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

## **THE FREEDOM FUND UK** 

Registered Company number - 08926428 (England and Wales) Registered Charity number – 1158838 (England and Wales) 



**The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **Reference & administrative details** 

## _Registered office_ 

Lower Ground, Caledonia House 223 Pentonville Road London N1 9NG 

_Trustees_ 

Mr. A Doust Ms. M Gochman Mr. M Pandey Ms. N Dolby Ms. F Gooding (Resigned 9[th] November 2023) Mr. A McCormick (Resigned 9[th] November 2023) Mr. P Sion (Resigned 9[th] November 2023) Ms. G Forrest (Resigned 9[th] November 2023) Ms. K Bryant (Appointed 9[th] November 2023) Ms. M Yue (Appointed 17[th] January 2024) Mr. A Shaikh (Appointed 17[th] January 2024) 

Ms. S Chandrasekhar (Appointed 17[th] January 2024) 

_Company Secretary_ Ms. Z Marshall 

_Key management personnel_ 

_Chief Executive Officer_ Mr. Nick Grono _Managing Director of Programs_ Mr. Dan Vexler _Director of Programs_ Ms. Havovi Wadia _Managing Director External Relations_ Ms. Amy Rahe _Managing Director Finance and Administration_ Ms. Zoe Marshall 

_Auditors_ Crowe U.K. LLP 55 Ludgate Hill London, EC4M 7JW 

_Principal bankers_ Metro Bank 1 Southampton Row London WC1B 5HA 

_Solicitors_ 

Bates, Wells and Braithwaite, 10 Queen St Pl, London EC4R 1BE 

2 



## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **Trustees’ report** 

## **Structure, governance & management** 

The Freedom Fund UK is a part of the Freedom Fund charities.  It is a company limited by guarantee (company number 08926428), registered in England and Wales.  It is also registered in the UK with the Charity Commission (charity number 1158838) and governed by a Memorandum and Article of Association. 

The other entity in this group is the Freedom Fund, a United States registered 501(c)(3) public charity (EIN number 30-0805768). The Freedom Fund is the sole member of the Freedom Fund UK, making the Freedom Fund UK a wholly owned subsidiary of the Freedom Fund, which also holds the power to appoint trustees to the board of directors. The Freedom Fund UK has no fundraising activity requiring disclosure under S162A of the Charities Act 2011. 

The trustees are committed to maintaining high standards of governance and are satisfied that the charity applies the principles of the Charity Governance Code within its current governance arrangements. The Freedom Fund UK’s compliance with the Code will be reviewed on an annual basis. 

Directors serve three year terms, although they may be eligible for re-election. Trustees are inducted by the CEO and Chair of the charity as well as being provided with a pack of useful governance documents.  Board meetings are organised so as to provide further opportunities for trustees to gain a deeper understanding of the Freedom Fund's work - for example by being timed to coincide with convenings that bring together sector experts, representatives of our partner organisations overseas, and other funders.  Trustees also visit the overseas work of the organisation during the course of normal year. 

## **Public Benefit Statement** 

The trustees have considered the issue of public benefit and are confident that the breadth and scope of work undertaken, as disclosed in this report, complies with Section 17 of the Charities Act 2011 and has due regard to the Charity Commission's general guidance on public benefit. The trustees consider FFUK’s work as part of the Freedom Fund Group to address human trafficking clearly meets the Commission’s public benefit test. 

## **Objects & activities** 

The objects of the Freedom Fund UK, which further the charity’s purposes for public benefit, are to promote human rights (as set out in the Universal Declaration of Human Rights and subsequent United Nations conventions and declarations) throughout the world by all or any of the following means: 

- the reduction and eradication of human trafficking in all its forms, including the adoption of means by which to combat modern slavery; 

- the prevention and relief of suffering of the victims of human trafficking and other modern forms of slavery by providing medical, psychological, educational, social and other support services to such persons; 

- the relief of financial and other hardship of the victims of human trafficking and modern slavery and the dissemination of the useful results of such research; and 

- the advancement of the education of the public in the causes, manifestations and consequences of human trafficking and other modern forms of slavery and the provision of related advice and support to government bodies, police forces, border and immigration agencies and other enforcement organisations. 

