ATI Evolution Foundation
Registered Charity No: 1166515
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31st December 2023
ATI Evolution Foundation Trustees' Report for the year ended 31st December 2023
The trustees present their report along with the financial statements of the Foundation for the year to 31st December 2023. The Foundation is a CIO (Charitable Incorporated Organisation) and is registered with the Charity Commission for England and Wales with registered charity number 1166515.
Trustees Mark Farrington Dr. Ekaterina Valeeva-Farrington Dr. Charles Oliphant Leonardo Isacchi (Appointed 6th October 2023) Efrem Marder (Resigned 2nd October 2023) Julia Helena Lawless (Resigned 2nd October 2023)
The trustees, as shown above, were appointed by the charity's Constitution dated 1 April 2016, and subsequent trustees can be appointed by them. The Foundation became a registed charity at Charity Commission on 13 April 2016. All the trustees receive regular updates on the charity sector.
Principal Office Unit B, 14 Collent Street London E9 6SG Bankers Barclays Plc 1 Churchill Place London E14 5HP Investment managers Hargreaves Lansdown One College Square South Anchor Road Bristol BS1 5HL Independent Examiner Moore Kingston Smith LLP Chartered Accountants Floor 6 9 Appold Street London EC2A 2AP
Objects and Activities
ATI Evolution Foundation is a registered charity raising money in support of professionally run NGOs (Nongovernmental organisation) and non-profit organisations dedicated to the preservation of Tibetan culture and humanitarian relief in the Himalayan region. Key areas of focus are on NGOs and non-profit organisations supporting Tibetan language, Tibetan medicine, Tibetan arts and Tibetan Buddhism.
Strategy for achieving objectives
The Foundation has an objective of building a lasting investment fund that, through intelligent and socially responsible investing, generates an annual investment return that provides material support toward the operating expenses of our beneficiary non-profit organisations.
Public Benefit
The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.
Achievements, Performance and Financial Review
The Foundation did not receive any donations during 2023 as planned and received a small amount of interest and dividend income in the year of £8,394 (2022: £12,373). A single donation of $999,993 was received in 2017. The Foundation aims to build an investment portfolio with the intention of giving grants to beneficiaries using the interest/dividends earned from the investment fund. All investments are held with the investment managers Hargreaves Lansdown.
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ATI Evolution Foundation Trustees' Report for the year ended 31st December 2023
Grant Making Policy
The Foundation's strategy for making grants to its list of beneficiaries will not be implemented until the endowment reaches $5 million. Building the endowment to a sufficient size so that annual investment return targets of 4% constitute a material grant for our beneficiary organisations is an essential tenant of the Foundation’s long-term strategy. When the $5 million endowment hurdle is cleared, the Board of Trustees will deliberate annually to determine percentage allocations to our list of beneficiaries. Granting some percentage of the annual distribution pool to all beneficiaries is our over-arching policy, with greater emphasis on necessity than operational performance. Solvency and consistent Mission Statements are also an important prerequisite.
In certain circumstances, the Foundation may make smaller, incremental grants to its list of beneficiaries prior to the endowment reaching its $5 million target. These small grants would be aimed at ensuring a base level of charitable activity while we await future donations and endowment growth. These smaller grants shall not exceed 40% of retained net investment income.
Investments Policy & Performance
The investment policy of the Foundation 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 responsible investment strategy that reflects the sensibilities of our donor and beneficiary community.
The Net Investment Portfolio Performance (NIPP) is an annual measure to assess the net return of the investment portfolio and is defined as a percentage of the sum of net yearly gains, investment income derived from the portfolio and management fees as a proportion of the cost of the portfolio . The NIPP for the year to 31 December 2023 was 12% compared to -10% in the previous year.
Reserves Policy
The reserves policy is intended to be conservative and provides adequate assurance to the trustees that the charity operates as a going concern at all times. To this end, ATI Evolution Foundation aims to maintain free reserves (those unrestricted reserves not tied up in fixed assets or risk-based investment products) at an amount of £100,000 to cover operational costs of the Foundation for several years. At year end the charity held free reserves of £173,138, defined as £56,854 (2022: £65,351) held in bank accounts and £116,284 (2022:£127,269) of cash held in the investment portfolio.
