**REGISTERED COMPANY NUMBER: 06975984 (England and Wales) REGISTERED CHARITY NUMBER: 1158683** 

**REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **FOR** 

**FULL FACT** 

**(A COMPANY LIMITED BY GUARANTEE)** 




## **FULL FACT** 

## **CONTENTS** 

|||**Page**||
|---|---|---|---|
|**Reference and Administrative Details**||3||
|**Report of the Trustees**|4|to|13|
|**Report**|14|to|16|
|**Consolidated Statement of Financial Activities**||17||
|**Consolidated Balance Sheet**||18||
|**Charity Balance Sheet**||19||
|**Consolidated Statement of Cashflow**||20||
|**Notes to the Consolidated Statement of Cashflow**||21||
|**Notes to the Consolidated Financial Statements**|22|to|34|





## **FULL FACT** 

## **REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2023** 

**Registered Company number** 06975984 (England and Wales) 

**Registered Charity number** 1158683 

## **Registered office** 

17 Oval Way London SE11 5RR 

**Auditors** MHA 6[th] Floor, 2 London Wall Place London EC2Y 5AU 

## **Bankers** 

Charities Aid Foundation 25 Kings Hill Avenue Kent ME19 4TA 

**Trustees** 

The Hon. M J Samuel (Chair) Ms A Cook Mr T Gordon Mr J P Harding Lord R Inglewood Professor A Menon Baroness J Royall Mr W M J De Winton resigned on 4 July 2023 Ms A M Cox Ms C H Melamed Ms C Wardle 

**Chief Executive** Mr W Moy resigned 1 June 2023 Mr A Dudfield (interim) served 1 June 2023 15 October 2023 Mr C Morris appointed 16 October 2023 

**Company Secretary** Ms C Ross 

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## **FULL FACT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the consolidated financial statements of the charity for the year ended 31 December 2023. 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). 

## **OBJECTIVES AND ACTIVITIES** 

## **Objectives and aims** 

Full Fact's charitable objectives, as registered with the Charity Commission, are as follows - 

The advancement of public education in the fields of crime, health, immigration, economy, education, environment and social welfare, through education, research and training, to promote and advance public understanding and inform public debate in those fields and in particular by making available to the public, through a process of objective, impartial research and rigorous factual analysis, full, accurate and relevant information to assist such public understanding and to inform and improve the quality of public debate. 

The promotion of citizenship and civic responsibility including by encouraging and facilitating informed participation and engagement by members of the public in their communities, promoting high standards of informed public debate and the provision of Public Interest Content by exclusively charitable means. 

unreliable information. 

necessary and disseminated to the public online or by other means according to high standards of ethical conduct and best practice in journalism and which provides one or more of the following benefits to the public: 

- informs members of the public about matters of relevance to their role and responsibilities as citizens, enables members of local communities to become aware of and understand matters of common concern to them as members of their community and which promotes their involvement and cooperation in such matters and community cohesion accordingly, 

- enables members of the public to participate in an informed manner in relevant democratic processes and, as a result, supports the legitimacy of the democratic process as a whole, 

- benefits the public by promoting charitable educational outcomes, such as improving public understanding of health and medical matters or the conservation of the environment 

Such purposes shall in all respects and at all times be construed and promoted: 

(a) in an impartial, objective, balanced, and independent manner observing strict political neutrality and, to the extent that such principles may be applied to such purposes, consistent with the principles enunciated in the Code of Practice for Official Statistics; 

(b) exclusively for the benefit of the public and in accordance with the law relating to charity in England and Wales. 

## **Strategies and activities** 

In the short term, we fact check, which has three benefits: informing public debate by giving people reliable information to make up their own minds on issues in public debate; encouraging participants in public debate to provide full and accurate information; and building an evidence base about how specific unsubstantiated claims arise and are spread. 

Then, when we see specific unsubstantiated claims we seek to get those claims corrected at source to reduce the level of repetition of the claim and any harm that results from it. Our work has led to corrections from a Prime Minister, national newspapers, and many others, improving the quality of public debate. 

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## **FULL FACT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

In the medium term, we use the evidence from our fact checking to diagnose systemic problems and get systemic changes such as improvements to press complaints procedures. For example, we've worked with official statistics providers and charities to improve the way they present their information when it has been persistently misinterpreted. 

In the long run, we believe it is important to advocate the value of high- quality, well- informed public debate and the roles we all have in maintaining that. 

In recent years, false and distorted information online has become increasingly important to Full Fact's mission, and increasingly prominent in public and policy debate. Full Fact's response to that includes four areas of work: content, technology, research, and policy. This will continue to be an important concern for our work. 

Full Fact has been a world leader in automated fact checking, which we believe has the potential to make fact checking dramatically more effective. We have built scalable, robust software designed to be used by fact checkers and good information focused organisations, to save time, money and effort in identifying the most important bad information to address. 

## **Public benefit** 

The charity's activities are for the advancement of the general public through education, research and training. This report details how it carries out impartial research and rigorous factual analysis, full, accurate and relevant information to assist such public understanding and to inform and improve the quality of public debate. 

The Trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. 

## **STRATEGIC REPORT** 

## **How Full Fact works** 

Full Fact fights bad information. We're independent fact checkers and campaigners who find, expose and counter the harm it does. 

We don't treat bad information as one big insoluble problem. Fact checking specific claims every day shows it for what it really is: many different problems, many of which we can solve or improve. There are pinch points in the flow of information, moments when changing a few people's minds, an algorithm, or a system can help better information serve millions. Fact checking helps us find them. 

Full Fact fights the causes and consequences of bad information in four ways: 





## **ACHIEVEMENTS AND PERFORMANCE** 

The demand for Full Fact's work in 2023 was exceptional: 

- **5.3 million users accessed our website** , via public actions and the **776 fact checks** we published on topics. including immigration, the environment, the NHS, and the economy. 

- **2,300** appearances and mentions in the media. 

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**FULL FACT** 

**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

- Over **50,000** people pushed for systems change by demanding honesty from our politicians. 

- **130** false claims were corrected by leading politicians, major broadcasters and newspapers, and many others to increase standards in public debate. 

- Our tools were used by more than **160 fact checkers** around the world in **nine countries** including DRC, Liberia and Nigeria. 

- Over **300 statements of misinformation** were automatically identified by our powerful AI tools. 

- **4,103 individuals donated** to Full Fact 

## **Change of leadership** 

October.  Chris is a prominent expert in the world of fact checking, with a deep understanding of and commitment to impartiality. 

He hit the ground running by giving evidence in front of the Public Administration and Constitutional Affairs Committee, representing Full Fact at events and using his decades of broadcast experience to talk about our work in interviews and podcasts. 

