Korea Future Initiative CIO (T/A Korea Future)
Charitable Incorporated Organisation CIO Registration Number: 1185332 Audited Accounts
Trustees Report and Financial Statements
For the period ended 31 December 2023.
## Korea Future Initiative CIO
## Contents
**Reference and Administration Details for the Period Ended 31 December 2023** .............. 3 **Trustees Report for the Period Ended 31 December 2023.** .................................................. 4 **Statement of Financial Activities for the period ended 31 December 2023** ...................... 17 **Balance Sheet as at 31 December 2023** ................................................................................ 18 **Statement of Cash Flows** …………..……… …………………………….……………….15 **Notes to the Financial Statements** ........................................................................................ 21
**2**
## **Korea Future Initiative CIO**
## **Reference and Administration Details for the Period Ended 31 December 2023**
## **Trustees**
Victoria Nida (Co-Chair)
Oliver Windridge (Co-Chair) (Appointed: 06 February 2023)
Mitra Moadab Motlagh
Jinhee Lee (Resigned: 14 April 2023)
Margaret Ahn (Resigned: 05 July 2023)
Richard Moreton (Resigned: 31 August 2023)
Perpetua Adar (Resigned: 05 October 2023)
Robin Peter Walker (Resigned: 31 December 2023)
## **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
## **Auditor**
Samantha Rouse FCCA DChA, Kreston Reeves LLP, 37 St Margaret’s Street, Canterbury, Kent, CT1 2TU
**3**
## **Korea Future Initiative CIO**
## **Trustees Report for the Period Ended 31 December 2023.**
The Trustees present their annual report together with the financial statements of the CIO for the year 01 January 2023 to 31 December 2023. 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 3 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, audit and risk, and communications which normally 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.
**4**
## **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. 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:
- The constitution (and any supporting guidelines or regulations)
- The last Annual Report (and any other explanatory leaflet, brochure or prospectus issued by the charity);
- The last audited accounts, the current Budget and the most recent (monthly or quarterly) Management Accounts;
- Copies of the last three Board Minutes and the Agenda for the next Board meeting (and a note of any future meeting dates);
- Any Code of Conduct or Board Policies in existence;
- Details of any Conflicts of Interest requirements;
- Details of the Committee and staff structures and reporting processes.
- The essential trustee: what you need to know, what you need to do (CC3)
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.
**5**
## **Objectives and Activities**
The objectives of the CIO are:
- 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:
- monitoring abuses of human rights;
- obtaining redress for the victims of human rights abuse;
- relieving need among the victims of human rights abuse;
- research into human rights issues;
- providing technical advice to government and others on human rights matters;
- raising awareness of human rights issues;
- international advocacy of human rights; and
- eliminating infringements of human rights.
In furtherance of that object but not otherwise, the trustees shall have power
- 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.
- 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.
**6**
## **Achievements and Performance**
Korea Future is a non-governmental organisation documenting human rights violations and international crimes committed in the penal system of the Democratic People’s Republic of Korea (DPRK). Our mission is to undertake credible, high-quality documentation and legal analysis of human rights violations and international crimes in the DPRK penal system and uses this information to support accountability proceedings under national and international law. The vision for our work is to contribute to meaningful justice for victims and accountability for perpetrators of human rights violations and crimes committed in the DPRK penal system.
Korea Future focuses exclusively on the penal system in the DPRK. The reason for this focus is simple: the penal system is the primary tool of the ruling Workers’ Party of Korea to oppress citizens deemed a political threat, making it is the most significant site of occurrence for widespread and systematic violations and crimes in the DPRK. Before Korea Future, there was no organisation dedicated to undertaking credible, legally grounded investigations of violations and crimes transpiring in the DPRK penal system for the purpose of supporting efforts to end impunity. This had led to an absence of material that could be used as evidence in accountability proceedings under national and international law. Korea Future exists to fill this gap.
We launched in 2017 and now operate from offices in The Hague, Seoul, London, and Tokyo. Our team is composed of investigators, legal analysts, and expert consultants. Korea Future is or has been supported by a wide range of governments and foundations, notably the United States, United Kingdom, Netherlands, Germany, the National Endowment for Democracy, the International Republican Institute, Stefanus Alliance International, among others.
**7**
## **Executive Summary**
The DPRK continues to oversee systematic and widespread human rights violations across the penal system. As of February 2024, we have documented over 8,600 incidents, including over 1,000 perpetrators and 1,300 victims, that are now preserved in the North Korean Prison Database and that constitute serious breaches of international law that should be investigated and, where they amount to international crimes, prosecuted.
