ATI Evolution Foundation Reglstergd Charlty No= 1166515 UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st Decembèr 2021
ATI Evolution Foundation Trustees Report for the year ended 31st December 2021 The trustees present their report along the finanaal statements of the Foundation for the year to 31st December 2021. The Foundation is a CIO Icharitsble Incorporated Organisab"onl and is registered with the Charity Commission for England and Wales wth registered charity number 1166515. Trustees Mark Farrington Efrem Marder Ekatenna Val88va-Farrinyton Charles Oliphant The trustees, as shown above, were appointed by the charitys Consbtution dated 1 April 2016, and subsequent trustees can be appointed by them. The Foundabon became a registed charity at Charity Commi55ion on 13 April 2016. All the truslees receive regular updates on the chanty se¢tor. Prln¢lpal Offl¢• Flat A, 12 Bolion Gardens London SW5 OAL Bankers Barclays PIC 1 Churchill Place Lontlon E14 5HP Inv•8tm•nt manag•rs Hargreaves Lansdown One College Square South Anchor Road Bristol 8S1 5HL Independ•nt Examlner Luke Holl MO0 Kingslon Smith LLP Chartere<l Accountants Devonshire House 60 Goswell Road London EC1M 7AD Oble¢t$ #nd A¢tlvltl•$ ATI Evolution Foundation is a registered charity raising money in support of professionally run NGOS INongovernmental organisalionl and non-profil organi$alion$ dedi¢aled lo the presewats.on ol Tibetan cullurg and humanitarian relief in the Himalayan region. Key areas of focus are on NGOS and non-profit organisalions supports'ng Tibetsn language, Tibetan medicine. Tibeian arts and Tibetan Buddhism. Str•t•gy for 8¢hi•ving ¢bje¢tives The Foundation has an objective of building a lasting investment fund that, through intelligent and socially responsible invests"ng, generates an annual investment relum that provide5 material 5UPPOrt toward the operating expenses of our benefiriary non-profit OTganisations. Publle B•nèflt The Trustees confirm (hat (hey have complied wilh the duty in Sec'On 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit. Achlevements, Perfomiance and Flnancial Revlew The Foundation did not receive any donatsons during 2021 as planned and received a small amount of bank intèrast and dividénd income in thè yèar of £12.70912020". £3,819). A singlè donation of $999,993 was received in 2017. The Foundation aims lo build an investrnent portfolio with the intention of giving grants lo beneficiaries using the interesvdividends earned from the investment fund. Al investments are held with the investment managers Hargreaves Lansdown. Page.. 1
ATI Evolution Foundation Trustees Report for the year ended 31st December 2021 Grant Making Policy The Foundation strategy for making grants to its list of beneficiaries will not be implemented until the endowmenl reaches $5 million. Building the endowment to a sufficient size so that annual investment return targets of 4°A constitute a material granl for our beneficiary organisaiions is an essential tenanl of the Foundation's long-temi strategy. Once the $5 million endowment hurdle is cleared. the Board of Trustees will deliber818 annually lo determine percentage alloc8b.ons to our list of beneficiaries. Granb"ng soffle percentage of the annual distribution pcK)I to all beneficiaries is our over-arching policy. with greater emphasis on necessity than perfomance. Solvency and consistent Mission Statements are also an important prerequisite. Investments Policy & Perforniance The investment policy of the Foundabon is to achieve low volatility. absolute returns, whilst attempting to maintain the capital value. In addition to a low volatility return profile, the Foundation will also endeavour to implement a bespoke, socially reswnsible investmènt strategy that reflects the sensibilities of our donor and beneficiary Community. The Net Investment Portfolio Pèrfomiance INIPPI is an anntlal measure to ass$$$ the real retum of the inv8stm8nl portfolio and is defined as 8 p8rcentsge of the sum of nel yearfy gains. investment income derived from the portfolio and management fees as a proporbonal of the cost of the portfolio. The NIPP for the year to 31 Decemb8r 2021 was 13.8% compared to 10.4% in the previous year. Reserves Pollcy The rtsstrrves policy is intended lo be conservative and provide adequate assurance lo th& Iruslees that ¢h8 charity operates as a going concern al all times. To Ihis end. ATI Evolution Foundation aims to maintain free reserves (those unrestricted reserves not tied up in fixed