# **Future-Fit Foundation (Limited by Guarantee)** 

# **Consolidated Financial Statements for the year ended 31 July 2022** 

# **Charity No: 1154245 Company No: 8608656** 



## **Future-Fit Foundation** 

**Financial Statements for the year ended 31 July 2022** 

|**CONTENTS**||
|---|---|
|**Report of the Trustees**|**2-11**|
|**Consolidated Statement of Financial Activities**|**12**|
|**Consolidated Balance Sheet**|**13**|
|**Consolidated Statement of Cash Flow**|**14**|
|**Notes to the Consolidated Financial Statements**|**15-24**|
|**Independent Examiner’s Report**|**25**|



1 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES** 

The trustees who are directors of the charity for the purposes of the Companies Act 2006 present their report with the consolidated financial statements of the group for the year ended 31st July 2022. The trustees confirm that the annual report and the financial statements comply with current statutory requirements, the requirements of the Charity’s governing document and the provisions of Charities Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). 

## **1. Administrative Details** 

## 1.1. Name: Future-Fit Foundation 

Registered address: Gillani & Co, 13 Limes Court, Conduit Lane, Hoddesdon, Hertfordshire, EN11 8EP. 

Registered company number: 8608656 Registered charity number: 1154245 

- 1.2. Trustees 

Martin Allen Lisa Attenborough Paul Clements-Hunt (chair) Craig Fergusson Catherine Harris Rachel Sandby-Thomas, CB Bob Willard 

## 1.3. Staff 

Dr Geoff Kendall (Chief Executive Officer) Martin Rich (Executive Director) 

## 1.4. Principal advisers 

Legal advice is generously provided pro bono by Baker & McKenzie. Accountancy services are generously provided by Knox Cropper. 

2 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES (continued)** 

## **2. Structure, Governance and Management** 

- 2.1. Future-Fit Foundation is governed by Memorandum and Articles dated 15th July 2013, and was granted charitable status on 17th October 2013. 

- 2.2. Method for recruiting and appointing new trustees 

New trustees are appointed by resolution of the existing trustees. When considering the recruitment of new trustees, the trustees take into account the skills and experiences required by the charity and seek to ensure that the trustee body as a whole contains sustainable development, business, investment and charitable expertise. 

- 2.3. Policies and procedures for trustee training 

New trustees are given copies of the Memorandum and Articles, the latest Annual Report and Financial Statements, minutes of the 3 previous trustee meetings, copies of any useful strategy documents, the Charity Commission’s Essential Trustee , and copies of the charity’s Conflict of Interest Policy, Trustee Expenses Policy, Anti-Bribery Policy, Reserves Policy and Financial Controls Policy. They must also complete a Fit and Proper Persons Declaration, a Declaration of Interests and sign a Code of Conduct. 

- 2.4. Organisation structure including details of delegated authority 

Future-Fit Foundation is a registered company and registered charity. The trustees of the charity are also the members and directors of the company. 

The board has established two sub-committees with delegated authority: 

   - Audit, Finance & Risk sub-committee members: Craig Fergusson, Bob Willard. 

   - Remuneration sub-committee members: Catherine Harris, Rachel Sandby-Thomas. 

- 2.5. Future-Fit Foundation does not have any relationships with related parties. 

- 2.6. The trustees have identified the major risks to Future-Fit Foundation and systems and controls are in place to manage those risks. 

- 2.7. As of 22[nd] July 2015, the Charity Commission granted 3D Investment Foundation permission to use the name Future-Fit Foundation. As of 5[th] December 2017 the charity changed its legal name to Future-Fit Foundation. 

3 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES (continued)** 

## **3. Objectives and Activities** 

- 3.1. The objects of the charity as set out in its governing instrument are: 

   1. To promote ethical investment for the public benefit so as to advance: 

      - a. The relief of poverty; 

      - b. The protection of the environment; 

      - c. Compliance with the law and ethical standards of conduct; and 

      - d. Such other purposes as may be effectively advanced by such promotion which are charitable in law. 

   2. To promote sustainable development for the benefit of the public by the promotion of sustainable means of achieving economic growth and regeneration. 

   3. To advance the education of the public in the principles and effects of ethical investment and subjects relating to sustainable development and the protection, enhancement and rehabilitation of the environment and to promote study and research in such subjects provided that the useful results of such study are disseminated to the public at large. 

Sustainable development means “development which meets the needs of the p resent without compromising the ability of future generations to meet their own needs.” 

- 3.2. The principal aim of the charity is to develop, steward and promote global, open-source, scientifically rigorous, future-focused frameworks which identify the extra-financial breakeven point of any organisation. The current framework being developed is known as the Future- Fit Business Benchmark (the “Benchmark”) and will be used to help businesses, investors and the general public try to improve their impact on the world by encouraging sustainable development and promoting ethical investment. In time, it is hoped that resources will be available to enable framework development to be extended to measure the future-fitness of households, cities and countries. 