Risk Management
The major risks to which the Foundation is exposed, as identified by the trustees, have been reviewed and the trustees are satisfied that the processes are in place mitigate those risks.
• There is a risk that the investments will not yield sufficient returns in any one given year to meet the Foundation's investment return objective of 4%, however, this risk is mitigated by targeting distributions in line with a long term average of investment returns. Surpluses will be retained in over-performance years, which can then be used to smooth distributions in under-performance years.
Key management and remuneration policy
The trustees are not remunerated and the Foundation has no employees.
Appointment of Trustees
New trustees may be appointed by the trustees, to fill a vacancy or as an additional trustee. The Foundation shall select appropriate trustees and provide them with an induction to acquaint them with the governance and policies of the Foundation as well as what is expected of them in their new role. Additional training and/or information will be provided to the trustees on an ongoing basis.
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Independent Examiner's Report to the Trustees of ATI Evolution Foundation
I report to the trustees on my examination of the accounts of the ATI Evolution Foundation ('the Foundation') for the year ended 31 December 2023.
Responsibilities and basis of report
As the charity trustees of the Foundation you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Foundation's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Foundation as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Adam Fullerton, FCA DChA
Independent Examiner For and on behalf of Moore Kingston Smith LLP
Floor 6 9 Appold Street London EC2A 2AP
Date: 28/03/2024
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ATI Evolution Foundation Statement of Financial Activities For the year ended 31st December 2023
| Note Income from: Investment income 2 Total Expenditure on: Raising funds: Investment management costs Charitable Activities: Charitable activities in furtherance of objects 3 Net gains/(loss) on investments 10 Revaluation loss on intangible assets 9 Total Net movement in funds Total funds brought forward Total funds carried forward |
£ 8,394 8,394 (935) (54,690) 96,851 (6,519) 34,707 43,101 771,597 814,698 31 December 2023 |
£ 12,373 31 December 2022 |
|---|---|---|
| 12,373 | ||
| (78) (31,900) (63,273) (13,687) |
||
| (108,938) | ||
| (96,565) 868,162 |
||
| 771,597 |
All income and expenditure were unrestricted in the current and preceding year.
The notes on pages 7 to 11 form part of the financial statements.
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ATI Evolutlon Foundation L"::. -Ir .1¥ ID 7fJ 11 6.653 14 40.tty4) I6.) tyl.bw lJ14.15¥*1 llr0prytrirf Fi
ATI Evolution Foundation Notes to the Accounts
For the year ended 31st December 2023
1 Accounting policies
Basis of accounting
The financial statements have been prepared on a going concern basis under the historical cost convention modified for the investments which are accounted for at market value.
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Foundation is a public benefit entity for the purposes of FRS 102 and therefore the Foundation also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP) and the Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.
The principle accounting policies adopted in the preparation of the financial statements are set out below.
Going Concern Basis
These financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assume that the charity will continue in operation for a period of at least one year from the date of approval of the financial statements. The Trustees have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future.
Income
Income is credited to the Statement of Financial Activities on an accruals basis when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met.
Expenditure
Expenditure is included in the Statement of Financial Activities on an accruals basis, 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 that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Grants for specific purposes relate to transfers made to recipient organisations for the purposes of charitable activities.
Support costs are those incurred in the administration of the charity and are primarily associated with the constitutional and statutory requirements.
Costs of raising funds are those incurred in the external management of the charities cash and investment portfolio.
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ATI Evolution Foundation Notes to the Accounts For the year ended 31st December 2023
1 Accounting policies (continued)
Foreign currencies
Transactions denominated in foreign currencies are translated into Sterling at the exchange rate ruling at the date of the transactions. Assets and liabilities in foreign currencies are translated into Sterling at the rates of exchange ruling at the end of the financial period. All exchange differences are dealt with in the Statement of Financial Activities.
Intangible fixed assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at fair value at the year end.
Investments
Investments are included in the accounts at market value. Realised and unrealised gains and losses on investments are included within the funds and are recognised in the Statement of Financial Activities.
Cash and Cash Equivalents
Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.
Grants payable
Contractual arrangements are recognised as goods and services are supplied. Other grant payments are recognised when a constructive obligation arises.
