R8gist•r•d Charity Numbgr: 11B8644 THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 THE BRAZIL FRIENDS FOUNDATION {FORMERLY THE BRAZIL FOOTBALL FOUNDATION) CONTENTS Pag8 Reference and Administration Details Report of the Trustees 2to4 Independent Exarninerfs report 5t06 Slalement of Financial Activities Statement of Financial Position Slalemenl of Ca5hflows Notes lo the Financial Statements 10t014 THE BRAZIL FRIENDS FOUNDATION {FORMERLY THE BRAZIL FOOTBALL FOUNDATION) CHARITY INFORMATION Trustees.. TGTeoh T P Aonso (resigned 8 August 20241 D Darst R Mascarenhas lappc*inted 8 August 20241 M Genovese {appointed 8 August 20241 Registered Charity Number: 1188644 R•glst•r•d Offl¢•: First Floor 5 Fleet Place London EC4M 7RD Indgpgndgnt Examlnor; Nikki Crane FCA BKL Audit LLP Chartered Accountants 5 Fleet Place London EC4M 7RD Bankorn: Metro Bank PIC One Southampton Row London WC1B SHA THE BRAZIL FRIENDS FOUNDATION {FORMERLY THE BRAZIL FOOTBALL FOUNDATION) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 REPORT OF THE TRUSTEES The Trustees, present their report and the financial statements of The Brazil Friends Foundation Iforrnerly The Brazil Football Foundationl which is a Charitsb￿ Incotporaled Organi5ation {"'Ihe CIO.). lor the year ended 31 December 2023. The a¢¢ounls have been p￿pared in a¢¢ordan¢e vAth the Statement of Recommended Practice.. Accounb'ng and Repo￿ng by Charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 issued in October 2019 and the Financial Reports"ng Standard applicable in the Unrted Kingdom and Republic of Ireland IFRS 1021 the Charities A 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The accounts have been prepared to give a 'true and fairf view and have departed from the Charities (Accounts and Report51 Regulats"ons 2008 only to the extent required to provide a true and fair view. This departure has involved following Accovnling and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applic2ble in the UK and Republic of Ireland IFRS 1021 issued in October 2019. rather than the Accounting and Reporting by Charrties.. Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. CONSTITUTION The Charity was fornied a$ a Charitable In￿rporated Organisation on 19 February 2020, and i¥ registered with the Charty C¢)mmi$sion- RegiStrat￿n number 1188644. STRUCTURE, GOVERNANACE AND MANAGEMENT Govornlng documont The Brazil Friends Foundation (formerly The Brazil Football Foundation) Ilhe'charity'l is a CIO and is governed by rts conslrtution sjated 19 Febwary 2020. Mothod of appolnlmgnt of Trusl•g$ Any person may be appointed to be a Trustee by ordinary resolution, or by a decision of the Trustees. The number of Trustees should be not less than 3. The Trustees are appointed and operate in aecordance wlh the Trust Deed. No formal policies have been adopted for the inducb'on and training of Twstees. The induction process for any new Trustee consist5 of an initial meeting wrth existing Trustees prior to the commencement of a mentoring process overseen by Ihe Trustees. None oflhe Trustees ￿eNe any ￿M￿neration from the CIO in respect oflheir role as Trustees. Prlnclpal rl$k$ and un¢ertalntlg$ The Trustees have given consideration lo the principal risk5 and uncertainties to which the Charity is exposed. These are in relation lo the availability of cash lo fund grant commilmenls. The Trustees will not enter into any grant commitments unless they have sufficient fvnds in place. Risk managefflent The Trustees have a duty lo identrfy and review the risks lo which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Trustees have assessed the major risks towhich the Charity is exposed, and systems have been established to mibgate these risks. THE BRAZIL FRIENDS FOUNDATION {FORMERLY THE BRAZIL FOOTBALL FOUNDATION) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 OBJECTIVES AND ACTIVITIES Objectives and aims The objectives of the CIO are to provide finan¢ial giants lo other charities. organisalions and projects which are based in, or carry out their wot* in Brazil. and to generally support the public and communities in need in Brazil, in accordance with its charitable purposes. At present, this is achieved through hosting annual lundraising events. Publlc b•n¥fflt $tst•m•nt The Charities Act 2011 requires