Chris was previously with the BBC, where he founded Reality Check, the fact checking service run by the broadcaster. During his tenure, Chris covered two general elections, post-Brexit politics, the US Presidential election, the Covid-19 pandemic, and other major news events including the Cop-26 summit. Before Reality Check, Chris spent more than two decades as a senior correspondent covering global news from around the world. 

## **Systems change** 

In 2023 we have achieved remarkable advocacy results. First, after years of our campaigning, MPs voted to fix the parliamentary corrections system.[1] This means that now all MPs will be able to correct the official record, and not just ministers as was previously the case. In addition, everyone will be able to see when MPs correct the record on an easily accessible corrections page. This is a major victory for Full Fact. 

Second, after a two-year campaign, and many legislative delays, the Online Safety Bill received Royal Assent in October. Following our policy pressure and work alongside allies in Parliament, in July the government finally listened to our advice and introduced amendments to the Online Safety Bill to improve online media literacy.[2] This means s media literacy duty under the Communications Act 2003 now has new objectives relating specifically to social media platforms and search engines including a requirement to focus specifically on helping the public to understand how to better protect themselves and others from misinformation and disinformation. Whilst Full Fact is deeply treat harmful misinformation and disinformation, including reneging on a commitment to address health misinformation, if implemented effectively, the changes Full Fact secured will build the public's resilience to misinformation and equip us all with the skills needed to recognise and act on online harms. 

Alongside these successes, with the next general election on the horizon, we started campaigning to promote an honest election. Earlier this year, we published our report _Informed Citizens: Addressing bad information in a healthy democracy[3]_ , which called for urgent changes to address bad information in our democracy. Full Fact is now working to: 

- have manifestos be set out in ways that allow meaningful scrutiny of party pledges. 

- have advertising by political parties be honest and truthful, with commitments to have political advertising independently regulated. 

- reform electoral advertising. 

- end deceptive campaign practices by political parties. 

- have better electoral integrity protections, particularly in the online space. 

> 1 Major victory in Parliament, Full Fact, 25 October 2023. 

> 2 Full Fact campaign wins improved media literacy in the Online Safety Bill, Full Fact, 28 July 2023. 

> 3 Full Fact Report 2023: Informed citizens: Addressing bad information in a healthy democracy, Full Fact, March 2023. 

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## **FULL FACT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

In November, we launched a petition to stop deceptive campaign practices,[4] with nearly 11,000 people signing it, and wrote[5] to all party leaders calling on them to publicly pledge that they will run their campaigns for the next general election honestly and transparently so that everyone can make an informed decision when they vote on polling day. To date, four political parties have responded to us and pledged their agreement. 

## **Fact checking** 

_to find, expose and counter misinformation_ 

Our Editorial Team has continued to be on the frontline to monitor the public debate and identify the most harmful and impactful claims that confuse and let down the public. The ever produced, cover immigration, the economy and household budgets, the environment, and public services as prominent themes. Below we focus on two examples of inaccuracies spread by the major parties. 

In September, the Prime Minister pledged to scrap a series of environmental government policies such as the purported taxes on meat and flying, and compulsory car sharing.[6] Full Fact has seen no evidence that they were ever to prevent. If not corrected, these types of claims can undermine trust in politics and confuse the public. They can also be taken and used out of the original context, fuelling climate disinformation. 

Housing was also another debated topic, with inflation and higher interest rates affecting households income. In an interview with the Sunday Times ahead of the Labour Party conference, shadow chancellor Rachel Reeves MP reportedly told the newspaper that house building is at its lowest level since the Second World War.[7] However, this is not true according to the latest annual data. Current house-building figures show more houses are being built than a decade ago, though one industry projection had suggested house-building could hit a post-war low in the next few years if certain potential policy changes occur. 

## **Corrections and interventions** 

_to increase standards and hold influential people to account_ 

This year we secured 130 corrections from influential people, such as ministers, MPs and media outlets, and made 25 interventions beyond corrections. At Full Fact, we believe that fact checkers should also proactively follow up on claimants, sending them corrections requests to stop claims from spreading further. 

In October, Health Secretary Steve Barclay told MPs that there has been a 13% increase in the number of midwifery programme place starters since two years ago.[8] After an investigation from our fact checkers we found out that this figure  was not quite right as the 13% rise was actually an expected rise it was the increase anticipated in 2023/2024 compared to 2021/22. After publishing the fact check we contacted  the Department of Health and Social Care and a ministerial correction was made in Hansard. 

In November we secured corrections from two Labour MPs regarding a wrong claim picked up by several politicians, in future when referring to the size of NHS waiting lists she endeavours to differentiate between unique treatment 

These interventions came as a result of the health programme we started this year which focuses on health, and health policy, misinformation. In total, we wrote 171 health fact checks and secured 60 corrections, contributing to reducing the impact of health misinformation. 

> 4 Stop politicians from pretending to be your local newspaper, Full Fact, 10 November 2023 

> 5 

> 6 

> , Full Fact, 10 November 2022 

, Full Fact, 21 September 2023 

> 7 House building figures not at lowest level since the Second World War, Full Fact, 10 October 2023 

> 8 Health secretary to correct the record over maternity programme numbers, Full Fact, 3 November 2023 

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## **FULL FACT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **Countering online misinformation** 

_To reduce hate, confusion, and polarisation_ 

At Full Fact we also fact check harmful content circulating online on Facebook, Twitter and Instagram. In August we published a major investigation into hoax posts shared on buy/sell community groups on Facebook.[9] We first noticed the issue almost a year earlier when dozens of posts featuring reports of lost dogs, missing children, active serial killers and even snake infestations began to appear online. 

In total we identified more than 1,200 posts spread throughout more than 115 community groups. The posts are designed to spread fear and alarm or elicit an emotional response, meaning they are more likely to be shared. Our investigation revealed that many such posts are subsequently edited into financial or other offers. Because of the way Facebook works, edited posts keep any shares or likes they are awarded in their original versions, making the edited posts seem far more popular than they would otherwise be. 

Our investigation was picked up by many national media outlets including The Guardian, Mail Online and Sky News. We have sent the details of our investigation to Meta and we have also developed a guide[10] to help the public spot such hoax posts online. In addition, we passed our investigation to Ofcom's online fraud team. 

## **FINANCIAL REVIEW** 

## **Financial position** 

The consolidated income for 2023 was £2,643,646 versus income of £2,547,541 in 2022. Spending in 2023 was £2,784,418 up from £2,497,818 in 2022. This meant there was a deficit of £140,772 in 2023 compared to a surplus of £49,723 in 2022. 

Full Fact Services Ltd's income for 2023 was £421,251 (2022: £452,497). Trading expenditure in the year amounted to £349,288 (2022: £322,585) made up of salary recharges of £329,581 and other expenditure amounting to £19,707 leading to a trading profit of £73,235 (2022: £129,912). Gift Aid distributions were made to the Charity during the year totalling £129,912 (2022: £174,274) leading to a realised deficit of £56,677 (2022: £44,362). 