## **Achievements & performance** 

During this period, the Freedom Fund UK provided program management, financial and administrative support to the Freedom Fund (US) in pursuant of its charitable objectives, which are identical to that of the Freedom Fund UK. 

## **Plans for the future** 

The Freedom Fund UK has been leveraging the work carried out by the Freedom Fund (US), the other entity in the group, with whom it shares identical aims and objectives, to seek funding from UK and European donors. 

The Freedom Fund UK continues to look for other opportunities to attract income in support of the Group’s mission. In the meantime, the Freedom Fund UK will continue to employ staff and provide services to the Group. 

3 



## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **Remuneration policy** 

The Freedom Fund UK aims to pay salaries which are fair, competitive within the charity sector and proportionate to the complexity of each role. Salaries are benchmarked on a regular basis against comparable organisations in the sector and this includes the review of key management personnel. 

## **Grants policy** 

The majority of our charitable work is carried out by making grants to our partners organisations.  Grants are only made within our agreed strategies.  Project proposals are subject to a formal approval process before individual grants are approved.  All projects are systematically monitored for the duration of their existence. 

## **Financial Review** 

During the year, the charity received income of $4,496,214 (2022: $3,918,062) which mostly represents management recharges to Freedom Fund, the sole member of the Freedom Fund UK for program management, fundraising and administrative support provided.  Expenditure was $4,523,996 in the year, leaving a net deficit, after gains and losses of $28k. 

## **Principle Risks and Uncertainty** 

The Trustees have overall responsibility for ensuring that the organisation operates an appropriate system of controls, financial and otherwise, to provide reasonable assurance that: 

- The charity is operating efficiently and effectively 

- Proper records are maintained and financial information, used within the charity or for publication, is reliable 

- The charity complies with relevant laws and regulations. 

This is achieved through systems of financial control, risk management and compliance.  Any significant findings or identified risks are examined so that appropriate action can be taken, including take account of emerging risks and new areas of business. 

The principle risk to the organisation is staff turnover and the impact that this could have in program delivery.  This risk is currently exacerbated by the rapidly rising cost of living in the UK.  This risk is managed by carrying out regular salary benchmarking exercises and by conducting an annual staff survey that enables management to gauge levels staff engagement and respond to any issues that are raised on a timely basis.  Staff turnover at the Freedom Fund is currently low in comparison to industry averages whilst staff engagement is high. 

## **Reserves** 

Reserves at the end of the year were $91k (2022: $118k), which were all unrestricted. 

As the organisation currently provides program management, financial management and administrative support to the Freedom Fund (US), it is felt prudent that reserves should be in the region of 3-6 months of expenditure after recharges to Freedom Fund (US) (approximately $7k - $14k), in order to cover the cashflow requirements of providing these services. The trustees consider that this level of reserves is sufficient given the availability of support available from the Freedom Fund. Fixed assets are not currently included in the calculation for free reserves as the depreciation is being recharged to Freedom Fund US entity. This target is currently exceeded as no grants were reported in Freedom Fund (UK) during the year. 

## **Going Concern** 

The Trustees have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties in relation to the charity’s ability to continue operating as a going concern. The accounts have therefore been prepared on the basis that the charity is a going concern. 

