Charlty Reglstratlon No. 11B1077 THE IMPACT FACILITY ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Yshawgibbs THE IMPACT FACILITY LEGAL AND ADMINISTRATIVE INFORMATION Trustees DrA Carter PHO Mr S Lowe Ms B Visser MSSHO Charlty number 1181077 PrlncSpal address Avening Park West End Telbury Gloucestershire GL8 8NE Audltor Shaw Gibbs (Audit) Limrt¢d 264 Banbury Road Oxford OX2 7DY Bankèrs Lloyds Bank 1&14 Commarket Thame Oxon OX9 28N THE IMPACT FACILITY CONTENTS Pagè Trustees, report Independent audito¢s report 13-15 Consolid8ted ststemenl of financial activities 16 Charity statement ol finan¢ial adivili&$ 17 Consolid¥leJ balan¢& $he&l 18 Charity balance sheet 19 Consolidated statement of cash Ilows 20 Charity statement of ￿$h flows 21 Notes lo the finan¢ial statement 22-42 THE IMPACT FACILITY TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees present their annual report and financjal ststements for the year ended 31 De￿mber 2024. The financi81 st8temenls have been prepared in a￿rdancE the accounting poliryes set out in note to the financial 5tateTnents and compty with the charty's trust deed, the Charibes Act 2011 and 'Accounting and Reporting by Charities. Statement ol Recommended Practice applicAble to charities prepanng their accounts in accordance with the Finanual Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 leffeth.ve 1 January 20191.. Objectives and activitle• The Impact Facility exists for the public benefrt regarding.. 1. The prornotion of sustainable development for the benefft of communit￿3 and landscape5 surrounding mining cornmun((ie5 in developing nations and count￿6 in transrtion. The lfflpact Farylity wll contribute through.. al the preservation, conseNatson and the proteth.on of the environ￿￿1 and the prudent use of natural resour¢es, with a particular locus on mined resources. bl the relief of povety and the improvement of the ojnditions of life in SOCAaUy and economicalty disadvantaged mining cornrnunilies. in developing na￿'OnS and transitioning countries. ¢1 the enabling ol susloinable means ol achi￿1n9 e¢onomi¢ growth and fegeneration. In thls context sustainable development is defined as. -development vknich meets the needs of the wesent without compromising the ability of future g8ner8tions to meet their own needs". Nothing in this constitution shall avthorise an application of Ihe propety of the CIO for the purposes which a￿ not charitable in accordance with section 7 of the Charities and Trustee In¥e51rnent ISci)tJandl Act 2005 and section 2 of the Charitie$ Act INorth¢m Ireland) 2Tr)8. The Trustees have pai¢J du¥ re9ard to guidan¢e issued by th¥ Charity Commis$ion in ¢Jeoding what 8divilie$ th¥ charity should undertake. For more infom7at￿ on th& CIO see section 5. Achlevements and perfomiance Key achievernenls ol The Impact Facility have revolved around tyvo core initialives.. The Fair Cobalt Alliance IFCAI and pro9rammes implemenied to improve gold minin9 ¢ommunilies in the Lake Vi¢toria ￿910n, known as the Lakè Vletoria 2030 Programme. The Impact Facility is a co-lounding member of the Fair Cobah Alliance IFCAI and serves as the pemianent secretariat of the rnultl-518keholder alliance established in August 2020 to 8ddre55 complex development81 issues in rt1san81 wb81t production Communities in the DRC. slarting vrith the K8mi1gmbe mine in the Kapata Community of Kolwezi, Lualaba province. The Alliance was founded by Fairphone, Signrfy, Glencore and The Impact Faality and has a total of 19 members, across the global cobah suppty chain. The strategic areas that the Alliance focuses on are clustered around the frjllowing workstreams.. Safe and fair working conditions.. To improve worker5. heahh and safety as well as trade transparency and their tems of payment, we support the provision of adequate personal protective equipment IPPEI, worker tr8ining, and transparent and fair buying practices at the trading slab"ons. THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Child labour remediation and prevention.. The Alliance is working with local co-operatives and civil society to build a scalable child labour remediation and prevenlion system. Taking a child rights approach. we seek to promote school attendance and vocational training and job Opportun￿'e5 for youth. Economic resilience". We invest in comTh￿n￿Y programmes around the mine sites. designed to create and diversify sustainable livelihoods and accessible to all community members. Wdespread povety can onty be addressed by fostering entrepreneurship and creabng lob opportunities in Ihe community- outside the artisanal mining sector. Value Chain PartiCiP8tion'. Any organisalion operating as part of - or associated wth - the glob81 cob8tt supply chain should consider h¢)w it might be51 conth'bute lo solutK)ns to the thallenges involved in 8rt1san81 cobalt production. By taking a holistic apprtsach, incorpoiating every stage ol the supply chain, we ¢an identify foot causes an¢J construct effective solutions to ad¢Jress the issues. Governance The Impact Farility rnanages the Fair Cobalt Alliance as a stand-alone iniliative 8nd ensures that all funding is allocated to projects 8pproved and accounted for by the FCA Sleering Committett. In 2023, the rnember5 of the Steering Committee included repre$entabve$ from the Centr& Afflipe pour la Re¢h&r¢htr et la Formats'on ICARFI. Thtr Centre for Child Right$ and Busin¥ss. Tesla, Glen¢ore, LG Enef9y Solution and Fairphone. The Steering Committee meets once every six weeks to prO¥￿e strategic oversighl of the work of the FCA. Advisory Board.. Launched in April 2022. the Advisory Board consists of 14 thir&party advisors with relevant experien￿ in the sector selected by Ihe Secretsriat in consuhalHJn wlh the Steering Corrrnittee. The Advisory Board's role is lo provide non-binding advice lo the Secretariat. The Board mel ￿'ce in 2023. to provide input and perspective lo the sh8ping of th& FCA'$ Strat￿1¢ dir&ction, firsl in Jun& and lh* se¢ond lim& in Nov&mb¥r. The Falr Cobalt Alliance work and achievements in 2024 Key achievements ol The Impact Facilrty have revolved around tsvo CO￿ inthalives.. The Fair Cobatt Alliance IFCAI and programmes implemented to improve gold mining communi1￿$ in the Lake Victoria region. known as the Lake Victoria 2030 Programme. Mernbership lntemati0nal￿, thè Alliancè for Responsible Minin9 IARMI, Nor1hvoll, and TELF AG joinoa thè FCA, brlnging tha total membership to 21 members. Legalisation support for Kamilombe mine site The effort to legalise Kamilombe continued in 2024 towards Gécamines, the sile owner, but rernained unsuccessful with RMAC and Cabinet Mbuyu, as Gécamines had other priorities for ihe site. In retum, Gécarnines has been able to amodiate the siles of Tombolo13 mining squares) and Kanvnka12 rnining squares) lo the Entreprise Generale du Cobalt IEGCI, a Stale Company belon9ing to Gécamines195%1 and the Congolese State15%1. EGC and FCA are in the process Of signing an Mov lor their collaboration. Thus, a Consortium Comprising EGC, FCA, C4D, and Better Mining has been fomied to work togèther in Ihe fomalis*"on and professionalisation of the ASM in the 2 mine sites. Legalisation ol The Impact Faalty ITIFI FCA undertook the PTocess of TIF legalisation by hiring the Cabinel CMA lo proceed to the obtention ol the registration a the Ministry ol Plan as well all Ihe relevanl documents regarding the registration. personnel. functioning. and legal sel-up ft)r leg81ty doing business in the DRC induding the Registration Certificate. the Accord cadre and the Inter-mini5terial decree 9ranting administralNe. fiscal. and customs facilities and Ihe frarnework agreement wrth the Congolese State and Olher fomialit*s to obtain legal personalrty, ONEM, INPP, CNSS and Tax number. THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 FCA implemented various interventions to improve safety measures. induding the provision of personal proiective equipment IPPEI. pit roofing. worker training. and ventilation of the pits at Kamilombe. The FCA has worked in collaboiabon with CMOS in the implementation of Occupational He8llh 8nd Safety IOHSI 8Ctivities, induding the ft>llowing". 