATION The financial slalemenls have been prepared under the historical cost convention, unless Tnodrfied lo fair value as specified in the accounting policies below. The financial statements have been prepared in accordance with the Slalemenl of Recommended Practice.. Accounting and Reporting by Charities Preparing their accounts in accordance with the Financial Reporting SlandaTd applicable in the UK and Republic of Irelarnd (FRS 1021. and the Companies Act 2006. The financial statements are those of the Cyril TayloT Charitable Foundation as a separate entity. The Foundation meets the definition of a public benefit enlily under FRS 102. The financial statements have been rounded up or down to the nearest whole US dollar and the reporting and functional currency is US dollars. FUNCTIONAL AND PRESENTATIONAL CURRENCY The Foundation's functional and presenlalional currency is US Dollars. GOING CONCERN The Trustees assess whether the application of going concem is appropriate, i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubl on the ability of the Foundation lo continue as a going concern. The Trustees make this assessment in respect of a period of al least 12 months from the dale of aulhorisalion for issue of these financial statements and have concluded that as the Foundation has adequate resources lo continue in operational existence and for the foreseeable future there are no material uncertainties about the Foundation's ability lo continue as a going concern. Thus, they continue to adopt the going concern basis. In making the assessment the Trustees have taken into consideration the strong growth in AIFS Inc. and expect lo receive dividends on an annual basis. The Foundation has unrestricted general reserves, that are held in highly liquid assets, lolalling $28,712,019 al 31 Dernber 2023, and the tnjslees consider that this level of reserves is adequate for th8 needs of the Foundation UNRESTRICTED FUNDS - GENERAL Unrestricted general funds comprise of funds which the Trustees are free lo use for any purpose in the furtherance of the charitable objectives and which have not been designated for other purposes. ENDOWMENT FUNDS The endowment funds are considered lo be permanent Èndowment funds. Due to a conslruclive Irusl, the Foundation CUTTenlly has no power lo convert the capital element of the original gift into income. The permanent endowm8nl funds are required to be held by the Foundation as the related investments cannot be sold unless the Foundation receives specific investment advice lo do so. At this point, the related investments would become unreslricled and the proceeds could then lawfully be expended. Income generated by the permanent endowment assets is available for use for the general purposes of the Foundation and as such is treated as unrestricted. The endowment fund represents the market value of the Foundation's investment in AIFS Inc. grfted by Sir Cyril Taylor. The structur& of the bequest requires the Foundation lo hold the shares indefinitely. INCOMING RESOURCES All income is recognised once the Foundation has enlillemenl lo the income, il is probable that the income will be received, and the amount of income receivable can be measured reliably. All incoming resources are included on the Statement of Financial Aclivilies. Page | 15
THE CYRIL TAYLOR CHARITABLE FOUNDATION ACCOUNTING POLICIES ICONTINUED> For the year ended 31 December 2023 LEGACY INCOME For legacy income, enlillemenl is taken as the earlier of the dale on which either the Foundation is aware that probate has been granted, the estate has been finalised and nolificalion has been made by the executor lo the Foundation that a distribution will be made, or when a distribution is received from the eslale. Receipt of a legacy, in whole or in part, is only considered PTobabl8 when the amount can be measured reliably, and the Foundation has been notified of the executor's intention lo make a dislribulion. Where legacies have been notified to the Foundation or the Foundation is aware of the granting of probate, and the criteria for income recognition have not been mel, then the legacy is Irealed as a conlingenl asset and disclosed