4 



The Freedom Fund UK
Trustees, report and financial statements
for the year ended 31 December 2023
The costs recorded within the Freedom Fund UK accounts largely represent the staff costs associated with program
delivery on behalf of Freedom Fund US UK staff costs are built into restricted funding applications made by
Freedom Fund US and the parent entity provides an annual letter of support that provides that staff and other Costs
incurred in the UK will be covered by Freedom Fund US.
Trustees, report (cont'd}
statement of Trnstees, responsibilities
The trustees, who are also the directors under company law, are responsible for preparing the Trustees, Report and
the financial slalemenls in accordance wrth applicable law and regulations.
Company law requires the Iruslees lo prepare financial sLglements for each financial year. Under that law the
Iruslees have elected lo prepare the financial slalemenls in accordan￿ with the Statement of Recommended
Practice for Charities SORP IFRS 102}, Financial Reporting Standards applicable in the United Kingdom and
Republic of Ireland IFRS 1021 and the Companies Act 2006.
Under company law the trustees must not approve the financial slalements unless they are satisfied that they gwe a
true and fair view of the slate of affairs of the charity and of the proff( or loss of the charity for that period. In
preparing these financial statements, the trustees are required to..
select suitable accounting polieies and then app￿ them consistently.,
make judgements and accounting estimates that are reasonable and prudent",
prepare the financial stslements on the going con¢ern basis unless il is inappropriate lo presume that the charity
will continue in business..
observe the methods and principles in the Charities SORP.,
state whether applicable UK accounting stsndards have been followed, subject to any material departures
disclosed and explained in the financial slatemenls.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the
charity's transactions and disclose wrth reasonable accuracy al any time the financial position of the charity and
enable them to ensure that the financial slalements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the charTty and hence for taking reasonable steps for the
prevention and deleclion of fraud and other Irregularities.
Statement to audftors
Insofar as each of the Iruslees of the company al the dale of approval of this report is aware..
there is no relevant audit information linfomialion needed by the company's auditor in connection with preparing
the audit report) of which the company's auditor is unaware.
Each trustee has taken all the steps that they should have tsken as a trustee in order lo make themselves aware
of any relevant audrt infornialion and lo establish that the company's auditor is aware of that information.
Approved by or
er of the board of Iruslees 02 May 2024.
ruti Cha
asekhar- Treasurer

## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **Independent Auditor’s Report to the Members of The Freedom Fund UK** 

## **Opinion** 

We have audited the financial statements of The Freedom Fund UK ‘the charitable company’ for the year ended 31 December 2023 which comprise of the Statement of Financial Activities, Balance Sheet, Cash flow Statement and notes to the financial statements, including 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: 

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 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. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have 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** 

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial 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. 

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 this gives rise to a material misstatement in the financial statements themselves. 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. 

6 



## **The Freedom Fund UK Trustees’ report and financial statements** 

## **for the year ended 31 December 2023** 

## **Independent Auditor’s Report to the Members of The Freedom Fund UK (cont.)** 

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

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

- the information given in the trustees’ report, which includes the directors’ report and the strategic report 

- prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

• the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements. 

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

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report. 

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

- adequate and proper accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

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

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 5, the 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. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. 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. 

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations, are set out below. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 

7 



## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **Independent Auditor’s Report to the Members of The Freedom Fund UK (cont.)** 

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation, Taxation legislation and Employment legislation 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. 

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance. 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations. 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 


Dipesh Chhatralia Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor 

London 

5 July 2024 

8 



**The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **Statement of Financial Activities (incorporating the income and expenditure account) for the year ended 31 December 2023** 

|**Notes**<br>**Income from**<br>Charitable activities<br>& Donations<br>_2&3_<br>Investment income<br>**Total income**<br>**Expenditure on**<br>Raising funds<br>_4_<br>Charitable activities<br>_5_<br>**Total expenditure**<br>**Net (expenditure)/**<br>**income**<br>**Net movement on**<br>**funds**<br>**Reconciliation of**<br>**funds**<br>Total funds brought<br>forward<br>**Total funds carried**<br>**forward**|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**2023**<br>**Total**<br>**$**<br>**$**<br>**$**<br>4,496,019<br>-<br>4,496,019<br>195<br>-<br>195<br>**4,496,214**<br>**-**<br>**4,496,214**<br>5,877<br>-<br>5,877<br>4,518,118<br>-<br>4,518,118<br>**4,523,997**<br>**-**<br>**4,523,997**<br>**(27,783)**<br>**-**<br>**(27,783)**<br>**(27,783)**<br>**-**<br>**(27,783)**<br>118,363<br>-<br>118,363<br>**90,580**<br>**-**<br>**90,580**|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**2022**<br>**Total**<br>**$**<br>**$**<br>**$**<br>3,918,028<br>-<br>3,918,028<br>34<br>-<br>34|
|---|---|---|
|||**3,918,062**<br>**-**<br>**3,918,062**|
|||5,546<br>-<br>5,546<br>3,939,153<br>-<br>3,939,153|
|||**3,944,699**<br>**-**<br>**3,944,699**|
||||
|||**(26,637)**<br>**-**<br>**(26,637)**|
||||
|||**(26,637)**<br>**-**<br>**(26,637)**|
|||145,000<br>-<br>145,000|
|||**118,363**<br>**-**<br>**118,363**|



