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2024-12-31-accounts

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

Company registered number: 09578830 Charity registered number: 1165054

TELLES FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 8
Statement of Trustees' Responsibilities 9
Independent Auditor's Report on the Financial Statements 10 - 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 25

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2024

Trustees Marina Medley De Sà
Teutly Correia
Claudio Garcia
Christian Telles
Fabrizzia Telles
Marcel Herrmann Telles
Max Telles
Members Marcel Herrmann Telles
Fabrizzia Telles
Christian Telles
Max Telles
Company registered
number
09578830
Charity registered
number
1165054
Registered office
One Bartholomew Close
London
EC1A 7BL
Company secretary
Broadway Secretaries Limited
Independent auditor
MHA
Statutory Auditor
6th Floor
2 London Wall Place
London, United Kingdom
EC2Y 5AU
Solicitors
Broadfields
One Bartholomew Close
London
EC1A 7BL

Page 1

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees submit their annual report and the audited financial statements for the year ended 31 December 2024.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Charity’s Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure, Governance and Management

The Telles Foundation (the ‘Charity’) was established on 7 May 2015, as a charitable company limited by guarantee. The Charity is governed by both its Articles and Memorandum of Association dated 7 May 2015 as amended by special resolutions the last of which was dated 23 October 2021 and by its Bye-Laws dated 7 May 2015 as amended by resolution the last of which was dated 16 September 2023. The Trustees obtain ongoing training as determined appropriate.

The names of all those who were the Charity’s Trustees on the date the report was approved are listed on page 1.

The Trustees of the Charity are directors for company law purposes and are appointed in accordance with the Articles of Association of the Charity by the members. When new Trustees are appointed, they undergo an orientation to brief them on their legal obligations under Charity and company law, the Charity Commission guidance on public benefit; the content of the Memorandum and Articles of Association, the committee, and decision-making processes; and the Charity’s grant making plans and recent financial performance of the Charity.

The Trustees of the Charity have delegated aspects of the day-to-day management and administration to the Management and Operations Committee (the M&O Committee ), which is governed by its Terms of Reference. The Trustees have also delegated responsibility to the Technology Committee to build the Charity’s existing knowledge of the technology workforce market and to help develop alliances with appropriate partners. Again, this committee is governed by its Terms of Reference. Administration services are provided to the Charity by Broadfield Law. As a result, the Charity did not employ any personnel. The Key Management Personnel of the Charity are therefore deemed to be the Trustees. None of the Trustees received remuneration or other benefit from their work with the Charity in their capacity as Trustees.

Risk management

The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Charity maintains a Risk Register which identifies the key issues faced by the Charity and steps to mitigate those risks. Items that are listed as being of ‘medium risk’ of occurring on the Risk Register and which are monitored include: conflicts of interest; foreign exchange issues; data protection; and adverse publicity. The Charity also has in place an Anti-Money Laundering Policy, a Conflicts of Interests Policy, a Data Protection Policy and a Safeguarding Policy.

Page 2

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Related parties

As explained in Note 17 to the accounts, the Charity:

The Trustees have in place a Conflicts of Interests Policy, which governs the way in which potential, perceived and actual conflicts of interests are declared by the Trustee concerned and managed by the Board. As part of this, the Trustees declare conflicts of interests at Board meetings and also complete a Conflicts of Interest Declaration Form.

Objectives and activities

The Charity's objects are restricted specifically to the advancement and promotion for the public benefit of education for Brazilian students, regardless of where they are studying, particularly but not exclusively, by improving the quality of education of young people, propelling extraordinary talent and supporting tech education for employability, by such means as the Trustees may in their discretion think fit.

The focus of the Trustees during the reporting period was to continue the Charity’s grant making activities in line with the Charity’s Grant Making Policy.

The following values inform all of the Charity’s activities:

Page 3

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Achievements and performance

The Charity continued to build on its grant making relationship with ISG and Ismart, the Charity’s two ‘strategic grant recipients’ identified by the Board.

During the year, the Charity’s grant liability amounted to $25,536,176 of which $20,219,274 of grants were paid in the year and the remainder ($5,316,904) being payable as at 31 December 2024. The first figure in each case below equals the grant paid in the year and grant instalments payable in future years and does not include previous instalments paid. All grants have been paid to registered institutions and not to private individuals.

Page 4

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Page 5

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

All grant payments are made in US dollars and, therefore, the figures provided above do not take into account any refunds arising from foreign exchange fluctuations.

In making these grants the Trustees have had due regard to the Charity Commission’s guidance on public benefit.