In March 2024, it will be a decade since a United Nations Commission of Inquiry (COI) called upon the international community to ensure full accountability for violations of human rights in the DPRK. As the international community prepares to mark this anniversary, impunity for human rights violations and international crimes in the DPRK continues. This poses an acute challenge to the legacy of the commission, to international justice, and ultimately to the DPRK’s victims.
Over the previous year, Korea Future has led civil society efforts to ensure that accountability can be delivered in the anniversary year of the COI.
## **Documentation, preservation, and analysis of information**
We interviewed 90 survivors, witnesses, and former state-affiliated agents to document and preserve information to support factual and legal research and analysis on pillars relevant to the commission of violations in the DPRK penal system: 1) the crime base, namely violations such as torture, sexual and gender-based violence, and extrajudicial killings; 2) perpetrator linkage to the underlying acts, including perpetrators as well as those otherwise responsible due to their roles. We safeguarded the well-being of survivors, avoided further traumatisation, and worked closely with psychosocial providers who offer medical and psychological support.
## **Support to the European Union and governments with targeted human rights sanctions jurisdictions**
We submitted three separate formal requests to the United States Department of State and Department of the Treasury, the United Kingdom Secretary of State for Foreign, Commonwealth and Development, and the European External Action Service and Council of the European Union recommending sanctions against a high-ranking individual, a Ministry, and a penal facility based on their connection to gross violations of human rights.
## **Support to governments and actors at the United Nations Human Rights Council**
We provided support to 16 governments and four United Nations actors through briefings, information sharing, and other forms of engagement. Two position papers were published concerning the DPRK penal system and sexual and gender-based violence, respectively. A new series of briefing papers intended to provide governments and multilateral institutions with information that can expand opportunities for accountability and the incorporation of credible information of human rights violations within policy development and diplomatic engagements were launched.
**8**
## **Mental health and psychosocial support**
We published two reports outlining best practices for survivor-centred and trauma-informed documentation best practices. In doing so we conducted a survey of 75 North Korean women and 75 North Korean men in order to understand the broader diaspora community’s attitudes towards and understandings of accountability. And we led four consultations with: 1) organisations led by North Korean women and female activists; 2) organisations led by North Korean men and male activists; 3) psychosocial service providers and; 4) ROK-based civil society organisations focused on accountability and justice in the DPRK.
**9**
## **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, but as our projects are funded until the point of closure or completion, there would not be a cost overrun if they shut down. The trustees have, therefore, agreed a reserves target of £61,846 to meet any immediate obligations. We do not expect this to change in the next financial year. Trustees felt that unrestricted funds should be deployed to be able to grow the organisation, meaning we have a limited reserve of £23,247 (2022: £11,313) at this moment. We have developed a new fundraising strategy and pipeline in the past year to achieve 3 months of unrestricted by the end of our current strategic period.
## _**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:
- 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;
- an array of policies and procedures, with particular attention to financial policies and health and safety;
- the establishment of a governance checklist with key dates planned a year in advance; and
- 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.
**10**
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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:
Victoria Nida (Co-Chair)
Oliver Windridge (Co-Chair) (Appointed: 06 February 2023)
Mitra Moadab Motlagh
Jinhee Lee (Resigned: 14 April 2023)
Margaret Ahn (Resigned: 05 July 2023)
Richard Moreton (Resigned: 31 August 2023)
Perpetua Adar (Resigned: 05 October 2023)
Robin Peter Walker (Resigned: 31 December 2023)
**11**
## **Statement as to Disclosure to our Auditor**
In so far as the trustees are aware at the time of approving our trustees’ annual report:
- there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the organisation’s auditor is unaware, and
- the trustees, having made enquiries of fellow directors and the group’s auditor 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 auditor is aware of that information.
Approved by the Trustees and signed on its behalf:
Victoria Jane Nida (Co-Chair)
Date: 29/10/2024
**12**
## **Independent Auditor’s Report to the Trustees of Korea Future initiative CIO**
## **Opinion**
We have audited the financial statements of Korea Future initiative CIO for the year ended 31 December 2023 which comprise Statement of Financial Activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the trustees' annual report[2] , other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
**13**
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety and fundraising practices) and fraud, and review of the reports made by management; and
**14**
- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
- Reading minutes of meetings of those charged with governance; and
- Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud;
- Identifying and testing journal entries; and
- Challenging assumptions and judgements made by management in its significant accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true and fair view).