assets or risk-based investrnent products) at an amount of £100,000 lo cover operational costs of the FoundaiK)n for sev&ral years. At year end the charity held free reserves 01 £245,612, define<l as £53.46612020.. £60,953) hel¢J in bank a¢UnIS and £192,146 01 cash held in the investment portfolio. Rlsk Manag8m•nt The major risks lo which the Foundation is exposed. as idenlified by the trustees, have been reviewed and the trustees are satisfied that the processas are in place mitigate those risks. . There is a risk that the investments will not weld sufficient retums in any one given year to meet the Foundation's invèstmènt rèturn objectivè o14Q/•. however, this risk 1$ mits'gatèd by targeting distributions in line with 8 long ltrm aver8ge of invesimenl relums. Surpluses wll btr retained in ovtrr-perfom8n¢e years, which can then be used lo smooth distributions in underyrformance years. Kèy manag•mènt and r•mun•ratlon polley The trustees are not remunerated and the Foundalion has no employees. Appointm•nt of Trust••$ New trustees may be appointed by the Iruslees. to fill a vacancy or as an additional trustee. Thè Foundats'on sh811 select appropriate trustees and provide them wtth an inducb.on to acquaint them wrth the goveman¢tr and policies of the Foundation as well as vthat Is expected ol them in their new Tole. Additional training andlor information will be provided to the Iruslees on an ongoing basis. Futur• Plan$ The Foundation ultimately tats fwe pemianent trx)ard members and is in constant dialogue with prospe¢tive candidates. The trustees plan to pursue a poli¢y of ¢onts"nuity over th& coming twelvg months, with no major operational changes forecast for the coming year. due primarily to the Covid-19 pandemic. Al the appropriate time in the future, the Foundation will pursue a global fundraising campaign to build a lasting endowment to support its charilable actiwlies. The Foundaiion hopes that its 4-year track record of successftjl fund management retums, particulady amid such a complex and volatile investment environment, will enwurage future donors and build trust in our profession81 Capabil"e5. Page 2
ATI Evolution Foundation Trustees Report for the year ended 31st December 2021 th 1¢ab law and wulations. apWab1e lawl. ThetinWKi ststwnrt% are k) gi¥ a true aThJ view cl ts slate of affaFrs ol the Foundab"on ?j of irorne aThJ eyKliture ofts Foundation lor that FEfKYl. In weparing thvse financ¢d statements, the St88$ a wUlr to: ObSee 1he mdhc<ls rKapS in Charrbes SORP". departures disdosed and ewAained in the linaroal statemerrts". prepare the ffinar1 statements on Ihe gOiNJ 0)rern basi5 it KS ItMPFoprth kn presume that the FouaOn wll conlinue in tr. The trustees a reSponse tr keepiF¥J woper accI)unti rx)rI that th"e with re&8onablè aUraCY * anytHMethe fin•al )srn of the F¢XJThJalK aThJ enaile t1 10 Ihat the statements comply Wth the Chanires Aci 2r111. Try are alg) respth for saf&JLwdirg aets ol the FOundatn 22 22 Page. 3
Independent Examinerfs Report to the Trustees of ATI Evolution Foundation I report lo the Iruslees on my examination of the accounts of the ATI Evolution Foundation (the Foundalionl for the year ended 31 December 2021. Responsibilities and basis of report As the charity tnjstees of the Foundation you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 {'Ihe Acl'}. I report in respect of my examination of Ihe Foundation's accounts carried out under section 145 of the 2011 Act and in carrying out my ex8min81ion I have followed all tt)e applicable Directions given by the Charity Commission ijnder sects'on 14515llbl of the Act. Independent èxamlner's statèment I have completed my examination. I confimi that no material matters have come to my attention in ¢onnection wlh the examination giving me ¢ause lo believe that in any material respect.. 1. accounting records were not kept in respect of the Foundab'on as required by section 130 of the Act., or 2. the accounts do not accord with those records: or 3. the accounts do not comply wrth the applicable requirements conceming the form and conlenl of accounts sel out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'lrue and fair wew which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection wth the examination lo which attention should be drawn in this report in order lo enable a proper undefstanding of the accounts to be reached. Luke Holt, FCA Independent Examiner For and on behaw of Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD Date.. 3 May 2022 Page.. 4
