REGISTERED COMPANY NUMBER: 08608656 (England and Wales) REGISTERED CHARITY NUMBER.. 1154245 Report of the Trustees and Consolidated Unaudited Financial Statements for the Year Ended 31 July 2024 for Future-Fit Foundation (Llmited by Guarantee) Thickbroom Coventry Limited Chartered Accountants 147a High Street Waltham Cross EN8 7AP
Future-Fit Foundation Contents of the Financial Statements for the Year Ended 31 July 2024 Page Report of the Trustees Independent Examiner's Report Consolidated Statement of Financial Activities Consolidated Balance Sheet 9 to 10 Consolidated Cash Flow Statement Notes to the Consolidated Cash Flow Statement 12 Notes to the Consolidated Flnancial Statements 13 to 17
Future-Fit Foundation Report of the Trustees for the Year Ended 31 July 2024 The trustees who are also directors of the charity for the purposes of the Companies Act 2006. present their report with the financial statements of the charity for the year ended 31 July 2024. The trustees have adopted the provisions of 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) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims 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., 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 Ihe 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 promole 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 present without compromising the ability of future generations to meet their own needs. The principal aim of the charity is to develop, steward and promote global, open-source, scientifically rigorous, fulure-focused frameworks which identify the extra-financial break-even 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 lo be extended to measure the future-fitness of households, cities and countries. The main objectives of the charity during the year covered by the annual report were: a) To develop a long-lerm 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 continue the development of the global Future-Fit community. Significant activities The strategy for achieving the objectives and the principal activities undertaken during the year.. This was the first full year of operations since relaunching the organisation post-pandemic in Q4 2022 and represented a transitional year as the organisation sought to establish a solid platform on which to build going forward. The primary activily was relaunching the community programs (Changemakers, Accredited Advisors and System Changers) to act as a source of revenue and create ongoing momentum around the Future-Fit methodology, thereby enabling the pursuit of the other objectives. This approach has worked well and the organisation ended this period with a strong pipeline of opportunities for the year ahead. Public benefit The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. Page 1
Future-Fit Foundation Report of the Trustees for the Year Ended 31 July 2024 OBJECTIVES AND ACTIVITIES Work of individuals working in and with the charity The charity is led on a day-to-day basis by Martin Rich (Chief Executive Officer) reporting lo the board. The charity employs one olher full-time member, Alisa Smirnova. Jahangir Kaba (former Finance Director) continued to oversee financial and reporting matters paid on an as-needs basis until retirement in April 2024. His services were subsequently outsourced to Thickbroorn Chartered Accountants at favourable rates. Page 2
Future-Fit Foundation Report of the Trustees for the Year Ended 31 July 2024 ACHIEVEMENT AND PERFORMANCE Charitable activities 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 lo enable the charity to carry out its aim and work. The charity sought additional grant funding from a range of philanthropic sources, but unfortunately the market remains extremely difficult for finding new sources of support. Nonetheless, whilst no grants were secured during this period, two substantial grants were secured early in the next financial period and these will provide sufficient resources to keep the organisation moving forward. Recognising the difficulty and inconsistency of grants, the charity also focused on developing a range of diverse, repeat income streams. Primarily, this meant building the revenue from the Accredited Advisor and System Changer membership programs. Additionally, new potential revenue streams were identified through the creation of 'Local Chapters,, namely self-funding, semi-autonomous country-based communities of Future-Fit users which pay an annual membership fee to the charity. This concept was positively received and the first chapters are anticipated to launch around the end of 2024. Finally, the opportunity to develop a Software-as-a-service offering to sell lo businesses adopting the Future-Fit methodology was explored. The market response was very positive and a range of approaches was tested, based on different funding and development pathways. This concept will continue to be developed in the year ahead. 