Financial Instruments
The Foundation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Critical accounting estimates and areas of judgement
In the view of the trustees in applying the accounting policies adopted, no critical accounting estimates and judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
| 2 Investment income Dividend income Bank interest |
2023 2022 £ £ 4,702 12,024 3,692 349 8,394 12,373 |
|---|---|
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ATI Evolution Foundation
Notes to the Accounts For the year ended 31st December 2023
3 Grants and donations payable in furtherance of objects
| Charitable grants to institutions Support costs (see note 8) 4 Movement in funds This is stated after: Independent examiner's fee - for the current year |
2023 £ 16,328 38,362 54,690 2023 £ 3,234 |
2022 £ 16,666 15,234 |
|---|---|---|
| 31,900 | ||
| 2022 £ 3,108 |
5 Transactions with Trustees
No trustee received any remuneration for services as a trustee (2022: £Nil), nor any reimbursement of expenditure (2022: £Nil).
6 Employees
The charity has no employees in the current or preceding year. The trustees of the charity are considered to be the key management personnel.
7 Fund Accounting
The unrestricted fund consists of those funds which the Foundation may use in furtherance of its charitable objectives at the discretion of the trustees.
8 Support costs
| Independent examiner fees Accountancy and related costs Website costs Investment analytical services Marketing charges Bank charges Subscriptions Computer running costs 9 Intangible fixed assets Fair value At 1 January 2023 Additions Disposals Revaluation gain/(loss) At 31 December 2023 |
2023 £ 3,234 2,460 3,097 22,695 2,916 102 2,926 932 38,362 2023 £ 7,505 - - (6,519) 986 |
2022 £ 3,108 2,364 661 7,007 - 258 - 1,836 |
|---|---|---|
| 15,234 | ||
| 2022 £ 21,192 - - (13,687) |
||
| 7,505 |
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ATI Evolution Foundation Notes to the Accounts For the year ended 31st December 2023
10 Investments
| Listed investments Market value as at 1 January Additions Disposal proceeds Net gains/(losses) Market value at 31 December Add cash held in investment portfolio Total value of investments at 31 December Historical cost of investments (excluding cash held within the portfolio) All of the Foundation's investments are listed on the London Stock Exchange. |
2023 £ 570,290 3,349,816 (3,370,689) 96,851 646,268 116,284 762,552 848,125 |
2022 £ 606,314 1,341,018 (1,313,769) (63,273) |
|---|---|---|
| 570,290 127,269 |
||
| 697,560 | ||
| 764,073 | ||
At 31st December 2023 the following investment holdings represent more than 5% of the portfolio:
| Tesla Inc International Business Machines Corp Com Stk ITM Power plc Ordinary 5p Shares Nexans SA Leverage Shares Plc 2x Netflix ETP 31/12/67 GBP FiscalNote Holdings Inc Lloyds Banking Group Plc Invesco Markets NASDAQ Biotech UCITS Invesco Markets Plc Technology S&P US Sel Sector ITM Power plc Ordinary 5p Shares Leverage Shares Plc 2x Netflix ETP 31/12/67 GBP Rio Tinto plc Ordinary 10p 11 Debtors Prepayments |
Historical cost 127,740 89,963 78,280 70,846 62,861 58,036 50,010 Historical cost 104,982 243,140 78,280 62,861 146,151 2023 £ - |
2023 Market Value 117,125 89,957 8,910 68,495 51,420 17,598 44,595 2022 Market Value 92,262 214,932 13,815 24,031 145,025 2022 £ 6,653 |
|---|---|---|
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ATI Evolution Foundation Notes to the Accounts
For the year ended 31st December 2023
12 Creditors: Amounts falling due within one year
| Creditors: Amounts falling due within one year Accruals |
2023 £ 5,694 5,694 |
2022 £ 5,472 |
| 5,472 |
Included in creditors are financial instruments of £5,694 (2022: £5,472).
13 Related party transactions
A grant of 8,058 (2022: £8,333) was awarded to Asia Onlus during the year, an Italian registered charity with a common trustee of ATI Evolution.
14 Financial and capital commitments
The Foundation has no outstanding financial or capital commitments (2022: £Nil).
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