6 OHS commrttee meebngs were held with the participab.on of the Cooperative CMDS, Kamoto Copper Company IKCCI. Service d'Assislance et (fEncadrement de fExploitalion Minière Artisanale et a Petite Échelle ISAEMAPEI, and FCA. These meetings We￿ held to review. evaluate, and develop management plans for mine operational safety. OHS awareness-raising campaigns. To socaalise a culiure of safety at the mine site, the FCA implemented sever81 intervention5 in 2024. These include.. 22 toolbox training sèssions condu¢t&d by lh¢ 100 safety ¢aptsin$ trained by the FCA in 2021 and 2022, reached over 4,000 miners. The facilitation of 4 theatre perlomances otFsrte. reaching approximately 9,420 miners with messages about key safety practices such as PPE usage. prt roofing. cholera prevention, dust hazards, rainwater managemenl. and site deanliness. 2 billboards were erected last ye8r at Ihe Kamilombe mine site. bringing the total nurnber to 22 billbo8rd5 that serve 85 visual reminders of proper health and safety protocols. The broadcastin9 01 jin9les vw radio and teleViS￿n. which be9an in 2023, ¢ontinued in th¥ flrsl quarter of 2024, raising awarene$$ on mone *le safety to the wder to the benefit of the Lualaba artisanal mining community PPE Provision. the FCA did the following inlervenlions.. 235 helrnets and headlamps were supplied to the CMDS for Ihe underground miners. 200 pairs ol gloves and gog9les were provided to the miners in Karnilombe. 17 pairs of gurnboots, 34 pairs of gloves, and 34 pairs ol goggles wert provided lo the site cleaners. 4 stretchers and 4 neck braces were provided to the hearth center al Kamllombe to seNe the miners in case of an emergency. Mine infrastructure improvemenls include.. The roofing of 131 underground tunnels wth ￿r￿gated sheets enhances Safety by improving rainwater management around the pils and reducing tunnel flooding, thereby slabilising mine entry tunnels and bringing the ioial number of lunnels roofed to 136. Thi$ pra¢ti¢e has been pul in pla¢e in replacemont of tarpaulins that were lomerly used and didn't guarantee sufficient pit prtstection. Through the sale ol credrts Imore infomation available below under the Responsible Minerals Mechanism), the FCA was able to purchase and install 8 underground ventilators, providing underground venlilation to 129 pils. benefiting 5,220 underground workers Support to CMDS in Ihe implementalion of Ihe registration syslem of workers. In 2024, 2335 workers were regislered 8nd gol their fflember cards. A. The Hub for Child Labour Remedialion & Mitigation The Hub was established in 2022 by The Centre lor Child Rights and Business wilh Ihe financial support of Save the Children Germany and Ihe FCA. The FCAS 2024 finanual conlribution enabled the continuation of remediation support lor 20 out of the 43 Ghil(Jren. 14 of whom are still in the programme. 13 of the remaining children ale in prirnary and secondary School. and 1 is enrolled in a vocabonal school. A tot81 of 204 months of child labour remediation were pro¥￿ed in 2024 to the children receiving FCAS financial support, bringing the historical total to 304 months. It is worth noting that the Hub. with the support of The Centre for Child Rights and Business. has supported 18 additional children. thanks to the financial support of Dormakab8 and CMOC. bringing the totsl number of thildren supported by the overal programme to 38 by the enfl of2024. THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 School Infrastructu￿ Improvemenl In partnership with the London Metal Exchange ILMEI. Fair Cobalt Alliance conl'nved to implement the project 'E5tablishing a school improvement fund for support of cobalt mining communities in and around Kolwezi which be9an in 2023. It aimed at improvin9 school infra5truciure and santtation measures in the three schools in Kapata, as part of the child labour remediabon programme. These Èfforts aim to enhance the leaming envirom)ent, encouraging children to return to school rather Ihan engage in mining aCtiV￿e$. The second phase ol the project was funded by LME for USD 300.000. Given the USD 100.000 that remained from the First phase. the tearn h85 8 total of USD 400.000 lo conclude Ihe construction of 1.2 krn of brick fencing walls in three srthools-centre Promotion Famili8le ICPFI. Dima. and Kabulungu-to cornbat vandalism and enhance security. and the rehabilitation ol sthool buildings and sanitary blocks in each school. Addrtional Improvements include providing CPF. a vocational school, wrth lechnical teaching equipment and drilling a 120-meter-deep well in Dima to provide students and teachers access to dean water for drinking and sanrtary purposes. Support lo Maison Kwetu Ophanage Through the fin8nci81 support of the FCA member Google lor a sum ol USD 764.OQO, solar 8quJprnent h8s been inslallecl 81 the M8ison Kwelu 0￿h8n9ge in Kolw8zi. The hoffle 8 8 safe refuge for 137 boys. off8ftJrig proleclion antl assistancè to ory)hans, èb8ntYoned. antl vulnèrable children Thè facility was lacing Sl9nificartt ￿￿rgY ch8lleng6s, limiting Its abiliÈy Èo meel th8 n8eds ot its childmn. The pmjècl fèalures a 47.25 kwp solai energy system 81ongside a 75-kNlh battery storage. which Powe￿ Ihe faulitys daily operations. The Increase in ￿liable eneoy h8s 6nab16d r61i8ble lighting. w8t8r pumwng. cooking, fftIngerat￿, and sufficient energy lor electronic d6vices. Thtr USAID 2 million grant was signed in December 2024 for the fomalisalion and professionalisalion of the ASM at Kamilombe and Kanunka with Fair Cobalt Allian¢e IFCAI through 8 programme managed by The Impact Fa¢ility, in collaboration wth Entrepnse Gènérale du Cobam IEGCI and the Responsible Minerals Initialwe IRMII to implement the "Professionalizing the Artisanal Copper4obaK Suppty Chain in the Democratic Republic of the Con90 IDRCI project. The project had to adopt a mvlti-siakeholder approach. leveraging the technical and finanaal contributions of partners who share the vision of ￿sponsIb￿ produced artisanal copper-coball exports. These partners include Gec8mines. the Glz-lunded project Coball 4 Oevelopment IC4DI. and RCS Global Group with a traceability Solution funded by the U.S. Departrnenl of L8bour. After the submission of Milestone l in January, lh& US Administration issued an executive order halting funding through USAID for a 9￿aY review period. In March, FCA was notified ofthe abwpt IeThninal￿n of the USD2M grant. Subrnission of invoices lor the aclivilies carried oul bets¥een 6 Dec 2023 and 24 Jan 2024 is being shared for USAID to assess il any ieirnbursernent is possible. Funding deficit places urgent efforts on fundraising FCA submitted an advocacy memo to Ihe USAID DRC Embassy to advocate for the r&evaluats'on of the temination of this projed. FCA and ils local irnplementing partner. Altemalives for Action IAFAI. conlinved to SUPPOrt the Savings project compnsing 21 old Voluntary Savings and Loans Assouab"ons IVSLAS) and 6 new VSLAS, making a total of 27 VSLAS or 604 members. The project focuses on communrty ￿si11ence by diversfying income sources, rather than relying solely on rnining. The VSLAS saved USD 110.500 in 2024. as well as USD 2.557 in the Solidarity funds. 