_The notes on pages 12 to 18 form a part of these financial statements._ 

9 



The Freedom Fund UK
Trustees, report and financial statements
for the year ended 31 December 2023
Balance Sheet for the year ended 31 December 2023
Notes
2023
2022
Fixad assets
Tangible assets
Total fixed assets
214 709
214.709
18,841
Current assats
Debtors
Cash at bank and in hand
Total current assets
333,631
404.252
737 883
147,655
712,379
Liabilities
Creditors". amounts fallin9 due within one year
Net current assets
Total assets less current liabilities
862,013
124,130
760.512
99,522
118 363
Total net assets
90,S79
118363
Funds
Reslrictod income funds
Unreslricled income funds
Total funds
90,579
90.579
118,363
118,363
These accounts have been prepared in accordance with the provision of the small companies regime and in
accordance wi(h the provisions of FRS 102 Section 1A- small entities.
Appr
Ch
and aulhoris
drasekhar on
issue by the trustees on 02 May 2024 and signed on their behalf by Ms. Shruli
ay 2024
The notes on pages 12 10 18 fom? a part of thes8 financial statements.
10

## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **Cashflow Statement for the year ended 31 December 2023** 

|**Cashflow from operating activities (see note A):**<br>Net cash (used in) provided by operating activities<br>**Cash flows from investing activities**<br>Interest income<br>Purchase of property, plant and equipment<br>**Net (Decrease)/ increase in cash**<br>Cash flows from financing activities<br>Cash and cash equivalents at the beginning of the reporting period<br>Change in cash and cash equivalents in reporting period<br>**Cash and cash equivalents at the end of the reporting period**<br>**A - Reconciliation of cash flows from operating activities**<br>Net expenditure<br>Depreciation charges<br>Loss on disposal of fixed assets<br>Interest income<br>Foreign exchange gain/(loss)<br>(Increase) / decrease in debtors<br>(Decrease) / increase in creditors falling due within one year<br>**Net cash (used in) / provided by operating activities**|**2023**<br>**2022**<br>**$**<br>**$**<br>(86,170)<br>568,528 <br>(195)<br>(34)<br>(221,761)<br>-|
|---|---|
||(308,126)<br>568,494|
||712,380<br>143,887<br>(308,127)<br>568,493|
||**404,253**<br>**712,380**|
||**2023**<br>**2022**<br>**$**<br>**$**<br>(27,782)<br>(26,636)<br>25,892<br>36,741<br>-<br>-<br>195<br>34<br>-<br>-<br>(185,976)<br>29,992<br>(101,501)<br>528,397|
||**(86,170)**<br>**568,528**|



_The notes on pages 12 to 18 form a part of these financial statements._ 

11 



## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **1. Accounting policies** 

## **Charitable company background** 

The objects of the Freedom Fund UK, which further the charity’s purposes for public benefit, are to promote human rights, working towards the eradication of modern slavery.  Further details are provided within the Trustees' Report. 

The Freedom Fund UK is a company limited by guarantee (company number 08926428), registered in England and Wales.  It is also registered in the UK with the Charity Commission (charity number 1158838).  It is also a wholly owned subsidiary of The Freedom Fund, a United States registered 501(c)(3) public charity (EIN number 30-0805768). 

## **Basis of accounting** 

The Freedom Fund is a public benefit entity as defined under Financial Reporting Standard 102 (FRS102). The accounts have been prepared in accordance with the Companies Act 2006, the Financial Reporting Standard applicable in the UK (FRS102) (August 2014) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102.   The Trustees have also taken due regard to the Charity Commission's guidance on public benefit. 

The Trustees have considered all of the risks facing the charity and its funds and have considered the support available from The Freedom Fund. The Trustees have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties in relation to the charity’s ability to continue operating as a going concern.  The accounts have therefore been prepared on the basis that the charity is a going concern. 

The financial statements have been prepared under the historical convention in accordance with applicable accounting standards. 