## **Reserves Policy** 

(£1,175,441) and up to 6 

months (£1,763,161) of projected 2024 running costs. At the end of 2023, total unrestricted reserves were £1,126,282 (2022: £1,287,919) which is equivalent to 3.8 months running costs and we expect reserves to return to 4 months and above in 2024. We aim for a minimum of 4 months reserves in order to: 

- allow for unforeseen emergencies or other unexpected needs (for example, costs relating to any legal proceedings). 

- allow the organisation time to seek other funding, should grant income not be renewed. 

- fund potential short-term deficits in cash flow (for example, should there be delays to funding being received and/or funds needing to be spent in advance). 

- finance winding down costs, for example redundancy payments to staff and office rent. 

We have set the maximum reserves level at six months, to give us sufficient opportunities for fundraising. 

## **Going concern** 

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. The Charity is continuously monitoring its expected income levels, operational targets are set in order to ensure the charity secures sufficient funding to fulfil its on-going obligations. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. 

## **Principal funding sources** 

Our aim in fundraising is to secure our independence and our ability to achieve our charitable objectives. We actively 

> 9 How hoax posts are swamping local Facebook groups, Full Fact, 24 August 2023 

> 10 Seven ways to spot if a Facebook post is a hoax, Full Fact, 31 August 2023 

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## **FULL FACT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

seek and receive a diverse range of funding and are transparent[11] about all our sources of income. In particular, we would like to thank the thousands of people who have supported our work. 

## **Fundraising** 

Full Fact's Trustees and staff are grateful to the many individuals and the wide range of organisations who donate to make our work possible. Full Fact complies with the regulatory standards for fundraising, and is not a member of the fundraising regulator yet. This report covers the requirements charities must follow as set out in the Charities Act 2016. 

Our approach is that donors are a crucial part of the extended Full Fact team and deserve to be treated with respect. That applies to potential donors too. We solicit donations from the public on our website and other online channels and send updates to our donors that we aim to ensure are useful and relevant. We engage with some donors, particularly those giving large amounts, directly and personally. We also fundraise from trusts and foundations, companies, and other funders. 

Every donor giving more than £5,000 a year is named on our website and we have turned down funding when necessary to maintain this level of transparency. Our donors understand that independence is essential to Full Fact's work and this governs our relationship with all our donors and potential donors. 

Full Fact does not employ third party fundraisers or employ the kinds of fundraising tactics that have given rise to public concern. We are not bound by any voluntary scheme for regulating fundraising but we will keep this under review as our fundraising work develops. 

Our website clearly explains how an individual can complain to Full Fact, about our fundraising or any other aspect of our work. We received no fundraising complaints in the 2023 financial year. Our complaints process dictates that all complaints are recorded on our contact management system and responded to within ten working days. 

## **Plans for future periods** 

The emphasis Full Fact places on honesty in public life never matters more than when there is a general election. It is the biggest opportunity we have to raise standards and insist on accuracy in public debate. 

The next election gives us a chance to break the cycle of dishonest choices being offered to the public. Political parties and candidates have been able to make false claims with no consequences, and use deceptive campaign tactics, for too long. 

Our plan for 2024 is about trying to change the rules of the game, which are largely driven by political parties and the media, and increasingly by internet companies. Millions of people will pay close attention to British politics in the run up to the election, and we are determined to show them that things can and should be better. 

We know there is a crisis of trust in politics, and a fear that misinformation is spinning out of control. The rapid emergence of generative AI will impact the election in significant ways. In response, Full Fact will continue to develop our own AI tools. And we will use our expertise to demonstrate that AI can be a force for good as well as a potential threat. 

For 2024, we have identified three areas of systems change, to focus our work and help keep public debate honest. 

## 1. Honest Corrections 

With backing from our supporters, Full Fact secured changes to the rules on correcting the record in the House of Commons. We will monitor implementation of these new rules, and continue to press for further action to be taken when MPs make misleading claims which they refuse to correct. 

We will also draw attention to the lack of sanctions on MPs making false or misleading claims outside parliament, and we will campaign for change. 

> 11 Full Fact Funding Page 

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## **FULL FACT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

## 2. Honest Parties 

We are focusing on: 

- Ending deceptive campaign practices: exposing deceptive campaign techniques such as party leaflets which look like local newspapers, and calling on all parties to agree to new rules to ban misleading formats. 

- Regulating political ads: pressing political parties to commit to independent regulation of political advertising in the next parliament, and only running adverts that meet high standards in the forthcoming election. 

- Introducing manifesto standards: calling on political parties to meet higher standards in the presentation of their policy commitments, and building a coalition to provide authoritative and userfriendly audits of manifestos. 

## 3. Online misinformation 

Now the Online Safety Act has become law, we will campaign for effective implementation of online regulation. This will include work on relevant priorities such as media literacy, and the creation of an effective Advisory Committee on Disinformation and Misinformation. 

We will also press for greater transparency from internet companies so that we understand the impacts of the choices they make. Health misinformation will be a priority in this effort. 

We will put forward the further changes in online safety legislation which we believe the next government and parliament should address, and we will highlight the inadequacies of platform policies on harmful misinformation. 

The Full Fact report 2024 sets out our vision for future periods: https://fullfact.org/policy/reports/full-fact-report2024/. 

## **FINANCIAL AND RISK MANAGEMENT OBJECTIVES AND POLICIES** 

## **Principal risks and uncertainties** 

s risk register noted its most high scoring risks in 2023 as: 

## **Financial Risks** 

If the charity works with organisations that fall into disrepute, its brand could be impacted making it possible that it may lose funders, or find it difficult to raise funds and influence stakeholders. 

The charity mitigates this risk by having careful choice of partners, particularly academic ones.  Ensuring all new partners are approved by Trustees, and communicating its independence clearly. 

## **Operational Risks** 

see an impact of productivity and retention.  There is also the risk of a personal injury claim if someone becomes incapacitated. 

The charity mitigates this risk by having clear plans, job definitions and outcomes for staff.  Monitoring workloads and developing staff policies and working with external organisations to support staff in need. 

If the charity loses or uses personal data inappropriately, due to human error, hacking or lack of expertise, it will be in 

The charity mitigates this risk by ensuring all staff have training on GDPR. 

## **External Risks** 

If the charity uses the wrong language or tone in what it publishes, due to errors in judgement, such as tonal bias, it may face serious criticism. 

The charity mitigates this risk having a complaints policy that focuses on maintaining standards, not satisfying complaints, and having the total body of its output assessed independently. 

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**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **FULL FACT** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Nature of governing document** 

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. 