203 Income Generating Activities IIGAS) have been ueated by Ihe fflembers. These IGAS contribute largety to the household In￿rne and m8et educational and heatthGqre needs ol the farnilies that benefft. THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Cobalt Credits Since 2023 FCA and Fairphone, together other members of the FCA. to launch the Responsible Mineral Credit5 IRMCI mechanism. a'book and cl8irn' b8sed credit systern that allcws downstrearn companies lo financially contribute to improvernents at artisanal rnine sttes ctsrnrnitted to professionalising their tsperations ènabling and incentivising the responsible producbon ol artisanal cobalt, through joint Wotk. In 2024. the European Partnership for Responsible Mining IEPRMI provided a grant of É 320,000 to scale and digitise the mechanism, in partnership wth Fairphone. the Alliance for Responsible Mining IARMI. and Dataslake. In 2024. the revenue from the sale of cobalt credrts enabled the purchase of 8 dynamos and 8 engines for USD 8.000. irnproving air circulab'on underground. These (tynamos are ventilabng 129 prts. improving safety for over 5.000 miners. reducing the risk of suffocation and g85 poisoning. RMI ASM Gob811 NomJ8liv8 Frgfft8wo CMDS ¢ommÈncÈd the implemenlalion of the RMI ASM Cobaft Nomative Framework to enhance envirtsnmèntsl, soaal, and govèmanc8 IESGI perforniance at thè Kamilombe minè srte. An inits.al training on thè seven principles of the framework was delivered lo 20 partiupanls. including 17 CMDS members and 3 slate represenlalives IProvincial Ministry of Mines, SAEMAPE. Police of Mines). a corrective ac￿.On plan developed. Following this, CMDS conducted awareness sessions On•Srte. reaching a total of 4.516 indNiduals13,359 men and 1,157 women). In the DRC, the FCA Continued lo lorge parlntrrships with others, in¢Juding stsle S￿keholders $u¢h as th& Cellul& Tecttnique de Coordination $t de Planifi¢alion Minièrtr ICTCPMI and th¥ S&rvi¢e d'As$i$tan¢e èt d'En¢a4rement ¢Je I'Exploilation Minière Artisanale et a Petrte Échelle ISAEMAPEI. Memorandums of Understanding have been drafted but not yet signed. The FCA is also in th8 process of fomialising 8 partnership vmh the Enterprise Générale du Cobalt IEGCI. The process is still ongoing. In 2024 FCA continued to be engaged in various events to raise awareness about our programme and ￿nnect wth key stakeholders. Represented by different members of the team. the FCA paitirjpaled in the lollowing conferences.. Investing in Mining Ind8ba in Soulh Alric8'. OECD Forum on Responsible Mineral Suppty Ch8in$ in Fr8n¢e', DRC mining in Lubumbashi, the Katanga Business meeb.ng in Ko￿veZi", DRC-Alrica Battery Metals Forum In Kinshasa, and the RBAIRMI Annual Conference., The Bellagio Convening. Moreover, FCA, together wrth the Enlreprise Générale du Cobatt, organized a landmark convening at Rockefeller Foundation's Bellagio Center on Ihe shores of Lake Como. Ilaty. bringing together DRC government representatives. induslrial mining leaders. commodity Iraders. development praclitioner5. finanrial instilulions. the OECD, and other international partnefs. with 8dditJonal participants joining online lo 18ckle the Gomplex challenges and unlock opportunrties linked to the artisanal and small-scale copper-cobalt sector In the Democratic Republic of Congo IDRCI under the theme, -How can the countrys vast artisanal copper-cobalt wealth be transfomFed Into suslainable communitypmsperityy Over three days. participanls engaged in deep discuss•Jns, apptying their expertise to define the core principles for developing a legal and responsible artisanal mining seclor. They also developed a dear roadrn8p for the fvture. outlining tangible commitment5 to support the initial pilots and the subsequent scaling of EGC'5 operations. THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 FCA worked all year in 2024 to fomi a consortium comprising EGC. GIZ IC4DI. and Better Mining to support the formalisation and professionalisation of ASM 8t Ihe new EGC srtes granted by Gecamines. In De￿mber 2024. USAID granted USD 2 million for the projed itnplementation. Unft)rtunately. in J8nu8ry 2025, there was a Stop Work Order from the Am&ican govemment for both this project and the Jet Minerals Challenge project. GM had previousty donated USO 15,LM)O through the RMI Foundation and is now contribub'ng USD 25,000 directly A Swiss outdoor Company. Exped. which has limited electronics in rts products. has 8xpr8ssed interest in engaging with cobalt credits for sustainability. While the fin8n¢ial impact is small, it mark5 the second Company lo èngagè with cobam ¢rer the p18netGOLD programme wth a webinar series. This indude¢J a November access lo finance webinar where TIF showcased its Kenya lease-to-purchase and Tanzania loans programs. As a follow-up to funding receNed from the Fashion Pact towards the building of a digital platfotm to host TIF'S mine assessment and investment processes. 2024 saw the birlh of Kustswi. By Q4 of 2024. Kustawi development had cornpleled up lo phase fv40 of developTh*nt. This included the digitvzation of existing mine engagement processes THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 With the donation received from BRUNA the Label to support efforts to promote mercury-free gold processing at Osiri Matanda. the prograrnme hired an intem in Q2 of 2024 ft)r a 10month period. The objective of the programme was to deliver the upgrade of an ASM processing zone into a meicury-free zone and to protnole women's involvement and leadership in mining. This ptogramme is projected to come to tompletson In Q1 of 2025. Funding won by TIF in Q4 of 2023 to continue TIFS the Lake Victoria Gold Region Pfogrammes ILVGPI, through funding from the EPRM lor WO￿ in Kenya, and through strategic partner Solidandad, lo continue woth in Tanzania. funded ty the RVO was put to good use in 2024. The equipment leasing programme in Kenya grew. with total investments of USD 136k deployed by the end 2023. growing to USD 171 k by end of 2024. In Tanzania loans for equiprnenl progr8rnme were implemenled a5 a resutt of additional fvnding committed and receNed frDm Genesis Charitablè trust and Livèlihood Impact Fund. The plans put in place tts pfogre$$ ease of loans disbursemènt in Tanzania via NBC partnership will pro¥ide a major boost to the ltsan prtsgfamme in Tanzania, as th$ first milestone of