The monitoring of the success of these grants will be carried out in accordance with the rigorous monitoring and reporting obligations included in the Charity’s Grant Terms and Conditions and in the Charity’s template Grant Reporting Form. The Charity has also established a Grants Committee, which takes delegated responsibility on behalf of the Trustees for overseeing, monitoring and evaluating all grant making activities to ensure they are in accordance with the Charity’s charitable objectives and consistent with the Board’s grant making strategy.

We have set out below the Foundation’s process to evaluate and monitor the impacts of its grant funding:

Given the Charity makes grants to organisations with different missions and purposes, it has created specific KPIs to help measure and track the impact of its grant activities. These KPIs are separated into 3 different strands, namely: (i) Tech Education for Employability, (ii) Scholarship, and (iii) Public Education Initiatives.

The Charity has been tracking the impact of each grant recipient organisation according to the KPIs for each sector, as detailed below:

  1. Tech Education for Employability;

  2. a. The grant for this pillar was made to Instituto Apis and the indicators below measure the share of students placed in tech careers;

Generation: 65% Ecole 42 SP: 77% Ecole 42 RJ: 42%

Page 6

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

b. The average of income generated by the program for each student;

Generation: The average increase in family income resulting from the student’s employment is x2.14. The income increases for graduates after employability ranged between 2-3x in 2024. Ecole 42: The organisation does not measure the generated income yet.

c. The retention rate (number of students who finished the program and/or the number of students in the same company after 1 year).

Generation: 90% Ecole 42 SP: 77% Ecole 42 RJ: 92%

2. Scholarship ;

a. Student’s academic performance;

Babson : Good (Grade Point Average of between 3.0 and 3.9) UCL: Excellent (Grade Point Average of between 4 and 5) Inteli: Excellent (Grade Point Average of between 8.51 and 10)

b. Number of placed scholars right after receiving the scholarship (employability); Babson: 100%

UCL: don't have any graduates yet Inteli : don't have any graduates yet

c. Number of students who have a career path connected to the digital economy. Babson : 54% (in Tech)

UCL: don't have any graduates yet Inteli: don't have any graduates yet

3. Public Education ( Sonho Grande Institute );

a. Number of attended beneficiaries/schools

Directly supports 6.6k schools

b. The academic improvement of each state/school attended by the project.

Improvement of 0.3 in the Basic Education Development Index (IDEB) for full-time high schools compared to regular schools (from 4.1 to 4.4)

After receiving and analysing all the Grant Reports by the organisation, the Charity gives feedback to each organisation and tracks the outcomes of each milestone until the end of the grant period (and if such milestones are not achieved, the grants are suspended).

Page 7

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

Financial review

The financial statements have been prepared for the year ended 31 December 2024. In line with FRS 102 the current year figures and the comparative figures have been presented in the Charity’s functional currency which is USD ($).

During the year the Charity raised $NIL donations (2023: $NIL), received grants of $NIL (2023: $48,000,000) and received investment income of $583,512 (2023: $141,305). The Charity expended funds of $20,811,511 (2023: $25,716,695 ) primarily on grants, legal, travel, events, administration and governance costs.

As a result, the funds carried forward at the year-end were $8,948,985 (2023: $28,705,184).

The Trustees have examined the future anticipated cash flows of the Charity and are satisfied that the Charity has sufficient resources to meet its continuing obligations.

Reserves policy & going concern

At the year end the Charity held unrestricted reserves of $8,948,985 (2023: $28,705,184), which represents the Charity’s free resources available for grant making purposes in future years. The Charity does not hold a set level of reserves. All operational expenses are met under an arrangement with the Charity’s funding partner. For the financial year 2025, a commitment has already been made by the funding partner and the approved budget is $27,923 for operational expenses. Therefore, the Trustees do not consider there is a need for a formal reserves policy. However, the Charity’s aim is to hold at least 6 months’ worth of cash reserves to cover operational expenses at any one time. The Board considers that it has adequate financial reserves to continue to deliver on its plans and has a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future.

Plans for future periods

The Charity has continued to build on its grant making activities, including by making grants to new recipients such as The Khan Academy and plans to increase its income and grant expenditure in future periods.

Besides that, the Foundation intends to continue to expand its scholarship programs to provide more access to Brazilian low-income students and to support Instituto Apis in its efforts to create an innovative educational solutions hub to promote better learning outcomes for low-income students.

Approved by order of the members of the Board of Trustees and signed on their behalf by:

................................................

Marina Medley De Sà Trustee Date: September 23, 2025

Page 8

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees (who are also the 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 (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

In so far as the Trustees are aware:

Approved by order of the members of the Board of Trustees and signed on its behalf by:

................................................