all ¢hanbe$ to meet the legal requirement that its aims are for the public benefit. The Charity Commission In ils Charities and Public Benefft guidance states that there are two key principles to be met in order to show that an organisalion s aims are for the public benefrt." firsdy. there musl be an identifiable benefit or benefits and secondly. that the benefit must be lo the publi¢ or a section of the publi¢. The Trustees Consider that they have complied wbth Section 17 of the Char￿.e$ Act 2011 induding guidance the 'Public benefit.. running a charity IPB2)'. Grant making pollcy The Charity has estsblished its grant making policy to achieve its objects for the public benefit to generally support the public and communiknes in need in Brazil. Grant applications are considered on a ￿se by ￿se basis by the Trustees and only approved rt they meet this objects've. ACHIEVEMENT AND PERFORMANCE Rovlow of the yoar During the year the Charity hosted rts second annual fundraising event in London for the Gerando Falcoes project. All the donatsons raised from the fundraising dinner (after event ¢ost8 and support costs) were granted and paid lo Gerando Fal¢oe$. Gerando Falcoes is a nol-for- profit organisation incorporated under the laws of Brazil, whose main purpose is to deliver education, economic developmenl, and citizen seryices in the favelas of Brazil. The Charity also hosted another fundraising event during the year for the Instilulo Prolea. All the donations raised from the lundraising dinner (after event costs and support ¢oslsl were granted and paid to Institulo Prolea. InstrtLrto Protea is a not-for-profrt organi5alion incorporated under the law5 01 Brazil, whose main purpose is to provide trealmenl fo¥ breast caneer lo women in Brazil. Flnanclal R•vl•w During the year ended 31 December 2023. the CIO received donalions. other trading income and interest of £639,051 12022.. £329,643). and expenditure of £618,10312022.' £301,974) was incurred. Al the Balance Sheet dale. ￿stricted fvnds were in surplus by £38.071 and unrestricted funds were in surplus by £6,926 12022.. £24,270 surplus in restricted funds and £221 defiat in unrestricted lundsl. This is in line wlh the reserves policy noted below. RESERVES POLICY The Charity's aim is to maintsin minimal reserves. which should be sufficient to cover its expected non grant expenditure for at least one year. TRUSTEES Trustees during the year and al the date of this report a￿ liste(l on page 1. The Trustees are involved in the day to day management of the Charty- THE BRAZIL FRIENDS FOUNDATION {FORMERLY THE BRAZIL FOOTBALL FOUNDATION) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 EVENTS AFTER THE REPORTING DATE Post year end the CIO hosted anotherfvndraising dinner and entered into a commTtment in July 2024 to grant £300,000 of lunds raise(l at the event to Gerando Falcoes. On 19 June 2024, the Trustees passed a resolution lo change the name of the Charity from The Brazil Football Foundation to The Brazil Friends Foundatson. FUTURE AIMS The Trustees intend that the Charity will conb'nue lo support a range of causes through the provision of grants. STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees are responsible for prepanng the Annual Report and the financial statements in accordance with applicable law regulations. The law applicable to charrtie5 in England and Wales requires the Trustees lo prepa￿ financi41 statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounb"ng Standards and applicable lawl. The Trustees musl not approve the financial ststements unless they are satisfied that they give a true and fair view of the State of affairs of the Charity and ol the incoming re$our¢e$ and appIl￿tiOn of resources. including the income and expendrture. of the Charity for that period. In preparing these financial stalemenls, the Trustees are required to.. $eled $uitsble accounting policies and apply them consistently; observe the melhods and principks in the Charities SORP,. make judgments and accounting eslimales that are reasonable and prudent., stsle whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial statements., prepare the financial slalements on the going concern basis unless il 1$ inappropriate lo presume that the Charity wll continue to operate. The