six161 AMPS is expected to unlock USD 600.000 In further lunding lowards the piogramme. Flnanclal Revlew The finanrial review covers th? annual period of the group lo 31 Oecernber 2024. The total income ftsr the group was £1,889.977 Irefle¢ting a 29% in¢re8s& Irom 2023." £1,460.5811, whith indudes £1.485,208 12023.. £1,434.9281 income from ¥ducation 8¢tivities, ond £27,620 12023. t25.6531 income from equipment leasing and £377,149 12023.. £nill income from grants and donated seThices. Total expenditure for the group for the year was £1.702,093 (rose modestty Irom 2023.. £1.521,8671. which includes Costs of education 8c¢Ni¢￿5 of £1.539.727 12023.. £1.477.4571 and expendilure on equipment leasing of £162.366 12023. £44,410). The nel incorne for Ihe year was £163.28912023 net expenditure.. £76.3211 after aloss on foreign &x¢hang¢ 01 £24,59512023". £15,035). At the balance sheet date, the total funds for the group wère £281,01012023". £117,720), which were made up of general unrestricted funds totalling £SS,020 in deficit 12023.. £88,711 in defiatl and restricted funds totalling £336,02912023. £206,431). This improvement demonstrales TIF'S growing finan¢ial Stsbility. effectivtr ¢o$t managernenl. and the $ue¢trss of on90ing diversifi¢alion in lunding streams. ReseNes policy Our reserves policy aims to ensure our work is protecled from ihe risk of disruption at short notice due to a lack of funds, whi15t at (he same time ensuring we do not retain irKome lor longer than required. Policy ownèr.. Chief Financ6 Officèr Audience. All Legislation.. and ￿gulatIOn Charity Commission guidance 'Chariti"es rese￿e$.. building resilience" ICC191 Approved by.. Board ol Trustees Last update.. Oct 2023 Next review.. Oct 2024 1 This policy sets out our need for Ihe finanaal reserves. 2 Reserves Our reserves policy aims to ensure our work is protected from the risk of disruption at short notice due to a lack of funds. whilst at the sarne time ensuring we do not relain income for longer than required. The trustees have deterrnined that the Charity needs unre5tricled reserves lo provide adequate working caprtal to protect against unbudgeted costs and ensure the delivery of our programmes. It is deterrnined that The Irnpact Facilty should hold sufficient accumulated unrestricted funds to co¥ei unbud9eted fluctuab"on5 in income andlor expenditure, equivalent to th￿e months of budgeted resource. The actual level of unrestricted reserves is less than our policy. The trustees are budgeting for a more balanced unrestricted ￿seThes in 2025 and plan to meet our policy by 2026. THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 3 Financial impact of risk 3.1 To ensure Ih8t there is no signfficant disruplion to our charitable activities. holding 8ppropriate reserves will enable the oiganisation to respond to any unforeseen iedu(Xion in incorne (for example when income does not reach expected levels)," or additional expendrture (for Èxample rf projects ovemin, or unplanned events occur). 3.2 A detailed review of ihe ffinancial risks we face is monitored on an ongoing basis, and our assessments on the possible financial impaci of those risks have been incorporated inlo the reseNes ￿quIrernent we have calculated. 4 Working c8pII81 4.1 Free reserves include both cash, which are immediatety available, and other wotking capital baances. Working capital represents a significant element of our feseNes, but not all of these balances are immediatety available. For example, rt takes on average 55 days to collect cash from trade debtors. 5 Comrnilrnenls and long-lerm plan5 5.1 Commitments and long-lem plans not al￿adY refle(led in plans and budg*t$ ar* also evaluale¢J on an on90ing basis. We do not believe there is any need to make further provision for such ilems. 6 Reserves 6.1 Based on the above, rt is determined Ihal The Imp8cI Facilty should hold suffiryenl accumulated unrestricted lund$ lo Cover unbu*JgeietJ fluctu81￿￿$ in an¢Yor expenditufe. equivalent lo thre¥ months of ro$our¢¥$ al budgeted levels. 7 Responsibilities 7.1 The Board of Trustees are responsible for en$uFing Ihat we manage our restsurce5 responsibly. and that we act in the best interests of the or9ani581ion 8nd Ihe people we serve. The Board has responsibility for 8pproving and monitoring the implementats'on of this poli¢y. 7.2 The Senior Management Team is responsible for providing clear and focused leadership ol the organisation, and to ensure our financial slabilty. 7.3 The Chief Finance Officer 15 the poly owner and 15 responsible for managing our reserves. ensuring this policy is reviewed in line wilh ￿rpOrate requirements. 8 Laws and regulats'ons 8.1 As a registered charity, we are reqUI￿d to meet relevant legal and regulatory ￿quireMents. have a duty to apply cttaritable funds within a reasonable period of time lor the benefft of the people we serve. 8.2 This policy sets out the framework we have in place lo confi￿￿ the level of reserves we have determined is 8ppropriate for our organisation and draws upon gubdance such as the Challty Commission's CC19. 9 Monitoring and compliance 9.1 Reserves levels and forecasls wll be monitored as part of monthty financial reporting. with regular reports provided to the Board of Trustees and Ihe Senior Management Team. 10- THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Future Plans In 2025 The Impact F8cility plans to continue 8nd grow its work with gold and cob8I minirg communrties in East and Central Africa. In particular we seek to expand our innovative gold finanun9 programme in Tanzania and to grow the membership, and fiJrthÈr extemal funding for the Fair Cobalt Alliance, and thereby increase the impact on the ground. The Trustees have assessed the major risks lo which the charity is exposed and are satisffied that systems are in place to mitig8te exposure to the m8ior risks. Structur•. Govarnane• and Manag•m•nt The trustees who have served the chanty during the year to 31 December 2024 are.. Ms M Lernpers Mr S Lowe Dr A Steward Carter MS S Hop$ Ms B Vissers {Res￿ned 30 June 2024 Structure.. The Irnpact Faality ha5 been established a5 a Charilable Incorporated Organisation ICIOI registered under the laws of England and Wales. The Impact FarAIty's Registered Office is localed in Avening Park. Tetbury. Gloucestershire England. The Impact Facility has established a fulty owned tradin9 subsidiary. Impact Capital IICLI. registered as a company limited by shares in the UK. This trading subsidiary is able lo receive third party investments and to facilitate investrnents into rnining communities. The Impact Facility lègal advisors are Virginia Henley of H8rri8on Clark R*kerbys Limrted. Oliver Hunt of the Charity & Social Enterprise Department of Bales Wells Brailhwaile. Oliver Rochman and Dom Rtslhbarth of Morr6on and Foerster and HCR Hewitsons. Bespoke Accountants provides accountin9 services. The Impact Facillty holds Its bank account with Lloyds bank. The financial year of The Impact Faulity is 1st January to 31st December. Governance.. The Impact Facilty 15 governed by the Impact Facilty Constitution. In line with UK Government requiTement5 for CIOS The Imp8ct F8cility ha5 a conslilvlion induding provisions tg ensure The Impact FaGility complie5 with the UK Chaiitie5 2011 Act and th8 General Regulations. In line wth UK govèmrnent guidelines for CIO'S The lrnpact F8¢ility follows its Charitable purpose. This indudes the commitment to promote sustainable development defined as "developrnent which meets the needs of the present wilhoul compromising the abilty of future generations to meet their own needs.. Management.. The lrnpad Facilty Trvslees have appointed a CEO to oversee Ihe d8y-t(Hlay man8gernenl of the CIO. This CEO is accountable to the Trustees for the delivery of the chartiy's missK)n thrtsugh rts programme services together with fundraising, financial leadership and managing the staff. The CEO is supported by a Senior Managen*nt team, consisting ol the Ch￿f Financial Officer and the Director of InnovaiKsn and Partnerships. 