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
**15**
## **Use of our report**
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. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Kreston Reeves LLP Chartered Accountants Statutory Auditor Canterbury Date: 29 October 2024 Kreston Reeves _is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006._
**16**
## **Korea Future Initiative CIO**
|**Statement of Financial Activities for theperiod ended 31 December 2023**|**Statement of Financial Activities for theperiod ended 31 December 2023**|**Statement of Financial Activities for theperiod ended 31 December 2023**|**Statement of Financial Activities for theperiod ended 31 December 2023**|**Statement of Financial Activities for theperiod ended 31 December 2023**|**Statement of Financial Activities for theperiod ended 31 December 2023**|**Statement of Financial Activities for theperiod ended 31 December 2023**||
|---|---|---|---|---|---|---|---|
||Note|Restricted
Funds
£|Unrestricted
Funds
£|Total Funds
2023
£|Restricted
Funds
£|Unrestricted
Funds
£|Total Funds
2022
£|
|**Income from:**||||||||
|Donations and
Grants|5|747,856|2,334|750,190|537,130|3,548|540,678|
|Investments||-|-|-|-|-|-|
|Other Income|5a|-|20,096|20,096|848|20,014|20,862|
|**Total Income**||**747,856**|**22,430**|**770,286**|**537,978**|**23,562**|**561,540**|
|||||||||
|**Expenditure on:**||||||||
|Raising Funds:
Voluntary Income|6|16,197|-|16,197|4,215|-|4,215|
|Charitable Activities|7|748,008|8,046|756,054|503,733|12,518|516,251|
|Governance|8|23,553|1,349|24,902|12,600|36|12,636|
|**Total Expenditure**||**787,758**|**9,395**|**797,153**|**520,548**|**12,554**|**533,102**|
|||||||||
|**Net Movement in**
**Funds**||**(39,902)**|**13,035**|**(26,867)**|**17,430**|**11,008**|**28,438**|
|||||||||
|Total Funds Brought
Forward||82,964|11,453|94,417|65,534|445|65,979|
|||||||||
|**Total Funds**
**Carried Forward**||**43,062**|**24,488**|**67,550**|**82,964**|**11,453**|**94,417**|
The notes on pages 21 to 30 form part of these financial statements.
**17**
## **Korea Future Initiative CIO**
|**Balance Sheet as at 31 December 2023**|**Balance Sheet as at 31 December 2023**|**Balance Sheet as at 31 December 2023**|**Balance Sheet as at 31 December 2023**|||||
|---|---|---|---|---|---|---|---|
||Note|Restricted
Funds
£|Unrestricted
Funds
£|Total Funds
2023
£|Restricted
Funds
£|Unrestricted
Funds
£|Total Funds
2022
£|
|**Fixed Assets**|9|**12,227**|**104**|**12,331**|**9,864**|**140**|**10,004**|
|Current Assets
Debtors|10|55,419|-|55,419|56,525|-|56,525|
|Cash at Bank and in
Hand||(8,411)|28,828|20,417|18,368|15,211|33,579|
|**Current Assets**||**47,008**|**28,828**|**75,836**|**74,893**|**15,211**|**90,104**|
|Creditors: amounts
falling due within
one year|11|(16,173)|(4,444)|(20,617)|(1,793)|(3,898)|(5,691)|
|**Net Current Assets**|12|**30,835**|**24,384**|**55,219**|**73,100**|**11,313**|**84,413**|
|**Net Assets**||**43,062**|**24,488**|**67,550**|**82,964**|**11,453**|**94,417**|
|**Total Funds**|13|**43,062**|**24,488**|**67,550**|**82,964**|**11,453**|**94,417**|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Victoria Jane Nida, Co-Chair Date: 29/10/2024
**18**
|**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 2022
**Cash and cash equivalents at 31 December 2023**
**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
Loss on disposal of asset
Interest
(Decrease) / Increase in debtors
(Decrease) / Increase in creditors
**_Net cash provided by (used in) operating activities_**|**2023**
**2022**
**Total**
**funds**
**Total**
**funds**
**£**
**£**
**(5,495)**
**17,373**
27
14
(7,694)
(4,749)
(7,667)
(4,735)
(13,162)
12,638
33,579
20,941|
|---|---|
||**20,417**
**33,579**|
||**2023**
**2022**
**Total**
**funds**
**Total**
**funds**
**£**
**£**
(26,867)
28,438
4,800
3,157
566
-
(27)
(14)