Full Fact is a charitable company (no. 6975984) registered in England and Wales and limited by guarantee, incorporated on 29 July 2009 and registered as a charity (no. 1158683) on 17 September 2014. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. The company's members are its Trustees. The guarantee of each Trustee is limited to £10. 

Full Fact has a subsidiary company named Full Fact Services Ltd, company (no. 09541967) registered in England and Wales in which it owns 100% of the issued share capital. The Directors of the company are appointed by the Trustees. This company traded in 2023 and has been included within these financial statements.  The company had three main and the rest of the world; and sales of training for different organisations on data and fact checking. 

Full Fact and Full Fact Services Ltd are registered at 17 Oval Way, London, SE11 5RR. 

## **Recruitment and appointment of new Trustees** 

New Trustees are appointed by agreement of the existing Trustees. Our policy is to advertise vacancies openly. New Trustees are provided with an induction pack covering structure, strategy, finances, personnel, and procedures. 

The Trustees of Full Fact include Conservative, Labour, Liberal Democrat, and independent members of the House of Lords, as well as figures from outside of politics. The Trustees represent a wide range of opinions, and individual Trustees do not perform operational duties for the charity. 

## **Organisational structure** 

The Trustees meet four times a year, with a supplementary Finance and General Purposes Committee, which consists of Anna Cook (Chair), Hon. Michael Samuel and Tim Gordon, meeting four times a year as well. The Board reviews its own performance every three years and considers training needs as part of this. 

There are three other sub-groups, AI sub-group which meets four times a year, Fact Checking sub-group and Public Action sub-group which both meet three times a year. 

The day-to-day running of Full Fact, is the responsibility of the Chief Executive, Chris Morris (who replaced Will Moy in 2023), and the management team, which consists of COO Laura Dewis, Interim Head of Communications Phoebe Arnold (replacing Ross Haig in 2023), Head of AI Andrew Dudfield, Head of Fundraising Bronwen James (Louisa Johnson in 2023), Head of Policy & Advocacy Glen Tarman, and Editor Steve Nowottny. 

## **Arrangements for setting key management personnel remuneration** 

There are many things that attract staff to Full Fact and motivate them above and beyond salaries. But we know pay is an important factor in recruiting and retaining staff. Full Fact seeks to get value for our donors' money by hiring and retaining the right people for their jobs on appropriate terms. 

All salaries above £60,000 are approved by the Chair on behalf of the Board of Trustees. Individuals' pay and conditions reflect Full Fact's overall financial position, performance, benchmarking against comparable jobs elsewhere, their level of responsibility and progression over time within the organisation, and the need to ensure that pay is fair between staff. 

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**FULL FACT** 

**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

The Key Management Personnel in 2023 were CEO, COO, Head of Automated Fact Checking, Head of Fundraising, Head of Communications, Head of Policy & Advocacy and Editor. 

All Trustees give their time freely and no Trustee received remuneration in the year. Details of Trustees' expenses and related party transactions are disclosed in notes to the accounts. 

The charity's employees are all paid in accordance with the Remuneration Policy. The annual remuneration of all staff is decided by the People Operations Group (which consists of the CEO, COO, People Operations Manager and Senior Operations Manager) with the exception of when the CEO proposes to pay a senior salary (defined as over £60,000). This is subject to approval by the Chair on behalf of the Board of Trustees. The same applies to individual pay rises of more than 10%. 

An annual review of the existing pay scales is undertaken and a decision taken as to whether or not the charity implements an uplift. The salary of the Director is determined by the Board of Trustees or through the Finance and General Purpose Committee in accordance with the Remuneration Policy set out above. The financial performance and health of Full Fact remains the determining factor in any remuneration progression. 

## **Charity governance code** 

The Board hired an external consultant to conduct a board effectiveness review in 2022. Recommendations were made at the September board meeting with a decision to implement any changes agreed in 2023. 

The Board conducted a detailed review of Full Fact's governance at the end of 2017, in the light of the recent Charity Governance Code published 2017. This was followed up with annual reviews. We found that Full Fact's governance continues to be fundamentally sound and largely already meets the recommendations of the Code. We are satisfied that Full Fact achieves the outcomes set out under the Code's seven principles. 

We have reviewed each of the recommended practices and either taken steps to start to apply them, or chosen not to where the benefits were either not clear or not proportionate. Not all the specific recommendations applied or would have been proportionate for a charity like Full Fact which is relatively small, has no direct beneficiaries in the sense that a charity that principally provides services as opposed to information might, and does not engage directly with vulnerable people. 

The Board reviews its own performance as a routine part of its discussions and formally every three years. It regularly carries out an audit of skills, experience and diversity of background of its members to inform Trustee recruitment and training. 

## **Trustee Indemnity** 

Trustees benefit from indemnity insurance to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Charity. The cost of this insurance in the year has been included within total insurance costs. 

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## **FULL FACT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **STATEMENT OF RESPONSIBILITIES** 

The Trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the Trustees are required to: 

- Select suitable accounting policies and then apply them consistently; 

- Observe the methods and principles in the applicable Charities SORP 2015 (FRS 102); 

- Make judgements and accounting estimates that are reasonable and prudent; 

- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **Disclosure to auditors** 

In so far as the Trustees are aware, there is no relevant audit information of which the charitable company's auditors are unaware and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

## **Reappointment of auditor** 

The appointment of auditors of the charity is to be agreed at the forthcoming Annual General Meeting. 

Report of the Trustees, approved by order of the Board of Trustees, as the company directors, on ............................................. and signed on the Board's behalf by: 



........................................................................ A Cook - Trustee 

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## **FULL FACT** 

## **S REPORT TO THE MEMBERS OF FULL FACT FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **Opinion** 

) for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Statement of Cash Flows and Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

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

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

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. financial statements section of our report. 

We are independent of the group and parent charitable company in accordance with the ethical requirements that fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 


and forecasts provided. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

## **Other information** 

The Trustees are responsible for the other information. The other information comprises the information included in statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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

We have nothing to report in this regard. 

Page | 14 



## **FULL FACT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- which the financial statements are prepared is consistent with the financial statements; and requirements. 

## **Matters on which we are required to report by exception** 

In the light of our knowledge and understanding of the group and parent charitable company and its environment 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or 

- returns; or 

- we have not received all the information and explanations we require for our audit; or 

- requirement to prepare a strategic report. 

## **Responsibilities of Trustees** 

Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. 

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: 

Page | 15 



## **FULL FACT** 

## **FOR THE YEAR ENDED 31 DECEMBER 2023** 

- Obtaining an understanding of the legal and regulatory frameworks that the entity operates in, focusing on those laws and regulations that had a direct effect on the financial statements; 

- Enquiry of management to identify any instances of known or suspected instances of fraud; 

- Enquiry of management and those charged with governance around actual and potential litigation and claims; 

- Reviewing legal and professional nominal accounts to identify any potentially undisclosed legal or regulatory expenditure 

- Enquiry of management about any instances of non-compliance with laws and regulations; 

- Reviewing the design and implementation of control systems in place. 

