Korea Future Initiative CIO Charitable Incorporated Organisation CIO Registration Number: 1185332 Unaudited Accounts Trustees Report and Financial Statements For the period ended 31 December 2022.
Korea Future Initiative CIO
Contents
Reference and Administration Details for the Period Ended 31 December 2022 ........................... 3 Trustees Report for the Period Ended 31 December 2022. ............................................................... 4 Statement of Financial Activities for the Period Ended 31 December 2022 .................................. 15 Balance Sheet as at 31 December 2022 .............................................................................................. 16 Statement of Cash Flows …………..………………………………………………………………………………….……………….16 Notes to the Financial Statements ...................................................................................................... 19
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Korea Future Initiative CIO
Reference and Administration Details for the Period Ended 31 December 2022
Trustees
Robin Peter Walker (Chair) Richard Moreton (Treasurer)
Jinhee Lee
Margaret Ahn Mitra Moadab Motlagh Victoria Nida (Appointed: 27/04/2022) Perpetua Adar (Appointed: 11/07/2022) Jennifer Holroyd (Resigned: 22/01/2022) Mario Dunn (Resigned: 22/01/2022)
Charity Registration Number
1185332
Registered Office
120B Malden Road, New Malden, KT3 6DD.
Banks
Triodos Bank, Deanery Road, Bristol, BS1 5AS
HSBC, 54 Clarence Street, Kingston upon Thames, KT1 1NP
Woori Bank, 17 World Cup Buk-ro 60-gil, Mapo-gu, Seoul, Republic of Korea 03921
Independent Examiner
Samantha Rouse FCCA DChA, Kreston Reeves LLP, 37 St Margaret’s Street, Canterbury, CT1 2TU
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Korea Future Initiative CIO
Trustees Report for the Period Ended 31 December 2022.
The Trustees present their annual report together with the financial statements of the CIO for the year 01 January 2022 to 31 December 2022. The Trustees confirm that the Annual Report and financial statements of the CIO comply with the current statutory requirements, the requirements of the company's governing document, and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) as amended by Update Bulletin 1 (effective 1 January 2019).
Since the CIO qualifies as small under section 382, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
Structure, Governance, and Management
Governing Document
Korea Future Initiative CIO is constituted as a Charitable Incorporated Organisation registered with the Charity Commission in September 2019 under registration number 1185332. It also maintains a liaison office in the Republic of Korea, registration number 90284-00915. The current constitution was adopted on September 1, 2019.
Organisational Structure
The board of trustees – which currently has 7 members – administers the charity. The trustees receive no financial remuneration for their involvement. The board meets on a quarterly basis and there are sub-committees covering fundraising and communications and audit and risk, which meet quarterly. A Chief Executive Officer is appointed by the trustees to manage the day-to- day operations of the charity. To facilitate effective operations, the Chief Executive Officer has delegated authority, within terms of delegation approved by the trustees, for operational matters including, finance, employment, and all programme activities.
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Recruitment of Trustees
Existing trustees are responsible for recruiting new trustees. In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO. All trustees are independent of each other. We welcome and encourage applicants from all backgrounds and do not discriminate on the basis of age, disability (physical or learning), LGBTQI+ or relationship status, pregnancy and maternity, race, religion and belief, gender or social class. Any appointment must be made at a meeting held according to the ordinary practice of the Board of Trustees as outlined in the Constitution. Each appointment is for a term of three years.
Potential trustees are invited to attend trustees' meetings as observers and are given more details of the charity's aims and activities and, if all agree, they are then proposed as new trustees at the subsequent trustees' meeting. This process allows due consideration of the person's eligibility, personal competence, specialist knowledge and skills.
Trustee Induction and Training
In the first instance, approaches from those wishing to serve as a Trustee shall be made to the Chair. Following further discussion and consideration, prospective Trustees shall be invited to observe at least 1 Board meeting. Subsequently, if willing, the prospective Trustee shall make written representations to the Board, who will decide whether to co-opt the prospective Trustee as a full member of the Board, with all the rights and responsibilities that entails. All Trustees shall subsequently be elected at the next board meeting through a ballot of board members. The ballot shall be administered by the Secretary. Trustees standing for election shall be required to verbally present their reasons for wishing to be elected to the Board. In terms of size, the Board shall not exceed 12 Trustees, and shall seek to be a body which is diverse in terms of skills, experience and professional background. Trustees shall serve for a 3-year term, which may be extended.