The functional currency of Freedom Fund UK is considered to be US Dollars because that is the currency of the primary economic environment in which the charity operates. 

## **Income** 

All incoming resources accruing to the charity during the year are recognised in the statement of financial activities when there is entitlement to the income, receipt is probable and can be measured with reliability. 

Income from charitable activities consists of grant income and management recharges. A proportion of costs incurred in the support activities are recharged as a service to the Freedom Fund at arms-length in accordance with the service level agreement between both entities and recognised to the extent costs have been incurred and so the service delivered during the year. The basis of this proportion is reviewed periodically on the level of activity. 

## **Expenditure** 

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of resources. 

The majority of overheads have been apportioned on the basis of estimated time spent because that is the main driver of costs in the charity. Expenditure is stated in line with the Charities SORP (FRS102). 

Support costs, which include finance, IT, head office functions and facilities are allocated across the categories of charitable expenditure, governance and raising funds. These support costs are included within charitable activities and a proportion recharged to the Freedom Fund as noted in the income recognition policy. The basis of the cost allocation is explained in note 5. Governance costs, separately identified, relate to the general running of the charity as opposed to the costs of fundraising or charitable activity. Included within this category are costs associated with the strategic as opposed to day to day management of the charity’s activities. 

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

12 



## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

provision of services. Grants are charged to the Statement of Financial Activity when a constructive obligation exists. Irrecoverable VAT is charged as a cost to the Statement of Financial Activity. 

## **Tangible assets and depreciation** 

Assets with a cost in excess of $1,000 intended to be of ongoing use are capitalised as fixed assets. Fixed assets are included at cost.  Depreciation is charged, on a straight-line basis, as follows: 

- Furniture and fittings - 4 years 

- Computer and office equipment - 4 years 

Fixed assets are subject to a review for impairment where there is an indication of a reduction in their carrying value. 

Any permanent impairment is recognised in the Statement of Financial Activities in the year in which it occurs. 

## **Fund accounting** 

Due to the constraints of law and donor-imposed restrictions, the charity segregates its funds between those that are restricted and those that are unrestricted. General funds represent the accumulated surplus on income and expenditure and are available for use at the discretion of the Board in pursuing the general charitable objectives of the charity (see Report of the Trustees). 

Where funds are received under contracts to provide services they are classified as restricted, this is on the basis that the contracts specify the service to be performed by the charity. The treatment of these contracts as restricted enables monitoring of performance and outcomes against the contractual agreement. 

Restricted funds represent income received where the donor or the nature of the appeal generating the income has imposed restrictions as to how the monies shall be used. The nature and purpose of the restricted funds are also set out in note 11 to the financial statements. The cost of raising and administering such funds are charged against the specific fund. 

## **Pension costs** 

Contributions to the employee's defined contribution pension scheme are charged to the Statement of Financial Activities in the year in which they are payable to the scheme. 

## **Financial instruments** 

The Freedom Fund UK has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at the present value of future cash flows (amortised cost). 

Financial assets held at amortised cost comprise cash at bank and in hand, and the charity’s debtors excluding prepayments and accrued income. Financial liabilities held at amortised cost comprise the charity’s short- and long-term creditors excluding deferred income and accrued expenditure. No discounting has been applied to these financial instruments on the basis that the periods over which amounts will be settled are such that any discounting would be immaterial. 

## **Critical accounting judgements and key sources of estimation uncertainty policy** 

In the application of the charity’s accounting policies, which are described above in note 1, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

Support costs incurred by The Freedom Fund UK, which are made up of payroll costs, fundraising, and governance, are shared with The Freedom Fund (US entity) in accordance with the services agreement between both entities dated 24 May 2016.  The allocation is a judgement made by management and the share of costs is calculated and reviewed regularly to reflect the time spent by staff on The Freedom Fund and activities of both entities. 

13 



## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods. 