- 3.3. The main objectives of the charity during the year covered by the annual report were: 

a) To develop a long-term funding model to enable the charity to carry out its aims and work; 

b) To continue the development of the Future-Fit Business Benchmark; and 

c) To develop working partnerships with global businesses, financial organisations, leading sustainability organisations and any other key stakeholders. 

4 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES (continued)** 

- 3.4. The strategy for achieving the objectives and the principal activities undertaken during the year: 

As the Covid-19 pandemic continued through the reporting period, the trustees and executive team explored every available avenue to secure both short- and long-term funding to enable the charity to keep functioning. Unfortunately, we were unable to secure sufficient philanthropic funding, which had the dual impact of the organisation being unable i) to retain or replace team members, and ii) to earn sufficient income due to lack of resources or the ability to commit to supporting community members (Accredited Partners, Pioneers, etc.) for another full year. Finally, the pressures of dealing with all of this also led to significant health issues for one of the executive who decided they needed to step away from daily activities at the end of 2021. 

As a result, the board agreed in early 2022 a plan to ‘dock the ship’ by the end of June 2022, whereby all liabilities and contracts could be honoured, all resources and work to date made open source through the Changemaker Community, and all other elements of the organisation put into hibernation mode. Such pre-emptive actions would preserve the work and reputation of the charity and enable operations to be restarted in the future should funding and market dynamics allow. Furthermore, both executives agreed to maintain the publicly available resources (website, Benchmark methodology, Changemaker Community, etc.) on a pro bono basis for as long as was needed. This plan was duly delivered as of June 2022. 

- 3.5. Details of the work of individuals working in and with the charity: 

The charity is led on a day-to-day basis by Dr Geoff Kendall (Chief Executive Officer) and Martin Rich (Executive Director), both of whom were full time and salaried up until the end of June 2022, reporting to the board. From that date both individuals remained employed on an unpaid basis, maintaining the core functions of the organisation such that operations could be restarted as and when funding allow. Since December 2022 Martin Rich has restarted being paid from the proceeds of delivering a specific project for a European bank (see Section 5.6). 

The charity ’s former eight other full -time and two part-time salaried staff were able to find other employment or educational opportunities during the financial year. Jahangir Kaba (former Finance Director) has continued to oversee financial and reporting matters paid on an as-needs basis. 

Numerous other individuals have contributed greatly to the charity’ s work over the last year on a pro bono basis. The team is truly grateful to them all and has sought to recognize key individuals in the published work. 

5 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES (continued)** 

## **4. Achievements and Performance** 

- 4.1. A review of the achievements during the year against each of the objectives set out in the previous section 

a) To develop a long-term funding model to enable the charity to carry out its aims and work 

The plan for this financial year was to grow income and/or raise grant funding to weather the Covid-19 pandemic, and ideally enable the charity to reach break-even in 2024. Unfortunately, the effects of the pandemic stayed with us for the entirety of the financial year severely limiting both possible funding routes. 

Interest in our community programs (Pioneers, Changemakers, Accredited Partner & Certified Professional) continued to be strong, but paying even modest membership fees proved a challenge for many in the tough financial conditions. Furthermore, the charity was faced with the dillema of charging for a year’s membership when it could not be certain of being able to honour that commitment for the full year. 

The charity was able to raise grant funding of £80,000 from a high net worth individual to explore the creation of a new business network co- founded by one of the charity’s largest Development Council corporate members. Sadly, despite initially positive signs, the initiative failed to obtain the buy- in of the company’s CEO and stall ed. 

As a result of all these factors and as outlined in Section 3.4, the decision was taken to halt all operational activity by June 2022 thereby ensuring that the charity’s work to date would remain freely available and the organisation would be in a sufficient state to relaunch activities in the future when resources allowed. 

b) To continue the development of the Future-Fit Business Benchmark 

The Future-Fit Business Benchmark has been developed from a set of systems science principles that must be met in order to maintain a sustainable planet on which humanity and other life can flourish on Earth forever. The benchmark consists of a set of 23 BreakEven Goals, each with a corresponding progress indicator, that businesses must achieve to – reach social and environmental break-even that is, become fully “Future -F it”. It also – incorporates a set of 24 Positive Pursuits categories of actions that businesses can take to restore past damage to the system conditions and help others make progress toward future-fitness. 

6 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES (continued)** 

Further development of the Benchmark during this period was not possible due to lack of resources. However, the core Benchmark methodology can be found online via the charity’s fully integrated ‘learning hub’ whereby all the guidance is available as one easily accessible resource (https://benchmark.futurefitbusiness.org). All other tools and resources, such as the Risk Profiler tool, can be accessed for free through the charity’s Changemaker Community (https://www.futurefit.community/spaces/9314908/feed). 

c) To develop working partnerships with global businesses, financial organisations, leading sustainability organisations and any other key stakeholders 

## Business implementation 

Early adopter businesses and financial institutions have continued to embrace the Benchmark as a management tool to help them set targets and priorities, and to serve as a holistic framework through which to integrate truly sustainable practices throughout the whole business (including their supply chains). They are also helping to guide how the Benchmark could improve their extra-financial reporting, using the assessment – – methodology to capture their commitment and progress toward and beyond extrafinancial break-even in a succinct, meaningful way. 