if material. INTEREST RECEIVABLE Interest on funds held on deposit is included when Teceivable and the amount can be measured reliably by the Foundation,. this is normally upon nolificalion of the interest paid or payable by the bank. EXPENDITURE RECOGNITION Liabilities are recognised as expenditure as soon as there is a legal or conslruclive obligation commilling the Foundation lo that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. GRANTS PAYABLE Grants payable are included in the Statement of Financial Activities when they have been approved for payment or the recipient has been informed of this decision. IRRECOVERABLE VAT Irrecoverable VAT is Charged against the expenditure heading for which il was incurred. ALLOCATION OF SUPPORT AND GOVERNANCE COSTS Support costs comprise governance costs and other support costs and have been allocated lo charitable aclivilies. Governance costs comprise all costs involving the public accountability of the Foundation and ils compliance with regulation and good practice. These costs include costs related to slatulory audit and legal fees together with an apporlionmenl of overhead and support costs. COSTS OF RAISING FUNDS The costs of generating funds consist of investment management and certain legal fees. CHARITABLE ACTIVITIES Costs of charitable activities includes charitable donations IgTanlsl, governance and other support costs. TAXATION The Foundation is exempl from lax on income and gains falling under section 466 10 493 of the Corporation Tax Act 2010. to the extent thal these are applied lo ils charitable objects. No PTovision is made for current or deferred tax. Page | 16
THE CYRIL TAYLOR CHARITABLE FOUNDATION ACCOUNTING POLICIES (CONTINUED} For the year ended 31 December 2023 FIXED ASSET INVESTMENTS Fixed asset investments are a form of basic financial instrument and are initially recognised al their transaction value, unless they are a gift that is initially recognised al ils fair value al the dale of the gift. Fixed asset investments are all subsequently measured al their fair value as al the balance sheet dale. The Statement of Financial Activities includes the nel gains and losses arising on revaluation and disposals throughout the year. The fixed asset investments are aSs0 revalued using the closing spot rale at the balance sheet dale and any foreign excharigè gain or loss is included in the Slalemenl Df Financial Aclivilies. The Foundation only trades in ethical investment portfolios and does not acquire put options, derivatives or other complex financial inslTumenls. The main form of financial risk faced by the Foundation is that of volalilrty in equity maTkels ancl investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. INVESTMENT GAINS AND LOSSES All gains and losses are taken lo the Staterllenl of Financial Activrties as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value rf acquired subsequent lo the first day of the financial year. Unrealised gains and losses on investments are calculated as the difference between the fair value al the year end and their carrying value. Realised and unrealised investment gains and losses are amalgamated in the Slalemenl of Financial Aclivilies. FINANCIAL INSTRUMENTS The Foundation only has financial assets and f1nancial liabilities of a kind that qualify as basic financial inslrumenls. The policy for investments is as described above, other basic financial inslrumenls, which include other debtors, are initially recognised al transaction value and subsequently measured al their settlement value. CASH AT BANK AND IN HAND Cash al bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months OT less from the date of acquisition or opening of the deposit or similar account. FOREIGN EXCHANGE Transactions in Currencies other than the functional currency {foreign currency) are initially Tecorded al the exchange rale prevailing on the dale of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated al the rale of exchange ruling al the reporting dale. Non-monelary assets and liabilities denominated in foreign currencies are translated al the rale ruling al the dale of the Iransaclion, or, if the asset or liability is measured al fair value, the rale when that fair value was determined. All translatlon differences are taken to the Stsiemenl of Financial Activities. Page | 17