ATI Evolution Foundation ststement of Financial Activities For the year ended 31st December 2021 31 Oecember 2021 31 December 2020 Not• Income from.. Investment income 12,709 12,709 3,819 3,819 Total ExpendSture on: Raising funds.. Investment management costs Charitable Activilies.. Ch8rit8ble acbvilies in furlherance of objects 18931 11,6531 111,6991 18,8621 Net gains on investments 10 108,023 74,018 unrealised gain on fair value of intsngible 8ssel 9 1,479 Totsl 96,910 63,503 Losses on foreign exchange 121 $1 11,1621 Not mov•m•nt In lund$ 109,404 66,160 Total funds brought fonvard 758,758 692,598 Totsl funds carrl•d forward 868,162 758,758 All income and expenditure was UnsIn¢ted in the ¢urrenl 8nd preceding year. Th8 notes on pagas 7 to 10 fom part of thè ffinanaal statèmènts. Pag8'. 5
ATI Evolution Foundation Balance Sheet as at 31st December 2021 20X) 2020 21.1W2 10 697.805 Cath at bank Creditor$: Amounts lalllTrJ knwilhln 11 48.510 .9S3 868.162 758.758 Totsl Net A8aDts 868.162 758.75B .162 758,758 Th• rthes pw 7 to 10 frym partcrf fin8fMX81 *atefflerrts. aThJ signod on its bglwlf by.. Page.. 6
ATI Evolution Foundation Notes to the Accounts For the year ended 31st December 2021 Accauntlng pollel8s Basis of accounting The financial statements have been prepared on a going concem basis under the historical cost convention modified for the investmenis which are accounled for at markel value. The financial statements have been prepared in accordance with ihe Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The Foundatson is a public benefit entity for the purposès of FRS 102 and thèrèfore th& FOundatn also prepareil its finan¢ial statèments in ac¢ordan¢e with the Slalement of Recommended Pracb"ce applicable lo charitses preparing their accounts in 8ccordance with the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IThe FRS 102 Charities SORPI and the Charities Act 2011. The financial statements are prepared in sterfing, vthich is the funct•)nal currency of the company. Monetary amounts in these financial ststements are rounded to the nearest pound. The principle accounting policies adopted in the preparation of the financial statements are set out below. Golng Con¢orn Basls Thase financial stalemènls hava been prepared on the basis of accounting principlès applicable to a going concem, vh)i¢h assume that the chaiity wll continue in operation lor a period ol al least one year from the dale of approval of the financial sl8lemenls. The TTU5tees have concluded that there 15 a reasonable expectation that the Charity has adequate resources to conbnue in operational existence for the foreseeable future. Income Income 1$ credited lo the Slalemenl of Financial Activibes on an accruals basis when the is enlillement lo the funds, the receipt is probable and the amount can be measured reliably. Where income is received in advance ol meeting any perfomiance-related conditions there is not unconditional ents'tlement to the income 8nd its recognition is deferred and in¢lu¢Je<l in ¢redi¢ors as ¢Jefvrred income until the p$rformancg-relaled ndilions are mel. Expènd6tur¢ Expenditure is included in the Ststemenl of Financial Activities on an accruals basi5, inclusive of any VAT which cannot be recovered. Expenditure is recognised once there is legal or constructive obligation to transfer economic benefit to a third party, it is probable thal a transfer of economic benefits will be required in setdemgnt and the amount of thg oblatIon can bg mgasured reliably. Grants for specific purposes relate lo transfers made lo recipient organis8tions for the purposes of charitable acts'vities. Support costs are those incurred in the adminislration of ihe charity and are primarily associated wrth the constitutional and statulory requirements. Costs of raising funds are those inujrred in the exiemal management of ihe charities cash and investment portfolio. Page.. 7