Tru$lee$ are responsible for keeping $Lrfficienl acwuntsng r￿ordS that di$clo$e wth reasonable accuracy at any lime the finanrjal position of the Charity and enable them lo ensure that the financial slalemenls comply with the Charities Act 2011, the Charity IAcc¢unls and Reports) Regulations 2008 and the provisions of the Conslrtulion. They are also responsible for safeguarding the assets of the Chanty and hence for tsking ￿asonable steps for the prevention and detection of fraud and other irregularities. By Order of the Trustees Trustsg: M Ggnovese Date: 31110/2024 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) FOR THE YEAR ENDED 31 DECEMBER 2023 I report to the Trustee5 on my examination of the financkil statements of The Brazil Friends Foundation Ifomerly The Brazil Football Foundalionl for the year ended 31 December 2023, which Comprise the Slalement of Financial Athvib"es. the Balance Sheet. the Stslement of Cashflows and related notes. This report is made solety to the Charity's Trustees, as a body, in accordance with section 145 of the Charits"es Act 2011. My work has been undertaken so that I might slate lo the Charity's Trustees those matters l am required to stsle lo them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume fesponsibilty to anyone other than the charity and the Charity's Trustees as a body, for my ￿￿rk, for this report, or for the opinions I have fomed. Rosponslbllltles and basls of rowt As the Trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 I'lhe Acl'l. I report in respect of my examinatron of the Charity's financial stslements carried out under section 145 of the Act and in Carrying oul my examination I have followed all the applicable Dire¢ty'on$ given by the Charty C¢)mmi￿on under section 1451511bl of the Act. As permitted by Direction 2. issued by the Charity Commission the firm for which I work has provided the Company wth bwkkeeping services during the year ended 31 December 2023. As a consequence I have folkjwed the requ1￿Ment of the FRC'S Ethical Standard when undertaking this assignment. An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial stslements. The planning and conduct of an audit goes beyond the lim(ted assurance that an indepen¢Jenl examination can provide. Consequently. l express no opinion as to whether the financial statements present a 'true and fair. view and my report is limited lo those specrfic matters set out in the Independent examiner's ststemenl. Independent examlner'8 St¥tem•nt Since the CIO'S gross income exceeded £250.000 your examiner must be a member of a body listed in section 145 of the 2011. 1 confirm that l am qualrfied to undertake the examination because l am a member of ICAEW, which is one of the listed bodies. I have Completed my examination. I confim that no material matters have come lo my attention in connection wlh the examinabon giving me cause lo believe that in any material respect.. accounting records were not kept in respect of the Charity as required by section 130 of the Act., or the financial statements do not accLJrd with those record5,' or the financial slalemenls do not comply the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reportsl Regulations 2008 other than any requirement that the accounts give a 'true and fair view ￿lch is not a matter considered as part of an independent examination. INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) FOR THE YEAR ENDED 31 DECEMBER 2023 I have no concems 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 understsnding of the financial statements to be reached. Nikki Crane FCA BKL Audlt LLP Chartered Accountants 5 Fleet Place London EC4M 7RD Dale,. 31 October 2024 **THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023** |**Notes**
**INCOME**
Donations and legacies
**2**
Other trading activities
**3**
Interest
**Total incoming resources**
**EXPENDITURE**
Cost of raising funds
**4**
Charitable expenditure
**5**
Governance costs
**6**
**Total resources expended**
**Total funds at 1 January**
**Total funds at 31 December**
**NET INCOME AND MOVEMENT IN FUNDS**|**Unrestricted Restricted Total Funds**
**Funds**
**Funds**
**2023**
**£**
14,499
-
14,499
-
624,552
624,552
-
-
-
14,499
624,552
639,051
-
53,028
53,028
-
543,702
543,702
7,352
14,021
21,373
7,352
610,751