THE CYRIL TAYLOR CHARITABLE FOUNDATION ACCOUNTING POLICIES ICONTINUEDI For the year ended 31 December 2023 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT Eslimales and judgements are cotTrlinually èva1ualed and are based on historical experience and other factors, including expectations of future events that are believed lo be reasonable under the circumstances. The key eslimales and judgenenls adopted when preparing the financial statements were.. Non-consolidstion of AIFS Inc. As a result of Sir Cyril Taylor's death, the Foundation became entitled lo receive the bulk of his estate, including 99.90/ts of the unlisted A shares of AIFS Inc., which 15 incorporated in the United Slates under registration nurllber EIN06-0890698-DEL. The Trustees have assessed whether this entity should be consolidated into the financial slalemenls of the Foundation as a subsidiary undertaking. The Trustees have concluded that the subsidiary should be excluded from any consolidated financial statements on the basis that the Foundation has no power or influence over the day lo day operational or strategic decisions of the AIFS Inc. and in accordance with 9.9C lal and 9.9 Ibl of FRS 102 the subsidiary is excluded from consolidation and 15 held a5 a fixed asset investment measured at its fair value with any changes in fair value recognised in income and expenditure. Estimate of fair value for the investrllenls in AIFS Inc. The Trustees have exercised judgement over the valuation of unlisted shares included within fixed asset investments Inole 81 The investment in A1FS was valued by Kroll Advisory Ltd., an independent valuer. al 29 January 2018, 31 December 2018, 31 December 2019, 31 July 2020. 31 December 2021, 31 December 2022 and 31 December 2023 using an approach that provides an eslimalion of the fair value of an investment based on the expectations about the cashflows that an investment generates over lime. The latest valuation undertaken in May 2024, for the year ended 31 December 2023, shows an increase in value of $22,794,189, which represents the strong growth in AIFS Inc. Kroll Advisory Ltd. made several assumptions when valuing AIFS Inc., the most significant one being extending management forecast projections lo 2025. The Trustees consider the valuation method applied lo be appropriate on the basis of available information. Estimate of fair value for residual assets held in the C ril T? lor estate. As al 31 December 2023, the Trustees are aware of further assets, with an estimated nel fair value after fees of $1 m, that are likely lo be bequeathed lo the Foundation from Sir Cyril Taylor's Estate. However, al the year end the eslale accounts have not yet been finalised. As such, the Trustees feel that there is sufficient uncertainly as lo the amounts that are likely lo be ultimately realised by the Foundation from the Temaining legacy due lo potential liabilities lo the IRS and HMRC. As the value cannot yel be Teliably measured those additional assets have not been recognised in these financial slalemenls. Page118
THE CYRIL TAYLOR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS For thg ygar 9nd9d 31 DgC9mbgr 2023 DONATIONSAND LEGACIES 2023 2022 Legacies 2,375.316 2,375,316 The income from gaCleS 8nd (kMaterS services in kind of Nil12022.. $2.375.3161 was unrestricted and Snil12021.. Snill was endowment. INVEgrMENT INCOME 2023 2022 ank and other interest receivab IoMe from listed investments IrKome from unlisted inve5trnents 233,512 335,920 I,0,000 1,569.432 185,214 509,504 796,408 1,491,126 The lnveStrrnt income ol $1.569.43212022.. $1.491,1261 was unrestricted. COSTS OF RAISING FUNDS 2023 2022 Investment wrtfollo management fees 185,810 138,385 The costsof raising funds of 185,81012022.. $138,385) was unrestritted. CHARITABLE A1VITE5- EXPENDITURE 2023 2022 Grants Other supwrt Costs GoVernare costs 769,275 63,421 326.518 1,159,214 955,580 58,619 231,274 1,245,473 The costsof charTtable actlvf(iesof $1.159.21412022.. $1,24S,4731 was unrestricted. Page | 19