To enable him/her to hit the ground running, new trustees must be provided with:
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The constitution (and any supporting guidelines or regulations)
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The last Annual Report (and any other explanatory leaflet, brochure or prospectus issued by the charity);
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The last audited accounts, the current Budget and the most recent (monthly or quarterly) Management Accounts;
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Copies of the last three Board Minutes and the Agenda for the next Board meeting (and a note of any future meeting dates);
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Any Code of Conduct or Board Policies in existence;
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Details of any Conflicts of Interest requirements;
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Details of the Committee and staff structures and reporting processes.
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The essential trustee: what you need to know, what you need to do (CC3)
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Trustees are encouraged to attend appropriate external training events to improve their understanding of their role and to improve the skillsets of the board for more effective governance. All trustees attend safeguarding training within 3 months of appointment.
Objectives and Activities
The objectives of the CIO are:
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1) To promote human rights (as set out in the Universal Declaration of Human Rights and subsequent United Nations conventions and declarations) in North Korea by all or any of the following means:
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monitoring abuses of human rights;
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obtaining redress for the victims of human rights abuse;
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relieving need among the victims of human rights abuse;
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research into human rights issues;
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providing technical advice to government and others on human rights matters;
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raising awareness of human rights issues;
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international advocacy of human rights; and
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eliminating infringements of human rights.
In furtherance of that object but not otherwise, the trustees shall have power
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To engage in political activity provided that the trustees are satisfied that the proposed activities will further the purposes of the charity to an extent justified by the resources committed and the activity is not the dominant means by which the charity carries out its objects.
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2) The relief and assistance of North Korean refugees in China and Southeast Asia through the raising and provision of funds to provide safe passage to thirdcountries.
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit. The trustees consider that the activities undertaken - as summarised below - provide benefit to the community we serve and the wider public.
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Achievements and Performance
North Korean Prison Database
A vast system of penal facilities extends across North Korea. The construction of these facilities — capable of detaining hundreds of thousands of people suspected or accused of crimes — has enabled extensive and egregious violations of international law with catastrophic human consequences.
To support and accelerate justice and accountability, Korea Future is undertaking investigations into North Korea’s penal system through our North Korean Prison Database (NKPD) project. To date, we have identified 597 perpetrators linked to 5,181 human rights violations committed against 785 detainees in 148 penal facilities.
Launched publicly online and in a report, “North Korean Prison Database: Volume I ” in March 2022, the North Korean Prison Database provides users with access to a comprehensive and growing archive of violations of international law that have transpired in the North Korean penal system. This includes: 1) evidence pertaining to perpetrators and their links to state organisations, penal facilities, and the violations for which they are responsible; 2) evidence of detainees, including their current status, the violations they experienced, and the facilities in which they were detained, and, uniquely; 3) the database breaks down the specific legal elements of every documented violation of international law, including specific constituting acts. The NKPD is accessible in English and Korean to anyone with an internet connection Select data is published at the where it is freely available to legal practitioners, policymakers, researchers, civil society organisations, journalists, and more.
To better understand and situate the experiences of North Koreans, we used digital modelling, survivor testimony, memory-based diagrams, and satellite imagery to model the internal architecture of Onsong County MPS Detention Centre. This is the first time anyone has seen inside a North Korean penal facility.
Our report finds the ruling Workers’ Party of Korea, with the Supreme Leader Kim Jong Un at the helm, is responsible for gross violations of international human rights law resulting from its failure to meet its legal obligations to detainees in the penal system.
What we present in our report is plain evidence of incidence — specifically, patterns of human rights violations that have been perpetrated by state agents in state-run penal facilities against detainees. We include four individual cases that shine a light on the devastating human impact of arbitrary mass detention. To expose the insidious and often hidden violence inflicted upon detainees, we also include materials that spotlight systematic brutality. Each of these elements serves the same purpose: to ensure that justice can be served.
Our methods of investigation are well-established across our work and have been developed with and comprehensively reviewed by legal experts with international prosecutorial and analytical experience. During our first nine months of investigations, we undertook 259 detailed in-person interviews with survivors, perpetrators, and witnesses. We documented thousands of pages of testimony and we sourced internal documents and photographic and video evidence from inside North Korea as part of our ongoing investigation.