Marina Medley De Sà Trustee

Date: September 23, 2025

Page 9

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION (A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TELLES FOUNDATION

Opinion

We have audited the financial statements of Telles Foundation (the 'charitable company') for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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:

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 United Kingdom, including the Financial Reporting Council'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 Trustees' 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.

Page 10

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION (A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TELLES FOUNDATION (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. 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 course of 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Trustees’ Report.

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

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Page 11

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION (A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TELLES FOUNDATION (CONTINUED)

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.

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.

Page 12

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TELLES FOUNDATION (CONTINUED)

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart McKay BSc FCA DChA (Senior Statutory Auditor)

for and on behalf of

MHA

Statutory Auditor London, United Kingdom

Date:

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).

Page 13

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Income from:
Grants
4
Investments
5
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net (expenditure)/income before net gains on
investments
Net gains on investments
Net movement in funds before other recognised
gains
Other recognised gains:
Loss on foreign exchange
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2024
$
-
583,512
583,512
20,811,511
20,811,511
(20,227,999)
417,714
(19,810,285)
54,086
(19,756,199)
28,705,184
(19,756,199)
8,948,985		 Total
funds
2024
$
-
583,512
583,512
20,811,511
20,811,511
(20,227,999)
417,714
(19,810,285)
54,086
(19,756,199)
28,705,184
(19,756,199)
8,948,985		 Total
funds
2023
$
48,000,000
141,305
48,141,305
25,716,695
25,716,695
22,424,610
68,703
22,493,313
6,353
22,499,666
6,205,518
22,499,666
28,705,184

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities and are Unrestricted.

The notes on pages 17 to 25 form part of these financial statements.

Page 14

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 09578830

BALANCE SHEET AS AT 31 DECEMBER 2024

Note
Current assets
Debtors: Amounts falling due within one year
11
Investments
10
Cash at bank and in hand
Creditors: Amounts falling due within one
year
12
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more
than one year
13
Total net assets
Charity funds
Unrestricted funds
Total funds		 2024
$
-
14,046,083
266,725
14,312,808
(3,308,269)		 2024
$
11,004,539
11,004,539
(2,055,554)
8,948,985
8,948,985
8,948,985		 2023
$
120,000
32,065,190
781,288
32,966,478
(1,525,496)		 2023
$
31,440,982
31,440,982
(2,735,798)
28,705,184
28,705,184
28,705,184

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Marina Medley De Sà

Trustee Date: September 23, 2025

The notes on pages 17 to 25 form part of these financial statements.

Page 15

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Cash flows from operating activities
Net cash used in operating activities
14
Cash flows from investing activities
Investment income
5
Net movement on current asset investments
10
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
15
The notes on pages 17 to 25 form part of these financial statements		 2024
$
(19,534,896)
583,512
18,436,821
19,020,333
(514,563)
781,288
266,725		 2023
$
26,046,654
141,305
(31,996,487)
(31,855,182)
(5,808,528)
6,589,816
781,288

Page 16

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1. General information

Telles Foundation is an incorporated Charity and is registered with the Charity Commission (Charity Registered Number 1165054) and Registrar of Companies (Company Registration Number 09578830) in England and Wales.

In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per Member of the Charity.

The address of the registered office is given in the Administrative information on page 1 of these financial statements.

The nature of the Charity's operations and principal activities are detailed in the Trustees Report.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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) and the Companies Act 2006.

Telles Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in US dollars which is the functional currency of the Charity and rounded to the nearest dollar.

2.2 Going concern

The Trustees have reviewed the financial position of the Charity and are content that the accounts should be prepared using the going concern assumption. They have considered a period of at least 12 months from the date of this report, and consider that there are no material uncertainties over going concern for the foreseeable future.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Page 17

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity.

Charitable activities and Governance costs are costs incurred on the Charity's operations, including support costs and costs relating to the governance of the Charity apportioned to charitable activities.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into dollars at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into dollars at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

2.7 Investments

Current asset investments are short term highly liquid investments and are held at fair value using the closing quoted market price. These include cash on deposit and cash equivalents with a maturity of less than one year.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 18

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

2. Accounting policies (continued)

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.11 Financial instruments

The Charity only holds basic Financial Instruments. The financial assets and financial liabilities of the Charity are as follows:

Investments - investments are classified as basic financial instruments and are held at their fair value as detailed in Note 10.

Debtors – other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 11.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Liabilities – accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Notes 12 and 13.