11 THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Statement of trustees. responsibilities The trustees are responsible for preparing the Truslees. Report and the finanryal statements in accordance wth applicable law and United Kingdorn Accounbng St8ndards (United Kingdorn Gener8lly Accepted Accounting Piacticel. The law applicable to charities in England and Wales ￿qUireS Ihe trustees to prepare financial statements lor each financial year which give a true and fair view ol the slate of affairs ol the group and of the incoming resources and application of resources of the group for Ihat period. In preparing these financial $18temenls. the Iruslees are required to.. select suitable accounting policies and then apply them consistenty". observe the methods and principles in the Charrties SORP". make judgements and estimates that are reasonable and prudent., state whether applicable accounling standards have been followed, subject to any material departures disclosed and explained in the financial ststements.. and prepare the finanryal s¢a¢ements on the going concern basis unltrss it is inappropriale to presume th81 th Charity wll continue in operation. The trustees are responsible lor keeping suffiuenl accounting records that disdose wth reasonable accuracy at any time the financial position of the group and enable them to ensure that the finanaal slalements comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are 8180 ￿sponsible for Safeguarding the assels ol the group and hence for tsking reasonable steps for the prevention and detection of Iraud and other irregvlanties. The Iru$lees' report was approved by Iht Board ofTw$lee$. Mr S Lowe Tru•t•• Date.. 14 Jan 2026 12- THE IMPACT FACILITY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE IMPACT FACILITY Opinion We have audrted the financial statements of The Impact Faulity lthe'charrty'l and its subsidiary Ithe'group'l for the year ended 31 December 2023 which comprise the group stalement of finanoal activth"es, the charity statement of financial acts'vits'es. the group balance sheel. the charity balance sheet. the group statement of cash flows and the notes to the financial statements, including significanl accounting poliaes. The financial reporting framework that has been applied in their preparation is applicable law and Uniled ￿'ngdoM Accounting Standards. including Financial Reporting Standard 102 The FinanGial R&porting Slandard applicabl8 Ihe UK and Republic of Irsland Iunited Kingdom Gènèralty Acceptèd Ae£ounting Pradicel. In our opinion, the financial statements.. give a Irve and fair view of the state of the group's and of the parent charty's affairs as * 31 December 2024 and of rts incoming rèsour¢e$ and appliration tsf re$our¢ès, for the year ihèn ended., have been properfy prepared in accordance wth Vnited Kingdom Generally Accepted Accounting PraCts.￿.. and have been prepared In accordance wrth the CharrtiesAcl 2011. 8a818 for oplnlon We conducted our aufjlt In a¢¢ordan¢e wilh Intemalional Standafd$ on Auditin9 IUKI IISAS IUKII and appll¢abl$ law. Our résponsibilities under those standards are further described in the Audilorts msponsibilili&s for the &udit ol the finenci81 statements section ol our reporl. We are independenl ol the group in accordance with the ethical requirements that a￿ relevant lo our audit of the finanual statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our olher eth￿￿1 responsibililie5 in accordance wrth these requirements. We believe that the audit evidence we have obiained is suffirient and 8ppropri8te to provide a basis for our opinion. Con¢lu¥lon$ r*l•tlng io golng ¢on¢em In auditing the financial statements. we have concluded thal the trustees, use of the going concem basis of accounting in the preparation of Ihe financial slatemenls is appropiiate. 8ased on the work we have perfomied. we have not identrfied any material uncertaSnties relatlng to events or conditions that, individualty or collectNety. may casl signthcanl doubt on the group's abilty to continue as a golng concern for a penod of at least Iwefve months from when the finanaal statements 8re authorised for issue. Our responsibilities and the responsibilities of the tnjstees wth respect to going concem a￿ described in the relevant sections ol this report. Othèr Infomiatoon The other information comprises ihe information included in the annual report other than the finarcial statements and our auditorfs report thereon. The tru51ees are responsible lor Ihe other inforniatson contained within the annual report. Our opinion on the financial statements does not cover Ihe other inft)rm8tion 8nd we do nol express any ft)rm of assurance conclusion thereon. Our responsibility Is to lead the other infortnats'on and, in doing so, consider whether the other infom)ation is materialty inconsistenl wtth Ihe financial statements or our knO￿edge obtaine¢J in the course of the au¢Jit, or otttermse appears to be malerially misstated. If we idents.fy such material Inconsistencies or apparent material misstaternenls. we are ￿qUired to deterniine whether this gives rise to a materHI misstatement in the financial slalemenls themselves. If. based on the work we have perfomed. we conclude Ihat Ihere is a material misslatemenl of this other information. we are required to report thal fact. We have nothing to rèport in this regard. Matters on whlch we ar• rnqulrnd to report by ex￿pIlOn We have nothing to report in respect of the following matters in relation to vthith lh8 Charities (Account5 and Reports) Regulations 2008 requi￿$ us to ieptsrt to you rf, in our opinion". the information given in the financial statements is incnnsislent in any material respect with the trustees, report.. or sufficient accounting records have not been kept," or the financial statements are not in 8greement vrith the accounb'ng iecords.. or we have not received all the information and explanations we require for our audit. 