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2023-04-05-accounts

Charity registration number 1189004

Company registration number CE021495 (England and Wales)

PARADIFFERENCE FOUNDATION UK

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023

PARADIFFERENCE FOUNDATION UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Amanda Düsing
Anna-Karin Gustavsson
Claes Marcus Gustavsson
Professor Randall Johnson
Charity number 1189004
Company number CE021495
Registered office One Bartholomew Close
London
UK
EC1A 7BL
Independent examiner Ahsan Miraj FCA
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
London
SW7 4AG

PARADIFFERENCE FOUNDATION UK

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 10

PARADIFFERENCE FOUNDATION UK

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 5 APRIL 2023

The trustees present their annual report and financial statements for the year ended 5 April 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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).

Objectives and activities

The objectives of the charity are:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The Trustees are satisfied with the results for the year. One large donation was received and further agreements were finalised to carry out specific research projects in line with the Charity's objectives

Financial review

During the year the charity was in receipt of donations of £793,000 (2022: £723,000) and awards totalling £655,000 (2022: £Nil) were paid in the year.

Net income for the year was £139,000 (2022: £713,000)

Committed research awards unpaid at the year end have where payments had commenced during the year have been included as designated funds . Due to awards granted during the year the total research commitments at the year end amounted to £1.8M and in order to fund this a related party donated US$2M after the year end.

Reserves policy

The income of the Charity derives mainly from occasional donations and does not rely on donations from the public. The charity has minimal running costs and any agreements to fund research can be met within its current reserves. Any surplus reserves will be maintained for future development.

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PARADIFFERENCE FOUNDATION UK

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF PARADIFFERENCE FOUNDATION UK

I report to the trustees on my examination of the financial statements of Paradifference Foundation UK (the charity) for the year ended 5 April 2023.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 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 confirm that I am qualified to undertake the examination because I am a member of Chartered Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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 financial statements to be reached.

Ahsan Miraj FCA Independent Examiner Bright Grahame Murray Chartered Accountants

Emperor's Gate 114a Cromwell Road London SW7 4AG

Dated: 23 November 2023

PARADIFFERENCE FOUNDATION UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 5 APRIL 2023

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income from:
Donations and legacies 2 793,021 723,027
Investments 3 11,267 -
Total income 804,288 723,027
Expenditure on:
Charitable activities 4 663,772 9,530
Net income for the year/
Net incoming resources 140,516 713,497
Other recognised gains and losses
Other gains or losses 9 (1,194) -
Net movement in funds 139,322 713,497
Fund balances at 6 April 2022 713,949 452
Fund balances at 5 April 2023 853,271 713,949

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

PARADIFFERENCE FOUNDATION UK BALANCE SHEET ASAT 5APRIL 2023 2023 Curr•nt aS••t• Debtors Ca6h 8t bank and in harnl 10 18.373 719,649 861.671 719.649 Cr8dStors: amounts du• wlthln on• y•ar 11 (8.4(K)I 15.71KII N8t ewmnt assets 853.271 713,949 com• fund DèsYJnated funds G&n8ral unrestrfctod fvndj 12 717.(￿) 136.271 s41.(K￿l 172.949 853.271 713.949 853.271 713,949 The company is entthd to th& 8xampbM frrrfn th8 a￿jE1 I8￿rOMen1 c¥y)bnwJ In 8wAh)n 477 dtho Cc4npanleB Act 2006. ts the yèar 8ndod 5 April 2023. Th• dlrector ackn0vA￿go9 Tespmlbllts for ctsmrJyirwJ wlth tho r8qutr8m•ts clth8 cc￿pan￿￿S Act 20Ce wlth r88pect to aecounbrfj re￿r￿S and th• wepar4ticn Offin￿l781 st8t•mants. Th members ha￿ nc4 rowlred the componykn obtsin •n atyjit of hs finarK4al 8tmts tslhe year In quo8tion In awArdarKo witr) 8¢¢lk)n 476. Thoee financial stat8m8nts hab been prepar&J kn 8Lxiyd8r• wilh the aw￿ble lo companle8 8ubl•ct to th• small Teglm&. IZ-11- 202 Tha fln8nrAo13tsternonts ￿ra 8pprov*J by the T￿￿te&S on ... .............. na-Karin Gustavs8on Truxt•• company rnglstralion nunkn ceox495

PARADIFFERENCE FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023

1 Accounting policies

Charity information

Paradifference Foundation UK is a private company limited by guarantee incorporated in England and Wales. The registered office is One Bartholomew Close, London, EC1A 7BL, UK.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds are monies set aside for a specific purpose.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised when received.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 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 include the costs of governance arrangements that relate to the general running of the charity. These activities provide the governance infrastructure that allows the charity to operate and to generate the information required for public accountability.

PARADIFFERENCE FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

1 Accounting policies

(Continued)

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Donations and legacies

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 793,021 723,027

PARADIFFERENCE FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

3 Investments

Interest receivable
Expenditure on charitable activities
Direct costs
Research awards
Share of support and governance costs (see note 5)
Support
Governance
Analysis by fund
Unrestricted funds
Support costs
Support
costs
Governance
costs
£
£
Bank charges
107
-
Independent Examiners
fees
-
9,000
Legal and professional
fees
-
-
107
9,000
Analysed between
Charitable activities
107
9,000		 2023
£
107
9,000
-
9,107
9,107		 Unrestricted
funds
2023
£
11,267
2023
£
654,665
107
9,000
663,772
663,772
Support
costs
Governance
costs
£
£
350
-
-
5,700
-
3,480
350
9,180
350
9,180		 Total
2022
£
-
2022
£
-
350
9,180
9,530
9,530
2022
£
350
5,700
3,480
9,530
9,530

4 Expenditure on charitable activities

5 Support costs

6 Trustees

The Charity considers its key management personnel to comprise of the Trustees.

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

PARADIFFERENCE FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

7 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Total - -

8 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

9 Other gains or losses

9
Other gains or losses
Unrestricted
funds
2023
£
Foreign exchange losses
1,194
10
Debtors
2023
Amounts falling due within one year:
£
Other debtors
18,373
11
Creditors: amounts falling due within one year
2023
£
Accruals and deferred income
8,400		 Total
2022
£
-
2022
£
-
2022
£
5,700

PARADIFFERENCE FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2023

12 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
6 April 2022
Resources
expended
£
£
Research awards
541,000
(324,000)
541,000
(324,000)		 Transfers
Balance at
5 April 2023
£
£
500,000
717,000
500,000
717,000		 Transfers
Balance at
5 April 2023
£
£
500,000
717,000
500,000
717,000
717,000

13 Events after the reporting date

The charity received a donation of US$2 million subsequent to the year end.

14 Related party transactions

Donations received include £Nil (2022: £4,997) from trustees and £793,021 (2022: £718,030) from a company where two of the trustees are directors. Debtors of £18,373 (2022: £Nil) are due from a company where two of the trustees are directors.