618,103
7,147
13,801
20,948
(221)
24,270
24,049
6,926
38,071
44,997|**Total Funds**
**2022**
**£**
7,166
322,050
427
329,643
37,168
252,794
12,012
301,974
27,669
(3,620)
24,049| |---|---|---| All income and expenditure has arisen from continuing activities. 7 ## **THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) BALANCE SHEET AT 31 DECEMBER 2023** |**Notes**
**CURRENT ASSETS**
Debtors
**8**
Cash at bank and in hand
**CURRENT LIABILITIES**
Creditors: amounts falling due within one year
**9**
**NET CURRENT ASSETS**
**NET ASSETS**
**FUNDS**
Unrestricted
**10**
Restricted
**10**
**TOTAL FUNDS**|**£**
**£**
**£**
**£**
23,017
32,622
42,873
3,679
65,890
36,301
20,893
12,252
44,997
24,049
44,997
24,049
6,926
(221)
38,071
24,270
44,997
24,049
**2022**
**2023**|**£**
**£**
**£**
**£**
23,017
32,622
42,873
3,679
65,890
36,301
20,893
12,252
44,997
24,049
44,997
24,049
6,926
(221)
38,071
24,270
44,997
24,049
**2022**
**2023**| |---|---|---| |||24,049
(221)
24,270| |||24,049| ## **Approved by the Trustees and signed on their behalf** **Trustee: M Genovese Date:** 8 ## **THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2023** |**Notes**
**Net cash generated by operating activities**
**12**
**Net increase in cash and cash equivalents in the year**
**Cash and cash equivalents at the beginning of the year**
**Cash and cash equivalents at the end of the year**|**2023**
**£**
39,194
39,194
3,679
42,873|**2022**
**£**
3,579| |---|---|---| |||3,579
100| |||3,679| 9 ## **THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023** ## **1 Accounting policies** ## **1.1 Basis of preparation of accounts** The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 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) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements are prepared in sterling which is the functional currency of the Charity. The Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. ## **1.2 Going concern** At the balance sheet date, the Charity's restricted funds were in surplus by £38,071, and unrestricted funds were in surplus by £6,926 (2022: £24,270 surplus in restricted funds and £221 deficit in unrestricted funds). Based on the above, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly the Trustees continue to adopt the going concern basis of accounting in the financial statements. ## **1.3 Income and expenditure** All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Donations are recognised when the charity has entitlement to the funds and it is probable that the income will be received and the amount can be measured reliably. Donated goods and services are recognised when the Charity has control over any item, any conditions associated with the donation have been met, and the receipt is probable. The value of the goods and services are measured on the basis of the value of the gift to the Charity, which is the amount the charity would have been willing to pay to obtain the goods or service. A corresponding amount is recognised in expenditure in the period of receipt. ## **1.4 Irrecoverable VAT** Irrecoverable VAT is charged against the category of resources expended for which it was incurred. 10 ## **THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023** ## **1 Accounting policies (continued)** ## **1.5** ## **Resources expended** Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Expenditure is classified under the following activity headings. Expenditure on charitable activities comprises those grants payable and associated costs incurred by the charity in the delivery of its activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support it. Governance costs comprise all costs associated with meeting the constitutional and statutory requirements of the charity. The basis for allocation or apportionment is on time spent in relation to the relevant fund and is analysed in note 6. ## **1.6 Financial instruments** The charity has financial assets and liabilities of a kind that qualify as basic financial instruments which include trade and other receivables, trade and other payables and cash and bank balances. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ## **2 Donations and legacies** |Donations
**3**
**Income from other trading activities**
Fundraising events
Donated goods
