Oocus&n Envelope ID.. FADBD62E-1C1541E3-A8F4-IC85B3608B19 Charity number: 1189216 HG FOUNDATION TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 RPGCC Chartered Accountants & Stattjtory Auditor 40 Grace¢hur¢h Slreel London EC3V OBT
Envelopfr ID.. FAD8062E_1C1541E>A8F4-1C8583608B19 HG FOUNDATION CONTENTS Page R¢feren¢e and AdminlstratSve Dotalls of the Charlty, It$ Tru$tee$ and Advlsors Trustees. Report Independent Auditors. Report on the Flnandal Statements statement of Flnancial kn¥1118$ 2-13 14-16 17 Balance Sheot 18 Statement of Cash Flow5 19 Notès to the Financlal Statémgnts 20-30
D¢JS1gn Envolope ID.. FAOBD62E_1C1541E3-A8F4-tC85B3606B19 HG FOUNDATION REFERENCE AND ADMINISTRATIVE DETAJLS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustaas Thomas Altwood Matthew Brockman Juan Antonio Campos Benitez Robert Joseph Citrino IV Sir Kevan Collins Richa¥d Donner Richard Earnshaw {resigned 9 April 2024) Caroline Lofgren Anna Martina Sanow Genyi Zhao (resigned 23 April 2024} Elona Mortimer Zhika lappoinled I l January 20241 Charlty registered number 1189216 Prfnclpal offlce 2 More London Riverside London SE12AP Chief exècutive offlcer James Tumer Indendent audltors RPG Crouch Chapman LLP 40 Gracechurch Street London EC3V OBT BankÈrs RBS Intemalional 7th Floor 1 Princ9$ Street London EC2R 8BP Nalwest 10 Southwark Street London SE1 1TJ Solicitors Charlas Russell Sp8echlyE LLP 5 Fleet Place London EC4M 7RD Shoosmilhs LLP The XYZ Building 2 Hardman Boulevard Manch8St@r M3 3P1 Tax and Legal Deloitte LLP Abbotts House Abbgy Street Reading RGI 3BD Page 1
Docuslw Env8lopè ID.. FAO8062E-IC1>41EM8F*1C65B3608819 HG FOUNDAlloN TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report together with the aLEdiled financial statements of the CIO for the year ended 31 March 2024. Objectives and a¢tivities for the public benefit The purpose of The Hg Foundation is to remove baffiers lo education and skills in the technology sector. Our vlslon is that the technology workforce of the future harnesses the talent of everyone, regardless of background. The Foundation has a parti¢ulaT focus on supporting those groups who are underreprgs&nled because of their gender. so¢io-8Gonomic background or ethnicity. The Truslees confirm that Ih&y have ieferred to the Charity Commission's guidance on pijblic benefit when revlewing the Foundation's Sims and obleclives, in plannlng future partnerships and actiwlies and when settlng its grant making policy. The Foundallon furthers ils charitable purpose5 for the public benefit through making grants lo established charitable organisations that directly enhance the employment prospects of yrKlerropresenled groups in the technology seclof or which support their aspirations and educational attainment in qualifications relevant to the worfd of te¢hnology. The Trustees carry out the Foundation's objective$ by partnerlng with charllable and non-profit organisalions across the UK, Europe and North America, with a strong track reeord of delivery and which the Foundation will typically look to work with over a numb¢r of yeafs. The Hg Foundation is supported by the Hg Group, which provldos tho Foundaan.8 funding and 8c¢ess to a team with deep technological and oper8tional expeTt"se, as well as Ils wider porifolio of téchnology companies whh employ thousands of people across the globe. The Foundation r8¢ognlses that technology is high growth, high polentlal yet disruptive. and through its work seeks lo harvest the benefits and mitigate the downsides of the industy. Fvrtherrnore, by leveraging Flg's existing and future networks the Foundation aims to create a multiplier effect lo enhance the scale and reach of its actsvilies. Grant maklng pollcy The Foundation ha5 established its grant making policy lo achieve its objects for the public benefit. The Foundation prioritises partnerships that.. Su ort Ihe develo ment of education and skills. This includes both the technical and gen8ral 5ki11s required to succeed in today's working environment Technical skills will include bul not be limited to subjects s¥Jch as Malhemattcs and coding or other specific skills and qualifitrdlions needed for careers within the technology industry, The Foundation also consider5 Sltpport to enhance wider skills such as inlerviewlochniques, communicatlons skllSs, crealSng networks and giving those from under represented backgrounds access to expeaences th81 are helpful forfulure employ3bilily prospects Are in areas relevant to Ihe wortd of lechnolo employment prospects for the long-temi. that contribute lo improved and sustainable Use Clear metThcs to track and measure outcomes ad assess im act. The TTuslees seek to gain insight on how lo appropriately measure and evaluate impact, in order lo improve its own underslandlng, that of Ils partners and the sector more widely, and lo womote improvement. By working wlth eslabllshed non-profll organlsations 8nd experts, the Foundation Is able to support Its partners in deflnlng.. quanlitstive and qualitative baseline measu5 KPI and perfomianee milestone framework Io assess the progress each project a roule to a robust impact evaluation framework. including- where possible- 8 COUllter- factual comparison. Page 2