Further development of this community during this period was not possible due to lack of resources. However, we are aware of many organisations around the world using the Benchmark methodology and are confident that this number will continue to grow meaning our work will continue to have a positive impact for many years to come. 

## Sustainability organisations and other key stakeholders 

The Accredited Partner and Certified Professional program had over 70 Certified Professionals across six continents at the start of this reporting period. These programs were closed during the year, but former members are continuing to use the Future-Fit methodology as part of their work and growing the global community of users as a result. 

## 4.2. Details of fundraising performance 

Grant income received in the year has come primarily from two awards - £80k as the only instalment of a 2-month award from a high net worth individual, and c.£48k as the only instalment of a 5-year award from Shell Foundation to help with shuttering operations and maintaining core IT and reporting functions. The charity has also earned c.£194k of income from a range of sources, primarily annual membership fees from Development Council and community members, and from partnering with organisations to help develop the realworld applicability of the Benchmark. 

The charity is grateful to receive significant in-kind support from Baker & McKenzie and Knox Cropper. 

7 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES (continued)** 

- 4.3. Other information relevant to an understanding of the charit y’s activities and achievements 

Readers are advised to visit www.futurefitbusiness.org for a full understanding of the charity’s activities, objectives and achievements. 

## **5. Financial Review** 

- 5.1. Review of the financial position of the charity 

Due to the ongoing effects of the Covid-19 pandemic and the decision to cease operational activities, the total income generated by the charity fell compared to the previous financial year, receiving c.£138k of grant income and a further c.£194k of earned income. The charity nonetheless managed to finish the year in a positive financial position, with no ongoing liabilities or significant overheads. There was no visibility of ongoing income (see Section 5.6), but the charity is well positioned for a fresh injection of capital in due course. 

- 5.2. Explanation of principal funding sources and how the expenditure ties in with and supports the key objectives 

The grant income was received from Shell Foundation of c.£48k and from two high net worth individuals of £80k and £10k respectively. The c.£194k of earned income came primarily from Development Council and community membership fees, and activities with corporate and financial institution partners to develop real-world applicability of the Benchmark. 

The charity’s principal expenditure during the period covered by the annual report was on salaries, tax and National Insurance for the team’s work developing the B enchmark and promoting the charity. The other major items of expenditure relate to office space for the team, and IT and website costs. 

In light of the ongoing Covid-19 pandemic, and the heightened risk to income that represented, the executive team continued to minimise expenditure as much as possible. The team mostly worked from home throughout the year, but a small office space was maintained to enable those with limited space to have flexibility when the regulations allowed. Travel costs continued to be zero with the global travel restrictions. With regard to income, community program and related income fell as operations were carefully curtailed. Extensive efforts were also made to find new sources of grant funding, as well as exploring new rounds of support from existing funders, although this proved extremely difficult as grant-makers were inundated with the fallout from the pandemic. 

8 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES (continued)** 

- 5.3. Reserves Policy, referring to level of reserves held and the need for reserves 

The trustees have agreed to try and hold / have available a minimum of three months’ reserves. As of the end of the reporting period, the charity had negligible ongoing expenditure and hence is in alignment with this policy. The total restricted reserves at the year-end amounted to £10,189. 

- 5.4. Explanation of any reserve in deficit and action being taken to eliminate deficit 

The charity had no deficit at the end of the year and does not anticipate future deficits. 

- 5.5. Investment policy 

The charity currently maintains a modest balance of funds, all of which are held with CAF bank. As all of the capital is currently allocated to salary and expenses in the short-term, none is available for investment. However, the trustees will review how funds are invested when larger sums are in hand. 

The trustees seek to invest ethically, sustainably and in line with the objects of the charity, considering social and environmental impact. The trustees will try to balance financial return and social return and will actively consider investments with a potentially lower financial return in order to have assurance that the investments have a positive impact on society and the environment and are in l ine with the charity’s objects . 

## 5.6. Post-reporting period update 

In Q4 2022 the charity was asked by a large European bank to help it develop an online tool for SME clients, based on the Future-Fit methodology. The board agreed to undertake this work and use the income to pay Martin Rich to deliver the project and explore whether market conditions had improved sufficiently to consider restarting broader operations. A 3- year plan has subsequently been developed based around firstly relaunching the community programs (Pioneers, Accredited Advisors and Changemakers) with the help of some external partners, and then, when funding allows, restarting development of the core Benchmark IP. At time of writing, the charity is waiting to hear from one of its former funders as to whether they will provide a modest amount of catalytic capital and thus give the board confidence to move forward with this plan. 