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 lo maintain a sustainable planet on which humanity and other life can flourish on Earth forever. The benchmark consists of a sel of 23 Break-Even Goals, each with a corresponding progress indicator, that businesses must achieve to reach social and environmental break-even - that is, become fully "Future-Fit" It also incorporates a set of 24 Positive Pursuits - categories of actions that businesses can lake to restore past damage to the system conditions and help others make progress toward future-fitness. Further developrnent 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 inlegrated 'learning hub, whereby all the guidance is available as one easily accessible resource (https=//benchmark.fulurefitbusiness.org). All other tools and resources can accessed for free {https'.Ilwww.futurefit.community/spaces193149081feed). through the charity's Changemaker Community c) To continue the development of the global Future-Fit community The charity's three programs grew strongly during the period: -The online Changemaker community grew from c.800 members to c.1,350 by the end of July 2024. -The Accredited Advisor program for consultants grew to c.20 members. -The System Changer program (previously known as the Pioneer program} introduced three stages Engaged, Embedded, and System Changer - representing incrementally greater usage of the Future-Fil methodology. By the end of the period c.25 companies were formally part of the program, with many more considering membership. The Fulure-Fit Asia-Pacific Alliance continues to grow and meets monthly online to share progress and support. This alliance has spawned the first potential Future-Fit Local Chapters in Australia, New Zealand and Singapore. In addition, conversations are developing to launch Local Chapters across Europe, as well as in Brazil, China, India, Japan and the Middle East. Page 3
Future-Fit Foundation Report of the Trustees for the Year Ended 31 July 2024 ACHIEVEMENT AND PERFORMANCE Investment performance No new grants were received in the year, but significant grant funding was secured early in the next financial period. The charity has earned c.£45k of income from a range of sources, primarily from membership program fees. The charity is grateful to receive significant in-kind support from Baker & M¢Kenzie. Other information relevanl to the understanding of the charity's activities and achievements. Readers are advised to visit ww.futurefitbusiness.or and achievements. for a full understanding of the charity's activities, objectives FINANCIAL REVIEW Financial position Grant income secured at the end of the previous financial year provided the resources to start building a regular flow of repeat membership income and lo develop a clear strategy for growth. Earned income of c.£45k fell compared to the previous financial year, but represents repeat income from a wide variety of parties rather than one-off income from a single business. No new grant income was received during the period, but two significant grants were secured early in the next financial period (see post reporting update). The charity therefore finished Ihe year in a positive financial position, with good visibility of ongoing income and a very positive outlook for the next twelve months. Principal funding sources The c.£45k of earned income came primarily from membership fees for the Accredited Advisor and System Changer programs. Community program and related income increased steadily over the period as awareness of the relaunched schemes grew, with previous mernbers re-engaging and new members joining. The charity's principal expenditure during this period was on salaries, tax and National Insurance for the team's work delivering the above work. The other main items of expenditure relate to travel, IT and website costs. The team continued with a combination of working from home and in office space kindly provided for free by a variety of organisations. Investment policy and objectives The charity currently maintains a modest balance of funds, all of which are held with CAF bank. As all 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 line with the charity's objects. Page 4
Future-Fit Foundation Report of the Trustees for the Year Ended 31 July 2024 FINANCIAL REVIEW Reserves policy The trustees have agreed to try and holdlhave available a minimum of three months reserves. As of the end of the reporting period, the charity had modest ongoing expenditure and hence is in alignment with this policy. The total unrestricted reserves at the year-end amounted to (£13). Funds in deficit The charity had no deficit at the end of the year and does not anticipate future deficits. Post-reporting period update A grant of £50,000 was received in September 2024 from a corporate mernber of the 10/0 for the Planet initiative. A further grant of c.£200,000 is expected from the same donor in Q12025. Together these provide a solid base for al least the next twelve months, enabling modest growth of the team and further development of the organisation's plans for long-term sustainability. FUTURE PLANS The charity has two primary objectives for the year 2024125. Firstly, it will continue to grow the global community of Future-Fit users. This will increase the organisation's impact, as well as secure greater income through membership fees and opportunities to work with partner organisations. The role of Local Chapters to grow place- based communities will be explored as part of this. Secondly, the charity will seek to secure sufficient funding to restart development of the Future-Fit Benchmark methodology, ensuring it remains fully up to date and as accessible and usable as possible. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document Fulure-Fil Foundation is governed by Memorandum and Articles dated 15th July 2013 and was granted charitable status on 17th October 2013. Recruitment and appointment of 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 whole contains sustainable development, business, investment and charitable expertise. Organisatlonal structure Future-Fit Foundation is a registered company and registered charity. The trustees of the charity are also the members and directors of the company. Induction and trainlng of new trustees 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. They must also complete a Fit and Proper Persons Declaration, a Declaralion of Interests and sign a Code of Conduct. Related parties Future-Fit Foundation does not have any relationships with related parties. Risk management The trustees have identified the major risks to Future-Fit Foundation and systems and controls are in place to manage those risks. Page 5
Future-Fit Foundation Report of the Trustees for the Year Ended 31 July 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT As of 22nd July 2015. the Charity Commission granted 3D Investment Foundation permission to use the name Future-Fit Foundation. As of 5th December 2017, the charity changed its legal name to Future-Fil Foundation. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 08608656 (England and Wales) Registered Charity number 1154245 Registered office 147a High Street Clo Thickbroom Coventry Ltd Waltham Cross EN8 7AP Trustees Ms L Attenborough Company Director Mr P Clements-Hunt Company Director Mr C Fergusson Hr Director Ms C Harris Recruitrnent Consultant Ms R M Sandby-Thomas Lawyer (resigned 3111212023) Mr R R Threlfall Management ConsLJltant (appointed 181612024) Mr B Willard Consultant (resigned 3111212023) Independent Examiner Thickbroom Coventry Limited Chartered Accountants 147a High Street Waltham Cross EN8 7AP Approved by order of the board of Irustees on 0810412025 and signed on its behalf by.. Mr P Clements-Hunt - Trustee Page 6
Independent Examiner's Report to the Trustees of Future-Fit Foundation Independent examiner's report to the trustees of Future-Fit Foundation ('the Company,) I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2024. Responsibilities and basis of report As the charity's truslees of the Company (and also its directors for the purposes of company law} you are responsible for the preparation of the accounts in accordance with the requirernents of the Companies Act 2006 {'the 2006 Acl,). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(51 {b) of the 2011 Act. Independent examlner's statement 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.. accounting records were not kept in respecl of the Company as required by Section 386 of the 2006 Act. or the accounts do not accord with those records. or 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 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 Éhe 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 lo enable a proper understanding of the accounts to be reached. Robert Boulton FCA Thickbroom Coventry Limited Chartered Accountants 147a High Street Waltham Cross EN8 7AP Date: L AL12J" Page 7
Future-Fit Foundation Consolidated Statement of Financial Activities for the Year Ended 31 July 2024 2024 Total funds 2023 Total funds Unrestricted fund Restricted funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Investment income Other income 50,242 82,038 26 443 45,306 56 179 45,306 56 179 Total 45,541 45,541 132,749 EXPENDITURE ON Charitable activities Charitable expenditure 76,131 2,038 78,169 94,617 NET INCOMEI(EXPENDITURE) (30,590) (2,038> (32,628) 38,132 RECONCILIATION OF FUNDS Total funds brought forward 30,577 8,152 38,729 597 TOTAL FUNDS CARRIED FORWARD 13) 6,114 6,101 38,729 The notes form part of these financial statements Page 8
Future-Fit Foundation Consolidated Balance Sheet 31 July 2024 2024 2023 Charity Charity Group Group Notes FIXED ASSETS Tangible assets Investments 112 112 113 112 CURRENT ASSETS Debtors Cash at bank 8,866 6,589 2,002 15,742 2,406 54,607 2,503 55,918 15,455 17,744 57,013 58,421 CREDITORS Amounts falling due within one year {4,079) (11,643) (17,086> (19,804) NET CURRENT ASSETS 11,376 6,101 39,927 38,617 NET ASSETS 11,377 6,101 40,040 38,729 FUNDS ReslriGted funds Unrestricted funds 6,114 5,263 6,114 13} 8,152 31,888 8,152 30,577 NET ASSETS 11,377 6,101 40.040 38,729 The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2024. The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2024 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of ils surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to Ihe charitable company. (b) The notes form part of these financial statements Page 9 continued...