THE CYRIL TAYLOR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2023 ANALY&S OF GRANTS 2023 2022 AFS Intercultural Prograrnmes.. &r Cyril Taylcy Your¥ LeadersAw3rd5 EXnd a¢¢ess to intercultural education wlth scFK)larships and outreach AIFS Foundation Scholarships for international 5tudent5 to come to Uson AYA programrne American International Recrultment Councll Protnotes ethic31, standard-based international student recruitment strategies Artlcle i/w3glng Peace elping 5udan@se genoclde survfvors rebulld thelr Ilves In UK BallK)I College Ukraine Fund Asslst refugees fleelng the war in Ukraine 8urrLE UK Supporting b)arding 5chod places forYn6 peop Cultur81 Vlst8S kholarshipsdesigned to help enhance thelr intercultural awane$S Fulbright Foundation UK Granting highly qlitIed schdars financial yjpport to study abr03d Fund Education Abroad kholarshi to under-represented ArrErican colle8e stent5t0 Stu(ty in the UK Green Kordof3n EmpDwer children displaced from their homes due to confiicts Institute International Education Emergencyscholarshipsfor international students in the US Lee AbiEy Internationèl Students, Oub Running a students, hostel for students of all nationalit*s. Norden Farm Surn-Art Titne creative Worksho for children The Open University Black Students Support Fund Provides SUPKX)rt & serwcesto students ofThe Open Uniyerslty 50,(MXI 50,C 50,(KK> 115,(KJO 115,(KiQ 167,670 2,484 82.240 44.712 60,480 176,000 57,500 50,000 28.270 I,[M)0 2,000 65,150 59,312 57.825 40,402 84,810 769,275 955,580 GOVERNANCE AND SUPPORT C05rs- EXPENDITUAE 2023 2022 5upwrt C05t5.' Staff time Rent & Rates 56,729 6,565 127 63,421 52,409 6,000 210 58,619 2023 2022 Gfftrnance costs.. AltorS remuneration.. Audit fees- Bu2tacott Legal & profes021 fees AdministratDie expenses Foreign exchange loss/(gainl 18,128 269,252 33,929 5,209 326,518 16,804 256,634 26,752 168,9161 231.274 Governance and support costsof $326,51812022.. $231,274) wa5 unrestricted. Page | 20
THE CYRIL TAYLOR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI For the year ended 31 December 2023 TRUSTEES, EXPENSAND REMUNERATiof4 Trustees, travel expenses reimbursedforthe yearended 31 December 2023 amountedto SNil12022.. SNill. All trustees are considered key rnanagement persne1. No trustees were ld remuneration or recewed other benefitsfrom an employment wlth the Foundation or from a related entlty12022.. Nill. FIXED ASSET INVESTMENTS 2023 2022 Unlisted inve5trnents Quoted inveStntS 299.523,639 29,272,079 328.795.718 276,729,450 27,686,035 304.415,485 2023 2022 UNLlSfED-AIFS Inc. FAIR VALUE At l January Unre31i5ed gains on investrnents At 31 December 276,729,450 22,794,189 299,523,639 263,632,789 13,096,661 276,729,450 2023 2022 QUOTED FAIR VALUE At I january Transfer from Sir Cyril Taylor'sesrate Additions it cost 27,686,035 27.010,105 2,122,172 18.272,939 47,405,216 117,121,422) 13,721,060) 1208,7101 26,354,024 1,332,011 27,686,035 9,156,554 36,842,589 17,369,6661 1,714,940 105,113 31,292,976 12,020,897) 29,272,079 Dispo-4ls at carrylrg value Unrealised g3insll105sI on investments Fe18n exchang@ ga1n01k)5I on investments Movement in cash accounts Fairvalue at 310ecember Proceedsfrom the le of investments 0i5tw15 at carrying value Reallsed galnson InvestnIS Unreali5ed gains111) on inve5trnent5 Foreign exchange gainslllossesl on Investments Tot31 gaiw/lloss1 on inve5trllents 7,343,295 17,369,666) 126,371) 1.714.940 105,113 1,793,682 19,059,802 117,121,4221 1,938,380 13,721.0601 1208,7101 11,991,390) Page | 21
THE CYRIL TAYLOR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI For the year ended 31 December 2023 Qted investments3 analysed by class#sfollows'. 