9 



## **Future-Fit Foundation** 

## **REPORT OF THE TRUSTEES (continued)** 

## **6. Plans for Future Periods** 

- 6.1. Explanation of objectives and activities for future periods 

The charity’s primary objective for the year 2022/23 is to obtain sufficient funding to restart community program operations and scale these to be self-financing, thereby growing the global impact of the organisation’s existing work. This will in turn create a platform from which to restart development of the Future-Fit Business Benchmark methodology either through excess income from the community programs and/or philanthropic funding. 

## **7. Public Benefit** 

- 7.1 The trustees have referred to the guidance contained in t he Charity Commission’s general guidance on public b enefit when reviewing the charity’s aims and objectives and in planning future activities. 

10 



Futur*Fit Foundation
TRusfEES' RESPONSIBILITIES IN RELATIOII TO THE FINANCtAL sfATEMErits
The trustees are aLso the directrKs of Futurepfft Foundatiw for the purp)ses of company law)
are reswnsitle for preparing the ReFQrt of the Tnjstees and the financial state￿Ents in accordance
with applIca￿e law and United ￿rIJd0M knnting Standarts {United Kingdom ffftrdlty AC￿pted
AccountiThJ Practi￿).
Company law requires ￿ chaTitatAe company trustees to prepare finanaal statements for eath
financial year which give a InE aTrJ fair vieél of ts state of affairs of the charitsble company arKI
of the IncornirMJ resour￿5 application of re5cur￿, irKtuding the income arKI exFenditure, of
the charitable company for that Feri(Jd. In preparirKJ those financial ststements, the trustees are
required to
selett suitable accounting ￿1(yeS arKd apth them corsistenty.
observe the methods prinaples in the Ctrh3rity SORP;
make judgements and estimates that are reasonable arKI prLkkn¢
ststs whether applicable UK accountiTrJ stsndards have been fd10%￿d, subject to any
material departures disdosed and wlairEd in ttE finan(ial statements;
prepare the financial statements on the gcing (c￿M basis unless it is inapwopriate to
presume that the charitsble c(xnpany will continue in iKsintss.
The trustees a￿ reswnsible for keeping proper ￿cOuntir￿j records whhth di5cb)se with reasonable
accuracy at any time the finanaal [A￿ltiOn of the tharitsble company and to enable th￿n to ensure
that the fInar￿la1 Staten￿nts comply with the CLinpanies kt 2CKJ6. They are also responsible for
safeguarding the assets of the tharitable ccffipany and her￿e for takirn) reasonable 5tep5 for the
prevention arKI detect*)n of fraud cther irrewlaritie5.
The trustees are resE*Msible for the maintenarKe and inbjrity of the corporate financhil
Inf(￿rnatIon irKluded on the charitable comparfs wetsits.
This rewrt has been wepired in accordantr with the specFal provisions of Part 15 of the Companies
Att 2006 relatiThJ to small c￿panieS.
By Order of the Trustees
Paul aements-Hunt (Chair) .......
li

## **Future-Fit Foundation** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31[st] JULY 2022** 

|**Notes**<br>**INCOME FROM**<br>Grants and donations<br>2<br>Charitable activities<br>3<br>Investments<br>Other Income<br>**TOTAL**<br>**EXPENDITURE ON**<br>Raising funds<br>4<br>Charitable expenditure<br>5<br>**TOTAL**<br>**Net Income/(Expenditure) for**<br>**the year**<br>**Transfers between funds**<br>**NET MOVEMENT IN FUNDS**<br>**Total Funds Brought Forward**<br>**Total Funds Carried Forward**|**Un-**<br>**restricted**<br>**Funds**<br>£<br>90,081<br>96,695<br>-<br>97,748<br>284,524<br>-<br>334,583<br>334,583<br>(50,059)<br>-<br>(50,059)<br>40,467<br>(9,592)|**Restricted**<br>**Funds**<br>£<br>47,781<br>-<br>-<br>-<br>47,781<br>-<br>85,520<br>85,520<br>(37,739)<br>-<br>(37,739)<br>47,928<br>10,189|**Total**<br>**2022**<br>£<br>137,862<br>96,695<br>-<br>97,748<br>332,305<br>-<br>420,103<br>420,103<br>(87,798)<br>-<br>(87,798)<br>88,395<br>597|**Total**<br>**2021**<br>£<br>215,582<br>330,885<br>-<br>71,842|
|---|---|---|---|---|
|||||618,309|
|||||-<br>741,598|
|||||741,598|
|||||(123,289)<br>-|
|||||(123,289)<br>211,684|
|||||88,395|



The group ’s income and expenditure all relate to continuing activities and there are no gains or losses other than those shown above. 

The notes form part of these financial statements. 