Future-Fit Foundation Consolidated Balance Sheet - continued 31 July 2024 These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regirne. The financial statements were approved by the Board of Trustees and authorised for issue on .0.81.0.412.025....................... and were signed on its behalf by: Mr P Clements-Hunt - Trustee The notes form part of these financial statements Page 10
Future-Fit Foundation Consolidated Cash Flow Statement for the Year Ended 31 July 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations 40,523) 47,338 Net cash (used in)Iprovided by operating activities 40,523) 47,338 Cash flows from investing activities Sale of tangible fixed assets Interest received 291 56 57 26 Net cash provided by investing activities 347 83 Change in cash and cash equlvalents in the reporting period Cash and cash equivalents at the beginning of the reporting period (40,176) 47,421 55,918 8,497 Cash and cash equivalents at the end of the reporting period 15,742 55,918 The notes form part of these financial statements Page11
Future-Fit Foundation Notes to the Consolidated Cash Flow Statement for the Year Ended 31 July 2024 RECONCILIATION OF NET {EXPENDITURE)IINCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net (expenditure)lincome for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Profit on disposal of fixed assets Interest received Decreasel(increase) in debtors (Decrease)lincrease in creditors (32,628) 38,132 920 (179) (56) 501 8,161) (26) 6,226 2,086 Net cash (used in)Iprovided by operations 40,523) 47,338 The notes form part of these financial statements Page 12
Future-Fit Foundation Notes to the Consolidated Financial Statements for the Year Ended 31 July 2024 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities 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) (effective 1 January 2019}', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at markel value. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Tangible fixed assets Depreciation is provided al the following annual rates in order to write off each asset over its estimated useful life. Computer equipment- 33 % on cost Taxation The charity is exempt from corporation tax on its charitable activities. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charily. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. The notes form part of these financial statements Page 13
Future-Fit Foundation Notes to the Consolidated Financial Statements - continued for the Year Ended 31 July 2024 INVESTMENT INCOME 2024 2023 I nterest receivable trading 56 26 NET INCOMEI(EXPENDITURE) Net incomel(expenditure} is stated after chargingl(crediting): 2024 2023 Depreciation - owned assets Surplus on disposal of fixed assets 920 STAFF AND RELATED COSTS The average number of employees during the year was: Trustees Remuneration and Beneflts 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 or the previous year. TANGIBLE FIXED ASSETS - Charity and Group Computer equipment COST At 1 August 2023 Disposals 7,672 5,2071 At 31 July 2024 2,465 DEPRECIATION At 1 August 2023 Eliminated on disposal 7,560 5,095) At 31 July 2024 2,465 NET BOOK VALUE At 31 July 2024 At 31 July 2023 112 The notes form part of these financial statements Page 14
Future-Fit Foundation Notes to the Consolidated Financial Statements - continued for the Year Ended 31 July 2024 FIXED ASSET INVESTMENTS Shares in group undertakings MARKET VALUE At 1 August 2023 and 31 July 2024 NET BOOK VALUE At 31 July 2024 At 31 July 2023 There were no investment assets outside the UK. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Charity 2024 Group 2024 Charity 2023 Group 2023 Trade debtors VAT Inter-company balance Prepayments 1,896 106 1,500 372 1,500 469 106 8,760 534 534 8,866 2,002 2,406 2,503 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Charity 2024 Group 2024 Charity 2023 Group 2023 Deferred income Trade creditors Olher creditors Taxation and social security Inter-company balance VAT Accruals 6,114 120 8,152 120 2,669 3,912 8,468 4,253 3,912 1,979 1,979 1,980 3,430 2,037 3,487 4,079 11,643 17,086 19,804 The notes form part of Ihese financial statements Page 15
Future-Fit Foundation Notes to the Consolidated Financial Statements - continued for the Year Ended 31 July 2024 MOVEMENT IN FUNDS Net movement in funds At 3117124 At 118123 Unrestricted funds General fund 30,577 (30,590) (13) Restricted funds Shell Foundation Emergency Fund 8,152 (2,038) 6,114 TOTAL FUNDS 38,729 32,628) 6,101 Net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund 45,541 (76,131) (30,590) Restricted funds Shell Foundation Emergency Fund (2,038) (2,038} TOTAL FUNDS 45,541 78,1691 32,6281 The notes form part of these financial statements Page 16
Future-Fit Foundation Notes to the Consolidated Financial Statements - continued for the Year Ended 31 July 2024 10. MOVEMENT IN FUNDS- continued Comparatives for movement in funds Net movement in funds At 3117123 At 118122 Unrestricted funds General fund (9,592) 40,169 30,577 Restricted funds Shell Foundation Emergency Fund 10,189 {2,037) 8,152 TOTAL FUNDS 597 38,132 38,729 11. RELATED PARTY DISCLOSURES There were no related party transactions for the year ended 31 July 2024 The notes form part of these financial statements Page 17