- Testing the operational effectiveness of the controls; 

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness; 

- Evaluating the business rationale of significant transactions outside the normal course of business; 

- Reviewing accounting estimates for bias; 

- Reviewing minutes of meetings of those charged with governance; 

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial -Work/Audit/Audit-and-assurance/Standardsandguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-ofauditorsresponsibilities-for- 

## **Use of this report** 


fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable have formed. 


## **Stuart McKay BSc FCA DChA (Senior Statutory Auditor)** 

For and behalf of 

## **MHA** 

Statutory Auditor London, United Kingdom 

Date: 13/09/2024 

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313). 

Page | 16 



## **FULL FACT** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023** 

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>2<br>Charitable activities                                                       3<br>Investments                                                                    4<br>**Total**<br>**EXPENDITURE ON**<br>Charitable activities                                                      5<br>Raising Funds                                                                 6<br>**Total**<br>**NET INCOME/(EXPENDITURE)**<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>fund<br> <br>£<br>1,277,294<br>421,455<br>12,785<br>1,711,534<br>1,662,363<br>210,808<br>1,873,171<br>(161,637)<br>1,287,919<br>1,126,282|Restricted<br>funds<br>£<br>299,626<br>632,486<br>-<br>932,112<br>911,247<br>-<br>911,247<br>20,865<br>28,723<br>49,588|31.12.23<br>Total<br>funds<br>£<br>1,576,920<br>1,053,941<br>12,785<br>2,643,646<br>2,573,610<br>210,808<br>2,784,418<br>(140,772)<br>1,316,642<br>1,175,870|31.12.22<br>Total<br>funds<br>£<br>1,831,199<br>716,342<br>-|
|---|---|---|---|---|
|||||2,547,541<br>2,279,971<br>217,847|
|||||2,497,818|
|||||49,723<br>1,266,919|
|||||1,316,642|



Page | 17 



## **FULL FACT** 

## **CONSOLIDATED BALANCE SHEET 31 DECEMBER 2023** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>12<br>**CURRENT ASSETS**<br>Debtors<br>14<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>15<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**<br>**FUNDS**<br>17<br>Unrestricted funds<br>Restricted funds<br>**TOTAL FUNDS**|31.12.23<br>Total<br>funds<br>£<br>11,197<br>91,998<br>1,551,671<br>1,643,669<br>(478,996)<br>1,164,673<br>1,175,870<br>1,175,870<br>1,126,282<br>49,588<br>1,175,870|31.12.22<br>Total<br>funds<br>£<br>11,425<br>99,928<br>1,572,744<br>1,672,672<br>(367,455)<br>1,305,217<br>1,316,642<br>1,316,642<br>1,287,919<br>28,723<br>1,316,642|
|---|---|---|



The group s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 

The financial statements were approved by the Board of Trustees on ............................................. and were signed on its behalf by: 


............................................. A Cook - Trustee 

The notes form part of these financial statements 

Page | 18 



## **FULL FACT** 

## **CHARITY BALANCE SHEET 31 DECEMBER 2023** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>12<br>**CURRENT ASSETS**<br>Debtors<br>14<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>15<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**<br>**FUNDS**<br>17<br>Unrestricted funds<br>Restricted funds<br>**TOTAL FUNDS**|31.12.23<br>Total<br>funds<br>£<br>11,197<br>289,303<br>1,138,163<br>1,427,466<br>(471,949)<br>955,517<br>966,714<br>966,714<br>917,126<br>49,588<br>966,714|31.12.22<br>Total<br>funds<br>£<br>11,425<br>455,993<br>942,728<br>1,398,721<br>(359,336)<br>1,039,385<br>1,050,810<br>1,050,810<br>1,022,087<br>28,723<br>1,050,810|
|---|---|---|



The group s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 

The financial statements were approved by the Board of Trustees on ............................................. and were signed on its behalf by: 

............................................. A Cook - Trustee 

The notes form part of these financial statements 

Page | 19 



## **FULL FACT** 

## **CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2023** 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Net cash provided by operating activities<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>Proceeds from sale of tangible fixed assets<br>Net cash used in investing activities<br>**Change in cash and cash equivalents in the**<br>**reporting period**<br>**Cash and cash equivalents at the beginning**<br>**of the reporting period**<br>**Cash and cash equivalents at the end of**<br>**the reporting period**|31.12.23<br>£<br>(17,788)<br>(17,788)<br>(3,285)<br>-<br>(3,285)<br>(21,073)<br>1,572,744<br>1,551,671|31.12.22<br>£<br>(480,049)<br>(480,049)<br>(3,185)<br>1,018<br>(2,167)<br>(482,216)<br>2,054,960<br>1,572,744|
|---|---|---|



The notes form part of these financial statements 

Page | 20 



## **FULL FACT** 

## **NOTES TO THE STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|**Net (expenditure)/income for the reporting period (as per the**<br>**Statement of Financial Activities)**<br>**Adjustments**<br>Depreciation charges<br>Profit on disposal of tangible assets<br>(Increase)/decrease in debtors<br>Increase/(decrease) in creditors<br>**Net cash provided by operations**|31.12.23<br>£<br>(140,772)<br>3,513<br>-<br>7,930<br>111,541<br>(17,788)|31.12.22<br>£<br>49,723<br>2,831<br>(34)<br>(40,163)<br>(492,406)|
|---|---|---|
|||(480,049)|



## **2. ANALYSIS OF CHANGES IN NET FUNDS** 

|**Net cash**<br>Cash at bank<br>**Total**|At 1.1.23<br>£<br>1,572,744<br>1,572,744|Cash flow<br>£<br>(21,073)<br>(21,073)|At 31.12.23<br>£<br>1,551,671|
|---|---|---|---|
||||1,551,671|



The notes form part of these financial statements 

Page | 21 



**FULL FACT** 

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **1. ACCOUNTING POLICIES** 

## **Charity status** 

Full Fact is a charity incorporated as a company limited by guarantee in England and Wales. The registered office is 17 Oval Way, London, SE11 5RR. 

## **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), 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. 

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. 

## **Group accounts** 

The Statement of Financial Activities and Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. 

No separate Statement of Financial Activities has been presented for the Charity alone as permitted by Section 408 of the Companies Act 2006 and paragraph 397 of the SORP. The deficit for the Charity alone for the year ended 31 December 2023 was £84,096. 

## **Going concern** 

We have set out in the trustees report a review of the charity's performance and general reserves position. The board believes that we have adequate financial resources and are able to manage our business risks. 

The board has a reasonable expectation that the charity has adequate financial resources to continue in operational existence for the foreseeable future. Accordingly, our accounts have been prepared on the basis that the charity is a going concern, as set out in the accounting policies note. 