12 



Future-Fit Foundation
LI
AT
HEET
LY2
Notes
2022
2021
Charity
Group
Charity
Group
FXXED ASSETS
Tangible Assets
Investments
1,089
1,089
5,041
5,041
1,090
1,089
5,042
5,041
CURRENT ASSETS
Debtors
Cash at Bank and in hand
8,729
65,665
154 381
220,046
6,525
163 817
170,342
5,980
17,226
CREDrfoRS: Amounts
falling due within one year
NET CURRENT ASSETS
io
{5,757)
223
(17,718)
1492)
146,934)
173,112
(86,9881
83,354
NEf ASSETS
597
178 154
FUNDS
Restricted Funds
Unrestricted Funds
li
12
10.189
10,189
47,928
130 226
47,928
1,313
597
L78, 154
88,395
The Company is exempt from the requirements relating to preparir¥J audited accounts in accordan
with Section 477 of the Companies Att 2006. The meM￿rS have not required the Company to obtsin
an audit of its accounts for the year in question in accordance with section 476 of the Companies Act
2006.
The directors acknowledge their responsibilities for..
a) ensuring that the company keeps accounting records which comply with section5 386 and 387 of
the Companies Act 2006 and;
b) preparing financial statements which give a true and fair view of the state of affairs of the company
a5 at the end of each financial year and of its profit or loss for each financial year in accordan
with the requirements of sections 394 and 395 and which otherwise comply with the requirements
of the Com
nies Act 2006 relating to financial ststements, so far as applicable to the company.
The financial
behalf by:
Paul Clementg-Hunt (Chairl
rea
rove
Craig
ergusson (Trusteel
Company Registration NumtRr'. 08608656
Charity Registration Numtkr.. 1154245
The notes form part of these financial ststements.
13

## **Future-Fit Foundation** 

## **CONSOLIDATED STATEMENT OF CASH FLOW AS AT 31[ST] JULY 2022** 

|**Cash flows from operating activities:**<br>**Net cash provided by/(used in) operating activities**<br>**Cash flows from investing activities:**<br>Dividends and interest from investments<br>Purchase of property, plant and equipment<br>Proceeds from sale of assets<br>Purchase of investments<br>**Net cash provided by/(used in) investing activities**<br>**Change in cash and cash equivalents in the reporting**<br>**period**<br>**Cash and cash equivalents at the beginning of the**<br>**reporting period**<br>**Cash and cash equivalents at the end of the reporting**<br>**period**<br>**Reconciliation of net income/(expenditure) to net cash**<br>**activities**<br>Net income/(expenditure) for the reporting period<br>Deficit on writing down the property, plant and equipment<br>Depreciation charges<br>(Increase)/decrease in debtors<br>Increase/(decrease) in creditors<br>(Increase)/decrease in stock<br>**Net cash provided by/(used in) operating activities**|**2022**<br>**2021**<br>£<br>£<br>(155,320)<br>(104,465)<br>-<br>-<br>-<br>(1,691)<br>-<br>1,353<br>-<br>-<br>-<br>(338)<br>(155,320)<br>(104,803)<br>163,817<br>268,620<br>8,497<br>163,817<br>**flow from operating**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>(87,798)<br>(123,289)<br>2,318<br>-<br>1,634<br>4,578<br>(2,204)<br>61,428<br>(69,270)<br>(47,182)<br>-<br>-<br>(155,320)<br>(104,465)|**2021**<br>£<br>(104,465)|
|---|---|---|
|||-<br>(1,691)<br>1,353<br>-|
|||(338)|
|||(104,803)<br>268,620|
|||163,817|
|||(104,465)|



14 



**Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 1 **Accounting Policies** 

## **a) Basis of preparation of accounts** 

- The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Financial Reporting Standard 102 and with the C harities SORP (FRS 102) “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)”, and the Companies Act 2006. The presentational currency of the financial statements is Pound Sterling (£). 

These financial statements consolidate the results of the Charity and its wholly-owned subsidiary, Future-Fit Ltd, on line by line basis. A separate Statement of Financial Activities for the Charity itself is not presented because the Charity has taken advantage of the exemptions afforded by the Companies Act 2006 and SORP 2019. 

## b) Fund accounting 

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the Charity and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors which have been raised by the Charity for particular purposes. 

- c) Incoming resources 

   - Grants are credited to incoming resources on the earlier date of when they are received or when they are receivable, unless they relate to a specific future period, in which case they are deferred. All other incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. 

## d) Resources expended 

All expenditure is accounted for on an accruals basis and has been included under expenses categories that aggregate all costs for allocation to activities. 

## e) Financial instruments 

The charity only has financial assets and liabilities of a kind that qualify as basis financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

15 



## **Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

- f) Fixed assets 

Tangible fixed assets are stated at cost less depreciation. Depreciation if provided at rates calculated to write off the cost of the fixed asset, less their estimated residual value, over their expected useful life on the following basis: 

Computer equipment -  over 3 years 

- g) Going Concern 

   - These financial statements are prepared on a going concern basis which the trustees have concluded is appropriate taking into account the expected forecast for the year. The total reserves of the charity as at 31 July 2022 were negligible, however, the Trustees report sets out the position for post-reporting period that a large European bank has asked the charity to support the development of an online tool for SME clients, based on the Future-Fit methodology that will enable the charity to continue its operations. 