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 

## **2. Income from donations** 

|Other<br>Grants|**Unrestricted**<br>**funds**<br>**Restricted funds**<br>**Total**<br>**Total**<br>**2023**<br>**2023**<br>**2023**<br>**2022**<br>**$**<br>**$**<br>**$**<br>**$**<br>319<br>-<br>319<br>299<br>-<br>-<br>-<br>-|
|---|---|
||**319**<br> **-**<br>**319**<br>**219**|



## **3. Income from charitable activities** 

|Management recharge<br>**penditure on raising funds**<br>Charitable activities|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**Total**<br>**2023**<br>**2023**<br>**2023**<br>**2022**<br>**$**<br>**$**<br>**$**<br>**$**<br>4,495,700<br>-<br>4,495,700<br>3,917,730<br>**4,495,700**<br>**-**<br>**4,495,700**<br>**3,917,730**<br>**Direct costs**<br>**Support costs**<br>**Total**<br>**Total**<br>**2023**<br>**2023**<br>**2023**<br>**2022**<br>**$**<br>**$**<br>**$**<br>**$**<br> -<br>5,877<br>5,877<br>5,546|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**Total**<br>**2023**<br>**2023**<br>**2023**<br>**2022**<br>**$**<br>**$**<br>**$**<br>**$**<br>4,495,700<br>-<br>4,495,700<br>3,917,730|
|---|---|---|
|||**4,495,700**<br>**-**<br>**4,495,700**<br>**3,917,730**|
||**-**<br>**5,877**<br>**5,877**<br>**5,546**||



## **4. Expenditure on raising funds** 

14 



## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **5. Expenditure on charitable activities** 

|Grants payable<br>Staff costs recharges<br>Office costs<br>Foreign exchange losses<br>Finance and governance<br>costs|**Grants payable**<br>**to institutions**<br>**Direct costs**<br>**Support**<br>**costs**<br>**Total**<br>**Total**<br>**2023**<br>**2023**<br>**2023**<br>**2023**<br>**2022**<br>**$**<br>**$**<br>**$**<br>**$**<br>**$**<br>-<br>-<br>-<br>-<br>-<br>-<br>2,948,073<br>824,801<br>3,772,874<br>3,288,538<br>-<br>-<br>704,652<br>704,652<br>606,815<br>-<br>-<br>20,038<br>20,038<br>24,494<br>-<br>-<br>20,554<br>20,554<br>19,306|
|---|---|
||**-**<br>**2,948,073**<br>**1,570,045**<br>**4,518,118**<br>**3,939,153**|



Costs have been apportioned to various activity on the basis of time spent by staff. Charitable activities include the management recharges. 

Included within finance and governance costs above are fees payable to the charity's auditors of $20,514 (2022: $19,237), in GBP £17,100 (2022: £15,980) 

## **6. Staff costs** 

The key management personnel of the charity comprises of Trustees (who receive no remuneration) and directors. The total remuneration and benefits received by the directors (senior leadership team) during the year was $833,625 (2022: $800,959). 

Staff costs of $3,772,874 (2022: $3,288,539) were recharged to the Freedom Fund for program management, fundraising and administrative support provided. 

No trustee expenses were paid in the year (2022: $nil) 

|Wages & salaries (including life and health insurance)<br>Social security costs<br>Pension costs|**2023**<br>**2022**<br>**$**<br>**$**<br>3,081,893<br>2,686,671<br>358,592<br>328,246<br>338,366<br>281,846|
|---|---|
||**3,778,851**<br>**3,296,763**|



The average number of staff employed by the Freedom Fund UK in the year was 44 (2022: 38). 

The average full-time equivalent number of employees who received emoluments (excluding pensions) in the following ranges were: 

|$76,354 - $89,078 (£60,000 - £69,999)<br>$89,079 - $101,804 (£70,000 - £79,999)<br>$101,805 - $114,530 (£80,000 - £89,999)<br>$114,531 - $127,255 (£90,000-$99,999)<br>$127,256 - $139,982 (£100,000 - £109,999)<br>$267,239 - $279,964 (£220,000 - £229,999)|**2023 No. **<br>**2022 No. **|
|---|---|
||4<br>4<br>2<br>1<br>2<br>3<br>0<br>0<br>2<br>2<br>1<br>1|