13- THE IMPACT FACILITY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE IMPACT FACILITY Responsibilities of trustees As explained more fully in the statement of trustees, responsibilib"es, the trustees are responsible for tne p￿paratIOn of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Iruslees determine is necessary to enable Ihe preparation of finanual statements that are free from material misslalement. whether due to fraud or error. In preparing the financial stalemenls. the trustees are responsible for assessing the group's ability to contsnue as a going concem. di5dosing. as applicable. matters reLyted to going concern and using the going concem basis of accountsng unless the trustees either intend to cease operation5, or havè no r68listie alternative but to do so. Audltorf8 responslbllltles forthe audlt olthe Ilnanclal Statements We have been appointed as auditor under seclion 144 of Ihe Chaiilies Act 2011 and report in a¢cordance with the Act and relevant regulations ma¢Jts or having trltect Ihtrreunder. Our objectives are to obtain reasonable assurance about whelher the finanaal statements as a whole are free from material misslalemenl. whether due to fraud or error. and to issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audi¢ conducted in accordance with ISAS IUKI will 8fv4ays detect a material rnisstaternent when it exists. AAis5tstements can arise frorn fr8ud or error and are considered materi81 il. individualty or in the aggregate. they could reasonably be expected lo influence the sconomlc decisions ol users tak8n on Ihè basis of Ihese finanual statements. Irregularities. including fraud. are instances ol non-compliance wilh laws and regulations. We design procedures in line with our responsibilities, outlined above. lo delect malerial misslalements in respect of irregularities. including fraud. The extent to which our procedure5 a￿ capable of detecting iT￿gularitIes. incjuding fraud, is detailed below. 1. Al the planning stage ol th• au¢Jil w& gain an understanding of the laws ana ￿gUlatIOnS which app￿ lo the charity and how the management seek to comply wrth those laws regulations. This helps us to plan appropriate risk assessments. 2. During the audil we focused on relevanl risk areas and review Ihe compliance with the laws and regulats'ons by rnaking relevant enquiries and undertaking corroboration, for example by ￿VIewIng Board Minutes and other documentation. 3. ￿ assessed the risk of matenal misstatement in Ihè finanoal statèm8nts indudlng 8$ 9 r&sutt offraud and undertook procedures including". a. Reviewing the controls set in place by management., b. Making enquiries of rnanagemenl as to whelher they consider fraud or other irregularity rnay have taken place. or where such opportunity might exist.. c. Ch8llen9ing management assumptions wilh regard t9 8ccounfy.ng eslimales.. and d. Identifying and testing joumal entries. particulatty those which appear to be unusual by soa or nature. Because ol the inherent lirnitalions ol an audit. there is a risk that we will nol detect all irregularities, including those leading to a material misslalernenl in the financial statemenls or non-compliance wth ￿gUlatIOn. This risk increases the more that Gompliance wrth a law or regulation 15 removed from the event5 and transaction5 reflected in the financial statements. as we will be le55 likely to berx>me awaie of inslances of nor￿colnplia￿Ce. The risk is a150 greater regarding irregulanties occurring due to fraud rathei than èrror, as ftaud involves intentional eoneealment, forgery, collusion, omission or m1srepresen1al￿. A further description ol our responsibili￿.eS is available on the Finanaal Reporting Council's website at.. htty)s'.11 www.frc.org.uklauditorsresponsib1l￿.e5. This description fomis part of our auditorfs report. Use of our report Thi5 report 15 rnade 501ety to the chawity's trvst8es, as a body. in accordance wilh Part 4 of the Chariti85 (Accounts and Reports) Regulations 2008. Our audrt work has been undertaken so that we might state to the charity's ttustees those matters we are required to state to them in an auditofs report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibilty to anyone other than the charty and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have fomied. 14- THE IMPACT FACILITY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE IMPACT FACILITY su_ (Aa,4) L,-,4a Shaw Gibbs IAudltl Llmlted Statutory Audltor 14 Jan 2026 264 8anbury Road Oxford OX2 7DY Shaw Gibbs (Audill Limrted is e1￿ible for appointsnent as audilor of the group by virtue of its eligibility for appointment as 8udrtor of8 ￿MpanY un¢Jer secbon 1212 of the Companies Act 21JO6. 15- THE IMPACT FACILITY CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEAIBER 2024 Unrestricted Restricted funds funds Totsl Unrestricted Restricted funds funds Total 2024 2024 2024 2023 2023 2023 Notès Income from.. Donations and leg8cies Charitable activities 17,087 360,062 377.149 346.260 1.166.568 1.512.828 176.650 1.283.931 1.460,581 Total Income 363.347 1.526.630 1.889.977 176.650 1.283.931 1.460.581 Expendltur¥ on.. Charitable activities 298,S79 1.403,S14 1,702.093 20S.697 1.316,170 1.521,867 Net Incomellexpendltur•l 64.768 123.116 187.884 129.047) 132.2391 161,2861 Other recognlsed galns ond lo¥¥e¥'. Other gainslllossesl 10 131,077) 6,482 124.595} 111.967) 13.0681 115,0351 Net movem•nt In fund• 33.691 129.598 163.289 141.0141 135.3071 176.3211 R•¢on¢lllotlon of lund•= Fund balances al 1 January 2024 188,7111 208.431 117.720 147.8971 241.738 194,041 Fund balances at 31 D•eember 2024 155,020} 336,029 281.010 188,7111 2Cfj,431 117,720 The stalemenl of financial activities includes al gains and I￿e¥ recognised in Ihe year. All income and expenditure dorive from Continuing a￿1¥111¥$. 16- THE IMPACT FACILITY CHARITY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEAIBER 2024 un￿St11¢ted Restricted funds funds Total Unrestricted Restricted funds funds Total 2024 2024 2024 2023 2023 2023 Notès Income from: Donations and legaaes Charitablè 8Ctivitiè$ 17.087 346,260 196.058 1.166,568 213.145 1,512,828 176.650 1,283,931 1,460,581 Totsl Incomè 363,347 1.￿2,628 1,725.973 176.650 1,283,931 1,460,581 Expendlture on.. Charitable activities 298,579 1,268,654 1,567,233 205,697 1,310,162 1.515,859 Nèt Incomèll•xyndllur•l for th• y•arl 64,768 93.972 158,740 129.0471 126,2311 155,2781 Oth•r r•cognls•d galn8 and 108M• Other gains or lo$$e$ 11 {31,0771 15121 131,5891 111.9671 13,0681 115,0351 Net mov•m•nt In fund• 33,891 93,460 127,151 141,0141 129,2991 170,3131 Fund balances at 1 January 2024 188.7111 215.420 126.709 147.8971 244,719 197,022 Fund balances at 31 D•¢ernber 2024 {55,0201 306,680 253,860 188.7111 215,420 126,709 The statement of financial activitie5 includes al gains and103se5 recognised in Ihe year. All income and expenditure derive from ¢onlinuing activities. 17- THE IMPACT FACILITY CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes Flxed assets T8ngible assets 17 7.412 12,084 Current ass•ts Debtors Cash at bank and in hand 265.477 674.894 294.225 285.684 940.371 579.909 Cr•dltors'. amotsnts lalllng du• vAthln onè yaar 25 1487.¢HII 389,162 Net current assets 473,311 190,747 Total a88et8 le88 currnnt IlabllSlles 480.723 202,831 Credltor¥'. arnounts falllng due after more than one year 1199.7141 185,1111 281,009 117,720 Th? lunds ol the group Restricted funds Unreslri¢led lunds 31 336.029 155.0201 206,431 188,7111 281.IJ09 117,720 14 Jan 2026 Th$ financial stslemenls were approv￿1 by the Iru$lees M ......................... 