1,107
4,043
14,926
(18,251)|
||**(5,495)**
**17,373**|
**19**
## **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**
**2023**
**Cash flow**
**At 31**
**December**
**2023**
**£**
**£**
**£**
33,579
13,162
20,417|
|---|---|
||**33,579**
**13,162**
**20,417**|
||**At 1**
**January**
**2022**
**Cash flow**
**At 31**
**December**
**2022**
**£**
**£**
**£**
20,941
12,638
33,579|
||**20,941**
**12,638**
**33,579**|
**20**
## **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 2023 to 31 December 2023.
## **1. Accounting policies**
The principle accounting policies are summarised below.
## **1.11 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.
## **1.12 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.
**21**
## **1.13 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.
## **1.14 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.
**22**
## **1.15 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.
## **1.16 Value Added Tax**
The CIO is not registered for VAT and accordingly, where applicable, all costs and expenditures incurred are inclusive of VAT.
## **1.17 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.
## **1.18 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.
## **1.19 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. 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.
## **1.20 Assets**
Assets are recognised when there is a legal and constructive right to the asset.
**23**
## **1.21 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.
## **2 Staff numbers and costs**
The charity had 12 full-time employees in 2023 (2022: 9). Staff costs were as follows:
|Wages and Salaries including Donations in Kind
Employer’s N.I.C.
Pension costs
Korean and Dutch tax
Total
Full time staff
Costs of generating funds
Charitable activities
Total|2023
£
2022
£
409,462
275,450
9,698
12,864
33,144
20,067
49,686
21,193|
|---|---|
||501,990
329,574|
||2023
Number
2022
Number
0
1
12
11|
||12
12|
No employee received remuneration amounting to more than £60,000 for the year. The total remuneration received by key management personnel was £50,889 (2022: £45,993).
## **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.
**24**
## **4 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.
## **5 Donations & Grants**
|Donations
Grants
Totals|Restricted
2023
£
Unrestricted
2023
£
Total
2023
£
Restricted
2022
£
Unrestricted
2022
£
Total
2022
£
-
629
629
-
548
548
747,856
1,705 749,561
537,130
3,000 540,130|
|---|---|
||747,856
2,334 750,190
537,130
3,548 540,678|
## **5a. Other Income**
Other income includes the management services provided to Connect: North Korea CIO of £20,000 (2022: £20,000); interest received in the period and exchange rate variances.
## **6 Cost of Raising Funds**
|Fundraising
costs
Totals|Restricted
2023
£
Unrestricted
2023
£
Total
2023
£
Restricted
2022
£
Unrestricted
2022
£
Total
2022
£
16,197
-
16,197
4,215
-
4,215|
|---|---|
||16,197
-
16,197
4,215
-
4,215|
**25**
## **7 Charitable Activities**
|Research
expenses
Advocacy
Support
Depreciation
IT expenses
Rent
Disbursements
Insurance
Salaries
Employers NI
Staff training
Pension costs
Korean and
Netherlands
Tax
Advertising &
marketing
Travel
expenses
Exchange rate
variances
General
expenses
Totals|Restricted
2023
£
Unrestricted
2023
£
Total
2023
£
Restricted
2022
£
Unrestricted
2022
£
Total
2022
£
5,865
-
5,865
15,792
120
15,912
107,493
-
107,493
74,781
100
74,881
3,259
36
3,295
3,121
36
3,157
6,674
-
6,674
8,899
-
8,899
63,909
-
63,909
32,001
-
32,001
1,481
-
1,481
1,204
69
1,273
362
-
362
3,436
-
3,436
404,198
5,264
409,462
255,436
20,014
275,450
2,061
2,636
4,698
8,378
4,486
12,864
18,133
-
18,133
1,701
-
1,701
31,252
1,892
33,144
19,040
1,027
20,067
49,686
-
49,686
21,193
-
21,193
-
-
-
718
-
718
29,110
-
29,110
30,838
424
31,262
10,310
(1,880)
8,430
21,320
(13,880)
7,440
12,709
98
12,807
5,875
122
5,997|
|---|---|
||748,008
8,046
756,054
503,733
12,518
516,251|
## **8 Governance Costs**
|Audit &
accountancy
Bank charges
Totals|Restricted
2023
£
Unrestricted
2023
£
Total
2023
£
Restricted
2022
£
Unrestricted
2022
£
Total
2022
£
18,595
1,320 19,915
9,769
-
9,769
4,958
29
4,987
2,831
36
2,867|
|---|---|
||23,553
1,34924,902
12,600
3612,636|
The Auditor’s remuneration is included in the audit and accounting costs listed above and total £8,100.