16 



## **Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 2. **Voluntary income** 

|Swiss Philanthropy Foundation<br>The Shell Foundation<br>Golden Bottle Trust<br>HMRC–JRS<br>Donations|**Unrestricted**<br>**Funds**<br>**2022**<br>**Restricted**<br>**Funds**<br>**2022**<br>**Total**<br>**Funds**<br>**2022**<br>**Total**<br>**Funds**<br>**2021**<br>-<br>-<br>-<br>166,764<br>47,307<br>47,307<br>34,255<br>-<br>-<br>-<br>2,500<br>-<br>474<br>474<br>12,041<br>90,081<br>-<br>90,081<br>22|
|---|---|
||90,081<br>47,781<br>137,862<br>215,582|



## COMPARATIVE VOLUNTARY INCOME 

|Swiss Philanthropy Foundation<br>The Shell Foundation<br>Golden Bottle Trust<br>HMRC–JRS<br>Donations<br>3.<br>**Income from charitable activities**<br>Corporate income|**Unrestricted**<br>**Funds**<br>**2021**<br>**Restricted**<br>**Funds**<br>**2021**<br>**Total**<br>**Funds**<br>**2021**<br>-<br>166,764<br>166,764<br>-<br>34,255<br>34,255<br>2,500<br>-<br>2,500<br>-<br>12,041<br>12,041<br>22<br>-<br>22<br>2,522<br>213,060<br>215,582<br>**Unrestricted**<br>**and Total**<br>**2022**<br>**Unrestricted**<br>**and Total**<br>**2021**<br>**£**<br>**£**<br>96,695<br>330,885<br>96,695<br>330,885|**Unrestricted**<br>**Funds**<br>**2021**<br>**Restricted**<br>**Funds**<br>**2021**<br>**Total**<br>**Funds**<br>**2021**<br>-<br>166,764<br>166,764<br>-<br>34,255<br>34,255<br>2,500<br>-<br>2,500<br>-<br>12,041<br>12,041<br>22<br>-<br>22<br>2,522<br>213,060<br>215,582<br>**Unrestricted**<br>**and Total**<br>**2022**<br>**Unrestricted**<br>**and Total**<br>**2021**<br>**£**<br>**£**<br>96,695<br>330,885<br>96,695<br>330,885|**Total**<br>**Funds**<br>**2021**<br>166,764<br>34,255<br>2,500<br>12,041<br>22|
|---|---|---|---|
||||215,582|
|||||
|||96,695<br>330,885||



17 



## **Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 4. **Activities for generating funds** 

|**ctivities for generating funds**|||
|---|---|---|
||**2022**|**2021**|
|The analysis of activities for generating funds for the year is as|**£**|**£**|
|follows:|||
|Core foundation funding|-|-|
||-|-|



## 5 **.     Charitable activities expenditure** 

||**-------------- 2022 --------------**|**-------------- 2022 --------------**|**-------------- 2022 --------------**|**------------ 2021 --------------**|**------------ 2021 --------------**|**------------ 2021 --------------**|
|---|---|---|---|---|---|---|
||**Direct**|**Project**|**Total**|**Direct**|**Project**|**Total**|
||**Costs**|**Support**|**2022**|**Costs**|**Support**|**2021**|
|||**Costs**|||**Costs**||
||£|£|**£**|£|£|**£**|
|Future-Fit Benchmark|-||**-**|7,545||**7,545**|
|Impact Valuation Project II|37,118||**37,118**|36,909||**36,909**|
|FF and the UNGC|-||**-**|15,886||**15,886**|
|CJRS|474||**474**|12,041||**12,041**|
|Swiss Philanthropy|47,928||**47,928**|118,836||**118,836**|
|Project Support Costs||334,583|**334,583**||550,381|**550,381**|
||85,520|334,583|**420,103**|191,217|550,381|**741,598**|



Included in Project Support costs are legal fees of £13 (2021: £2,736). 

|Net Income/(Expenditure) is stated after charging<br>Independent examination fee|**2022**<br>**2021**<br>**£**<br>**£**|
|---|---|
||4,480<br>2,730|



18 



## **Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 6. **Staff and Related costs** 

|Wages and Salaries<br>Social Security Costs<br>Pension Costs<br>The average number of employees during the year was:|**2022**<br>**2021**<br>£<br>£<br>317,106<br>542,653<br>37,239<br>60,431<br>5,168<br>12,071|
|---|---|
||359,513<br>615,155|
||No<br>6<br>13|



The remuneration of Senior Management amounted to £142,672 (2021: £133,100). One employee received emoluments of more than £60,000 (2021: three ). The number of employees whose emoluments fell within the following bands were: 

**2022           2021** 60,001 -  70,000                                                                            -                 1 – 70,001 80,000                                                                               -              1 – 80,001 90,000                                                                              1               - 

## **Trustees Remuneration and Benefits** 

One trustee received £19,000 representing invoices raised through The Blended Capital Group. 

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year. 