ATI Evolution Foundation Notes to the Accounts For the year ended 31st December 2021 Accounting policie5 Icontinuedl Forèlgn eurr•nel•s Transactions denominated in foreign currencies a translaied into Sterling at the exchange rate ruling at the date of the transactions. Assets and liabilib.es in foreign ¢urren¢ies are translated into Sterfing at the rates of exchange ruling at the end of the financial pwod. All exchange differences 8r8 dealt with in the Statement of Financial Activities. Intangible fixed assets Intangible 85S8ts 8cquired separately Irom 8 business are recognised al c0518niJ are subsequently measured at fair value at the year end. Investments Investments are include(l in the accounts at market value. Realised and unre81i5ed gains and losses on investments are included within the funds and are recwnised in the Statemenl of FinancAal Activities. Cash and Cash Equivalents C8sh and cash equivalents include cash 81 banks arhy in hand and short tem) deposits with 8 maturity dale of three months or less. Grant$ payabl¢ Conlraclu818rrangements are recognised as goods and services are supplied. Other grant payments are recognised when a constructive obligation arises. Flnanclal Instruments The Foundation has elected to apply the provisions of Seclion 11 '8asic Financial Instruments, ol FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomgs paty to the contractual provisions of the instrumgnt. Financial as$gts and liabilities are offset, with the nel amounts presentèd in the financi81 stslemènts. when there is a lègally enforceable right to sel off the recognised arnounls and Ihere 15 an inlention to settle on a net basis or to realise the asset and settle the liability simultaneously. Crltlcal aeeountlng •stlmat•8 and ar•as of ludg•m•nt In the view of the trustees in applying the accounting policies adopled, no critical accounting eslimates and judgements wère requirèd that have a significant effect on the amounts recognised in the financial slalements nor do any estimates or assumpts.ons me cany a signfficant risk of material 8djuslmgnl in th8 next financial vear. Inv•stmènt Incom• 2021 2020 Dividend income Bank interest 12,708 3,773 46 12,709 3,819 Page.. 8
ATI Evolution Foundation Notes to the Accounts For the year ended 31st December 2021 3 Grants and donations payable in furtherance of objects 2021 2020 Support costs Isee note 8} 11.699 8.862 4 Movement in funds This is stated after.. 2021 2020 Independent examinels fee for th8 current year 2.814 2.642 5 Transadion5 Wlth Trustees No trustee received any remunerati¢)n for services as a InJstee12020-. £Nill. tw)r any reimbursèment ol expendilure12020.. £Nill. 6 Employ••8 The ¢harity has no employees in the current or preceiling ye8r. The Iruslees of the charity arg considered lo be the key fflanagemenl personnel. 7 Fund Accountlng The unrestricted fund consists of those funds vknich the Foundation may use in furtherance of its charitable Obl1Ve$ at the discrètion of the trustèès. 8 Support 2021 2020 Independent examin8rfs fees- current peiic¥J lindudiThJ VAT} Accountancy and relaled costs Website costs Bank charges Comput8r running costs 2.814 2.142 3.972 1.071 1.7¢)0 2,642 1.960 2,500 59 1.701 11,699 8,862 9 Intanglbl• fixed assets Cryptocurrèncy Total Cost Al 1 January 2021 Additions Disposals Revaluation gainl Ilossl 19.713 19,713 1.479 1,479 At 31 December 2021 21,192 21,192 CarrySng Amount Al 31 Dember 2021 At 1 January 2021 Pag8'. 9
ATI Evolution Foundation Notes to the Accounts For the year ended 31st December 2021 10 Inve5tm8nt5 2021 2020 Llsted Investments Market V81u8 as at 31 December Additions Dispos81 proce8ds Net gainslllossesl Market Value at 31 December 500,647 1.636.437 11,638,794) 108.023 606,314 442,949 2.479.016 12.495,3361 74.018 500.647 Add cash held in inv8$trnent portfolKJ 192,146 197,158 Totsl value ol investments at 31 Dec8mber 798.460 697.805 Historical Cost of inv6stm6nls lexdudiThJ cash held within the portfolio) 680.932 532.449 All of the Found8tK)n's investments ar8 lisled on the London Siock Exthange. At 31sl Decernber 2021 the following investmenl holdings repr&8ent more than 5% of the portfolio.. Hlstorfcal cost 116,364 104,982 100,003 217,090 72.501 2021 Markot Valug 91,583 93,046 97.931 205,389 59.115 Rio Tinlo plc Ordinary 10p Invesco Markets NASDAQ 81Jtech UCITS ishares 111 FTSE Gilts UK 0-5 GBP 1252 Gold 8ullitsn Securit18S ITM Power plc Ordinary 5p Shares Hlstorbcal 2020 Markot Valug 98.185 102,617 99.820 99,885 100.140 L&G Future Wodd ESG Developed Index (Accl Royal London Ethical Bond Ilncl @ 0800 iShares111 FTSE Gilts UK O-S GBP @ 1252 iShar8s (Blackrock 8SSèt managamènti Gold Bullion Securities 132,192 100,000 100.003 100,340 99,915 11 Cr•dltors: Amounts falllng du• wlthln on• ar 2021 2020 Accruals 4,956 4,602 4,956 4,602 Included in creditors are financial inslruments of £4.956 {2020'. £4.6021. 12 Related party transactions There were no related party transaclions in the yearix pr8ceding year. 13 Financial and eapital commitsn•nts The Foundath)n has no outstanding financial or caprtal o)mmitrnenb12020'. £Nill. Page.. 10