54 Mr S Lowe Tru$ts• 18- THE IMPACT FACILITY CHARITY BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes Flx•d assèts Tangible assets Investments 17 7.412 12.084 7,413 12,085 Currgnl a$$gts Debtors Cash at bank and in hana 21 240.645 540.022 294.225 285,584 780.667 579,809 Credltors.. arnounts folllng due thln ontr yoar 26 1534.2201 1465,1851 Net ¢urr¥nt 8$$8ts 246,447 114,624 Total a8S•t8 1•88 eurmnt Ilabllltl•• 253,860 126,709 Cr•dltor8'. amounts falllng du• after more than one year Net a8¥ell 253.860 126,709 Income fund• Restricted funds Unrestricted funds 32 30 308.880 155.0201 215,420 188,7111 253.860 126.709 14 Jan 2026 The flnanclal statements were approved by the Trustees on . 54 Mr S Lowe Trust 19- THE IMPACT FACILITY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Note$ Ca8h flows from opèratlng at￿vIll•S Cash generated from operations 38 404.484 40.845 Investlng ¥ctlvltie• Purchase of tangible fixed assets Pro¢8eds froml (payment OD loans receivable {3.7611 18481 1673) 458 N•t eash us•d In Inv•8tlng actlvltl•• {4,4341 13901 Flnanclng actlvltles Purchase ¢1 derivatives 110.8401 N•t ea8h u8•d In Ilnanclng aetlvltles 110,8401 Net Incrna8• In cash and ca•h equSval•nts 389.210 40,455 Cash and cash equivalents at beginning of year 285.684 245,229 Ca¥h and cash equlvalents at end of year 674.894 285.684 -20- THE IMPACT FACILITY CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Note$ Ca8h flows from opèratlng at￿vIll•S Cash generated from operations 39 269.712 40.767 Investlng ¥ctlvltie• Purchase of tangible fixed assets Pro¢8eds froml (payment OD loans receivable {3.7611 18481 1673) 457 N•t eash us•d In Inv•8tlng actlvltl•• {4,4341 13911 Flnanclng actlvltles Purchase ¢1 derivatives 110.8401 N•t ea8h u8•d In Ilnanclng aetlvltles 110,8401 Net Incrna8• In cash and ca•h equSval•nts 254.438 40,376 Cash and cash equivalents at beginning of year 285.584 245,208 Ca¥h and cash equlvalents at end of year 540.022 285.584 21 THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies Charity inforrnation The Impact Facilrty is a chantable incorporated organisation registered in England and Wales. The registered office is Avening Park. West End. Avening. Tetbury. GL8 8NE. 1.1 8asiB of preparation The financial slalements have been prepared in accordance with the group's goveming document, the Charities Act 2011. FRS 102 Yhe Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP 'Accounling and Reporbng by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in 8ccordance with the Financial Reporting Standard applicable in the UK and Republi¢ ol Ireland IFRS 1021". The group is a Public Benefit Entity as defined by FRS 102. The financial statements have departed from the Charities IAccounls and Reports) Regulalions 2008 onty to the extenl required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice lor chanties apptying FRS 102 rather than the version ol the Statement ol Recommended Practice vthith is relerred to in the Regulat￿nS but which h83 since been withdrawn. The fin8nu81 $18lemenl$ are prepa￿ Mi sterfing, whic* is the lunctional cUr￿ncY of the group. Mtsnetsry amounts in these financial statements arè rounded to the nèarest £. The financial statements ha¥e been prepared under ihe historical cost convention. The principal accounting policies adopted are set out below. 1.2 Golng concern The financial statements have been prepared on a going concem basis. Cash flow forecasts have been prepared for a penod ol at leasl fftfve months from the date of approval ol the financial statements. These lorecasls consider and anatyse any risks thal might affect Ihe chanty's ￿sourceS or ability lo continue operations. The forecasts ¢ake into consideralion the challenging economic environment and its potential impact on incom& and expenditure. We eonsider it possible to offset any polential income shortfalls vnth a reduction in •xp•ndrtura. Our r•s8rvès policy states that we should hold suffiaent ￿SeNe9 to ensure Ihat our work is protected from the risk of disruption at short notice due to a lack of funds, whilst at the same lime ensuring that we do not retain income for longer Ihan required. Our unrestricted reserves 8re currentty in deficit. but continuing 5upporl from TDI Sustainabilty 8nd confidence in our lundraising, wll reduce this defictt and are commrtted to iebuilding our reserves to a level that allows us to invest lor the luture growth and development of the organisabon. We rnonitor perfOrrnan￿, cashfiow. and lorecasls on a regular basis and manage our finances according to the anatysis ol this position. The Iruslees have therefore concluded there is a reasonable expectation that the Charity ha5 3dequa¢e resources lo conbnue in operation lor the foreseeable future. The Charity therefore ¢ontinue5 to adopt the going roncem b8$is in preparing its financi#l $tstements. 1.3 Charftable funds Unrestricted funds are available for use at the discrelion of the trustees in furtherance of thelr chantable objectives. Restricted funds are svbject to specffic conditi.ons by donors or grantors as to how they may be used. The purposes and uses of the restricted lunds are set out in the notes to the finanaal statements. 1A Incom• Income is recognised when the grovp is legalty entrued lo it after any perfomiance conditions have been mel. the arnounts ran be rneasuied reliabty. and it b5 probable thal income will be r￿e1ved. THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 A¢coun¢ing policies (Continuedl Cash donations are recognised on receipt. Olher donations are recognised once the group has been notified of the donation. unless perfomiance conditions require deferral of the amounl. Income tax recoverable in relation to donations re￿Ned under or deeds of covenant is recognised at the time of the donation. Legacies are ￿CogniSed on receipl or otherwise if the group has been notified ol an impending distribution. the amount is known, and receipl is expected. 11 the amount is not known, Ihe legacy is treated as a contingent asset. Grants are recognised once the charity has been notthed of Ihe grant, unless perfomiance cDndrtions require deferral of the amount. Other income is recognised in the penod in which rt is receivable and to the extent the goods have been provided or on completion ol the service. 1.5 Expendlturè Expenditure is recognised once there 18 a legal or constructive obligation lo transfer econornic benefit lo third party. il Is probable that a transfer of economic benefits will be required in 5ettlernenl. and the arnounl of th& obligation ¢an bo mea$uf¢d rèliably. Expenditure is classlfied by aclivrty. The costs of each aclNity are made up ol the total of dIr￿t costs and shared costs. induding support costs invofved in undertaking each activity. Direct costs attributable to a single activity are allocated directy lo Ihat activty. Shared costs which contribute to rnore than one activity and support costs which are not attributable to a single activty are aPpo￿.0ned be￿¥een Ih05e activrtVè5 on a basis ¢OnSlslent with the use ol resources. Central ￿$1$ are allo¢8led on the b8$18 of time spent, and depr&¢iolion Charges ar¥ allo¢al&d on th¥ portion of the ass¥l's u$&. Expenditure is induded in the SOFA on an accrual basis. 