**26**
## **9 Fixed Assets**
|**Cost**
Balance as at 31 December 2022
Additions
Disposals
Balance as at 31 December 2023
**Depreciation**
Balance as at 31 December 2022
Additions
Disposals
Balance as at 31 December 2023
**Net book value**
Balance as at 31 December 2023
Balance as at 31 December 2022|Office
Equipment
£
2023
£
2022
£
16,856
16,856
12,107
7,693
7,693
4,749
(999)
(999)
-|
|---|---|
||23,550
23,550
16,856|
||6,852
6,852
3,695
4,800
4,800
3,157
(433)
(433)
-|
||11,219
11,219
6,852|
||12,331
12,331
10,004|
||10,004
10,004
8,412|
## **10 Debtors**
|Trade debtors
Total debtors
**ditors**
Trade creditors
Social security and other taxes
Accruals
Total creditors|2023
£
2022
£
47,128
56,525
8,290
-|
|---|---|
||55,419
56,525|
||2023
£
2022
£
8,083
473
4,435
3,898
8,100
1,320|
||20,617
5,691|
## **11 Creditors**
**27**
## **12 Fund movements summary**
|At 1 January 2023
Incoming resources
Expenditure
At 31 December 2023|Restricted
funds
£
Unrestricted
funds
£
Total
funds
£
82,964
11,453
94,417
747,856
22,430
770,286
(791,391)
(10,532)
(801,903)|
|---|---|
||39,449
32,691
62,800|
## **12 Fund movement summary (continued)**
|At 1 January 2022
Incoming resources
Expenditure
At 31 December 2022
**tricted funds**
NKPD
SGBV Project
SGBV SP1 Project
SGBV SP2 Project
NKPD SP3 Project
FoRB SP4 Project
NKPD SP5 Project
NKPD SP6 Project
SGBV Project
Core Costs
Investigating Persecution of
Religion or Belief Project 1
Investigating Persecution of
Religion or Belief Project 2
Fundraising Capacity-
Building
Totals|Balance at
1 January
2023
£
39,750
5,023
-
12,419
-
672
-
-
5,023
1,268
7,560
-
16,272|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
Incoming
£
Outgoing
£
Balance at
31 December
2023
£
486,849 (540,628)
(14,029)
-
(5,023)
-
47,242
(36,053)
11,189
118,409 (109,111)
21,717
20,463
(20,463)
-
21,105
(21,435)
342
13,395
(152)
13,547
41,113
(38,497)
2,616
-
(5,023)
-
0
17
1,285
0
(1,164)
6,396
720
(720)
-
-
(16,272)
-|
|---|---|---|
||82,964|
747,856 (787,758)
43,062|
## **13 Restricted funds**
**28**
## **13 Restricted funds (continued)**
|**icted funds (continued)**||
|---|---|
|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|
**29**
## **13 Restricted funds (continued)**
Fund Purpose NKPD Funds were received to support investigation into human rights violations in the North Korean penal system. SGBV SP1 Project Funds were received to support our project on survivor-informed documentation of sexual and gender-based violence and Community of Practice work involving MHPSS support organisations. SGBV SP2 Project Funds were received to support capacitybuilding within the North Korean diaspora. NKPD SP3 Project Funds were received to support investigation into human rights violations in the North Korean penal system. FoRB SP4 Project Funds were received to support advocacy and accountability. NKPD SP5 Project Funds were received to support investigation into human rights violations in the North Korean penal system. NKPD SP6 Project Funds were received to support investigation into human rights violations in the North Korean penal system. SGBV Project Funds were received to support our project on survivor-informed documentation of sexual and gender-based violence Core Costs Funds were received to support our core costs related to communications. Investigating Persecution of Religion or Funds were received to support our first Belief Project 1 documentation project on the persecution of religion or belief in North Korea. Investigating Persecution of Religion or Funds were received to support our second Belief Project 2 documentation project on the persecution of religion or belief in North Korea. Fundraising Capacity-Building This capacity-building fund was to support the development of our fundraising.
## **14 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.
The Charity has provided management services to Connect: North Korea CIO - £20,000 (2022: £20,000) was received during the period for those services.
**30**