## **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. 

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. 

Grants receivable are recognised when the charity becomes unconditionally entitled to the grant. 

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when: 

- The donor specifies that the grant or donation must only be used in future accounting periods; or 

- The donor has imposed conditions which must be met before the charity has unconditional entitlement. 

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. 

Page | 22 

continued... 



**FULL FACT** 

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **1. ACCOUNTING POLICIES - continued** 

## **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, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. 

## **Support costs** 

Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the Charity and include project management. Where support costs cannot be directly attributed to particular headings, they have been allocated to expenditure on raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Governance costs are those incurred in connection with the running of the Charity and compliance with constitutional and statutory requirements. 

## **Donated services and facilities** 

Donated professional services and donated facilities are recognised as income when the charity has control over them, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised. 

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

## **Fundraising costs** 

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. 

Costs of Generating Funds include staff costs which can be attributed to fundraising activities. 

## **Taxation** 

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

## **Pension contributions** 

charged to the Statement of Financial Activities in the year and represents contributions payable by the charity to the pension fund. 

Page | 23 

continued... 



**FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **1. ACCOUNTING POLICIES - continued** 

## **Operating leases** 

Rentals under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term. 

## **Tangible fixed assets** 

Tangible fixed assets are initially recorded at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Assets costing more than £500 individually and £1,000 for grouped assets are capitalised. 

Depreciation is recognised so as to write off the cost or valuation of assets less their residual value over their useful lives on the following basis: 

Fixtures and fittings    -  20% straight line 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to the income statement. 

## **Financial Instruments** 

## **Basic financial assets** 

Basic financial assets, which includes debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at present value of the future receipts discounted at a market rate of interest.  Financial asserts classified as receivable within one year are not amortised. 

## **Basic financial liabilities** 

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.  Financial liabilities classified as payable within one year are not amortised. 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers.  Amounts payable are classified as current liabilities if payment is due within one year or less, if not, they are presented as non-current liabilities.  Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method. 

## **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 restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for a particular purpose. 

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 

Page | 24 

continued... 



## **FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **1A. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY** 

The preparation of financial statements in compliance with FRS102 requires the use of certain critical policies. 

No significant judgements, further to that surrounding going concern, have been made by management in preparing these financial statements. 

## **2. DONATIONS AND LEGACIES** 

|**NCOME FROM CHARITABLE ACTIVITIES**<br>Donations from individuals and institutions<br>Gifts in Kind<br>Public Education|Unrestricted<br>Funds<br>£<br>1,166,398<br>110,896<br>1,277,294<br>Unrestricted<br>Funds<br>£<br>421,455|Restricted<br>Funds<br>£<br>299,626<br>-<br>299,626<br>Restricted<br>Funds<br>£<br>632,486|Total<br>2023<br>£<br>1,466,024<br>110,896<br>1,576,920<br>Total<br>2023<br>£<br>1,053,941|Total<br>2022<br>£<br>1,781,949<br>49,250|
|---|---|---|---|---|
|||||1,831,199|
|||||Total<br>2022<br>£<br>716,342|



## **3. INCOME FROM CHARITABLE ACTIVITIES** 

**4. INVESTMENTS** 

|**CHARITABLE ACTIVITIES COSTS**<br>Deposit account interest<br>Public Education<br>Public Education||Unrestricted<br>Funds<br>£<br>12,785||Restricted<br>Funds<br>£<br>-|Total<br>2023<br>Total<br>2022<br>£<br>£<br><br>12,785<br>-<br>Support<br>Costs<br>(see below)<br>Total<br>2023<br>£<br>£<br>29,118<br>2,573,610<br>Support<br>Costs<br>(see below)<br>Total<br>2022<br>£<br>£<br>  30,015<br>2,279,971|
|---|---|---|---|---|---|
|||Staff Costs<br>£<br>1,980,920<br>Staff Costs<br>£<br>1,734,739||Direct<br>Costs<br>£<br>563,572<br>Direct<br>Costs<br>£<br>515,217||
|||||||



**5. CHARITABLE ACTIVITIES COSTS** 

Page | 25 

continued... 



## **FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **6. CHARITABLE ACTIVITIES COSTS** - continued 

|**upport costs**<br>Audit fees<br>egal and professional<br>Governance|31.12.23<br>£<br>14,778<br>14,156<br>184<br>29,118|31.12.22<br>£<br>19,076<br>5,491<br>5,448|
|---|---|---|
|||30,015|



## **7. COSTS OF RAISING FUNDS** 

||Unrestricted|Restricted||Total|Total|
|---|---|---|---|---|---|
||Funds|Funds||2023|2022|
||£|£||£|£|
|Staff Costs|210,808||-|210,808|217,847|



## **8. NET INCOME/(EXPENDITURE)** 

Net income/(expenditure) is stated after charging/(crediting): 

|||_Restated_|
|---|---|---|
||31.12.23|31.12.22|
||£|£|
|Depreciation - owned assets|3,513|2,831|
||14,750|14,750|
|Gain on asset disposals|-|(34)|



## **9. TRUSTEES' REMUNERATION AND BENEFITS** 

There were no Trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. 

## **Trustees' expenses** 

There were no Trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022. 

Page | 26 

continued... 



## **FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **10. STAFF COSTS** 

|**TAFF COSTS**|||
|---|---|---|
|Wages and salaries<br>Social security costs<br>Pensions costs|31.12.23<br>£<br>1,941,351<br>212,450<br>37,927<br>2,191,728|_Restated_<br>31.12.22<br>£<br>1,643,198<br>170,815<br>35,222|
|||1,849,235|



The average monthly number of employees during the year was as follows: 

|Public Education<br>Generating Funds|31.12.23<br>37<br>4<br>41|31.12.22<br>32<br>4|
|---|---|---|
|||36|



## **Highest Paid Employees** 

6 (2022: 8) employees received emoluments of more than £60,000 during the year of which is broken down as: 

|||31.12.23|31.12.22|
|---|---|---|---|
|£90,000|- £99,999|-<br>|1|
|£80,000|- £89,999|-<br>|-|
|£70,000|- £79,999|3<br>|1|
|£60,000|- £69,999|3<br>|6|



## **Key Management Personnel** 

The Key Management Personnel in 2023 were CEO, COO, Head of Automated Fact Checking, Head of Fundraising, Head of Communications, Head of Policy & Advocacy and Editor. The total amount of employee benefits (including employer's national insurance contributions) received by Key Management Personnel is £565,676 (2022: £559,864). 

## **Redundancy Payments** 

Redundancy and termination payments totalling £5,000 were made in the year (2022: £nil). The sum paid related to an enhanced redundancy compensation payment made to one employee. No payments in relation to redundancy or termination were due at the balance sheet date. 