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Our evidence is analysed against an international law framework to establish whether violations of international human rights law took place. We corroborate and verify cases in our database, and we cross-reference and link files on suspects, cases, victims, and penal facilities. Powerful search features let us observe both patterns in our evidence and the granular details within specific cases.
Briefings and meetings were held on NKPD following the launch of the report with various state and multilateral actors, globally and locally significant CSOs, and English-language and Korean-language media.
Korea Future’s work has influenced or been cited in numerous works, including the European Parliament resolution (2022/2620(RSP)); US Department of State 2021 Report on International Religious Freedom: Democratic People’s Republic of Korea; parliamentary questions in the UK Houses of Parliament; HRNK; and previously mentioned online media in multiple languages. We were also invited to speak at a RightsCon 2022 event hosted by HURIDOCS on the topic of ‘Databases as memory objects: perspectives and practices in Asia.’
Investigating Freedom of Religion or Belief in North Korea
Korea Future is investigating and identifying agents of the Workers’ Party of Korea responsible for gross violations of international human rights law that target religious minorities.
We intend our evidence gathered on Freedom of Religion or Belief (FoRB) to be used to accelerate, promote, and support national and international justice institutions pursuing accountability through a range of initiatives, including investigations, targeted human rights sanctions, and prosecutions.
Our investigators have independently documented 195 perpetrators responsible for over 1000 violations of international law involving 517 victims in 127 locations.
After the successful publication of our FoRB work in 2020 and 2021, we were delighted to author a new report for the United States Commission on International Religious Freedom - (USCIRF). The report, which is titled “Kimilsungism Kimjongilism and the Right to Freedom of Religion, Thought, and Conscience in North Korea”, explores how ongoing religious freedom violations in North Korea are driven by highly organized efforts of the Workers’ Party of Korea to enforce an ideology known as Kimilsungism-Kimjongilism. The report contributes to significant advances in understanding how and why this ideology is implemented across North Korea and presents implications for the deterrence of perpetrators and the pursuit of accountability and justice.
We engaged stakeholders from governments, state ministries, accountability mechanisms, parliamentarians, legal professionals, civil society working groups, and the media throughout 2022 on the evidence we have gathered on FoRB.
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- Capacity building in the diaspora
Women comprise 72% of the North Korean diaspora in South Korea. Yet men account for 63% of all leadership roles in organisations working on North Korean human rights. Korea Future is building the capacities of emerging exiled women leaders in the diaspora to increase their involvement in and leadership of human rights investigations, documentation, and organisation.
Building on our work in 2021, in 2022, we supported a core group of emerging women leaders in the diaspora through a monthly series of human rights workshops. Participants were provided with opportunities to strengthen their core human rights skills and grow their practical skills in leadership and organisation.
In September 2022, we released our report, “Opportunities and Challenges for Exiled North Korean Women in the Human Rights Field.” Our findings explore how the human rights movement and, in particular, grant-makers, can deploy their resources to better support the active participation and leadership of exiled women and exiled women-led organisations.
Future Activities
Our work on NKPD will continue for the foreseeable future, as will related targeted engagement and coordination of stakeholders.
In October 2022, we began a long-term project that will support survivor-informed documentation of sexual and gender-based violence in North Korea, putting exiled women and their experiences at the heart of justice conversations and overcoming one of the key barriers surrounding impunity. More information will be released in due course.
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Financial Review
Reserves Policy
The ultimate aim of our reserves policy is to maintain 3 months of unrestricted reserves to cover any changes in our income. Trustees felt that funds should be deployed to be able to grow the organisation, meaning we have no reserve at this moment. It is our goal to have at least 3 months of unrestricted reserves by the end of our current strategic period, which ends in 2024.
Investment Policy
We have no investments. All cash is held within our Woori Bank, HSBC and Triodos accounts, which earns a small amount of interest. There are no investment plans within the current strategic period.
Risk Management
The CIO ensures the highest standards of governance are maintained through its implementation of a robust risk management strategy, which entails:
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a Risk and audit committee which performs a quarterly review of the risks the charity may face and proposes mitigation strategies to the main board;
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an array of policies and procedures, with particular attention to financial policies and health and safety;
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the establishment of a governance checklist with key dates planned a year in advance; and
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the creation and quarterly update of a risk register.