2.12 Fund accounting

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

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Page 19

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

4.
Income from grants
Unrestricted
funds
2024
$
Grants
-
Unrestricted
funds
2023
$
Grants
48,000,000
5.
Investment income
Unrestricted
funds
2024
$
Bank and investment interest receivable
583,512
Unrestricted
funds
2023
$
Bank and investment interest receivable
141,305		 Total
funds
2024
$
-
Total
funds
2023
$
48,000,000
Total
funds
2024
$
583,512
Total
funds
2023
$
141,305

Page 20

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

6. Grant funding of activities

Current year grant commitments
Refunds received on current year grant commitments
Total grant funding of activities (Note 7)		 2024
$
21,488,460
(806,758)
20,681,702		 2023
$
25,625,759
(325,912)
25,299,847

7. Analysis of expenditure by activities

Grant
funding of Support Total
activities costs funds
2024 2024 2024
$ $ $
Charitable activities 20,681,702 129,809 20,811,511

The grants committed during the year have been detailed within the Trustees Report and in Note 12.

There were no staff in either the current or previous accounting periods.

Activities Grant
undertaken funding of Support Total
directly activities costs funds
2023 2023 2023 2023
$ $ $ $
Charitable activities 252,650 25,299,847 164,198 25,716,695

Page 21

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Governance costs
Other costs
Website design and development
Travel costs		 Total
funds
2024
$
104,872
8,292
-
16,645
129,809		 Total
funds
2023
$
115,639
8,607
856
39,096
164,198

8. Governance costs

Auditor's remuneration - Audit of the financial statements
Auditor's remuneration - Accounts preparation
Auditor's remuneration - Under accrual of prior year fees
Professional fees		 2024
$
15,411
5,638
-
83,823
104,872		 2023
$
15,123
5,499
6,521
88,496
115,639

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - $NIL) .

During the year ended 31 December 2024, no Trustee expenses have been incurred (2023 - $NIL) .

10. Current asset investments

Liquid investments
The investments are held as bonds.		 2024
$
14,046,083		 2023
$
32,065,190

Page 22

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

11. Debtors

Due within one year
Grant refund receivable
Creditors: Amounts falling due within one year
Other creditors
Accruals
Grants payable		 2024
$
-
-
2024
$
-
46,919
3,261,350
3,308,269		 2023
$
120,000
120,000
2023
$
436
39,086
1,485,974
1,525,496

12. Creditors: Amounts falling due within one year

Analysis of grants payable

Total $
$
$
$
Grants payable
at 1 January
2024
New grant
commitments in
the year
Grant paid in
2024
Grants payable
at 31 December
2024
4,221,772
21,314,406
(20,219,274)
5,316,904

13. Creditors: Amounts falling due after more than one year

Grants payable

2024 2023
$ $
2,055,554 2,735,798

Page 23

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

14. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the period (as per Statement of
Financial Activities)
Adjustments for:
Gains on investments
Investment income
5
Decrease/(increase) in debtors
11
Increase in creditors
12,13
Losses on foreign exchange
Net cash provided by/(used in) operating activities
15.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
16.
Analysis of changes in net debt
At 1
January
2024
$
Cash at bank and in hand
781,288
Liquid investments
32,065,190
32,846,478		 2024
$
(19,810,285)
(417,714)
(583,512)
120,000
1,102,529
54,086
(19,534,896)
2024
$
266,725
266,725
Cash flows
$
(514,563)
(18,019,107)
(18,533,670)		 2023
$
22,493,313
(68,703)
(141,305)
(120,000)
3,876,996
6,353
26,046,654
2023
$
781,288
781,288
At 31
December
2024
$
266,725
14,046,083
14,312,808

Page 24

Docusign Envelope ID: 7E1383FF-CFB6-447B-B905-86C9CC3F96B7

TELLES FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

17. Related party transactions

During the year the Telles Foundation recognised a grant from a related party of the Trustees which was unrestricted and without conditions amounting to $NIL (2023 - $48,000,000).

During the 2024 year the Telles Foundation paid grants to three organisations which has one of the Trustees on their board (2023 - grants to four organisations).

Marina Medley De Sà - Sonho Grande Institute
Marina Medley De Sà, Claudio Moniz Barreto Garcia - Instituto Apis,
previously known as Instituto Telles
Marcel Herrmann Telles, Claudio Moniz Barreto Garcia - Ismart
Marcel Herrmann Telles - Fundação Estudar		 2024
$
6,773,818
452,206
9,713,844
-
16,939,868		 2023
$
8,903,678
504,116
9,884,531
529,609
19,821,934

At the year end there was a grant payable of $1,526,184 (2023 - $230,412) to Instituto Telles.

Page 25