Page | 27 

continued... 



**FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **11. COMPARATIVES FOR THE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES** 

|**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>Charitable activities<br>**Total**<br>**EXPENDITURE ON**<br>Charitable activities<br>Raising Funds<br>**Total**<br>**NET INCOME/(EXPENDITURE)**<br>**RECONCILIATION OF FUNDS**<br>**12.**<br>**TANGIBLE FIXED ASSETS**<br>All fixed assets belong to the charity.<br>**COST**<br>At 1 January 2023<br>Additions<br>At 31 December 2023<br>**DEPRECIATION**<br>At 1 January 2023<br>Charge for year<br>At 31 December 2023<br>**NET BOOK VALUE**<br>**Total funds brought forward**<br>**TOTAL FUNDS CARRIED FORWARD**<br>At 31 December 2023<br>At 31 December 2022|Unrestricted<br>fund<br>£<br>1,643,534<br>431,214<br>2,074,748<br>1,835,901<br>217,847<br>2,053,748<br>21,000<br>1,266,919<br>1,287,919|Restricted<br>funds<br>£<br>187,665<br>285,128<br>472,793<br>444,070<br>-<br>444,070<br>28,723<br>-<br>28,723|Total<br>funds<br>£<br>1,831,199<br>716,342<br>2,547,541<br>2,279,971<br>217,847<br>2,497,818<br>49,723<br>1,266,919<br>1,316,642|Fixtures<br>and<br>fittings<br>£<br>59,724<br>3,285<br>63,009<br>48,299<br>3,513<br>51,812<br>11,197<br>11,425|
|---|---|---|---|---|



Page | 28 



## **FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **13. SUBSIDIARIES** 

Full Fact has a subsidiary company named Full Fact Services Ltd, a company (no. 09541967) registered in England and Wales in which it owns 100% of the issued share capital. The Directors of the company are appointed by the Trustees. Full Fact Services Ltd is registered at 17 Oval Way, London, SE11 5RR. 

A summary of the results of the subsidiary is shown below: 

||2023|2022|
|---|---|---|
||£|£|
|**Turnover**|421,251|452,497|
|Cost of sales|(333,838)|(309,440)|
|**Gross profit**|87,413|143,057|
|Administrative expenses|(15,450)|(13,145)|
|**Operating profit**|71,963|129,912|
|Interest receivable and similar income|1,272|-|
|**Profit before taxation**|73,235|129,912|
|Tax on profit|-|-|
|**Profit for the financial year**|73,235|129,912|
|Retained earnings brought forward|265,831|310,193|
|Distributions to parent charity under gift aid|(129,912)|(174,274)|
|Retained earnings carried forward|209,154|265,831|
|The aggregate of the assets, liabilities and reserves was:|||
|Assets|414,385|685,199|
|Liabilities|(205,230)|(419,367)|
|**Reserves**|**209,155**|**265,832**|



The aggregate of the assets, liabilities and reserves was: 

Page | 29 



## **FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Trade debtors<br>Amounts owed by group undertakings<br>Other debtors<br>Accrued income<br>Prepayments|31.12.23<br>31.12.22<br>£<br>£<br>£<br>£<br>Group<br>Charity<br>Group<br>Charity<br>877<br>65,319<br>55,182<br>281,744<br>-<br>132,863<br>-<br>129,502<br>679<br>679<br>518<br>518<br>64,350<br>64,350<br>25,000<br>25,000<br>26,092<br>26,092<br>19,229<br>19,229|
|---|---|
||91,998<br>289,303<br>99,929<br>455,993|



## **15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Trade creditors<br>Social security and other taxes<br>Other creditors<br>Deferred income<br>Accrued expenses<br>**Analysis of movement in deferred income**<br>Brought forward<br>Released in the year<br>Deferred in the year|31.12.23<br>31.12.22<br>£<br>£<br>£<br>£<br>Group<br>Charity<br>Group<br>Charity<br>42,176<br>41,329<br>22,662<br>22,525<br>63,559<br>63,559<br>7,019<br>4,887<br>296<br>46<br>7,019<br>6,769<br>316,701<br>316,701<br>285,128<br>285,128<br>56,264<br>50,314<br>45,627<br>40,026|31.12.23<br>31.12.22<br>£<br>£<br>£<br>£<br>Group<br>Charity<br>Group<br>Charity<br>42,176<br>41,329<br>22,662<br>22,525<br>63,559<br>63,559<br>7,019<br>4,887<br>296<br>46<br>7,019<br>6,769<br>316,701<br>316,701<br>285,128<br>285,128<br>56,264<br>50,314<br>45,627<br>40,026|31.12.23<br>31.12.22<br>£<br>£<br>£<br>£<br>Group<br>Charity<br>Group<br>Charity<br>42,176<br>41,329<br>22,662<br>22,525<br>63,559<br>63,559<br>7,019<br>4,887<br>296<br>46<br>7,019<br>6,769<br>316,701<br>316,701<br>285,128<br>285,128<br>56,264<br>50,314<br>45,627<br>40,026|
|---|---|---|---|
||478,996|471,949<br>367,455<br>359,335||
|||31.12.23<br>£<br>285,128<br>(285,128)<br>316,701<br>316,701|31.12.22<br>£<br>701,867<br>(701,867)<br>285,128|
||||285,128|



Deferred income relates to performance related grants whereby the charity has not yet met conditions for entitlement. 

## **Defined contribution pension scheme** 

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £37,927 (2022: £35,222). 

## **16. LEASING ARRANGEMENTS** 

|Minimum lease payments under non-cancellable operating leases fall<br>due as follows:<br>Within one year<br>Between one and five years<br>After more than 5 years|31.12.23<br>£<br>24,891<br>-<br>-<br>24,891|31.12.22<br>£<br>95,414<br>24,891<br>-|
|---|---|---|
|||120,305|



Page | 30 



## **FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **17. MOVEMENT IN FUNDS** 

## **Group & Charity** 

|At 1.1.23<br>£<br>**Unrestricted funds**<br>General fund<br>1,287,919<br>**Restricted funds**<br>Calouste Gulbenkian Foundation (2022-23)<br>Gill Family Foundation (2022-23)<br>24,232<br>4,491<br>Google Ireland Limited - Google News Initiative (2023-24)<br>-<br>28,723<br>**TOTAL FUNDS**<br>1,316,642|Net<br>movement<br>At<br>in funds<br>31.12.23<br>£<br>£<br>(161,637)<br>1,126,282<br>(24,232)<br>(3,133)<br>-<br>1,358<br>48,230<br>48,230<br>20,865<br>49,588<br>(140,772)<br>1,175,870|
|---|---|