2023 2022 Fixed interest- UK Fixed interèst- (knrseas Equities Credft guarantees Cash All Investmentszre carried at fairv31L 14.705,001 12,889,139 1562.2301 2,240.169 29,272,079 15.298,574 11.048,256 1562,2301 1,901,435 27,686,035 Unlisted investmtnt$ The investments are carrled at their falr lUe. The Investment In AIFS was valued by Kroll A(fvlsory Limfced, an Independent valuer, 8t 31 December 2023. ugng an approach that prowdes an estimation olthe fairv31ue of 3n investment based on the expectati0Tr5 aiout the cashflows that an investment generates over time. The valuation for the ye8r ended 31 December 2023, shows an increase in valuation due to the Strong growth in AIFS Inc. The methLNJ Kroll A(fvwy Litnited used tov3lue AIFS Inc. 15 based on the income approach, whith relied on management financial projections for 2024 and 2025. Kroll Advisory Limited made several a5WrnPtions when valuing AIFS Inc., the most 5i8nificant one iEing extendin8 mana8ement forecast projectlonsto 2025. Quoted rnve5trnents Quoted inwestments are carrled at their fair value. Investments in equities and fixed interest securities are all traded in quoted public market5. Holdings in corntnon investment fvnds, unit trusts and open ended investments companies3re at the bid prite. The basisof fair value for quoted inv&5tmentS Is equivalent to the rrket valu&, u%ng the bid price. Asset salesand purchases are recogni5ed at the date of trade at f05t Ithat 15 their transactn value). Page | 22
THE CYRIL TAYLOR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI For the year ended 31 December 2023 ANAYLYSOF CHARITABLE FUNDS l January 2023 Incoming resources A*UrceS expended Net gain5 Ilossesl 31 December 2023 Endowrnent Funds Unrestricted Fund5 General Funds 277,588.739 22,794,189 3,382,928 26,693,930 1,569.432 11,345,024] 1,793,681 28,712,019 304,282,669 1,569,432 11,345,024) 24,587,870 329,094,947 31 December 2022 Incoming resources Resources expended Net gains 31 December 2022 Endowment Funds Unrestricted Funds General Funds 264,492,078 13,096,661 277,588,739 26,202,736 3,866,442 11,383,858) 11,991,390) 26,693,930 290,694,814 3,866,442 11,383,858) 11,105,271 304,282.669 10 ANAYLSSOF NET ASSETS BETWEEN FUNDS EndowrrÉnt Fund General Fund Total 31 Dec 2023 2023 Fixed awl Inve#ments sh at Ink and in hand Curfent assets 300,382,928 28,412,790 110,483 652,159 1463,4131 328,795.718 110,483 652.159 1463,4131 Total 300,382,928 28,712,019 329,0)4,947 Endowfflent Fund General Fund Total 31 Dec 2022 2022 Flxed asser InVestt$ Cash at bank and in hand Current 8sset5 277,588,739 26,826,746 267,700 31,192 1431,7081 304,415,485 267,700 31,192 1431,7081 Total 277.588,739 26,693,930 304,282,669 Page | 23
THE CYRIL TAYLOR CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI For the year ended 31 December 2023 11 RELATED PARTY TRANsAlON5 Trustees declare any conflict5 of interest in writing through thelr annual declaratlons of interest. and In addftSon at the bÈ8innin8 of any meetlng Trusteesdeclar& any interest, and do not take part in any discusy, where they may be conflicted. The Foundation received services in respect of staff time, rent, rate5 and utilities from The American Insiitute of Foreign Study IUKI Ltd., an or8ani5ation under common Trusteeship. A service agreement is in place, and for the year ended 31 December 2023. thls amounted to $63,421 12022.. $58,619). At the balance sheet date, $63,421 wa5 owed tothe AIFS IUKI Ltd.12022.. $58,619). Durlng the year the Foundati( received legal athice frffl Loeb, Block & Partners LLP at a cost of $150,78612022.. $74,162) in which one of the partners, Stephen R85ch, 15 a150 the Chairman ofthe Fovndation. During the yearthe Foundation recenied legal advice from Clifford joseph at a cost of $2,485 12022.. $8,694) and made a donation of $57,825 12022.. $40,402) to Norden Farm. Cliffiyd Joseph, is also a trustee of the Foundatlon and Norden Farm. There is a service agreement in place between the Foundation and arfford Joseph. The Foundation made 3 donation of $28.27012022= SNill to Gen Kor(bfan durin8 the year, All Brookes is a tTUStÈe of the Foundation and Green Kordofan. During the year the Foundation Lk)nated $68,QJO12022.. $50,CK)01 to the AIFSFoundation, in whh William Gerti, Jack Burg andThomas Kiechle arè also trustees. 12 LEGAL STATUS OF THE FOUNDATION The Foundation is a private charitab company limiced by grantee and ha5 no share capital, i(5 registered address can LE found on page 3. In the event of the Foundation being wound up, the li8bility in respect of the guarantee is limited to Si per member whlle helshe reIn$ a memter or wlthln one year after hel5he ceasesto rnernber. Page | 24