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## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **7. Tangible fixed assets** 

|**_Cost_**<br>At 1 January 2023<br>Additions<br>Disposals<br>**At 31 December 2023**<br>**_Depreciation_**<br>At 1 January 2023<br>Charge for the year<br>Disposals<br>**At 31 December 2023**<br>**_Net book value_**<br>**At 31 December 2023**<br>At 31 December 2022|**Computer and**<br>**office equipment**<br>**Furniture &**<br>**Fittings**<br>**Total**<br>**2023**<br>**2023**<br>**2023**<br>**$**<br>**$**<br>**$**<br>92,372<br>112,068<br>204,440<br>-<br>221,761<br>221,761<br>-<br>-<br>-|
|---|---|
||**92,372**<br>**333,829**<br>**426,201**|
||77,220<br>108,379<br>185,599<br>12,662<br>13,230<br>25,892<br>-<br>-<br>-|
||**89,881**<br>**121,610**<br>**211,491**|
|||
||**2,490**<br>**212,219**<br>**214,709**|
|||
||15,153 <br>3,688 <br>18,841|



## **8. Debtors** 

|Amounts due from other group entities<br>Other debtors<br>Prepayments and accrued income|**Total**<br>**Total**<br>**2023**<br>**2022**<br>**$**<br>**$**<br>-<br>-<br>238,382<br>83,281<br>95,249<br>64,374|
|---|---|
||**333,631 **<br>**147,655**|



16 



## **The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **9. Creditors: amounts falling due within one year** 

|Amount owed to other group<br>entities<br>Other creditors<br>Taxation and social security<br>Accruals|**Total**<br>**Total**<br>**2023**<br>**2022**<br>**$**<br>**$**<br>570,075<br>470,075<br>62,011<br>81,999<br>98,447<br>89,219<br>131,480<br>119,219|
|---|---|
||**862,013**<br>**760,512**|



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

Fund balances at 31 December 2023 are represented by: 

|Fixed assets<br>Net current assets|**Unrestricted funds**<br>**Restricted funds**<br>**2023 Total**<br>**$**<br>**$**<br>**$**<br>214,709<br>-<br>214,709<br>(124,130)<br> -<br> (124,130)|
|---|---|
||**90,579**<br>**-**<br> **90,579**|



Fund balances at 31 December 2022 are represented by: 

|Fixed assets<br>Net current assets|**Unrestricted funds**<br>**Restricted funds**<br>**2022 Total**<br>**$**<br>**$**<br>**$**<br>18,841<br>-<br>18,841<br>99,522<br> -<br>99,522|
|---|---|
||**118,363**<br>**-**<br>**118,363**|



## **11. Operating lease commitments** 

As at 31 December 2023, the total of future minimum lease payments under non-cancellable operating leases are: 

|Operating leases which expire:<br>Within 1 Year<br>Between 2 and 5 Years|**Land and Buildings**<br>**2023**<br>**2022**<br>**$**<br>**$**<br>173,629<br>175,795<br>643,617<br>-|
|---|---|
||817,246<br>175,795|



17 



**The Freedom Fund UK Trustees’ report and financial statements for the year ended 31 December 2023** 

## **12. Controlling party and related party transactions** 

The Freedom Fund UK, a registered UK charity (registration number 1158838) is a part of the Freedom Fund charities.  The other entity in this group is the Freedom Fund, a United States registered 501(c)(3) public charity (EIN number 30-0805768). The Freedom Fund is the sole member of the Freedom Fund UK and thus holds the power to appoint trustees to the board of directors, making the Freedom Fund UK a wholly owned subsidiary of the Freedom Fund. 

The Freedom Fund is the ultimate parent of the Freedom Fund UK and the registered office address of the Freedom Fund is 315 Flatbush Avenue, #406 Brooklyn, NY 11217 USA. 

The Freedom Fund UK was set up to facilitate the operations of the Freedom Fund in the UK, Europe and internationally.  At 31 December 2023, $464,201 was owed by The Freedom Fund UK to The Freedom Fund and $105,874 was owed by the Freedom Fund UK to the Freedom Fund Ethiopia (2022: $364,201 was owed by the Freedom Fund UK to the Freedom Fund and $105,874 was owed by the Freedom Fund UK to the Freedom Fund Ethiopia.) 

A total of $4,495,700 (2022: $3,917,730) was re-charged to the Freedom Fund by the Freedom Fund UK for program management, fundraising and administrative services provided. 

18