The greatest risk to the organisation has been identified as a lack of funds to meet our obligations. Progress was made in the financial year in implementing the detailed fundraising strategy developed in the previous financial year, but greater diversification remains a challenge. We will be recruiting fundraising specialists to help us overcome this challenge in the next financial year.
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Statement of Trustees’ Responsibilities
The CIO's trustees are responsible for preparing an annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, and the provisions of the constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees and directors in the period and at the report approval date were:
Robin Peter Walker (Chair)
Richard Moreton (Treasurer)
Jinhee Lee
Margaret Ahn
Mitra Moadab Motlagh
Victoria Nida (Appointed: 27/04/2022) Perpetua Adar (Appointed: 11/07/2022)
Jennifer Holroyd (Resigned: 22/01/2022) Mario Dunn (Resigned: 22/01/2022)
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Statement as to Disclosure to our Independent Examiner
In so far as the trustees are aware at the time of approving our trustees’ annual report:
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there is no relevant information, being information needed by the independent examiner in connection with preparing their report, of which the organisation’s independent examiner is unaware, and
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the trustees, having made enquiries of fellow directors and the group’s independent examiner that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant information and to establish that the examiner is aware of that information.
Approved by the Trustees and signed on its behalf:
Robin Peter Walker (Chair)
Date: 31/03/2023
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Independent Examiner's Report to the Trustees of Korea Future Initiative CIO
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2022 which are set out on pages 15 to 28.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 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
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I can confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice affective for reporting periods beginning on or after 1 January 2019.
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:
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accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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the accounts do not accord with those records; or
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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.
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This report is made solely to the Charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees as a body, for my work or this report.
Samantha Rouse FCCA DChA
Certified Chartered Accountant
Kreston Reeves LLP
37 St Margaret’s Street Canterbury
Kent
CT1 2TU
Dated: 03/04/2023
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Korea Future Initiative CIO
Statement of Financial Activities for the Period Ended 31 December 2022
----- Start of picture text -----
Note Restricted Unrestricted Total Funds Restricted Unrestricted Total Funds
Funds Funds 2022 Funds Funds 2021
£ £ £ £ £ £
Income from:
Donations and
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537,130 3,548 540,678 470,768 15,851 486,619
Grants
Investments - - - - - -
Other Income 5a 848 20,014 20,862 - 20,008 20,008
Total Income 537,978 23,562 561,540 470,768 35,859 506,627
Expenditure on:
Raising Funds:
5 - -
4,215 4,215 10,000 10,000
Voluntary Income
Charitable Activities 6
503,733 12,518 516,251 436,811 27,243 464,054
Governance 7
12,600 36 12,636 4,945 1,102 6,047
Total Expenditure 520,548 12,554 533,102 441,756 38,345 480,101
Net Movement in
17,430 11,008 28,438 29,012 (2,486) 26,526
Funds
Total Funds Brought
65,534 445 65,979 36,522 2,931 39,453
Forward
Total Funds
82,964 11,453 94,417 65,534 445 65,979
Carried Forward
----- End of picture text -----
The notes on pages 19 to 28 form part of these financial statements.