Net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Joseph Rowntree Charitable Trust (2023)<br>**Restricted funds**<br>Calouste Gulbenkian Foundation (2022-23)<br>Gill Family Foundation (2022-23)<br>Tides Foundation<br>Google (2022-25)<br>Nuffield Foundation (2022-25)<br>Health Foundation (2023-25)<br>WikiCred (2023)<br>Education Media Centre (2023)<br>Highway One Trust (2023)<br>Google Ireland Limited - Google News Initiative (2023-24)<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>1,651,534<br>60,000<br>1,711,534<br>31,967<br>-<br>522,632<br>100,000<br>141,981<br>4,968<br>5,711<br>15,000<br>109,853<br>932,112<br>2,643,646|Resources<br>expended<br>£<br>(1,813,171)<br>(60,000)<br>(1,873,171)<br>(56,199)<br>(3,133)<br>(522,632)<br>(100,000)<br>(141,981)<br>(4,968)<br>(5,711)<br>(15,000)<br>(61,623)<br>(911,247)<br>(2,784,418)||Movement<br>in funds<br>£<br>(161,637)<br>-<br>(161,637)|
|---|---|---|---|---|
|||||(24,232)<br>(3,133)<br>-<br>-<br>-<br>-<br>-<br>-<br>48,230<br>20,865|
||||||
|||||(140,772)|



Page | 31 



## **FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **17. MOVEMENT IN FUNDS - continued** 

|**Comparatives for movement in funds**<br>**Unrestricted funds**<br>General fund<br>**Restricted funds**<br>Calouste Gulbenkian Foundation (2022-23)<br>Gill Family Foundation (2022-23)<br> <br>Comparative net movement in funds, included in the above are<br>**Unrestricted funds**<br>General fund<br>Joseph Rowntree Charitable Trust (2022)<br>**Restricted funds**<br>The European Journalism Centre (2022)<br>Nuffield Foundation (2022-25)<br>Calouste Gulbenkian Foundation (2022-23)<br>Newton and Rochelle Becker Trust (2022)<br>The Evan Cornish Foundation (2022)<br>Gill Family Foundation (2022-23)<br>Tides Foundation<br>Google (2022-25)<br>**TOTAL FUNDS**<br>**TOTAL FUNDS**|<br>At 1.1.22<br>£<br>1,266,919<br>-<br>-<br>-<br>as follows:<br>Incoming<br>resources<br>£<br>2,024,748<br>50,000<br>2,074,748<br>4,292<br>100,000<br>31,859<br>40,514<br>5,000<br>6,000<br>285,128<br>472,793<br>2,547,541<br>1,266,919|Net<br>movement<br>in funds<br>£<br>21,000<br>24,232<br>4,491<br>28,723<br>Resources<br>expended<br>£<br>(2,003,748)<br>(50,000)<br>(2,053,748)<br>(4,292)<br>(100,000)<br>(7,627)<br>(40,514)<br>(5,000)<br>(1,509)<br>(285,128)<br>(444,070)<br>(2,497,818)<br>49,723||At<br>31.12.22<br>£<br>1,287,919<br>24,232<br>4,491<br>28,723<br>Movement<br>in funds<br>£<br>21,000<br>-<br>21,000<br>-<br>-<br>24,232<br>-<br>-<br>4,491<br>-<br>28,723<br>49,723<br>1,316,642|
|---|---|---|---|---|
||||||



Page | 32 



**FULL FACT** 

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **17. FUNDS** 

## **UNRESTRICTED FUNDS** 

## **Joseph Rowntree Charitable Trust** 

The Joseph Rowntree Charitable Trust provides core funding to Full Fact as part of their Power and Accountability grant programme. 

## **RESTRICTED FUNDS** 

## **Tides Foundation Google (2022-25)** 

The Google.org Charitable Giving Fund, through The Tides Foundation, is supporting the development of our AIpowered tools, which are designed to identify and address the spread of misinformation. 

## **Nuffield Foundation (2022-25)** 

The Nuffield Foundation is supporting our editorial team to fact check claims and seek corrections. The grant is also funding an annual report on the quality of information in the UK and what everyone - from government, tech companies, journalists and citizens - can do to help improve the honesty and accuracy of public debate. 

## **Calouste Gulbenkian Foundation (2022-23)** 

The European Media and Information Fund, administered by Calouste Gulbenkian Foundation, is supporting our health fact checking through their Boosting Fact Checking Activities in Europe programme. This grant supports the addition of a qualified doctor to our fact checking team. 

## **Gill Family Foundation (2022-23)** 

This donation from the Gill Family improves our use of video on social media, including providing new equipment and facilities for creating high quality video content. 

## **Health Foundation (2023-25)** 

The Health Foundation are funding the creation of a health team, dedicated to fact checking false and misleading claims about health policy, and making recommendations to improve the quality of information about health in public debate. 

## **WikiCred (2023)** 

Fact checking organisations hold crucial data on politicians, including the claims they make and if they correct false claims. We want the information we produce as fact checkers to be easily connected to other projects by using wikidata. This project tested the impact of linking politicians with their track record of claims and corrections. 

## **Education Media Centre (2023)** 

This grant aims to support Full Fact to inform the general public with accurate information on education, 

## **Highway One Trust (2023)** 

This is a grant towards our Policy and Advocacy team to monitor the implementation of the Online Safety Act and strengthen its ability to tackle harms from bad information online. 

## **Google Ireland Limited - Google News Initiative (2023-24)** 

This grant aims to reduce the harm from misinformation at scale through the production of high quality data on claims and fact checks and the provision of Full Fact AI to international peers fact checking elections in their country. 

Page | 33 



## **FULL FACT** 

## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **18. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

||Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|
||funds|funds|2023|funds|funds|2022|
||£|£|£|£|£|£|
|Tangible fixed assets|11,197|-|11,197|11,425|-|11,425|
|Net current assets|1,115,085|49,588|1,164,673|1,276,494|28,723|1,305,217|
||1,126,282|49,588|1,175,870|1,287,919|28,723|1,316,642|



## **19. RELATED PARTY DISCLOSURES** 

In the year ended 31 December 2023 the Charity received donations totalling £10,000 from Mr W M J De Winton (2022: £10,000). Mr W M J De Winton was appointed to the Board of Trustees on 29th March 2022 and resigned on 4th July 2023. There were no restrictions attached to the donations received. 

In the year ended 31 December 2023 the Charity received donations totalling £25,000 from The M J Samuel Charitable Trust (2022: £nil). The Hon. M J Samuel served on the Board of Trustees of Full Fact and The M J Samuel Charitable Trust throughout the period. There were no restrictions attached to the donations received. 

In the year ended 31 December 2023 the Charity received donated services valued at £16,994 (2022: £Nil) from Bristows LLP. Ms A Cook served on the Board of Trustees of Full Fact and was a partner of Bristows LLP throughout the period. 

Page | 34