19 



## **Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 7. **Fixed Assets – Charity and Group** 

|**Cost:**<br>At 1stAugust 2021<br>Additions<br>Disposals<br>At 31stJuly 2022<br>**Depreciation:**<br>At 1stAugust 2021<br>Charge for the period<br>Charge on disposal<br>At 31stJuly 2022<br>**Net Book Value:**<br>31stJuly 2022<br>31stJuly 2021|**Equipment**<br>£<br>20,138<br>-<br>(11,448)|
|---|---|
||8,690|
||15,097<br>1,634<br>(9,130)|
||7,601|
||1,089|
||5,041|



## 8. **Investments** 

|Investment in subsidiary (Note 15)|**Charity**<br>**Group**<br>**Charity**<br>**Group**<br>**2022**<br>**2022**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>1<br>-<br>1<br>-|
|---|---|
||1<br>-<br>1<br>-|



## 9. **Debtors** 

|**btors**||
|---|---|
|Trade debtors<br>Other debtors<br>VAT<br>Inter-company balance<br>Prepayments|**Charity**<br>**Group**<br>**Charity**<br>**Group**<br>**2022**<br>**2022**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>7,817<br>-<br>2,500<br>150<br>-<br>1,500<br>1,500<br>-<br>-<br>1,169<br>1,379<br>-<br>-<br>62,050<br>-<br>790<br>912<br>946<br>1,146|
||940<br>8,729<br>65,665<br>6,525|



20 



## **Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 10. **Creditors:  Amounts falling due within one year** 

|**editors:  Amounts falling due**<br>**within one year**||
|---|---|
|Deferred income<br>Other Creditors<br>Taxation and Social Security<br>Inter-company<br>VAT<br>Accruals|**Charity**<br>**Group**<br>**Charity**<br>**Group**<br>**2022**<br>**2022**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>10,189<br>27,682<br>66,267<br>2,712<br>4,184<br>1,158<br>1,314<br>-<br>-<br>16,209<br>16,209<br>1,133<br>-<br>-<br>-<br>-<br>167<br>-<br>-<br>1,912<br>3,178<br>1,885<br>3,198|
||5,757<br>17,718<br>46,934<br>86,988|



## 11. **Restricted funds – Charity and Group** 

|Shell Foundation Emergency Fund<br>CJRS<br>Swiss Philanthropy Foundation<br>**COMPARATIVE 2021**<br>Future-Fit Business Benchmark<br>Impact Valuation Project II<br>FF and the UNGC<br>CJRS<br>Swiss Philanthropy Foundation|**Balance**<br>**1/8/21**<br>**Incoming**<br>**Resources**<br>**Resources**<br>**Expended**<br>**Balance**<br>**31/7/22**<br>£<br>£<br>£<br>£<br>-<br>47,307<br>(37,118)<br>10,189<br>-<br>475<br>(475)<br>-<br>47,928<br>-<br>(47,928)<br>-|
|---|---|
||47,928<br>47,782<br>(85,521)<br>10,189|
||**Balance**<br>**1/8/20**<br>**Incoming**<br>**Resources**<br>**Resources**<br>**Expended**<br>**Balance**<br>**31/7/21**<br>£<br>£<br>£<br>£<br>7,545<br>-<br>(7,545)<br>-<br>2,654<br>34,255<br>(36,909)<br>-<br>15,886<br>-<br>(15,886)<br>-<br>-<br>12,041<br>(12,041)<br>-<br>-<br>166,764<br>(118,836)<br>47,928|
||26,085<br>213,060<br>(191,217)<br>47,928|



Restricted funds represent the grant awarded from Shell Foundation which provides funding of the essential administration costs to ensure the Charity remains functioning whilst it is in the process of restarting revenue generating operations. 

21 



## **Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 12. **Unrestricted funds** 

|Charity General Reserve<br>Subsidiary General Reserve<br>Consolidated General Reserve|**Balance**<br>**1/8/21**<br>£<br>130,226<br>(89,759)<br>40,467|**Net**<br>**Outgoing**<br>**Resources**<br>£<br>(139,102)<br>89,043<br>(50,059)|**Balance**<br>**31/7/22**<br>£<br>(8,876)<br>(716)|
|---|---|---|---|
||||(9,592)|



|**COMPARATIVE 2021**<br>Charity General Reserve<br>Subsidiary General Reserve<br>Consolidated General Reserve|**Balance**<br>**1/8/20**<br>£<br>233,033<br>(47,434)<br>185,599|**Net**<br>**Incoming**<br>**Resources**<br>£<br>(102,807)<br>(42,325)<br>(145,132)|**Balance**<br>**31/7/21**<br>£<br>130,226<br>(89,759)|
|---|---|---|---|
||||40,467|



## 13. **Analysis of net assets between funds** 

|Tangible Fixed Assets<br>Net Current Assets<br>**COMPARATIVE 2021**<br>Tangible Fixed Assets<br>Net Current Assets|**Restricted**<br>£<br>-<br>10,189<br>10,189<br>**Restricted**<br>£<br>-<br>47,928<br>47,928|**Un-**<br>**Restricted**<br>£<br>1,089<br>(10,681)<br>(9,592)<br>**Un-**<br>**Restricted**<br>£<br>5,041<br>35,426<br>40,467|**Total**<br>£<br>1,089<br>(492)|
|---|---|---|---|
||||597|
||||**Total**<br>£<br>5,041<br>83,354|
||||88,395|



## 14. **Related Party Transactions** 

There were no related party transactions during the year. 