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Korea Future Initiative CIO
Balance Sheet as at 31 December 2022
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Note Restricted Unrestricted Total Funds Restricted Unrestricted Total Funds
Funds Funds 2022 Funds Funds 2021
£ £ £ £ £ £
Fixed Assets 8 9,864 140 10,004 8,236 176 8,412
Current Assets
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56,525 56,525
Debtors 9 60,568 - 60,568
Cash at Bank and
18,368 15,211 33,579 14,085 6,856 20,941
in Hand
Current Assets 74,893 15,211 90,104 74,653 6,856 81,509
Creditors: amounts
falling due within 10 (1,7933) (3,898) (5,691) (17,355) (6,587) (23,942)
one year
Net Current
73,100 11,313 84,413 57,298 269 57,567
Assets
Net Assets 82,964 11,453 94,417 65,534 445 65,979
Total Funds 11&12 82,964 11,453 94,417 65,534 445 65,979
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The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Robin Peter Walker, Chair Date: 31/03/2023
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Korea Future Initiative CIO Statement of Cash Flows
| Cash flows from operating activities: Net cash provided by operating activities Cash flow from investing activities: Interest Purchase of property, plant and equipment Net cash used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at 31 December 2021 Cash and cash equivalents at 31 December 2022 Reconciliation of net income/(expenditure) to net cash flow from operating activities: Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation Interest Decrease / (Increase) in debtors (Decrease) / Increase in creditors Net cash provided by (used in) operating activities |
2022 Total funds £ 17,373 14 (4,749) (4,735) 12,638 20,941 |
2021 Total funds £ 13,626 8 (2,130) (2,122) 11,504 9,437 |
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|---|---|---|---|
| 33,579 | 20,941 | ||
| 2022 2021 Total funds Total funds £ £ 28,438 26,527 3,157 3,034 (14) (8) 4,043 (24,707) (18,251) 8,780 |
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| 17,373 13,626 |
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Korea Future Initiative CIO Statement of Cash Flows
| Analysis of change in net debt Cash in hand Total cash and cash equivalents Analysis of change in net debt Cash in hand Total cash and cash equivalents |
At 1 January 2022 Cash flow At 31 December 2022 £ £ £ 20,941 12,638 33,579 |
|---|---|
| 20,941 12,638 33,579 |
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| At 1 January 2021 Cash flow At 31 December 2021 £ £ £ 9,437 11,504 20,941 9,437 11,504 20,941 |
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Notes to the Financial Statements
The registered office for the CIO is 120B Malden Road, New Malden, Surrey, KT3 6DD, United Kingdom.
Registered as a Charitable Incorporated Organisation in England on 16 September 2019.
These accounts cover the period 1 January 2022 to 31 December 2022.
1. Accounting policies
The principle accounting policies are summarised below.
1.1.1 Basis of preparation
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The preparation of financial statements in compliance with FRS 102 requires certain critical accounting estimates. It also requires management to exercise judgement in applying the CIO’s accounting policies (see note 3).
The financial statements have been prepared on the historical cost basis and are presented in Sterling (£). Rounding is to the nearest pound.
Korea Future Initiative CIO meets the definition of a public benefit entity under FRS 102.
1.1.2 Organisational status
Korea Future Initiative CIO is a Charitable Incorporated Organisation. The members of the company are the Trustees named on page 1. In the event of the CIO being wound up, the liability in respect of the guarantee is limited to £1 per member of the CIO.
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1.1.3 Income
All income is recognised once the CIO has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably.
In accordance with the Charities SORP (FRS 102), the general volunteer time of the volunteers is not recognised and refer to the Trustees' report for more information about their contribution. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the CIO which is the amount the CIO would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
1.1.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Governance costs are those incurred in connection with administration of the CIO and compliance with constitutional and statutory requirements.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the CIO’s operations, including support costs and costs relating to the governance of the CIO apportioned to charitable activities.
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1.1.5 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund.
1.1.6 Value Added Tax
The CIO is not registered for VAT and accordingly, where applicable, all costs and expenditures incurred are inclusive of VAT.
1.1.7 Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.1.8 Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
1.1.9 Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.2.0 Assets
Assets are recognised when there is a legal and constructive right to the asset.
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1.2.1 Tangible Fixed Assets and Depreciation
Tangible fixed assets are capitalised at cost where their acquisition value is greater than £100 and are stated at cost net of depreciation.
Depreciation is calculated to write down the cost of all tangible fixed assets by equal annual instalments over their expected useful lives.
The rates generally applicable are: Fixtures, fittings and kitchen/office equipment over 2 years, on a straight-line basis Computer equipment and software over 5 years, on a straight-line basis.
1.2.2 Going Concern
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
1.2.3 Foreign Currency
Transactions in foreign currencies are recognised at the rate of exchange at the date of transaction. Monetary assets and liabilities are translated into sterling at the exchange rate on the balance sheet date. All exchange differences are recognised through the statement of financial activities.