1.6 Tan9lblè Ilx•d a*8• Tangible fixed assets are initialty measured at cost and subsequentty MeaSu￿d at cost or valuation. net of depreciation and any impairmenl1055es. DeprecAatron is recognised so as to wriie off the c￿1 or valuation of assets less their residual values over their Useful INes on the followng bases.. Computers Motor vehi¢le$ 3 years straight line 3 yeais slraighl line The gain or Ios5 arising on the disposal of an asset is determined as Ihe dIffe￿nCe behyeen the sale proceeds and the carrying value of the assel. and is recognised in the stslemenl of finanty818clMbes. 1.7 Impalrnient of fixed assets At each reporting end date, the group rewews the carwng amunts of rts tangible assets to detem)ine whether the￿ Is any indicats.on that those assets have suffered an Impaimient loss. 11 any such ind￿tIOn exists. the recoverable amount of the asset is estimated in order to detemiine the extent of the impaimient loss lif any). 1.8 Cash and cash equlvalents Cash and cash equivalents indude cash in hand, deposits held at (xll with banks, other short-tetrn liquid investments wrth original maturtties of lh￿e monlhs or less, and bank overdrafts. Bank overdrafts are shown wrthin borro¥wngs in oJrrent liabilth"es. -23- THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 A¢coun¢ing policies (Continuedl 1.9 Flnanclal Instruments The group ha5 elected to appty the provisions of Section 11 'Ba5ic Finan￿81 In5trumenl$' and Section 12 'other Finanaal Instnjments Is5U85' of FRS 102 to all of its finanrial instrument5. Financial instruments are recognised in the grcwjp's balance sheet when Ihe group becomes paty to the contractual provisions of the instrument. Fin8ncial asset8 and li8bilitEs are offset. ¥￿1h the nel 8rnounl8 p￿sented in the financial statements. when thère is a legally enforceable right to set off Ihe reco9nised amounts and ther& is an intention lo Settle on a nel basis or to realise the asset and seme the liability simuNaneousty. Baslc flnanclal •ssots B8sic financial assets. Wh￿th indude debtors and ¢8sh and bank balances, a￿ inf¢ially measured at transaction price including transaction costs and are subsequentty CArried at amortised ¢o$l using the effective Interest method unless the arrangement constilules a ffinanong transaction, where the transaction Is measured at the present value of the fulure receipts discounted at a market rate of interest. Finanaal assets classified as receivable within one yeai ale not amortised. Basic financial liobillties Basic financial liabilities. induding credrtors and bank loans are inilialty recognised at transaction price unless the arrangement constilules a financing transaction. where the debt instrument is measured al the p￿sent value ol the future payments discounted al a market rate ol intwesl. FinancAal liabilities classified as payable wrthin one year are not amortised. Debt Inslwm&nls are subsequ&ntty ¢arried al amorti$*d cost. usin9 the ¥ff*¢tiv* Interest rale m¥¢hod. Trade credltors are obligations to pay for goods or seThices that have be8n acquired in the ordlnary course of operations from suppliers. Amounts payable are classified as current liabililies il payment is due within one year or less. If not. they are presented as nonrycVr￿nt liabilibes. Trade creditors are recognised iniually at transaction pri¢e and svb5equentty measured at amortised cost using the effeclNe interesl rnethod. Der•¢ognition of finan¢i•l li4bilities Financial liabilrties are derecognised vthen the group's contractual obligations expire or are discharged or cancelled. 1.10 Derlvatlves Derivatives, induding inlerest rale swaps and forward foreign exchange contracts. are not basic financAal instruments. Derivalives are inilialty recognised al fair value on the dale a derNalive contract is entered into and are subsequently re-measureil at their lair value. Changes in the fair ¥alue of derivatives are recognised in incomellexpenditurel lor the year. unless hedge accijunling is applied 8n(J the hedge is a c8sh flow hedge. Derivatives are initialty ￿CogniSed at fair value at the date a derivab.ve contract is entered irto and are subsequenuy ￿MeasUred to fair value at each ￿porting date. The resultsng gain or loss is recognised in net incomellexpendrturel immedialety unless the derivatwe is dewgnated and effeciNe as a hedging instrument, in which event the timing of the recognition depends on the nature of the hedge relationship. A derivatNe with a positive fair value is recognised as a ffinan¢ial asset, wheie85 a dèrivative a negative fair value is recognised as a ffinan(ial liabilty. -24- THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 A¢coun¢ing policies (Continuedl 1.11 Employee beneffts The cost of any unused holiday entNlement is recognised in the period in vthich the employee'5 servws are received. Termination benefrts are recognised immediatety as an expense when the group is demonstrabty committed to temiinale the employment of an employee or to provide lerminalion benefits. 1.12 Retirem•n¢ benofits Payments to defined contribUt￿n retirement benefft schemes are charged as an expense as they fall due. 1.13 L•ase8 Where the Chanty acts as a lessor, amounts due from lessees under finance leases are recognised as debtors al the present valtje. Whe￿ malerial on leases in excess 012 years duration, of the future minimum lease payments plus any unguaranteed ￿SIdUal val¢Je (the -net Investment In the lease") plus incremo)tal costs of negotiating and arranging the lease. Finance income from assets leased under a finance lease is allocated to accounting periods so as to reflect a constant periodic rale of retum on the net investment in the lease. 1.14 Forèlgn •x¢hang• Transactions in currencies other than pounds slerfing a￿ ￿cOlded at Ihe rates of exchange prevailing at the dates of the transactions. At each reporb'ng end date. monetary assets and liabilities that are denominated in lor&ign ¢urrentyes 8r& r&ir8nslated ai Ihe rai&s prevailing on the reporting end dal$. Gains and losses 8ri8ing on Ir8n$l8tion in the period a￿ in¢luded in profft or lo$$. crttlcal accoun￿n9 68tlmat•• and ludg•monts In the application of the group's accounting poliaes. Ihe trustees are ￿qUired to make judgements, estimates and assumptions about the carrying amounl of assets and li8bililies Ihat a￿ not readily apparent from other sources. The eslirnates and associated assumptions are based on historical experience and other factors that are considered lo be relevant. ￿lU91 resuNs may differ Irom these esliffl8le$. The estimates and underlying assumptions are rewewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects cnly that period, or in (he period of the revision and future periods where the ￿vIsion affects both current and future periods. In¢omo from don4lion$ •nd 1•90¢1•s- Con$olldat•d unr•*triet￿ R•striet•d Total Unr••triet•d Rostrict•d Total lunds lunds funds funds funds funds 31 31 31 31 31 31 December December December December December December 2024 2024 2024 2023 2023 2023 Gr8nts Donated goods and services 17.087 352.177 369.264 7,885 7.885 17.087 360.(h$2 377.149 -25- THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Income from donalions and legacies - Charity Unrestricted Restricted Totsl Unrestricted Restricted Total funds funds funds nds funds funds 31 31 31 31 31 31 D•tèmb•r O•cémbèr O•eemb•r O•eember Dèeèmbèr Deeèmb&r 2024 2024 2024 2023 2023 2023 Grants Donate