22 



**Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 15. **Trading subsidiary** 

Future-Fit Ltd was incorporated in the UK as a wholly owned subsidiary of the Future-Fit Foundation, on 30 August 2018 (Company number 11542791), with an issued share capital of £1. The company started trading in February 2019. 

Future-Fit Ltd summary results for the year ended 31 July 2022 were as follows: 

|Turnover<br>Cost of Sales<br>**Gross (Loss)/Profit**<br>Administrative Expenses<br>**Operating (Loss)/Profit**<br>Interest<br>**Profit/(loss) before Taxation**<br>Gift Aid<br>**Profit/(Loss) for the financial year**<br>**Current assets**<br>Liabilities<br>**Capital and Reserves**<br>Called up share capital<br>Retained earnings<br>**Net Assets**<br>**The following are the inter-company transactions**<br>**during the year and balances held at the year end.**<br>Balance due to Future-Fit Foundation<br>Future-Fit Foundation income entitlement during the year|**2022**<br>£<br>144,794<br>(52,558)<br>92,236<br>(3,193)<br>89,043<br>-<br>89,043<br>-<br>89,043<br>12,383<br>(13,100)<br>(717)<br>1<br>(717)<br>(716)<br>(1,133)<br>55,558|**2021**<br>£<br>71,816<br>(105,681)|
|---|---|---|
|||(33,865)<br>(8,460)|
|||(42,325)<br>-|
|||(42,325)<br>-|
|||(42,325)|
|||12,346|
|||(102,104)|
|||(89,758)<br>1<br>(89,759)|
|||(89,759)|
|||62,050<br>105,681|



23 



## **Future-Fit Foundation** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2022** 

## 16. **Consolidated Prior Year Comparatives** 

The breakdown between funds of income and expenditure for the year ending 31[st] July 2021 was as follows: 

|**INCOME FROM:**<br>Grants and donations<br> Charitable Activities<br>Other income<br>**Total Income**<br>**EXPENDITURE ON:**<br>Raising Funds<br> Charitable Activities<br>**Total Resources Expended**<br>**Net income/(expenditure) for the year**<br>**Total funds brought forward**<br>**Total funds carried forward**|**Unrestricted**<br>**Funds**<br>£<br>2,522<br>330,885<br>71,842<br>405,249<br>-<br>550,381<br>550,381<br>(145,132)<br>185,599<br>40,467|**Restricted**<br>**Funds**<br>£<br>213,060<br>-<br>-<br>213,060<br>-<br>191,217<br>191,217<br>21,843<br>26,085<br>47,928|**Total**<br>**2021**<br>£<br>215,582<br>330,885<br>71,842|
|---|---|---|---|
||||618,309|
||||-<br>741,598|
||||741,598|
||||(123,289)<br>211,684|
||||88,395|



24 



## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF FUTURE- FIT FOUNDATION (‘the Group ’ ) FOR THE YEAR ENDED 31 JULY 2022** 

I report to the charity trustees on my examination of the consolidated accounts of the Group comprising the Future-Fit Foundation (‘the Charitable Company ’) and its subsidiary undertaking for the year ended 31 July 2022. 

## **Responsibilities and basis of report** 

As the trustees of the Charitable Company (and also its directors for the purposes of company law) you are responsible for the preparation of the consolidated accounts of the Group in accordance with the requirements of  the Charities Act 2011 (‘the 2011 Act’) and Companies Act 2006 (‘the 2006 Act’) and you have chosen to prepare consolidated accounts for the Group. You are satisfied that the accounts of both the Charitable Company and the Group are not required by charity or company law to be audited and have chosen instead to have an independent examination. 

Having satisfied myself that the accounts of the Charitable Company are not required to be audited under Part 16 of the Companies Act and are eligible for independent examination, I report in respect of my examination of the consolidated accounts.  I have carried out my examination under section 145 of the 2011 Act.  In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act. 

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the consolidated accounts present a ‘true and fair’ view a nd my report is limited to those specific matters set out in the independent examiner’s statement. 

## **Independent examiner’s statement** 

Since the Charitable Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies. 

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

1. accounting records with respect to the Charitable Company and its subsidiary undertaking were not kept as required by section 386 of the 2006 Act; or 

2. the accounts do not accord with those records; or 

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view” which is not a matter considered as part of an independent examination; or 

4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 

Shoaib Arshad Knox Cropper LLP Chartered Accountants 65 Leadenhall Street London EC3A 2AD 

> Date: 20 April 2023 

25