1.2.4 Financial Instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.2.5 Tax on ordinary activities
Korea Future Initiative CIO is a registered CIO and is potentially exempt from taxation in respect of income and capital gains received within the categories covered by Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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2 Staff numbers and costs
The charity had 9 full-time employees in 2022 (2021: 3). Staff costs were as follows:
| Wages and Salaries including Donations in Kind Employer’s N.I.C. Pension costs Korean tax Total Full time staff Costs of generating funds Charitable activities Total |
2022 £ 2021 £ 275,450 93,474 12,864 4,999 20,067 2,321 21,193 - |
|---|---|
| 329,574 100,794 |
|
| 2022 Number 2021 Number 1 1 11 2 |
|
| 12 3 |
No employee received remuneration amounting to more than £60,000 for the year. The total remuneration received by key management personnel was £40,480 (2021: £38,289).
3 Trustees remuneration and expenses
The Trustees, who are also directors of the Charity, are not entitled to receive any remuneration from the Charity. No expenses were paid to any Trustee or connected person during the period. In the prior year, one Trustee, Robin Walker, was reimbursed £594 for expenses incurred on behalf of the charity.
4 Donations & Grants
| Donations Grants Totals |
Restricted 2022 £ Unrestricted 2022 £ Total 2022 £ Restricted 2021 £ Unrestricted 2021 £ Total 2021 £ - 548 548 - 12,851 12,851 537,130 3,000 540,130 470,768 3,000 473,768 |
|---|---|
| 537,130 3,548 540,678 470,768 15,851 486,619 |
5a. Other Income
Other income includes the management services provided to Connect: North Korea
CIO of £20,000 (2021: £20,000) and interest received in the period.
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5 Cost of Raising Funds
| Fundraising costs Totals |
Restricted 2022 £ Unrestricted 2022 £ Total 2022 £ Restricted 2021 £ Unrestricted 2021 £ Total 2021 £ 4,215 - 4,215 - 10,000 10,000 |
|---|---|
| 4,215 - 4,215 - 10,000 10,000 |
6 Charitable Activities
| Research expenses Specialist Support Depreciation IT expenses Rent Disbursements Insurance Salaries Employers NI Staff training Pension costs Korean Tax Advertising & marketing Travel expenses Exchange rate variances General expenses Totals |
Restricted 2022 £ Unrestricted 2022 £ Total 2022 £ Restricted 2021 £ Unrestricted 2021 £ Total 2021 £ 15,792 120 15,912 43,972 - 43,972 74,781 100 74,881 239,979 49 240,028 3,121 36 3,157 3,031 3 3,034 8,899 - 8,899 29,044 358 29,402 32,001 - 32,001 26,896 1,014 27,910 1,204 69 1,273 530 55 585 3,436 - 3,436 282 564 846 255,436 20,014 275,450 69,382 24,092 93,474 8,378 4,486 12,864 3,734 1,265 4,999 1,701 - 1,701 - - - 19,040 1,027 20,067 1,969 352 2,321 21,193 - 21,193 - - - 718 - 718 1,176 - 1,176 30,838 424 31,262 3,342 - 3,342 21,320 (13,880) 7,440 - - - 5,875 122 5,997 13,474 (509) 12,965 |
|---|---|
| 503,733 12,518 516,251 436,811 27,243 464,054 |
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7 Governance Costs
| Audit & accountancy Bank charges Totals |
Restricted 2022 £ Unrestricted 2022 £ Total 2022 £ Restricted 2021 £ Unrestricted 2021 £ Total 2021 £ 9,769 - 9,769 2,560 910 3,470 2,831 36 2,867 2,385 192 2,577 |
|---|---|
| 12,600 36 12,636 4,945 1,102 6,047 |
The Independent examiner's remuneration is included in the audit and accounting costs listed above and total £1,320.