**4**
**Cost of raising funds**
Fundraising events|**Unrestricted**
**2023**
**£**
14,499
14,499
**Restricted**
**2023**
**£**
595,052
29,500
624,552
**Restricted**
**2023**
**£**
53,028
53,028|**Unrestricted**
**2022**
**£**
7,166
7,166
**Restricted**
**2022**
**£**
302,150
19,900
322,050
**Restricted**
**2022**
**£**
37,168
37,168| |---|---|---| 11 **THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023** ## **5 Charitable expenditure** |Grant to Gerando Falcoes
Grant to Instituto Protea
Donated goods
Bank charges|**Restricted**
**2023**
**£**
483,802
30,075
29,500
325
543,702|**Restricted**
**2022**
**£**
233,203
-
19,500
91
252,794| |---|---|---| Gerando Falcoes is a not-for-profit organisation incorporated under the laws of Brazil, whose main purpose is to deliver education, economic development, and citizen services in the favelas of Brazil. Instituto Protea is a not-for-profit organisation incorporated under the laws of Brazil, whose main purpose is to provide treatment for breast cancer to women in Brazil. ## **6 Governance costs** |Accountancy
Independent examination fees
Legal and professional
Accountancy
Independent examination fees
Legal and professional|**Unrestricted**
**Restricted**
**2023**
**2023**
**£**
**£**
2,225
2,225
2,315
2,315
2,812
9,481
7,352
14,021
**Unrestricted**
**Restricted**
**2022**
**2022**
**£**
**£**
2,094
1,866
2,100
2,100
-
3,852
4,194
7,818|**Total Funds**
**2023**
**£**
4,450
4,630
12,293
21,373
**Total Funds**
**2022**
**£**
3,960
4,200
3,852
12,012| |---|---|---| Allocation or apportionment of governance costs is based on time spent in relation to the relevant fund. Independent examination fees are split 50:50 between unrestricted and restricted funds. ## **7 Trustees** None of the Trustees received remuneration in the year nor were any expenses reimbursed to them. ## **8 Debtors** |Amounts falling due within one year:
Prepayments
Other debtors|**2023**
**£**
10,000
13,017
23,017|**2022**
**£**
-
32,622
32,622| |---|---|---| 12 ## **THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023** |**9**
**Creditors**
Amounts falling due within one year:
Trade payables
Accruals
**10**
**Movement in funds**
**As at**
**1 January 2023**
**£**
**Unrestricted Funds:**
General
(221)
**Restricted Funds:**
Gerando Falcoes
24,270
Instituto Protea
-
24,049
**As at**
**1 January 2022**
**£**
**Unrestricted Funds:**
General
(3,620)
**Restricted Funds:**
Gerando Falcoes
-
(3,620)
**11**
**Analysis of charity net assets between funds**
**Unrestricted Funds:**
General
**Restricted Funds:**
Gerando Falcoes|**2023**
**2022**
**£**
**£**
10,393
2,340
10,500
9,912
20,893
12,252
**Incoming**
**Outgoing**
**As at**
**resources**
**resources**
**31 December 2023**
**£**
**£**
**£**
14,499
(7,352)
6,926
591,922
(578,121)
38,071
32,630
(32,630)
-
639,051
(618,103)
44,997
**Incoming**
**Outgoing**
**As at**
**resources**
**resources**
**31 December 2022**
**£**
**£**
**£**
7,593
(4,194)
(221)
322,050
(297,780)
24,270
329,643
(301,974)
24,049
**Current**
**Current**
**Assets**
**Liabilities**
**Total**
**2023**
**2023**
**2023**
**£**
**£**
**£**
14,038
(7,112)
6,926
51,852
(13,781)
38,071
.
65,890
(20,893)
44,997| |---|---| 13 ## **THE BRAZIL FRIENDS FOUNDATION (FORMERLY THE BRAZIL FOOTBALL FOUNDATION) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023** |**11**
**Analysis of charity net assets between funds (continued)**
**Current**
**Current**
**Assets**
**Liabilities**
**2022**
**2022**
**£**
**£**
**Unrestricted Funds:**
General
3,679
(3,900)
**Restricted Funds:**
Gerando Falcoes
32,622
(8,352)
.
36,301
(12,252)
**12**
**Cash generated from operations**
**2023**
**£**
**Net movement in funds for the period**
20,948
**Movement in working capital**
Decrease/(increase) in debtors
9,605
Increase in creditors
8,641
Cash flow generated by operating activities
39,194|**Total**
**2022**
**£**
(221)
24,270
24,049
**2022**
**£**
27,669
(32,622)
8,532
3,579| |---|---| ## **13 Transactions with related parties** No related party transactions requiring disclosure took place during the year. ## **14 Events after the reporting period** Subsequent to the year end the Charity hosted another fundraising dinner and entered into a commitment in July 2024 to grant £300,000 of funds raised at the event to Gerando Falcoes. 14