8 Fixed Assets
| Cost Balance as at 31 December 2021 Additions Balance as at 31 December 2022 Depreciation Balance as at 31 December 2021 Additions Balance as at 31 December 2022 Net book value Balance as at 31 December 2022 Balance as at 31 December 2021 |
Office Equipment £ 2022 £ 2021 £ 12,107 12,107 9,977 4,749 4,749 2,130 |
|---|---|
| 16,856 16,856 12,107 |
|
| 3,695 3,695 661 3,157 3,157 3,034 |
|
| 6,852 6,852 3,695 |
|
| 10,004 10,004 8,412 |
|
| 8,412 8,412 9,316 |
9 Debtors
| Trade debtors Total debtors |
2022 £ 2021 £ 56,525 60,568 |
|---|---|
| 56,525 60,568 |
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10 Creditors
| Trade creditors Social security and other taxes Accruals Total creditors |
2022 £ 2021 £ 473 19,939 3,898 3,253 1,320 750 |
|---|---|
| 5,691 23,942 |
11 Fund movements summary
| At 1 January 2022 Incoming resources Expenditure At 31 December 2022 At 1 January 2021 Incoming resources Expenditure At 31 December 2021 |
Restricted funds £ Unrestricted funds £ Total funds £ 65,534 445 65,979 537,978 23,562 561,540 (520,548) (12,554) (533,102) |
|---|---|
| 82,964 11,453 94,417 |
|
| Restricted funds £ Unrestricted funds £ Total funds £ 36,522 2,931 39,453 470,768 35,859 506,627 (441,756) (38,345) (480,101) |
|
| 65,534 445 65,979 |
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12 Restricted funds
| Core Costs Investigating Persecution of Religion or Belief Project 1 Investigating Persecution of Religion or Belief Project 2 Investigating Persecution of Religion or Belief Project 3 Female Leadership Programme Documenting Human Rights Violations in North Korean Prisons Transitional Justice Project Fundraising Capacity- Building SGBV Project Totals Core Costs Investigating Persecution of Religion or Belief Project 1 Investigating Persecution of Religion or Belief Project 2 Investigating Persecution of Religion or Belief Project 3 Female Leadership Programme Documenting Human Rights Violations in North Korean Prisons Transitional Justice Project Fundraising Capacity- Building Totals |
Balance at 1 January 2022 £ Incoming £ Outgoing £ Balance at 31 December 2022 £ 1,500 - (232) 1,268 6,912 848 (200) 7,560 16,682 51,386 (68,068) - 412 20,963 (20,703) 672 11,613 70,758 (69,952) 12,419 15,389 369,463 (345,102) 39,750 - - - - 13,026 18,700 (15,454) 16,272 - 5,860 (837) 5,023 |
|---|---|
| 65,534 537,978 (520,548) 82,964 |
|
| Balance at 1 January 2021 £ Incoming £ Outgoing £ Balance at 31 December 2021 £ - 1,500 - 1,500 1 7,250 (339) 6,912 13,678 88,109 (85,105) 16,682 - 17,399 (16,987) 412 6,447 40,039 (34,873) 11,613 3 286,768 (271,382) 15,389 - 12,703 (12,703) - 16,393 17,000 (20,367) 13,026 |
|
| 36,522 470,768 (441,756) 65,534 |
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12 Restricted funds (continued)
Fund Core Costs
Investigating Persecution of Religion or Belief Project 1
Investigating Persecution of Religion or Belief Project 2
Investigating Persecution of Religion or Belief Project 3
Female Leadership Programme
Documenting Human Rights Violations in North Korean Prisons
Transitional Justice Project Fundraising Capacity-Building SGBV Project
Purpose
Funds were received to support our core costs related to communications.
Funds were received to support our first documentation project on the persecution of religion or belief in North Korea. Funds were received to support our second documentation project on the persecution of religion or belief in North Korea. Funds were received to support our third documentation project on the persecution of religion or belief in North Korea. Funds were received to support capacitybuilding within the North Korean diaspora with a particular focus on female leadership. Funds were received to support the documentation of human rights violations in North Korean prisons
Funds were received to support a project on transitional justice in North Korea This capacity-building fund was to support the development of our fundraising.
Funds were received to support our project on survivor-informed documentation of sexual and gender-based violence
13 Related party transactions
Connect: North Korea is a related party of which all serving Trustees are also Trustees of Korea Future Initiative CIO.
During the current year the charity has not entered into any related party loan arrangements.
During the prior year, a loan was repaid to the CEO of £1,250. The balance at 31 December 2021 was £nil.
During the prior year, the trustees of Connect: North Korea provided a loan of £35,000 to the charity. The total balance owed by the charity in 2021 was £43,329, with repayments being made of £43,329. The balance owed by the charity at 31 December 2021 was £nil.”
The Charity has provided management services to Connect: North Korea CIO - £20,000 (2021: £20,000) was received during the period for those services.
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