DLtu$lgn Ew?lope ID.. FADBD62E-IC1541E3-ABF4-1C8SB3608B19 HG FOUNDATION TRUSTEES. REPORT ICONTINUEOI FOR THE YEAR ENDED 31 MARCH 2024 Tar et those who need il most. The Foundation focuses on individuals from underrepresented backgrounds, where there is an access gap in education and training and subsequently 8mploymertt OPPC>rtunllies within the technology sèctor. Thls includes Lnderrepresentalion by gender. SOCiO-econornic background and ethnicity, as well as specific groups in need such as Ihoso from refugee and migrant communities. Ar8 driven b ex record of delive eri dedicated and ioven rofessionals ex ert5 and inslilulions with a track Are strale ic and scalable artnershi s for the lon term. Each partnership typically runs for three years, however, smaller, short-term commilmenls are also made,. either lo establish a new Iherne or where there 15 not CUTrenlly a clear partner operating in a selected area of interest. The Foundation then makes regrants lo those partnerships where there is evidence of promise and Continued support would further ils mission. The Foundation lakes a slraleglG and proactive approach to sourcing prospective partnershlps and eatrles out thorough due diligence on any potential grant recipient lo ensure the funds will be applied in accordance with the Foundation's charitable obj8Ctives. This proc8ss Includos the submission of written proposals and performance data, nijmarous detailed Conversations wth leaders of the organ4sation and thBir team and, where appropriate, due diligence visits and referen checks. The Foundation may also commission third party res$ar¢h In spe¢ifi¢ areas of interest in Order to gain belter insights on the most effective forms of inteivenlion. To miligale any risk to the Foundation, the Trustees may extend due diligence beyond the proposed grant reclpienl lo include any other associated org8riisalion8. In cases Whe the Foundation supports an organisation for an extended period ot lime. due diligence will be re-run after the Ilrsl funding period as part of the ie-granling process or if there is a material change of circumstances. The Trustees require a written agregm6nl to bo entered into between the Foundallon and the grant reclplent which will include, 88 a minSmum'. The objective of the grant. and details of how the grant can be spent The time period for the delivery of the activities that are being funded Requirements for receiving reports from the recipient on how they have spent the grant. progress againsl objectives. and achievements for the period covered The records that the Trustees requiro lo see regarding the use of the grant Monitorin9 arrangements, includin9 key metrics around dalivery and key outcomes. to enable the Trustees to have Confiden that the grant is used for the intended purpD5e A plan for independent impact eva5uation or a route to il What will h8ppen it the lÈrms and conditions of th@ grant are breached. or rf thè recipient Can no longer carry oul the terms of the grant. Once a grant agreemer)I has been signed. the Foundation holds regular monltoring meetingslvisils and will also receive regLtlar monitoring reports lo include updates on progre55 against pre-determined Milest(e5. financial bfeakdown of expendsturs for the proiecl is also reqvesled. The grant m?king approa¢h is reviewed regularfy to ensure it reflects the chariws objects and advances tho public benefit. The Foundation is planning in the 2024125 financial year its first open fundlng round in a spe¢ifi¢ area of interesl lo unearth a wider range of promising organisalions and determine these programmes with the best fil to our o*'eclives. Page 3
t)0cu9n Envdope ID.. FADBD62E-1C1541EM8F4.1Q8583608819 HG FOUNDATION TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 A revl¢w of our achiav8monts and performance: How our grant programmes dellvered publk benefit This report covers a¢livity that has taken a¢8 between 1st April 2023 and 31st March 2024. In total, the Foundation has now supported over 30 non-pmfit programmes in the UK, France, Germany. Netherlands and the USA, which between them will provlde support for over 50,000 youn9 people and adults from underrepresented homes. We hav¢ developed a new website which shows more clearly the rnngg and focus of the partnership we support.. hllps:Ilwww.IhehgfoLtndation.comlpartnerships In this poriod. the Foundation agreed funding for a number ol partnerships, inleNening al different points ori the lalenl pipeline into the technology sector (in addition lo continuing lo support existing partnerships fundEd in previous years). Some ol these were smaller scale pilots.. others new partnerships,. and some our first regrants ID organisations showing Promising signs of ifnpact. In line with previous years. some partnerships span a single year and others arg mulli-year reflecting 04Jr intention to support multiple ¢ohorts and more intensive inleTventions. The figures below reflect the total potential grant rather than th8 portion committed in this financial ye8r', payment is according to partners meeting milestones and key p¢rfoman¢& indicators. FOR THE YEAR ENDED 31 MARCH 2024 Article 1- Dema1 n + STEM Size of Grant; £697 700 over three ears Article 1 is a French non-profit workin9 to improve school guidance, success in education and career paths for students from lower income homes. To date. Article 1 has been able to mobilise 31.000 volunteers, 200 partners and supports more than 221,000 young people every year, induding almost 122,000 froin working-class backgrounds. 52.ODO of Iheye young people have had access to wod(shDps, and mor& than 36,000 receive individual support through mentoring. With support from The Hg Foundation, Arttcle 1 has launchèd a new program I"t)ema1 n + STEM"} focused on STEM and Tech pathways for 2,000 menlees. Over three years, the programme will provide workshops, webir)ars, job discov¢ry eYoning5 and cornpany visits. mentoring, and teChareer specifl¢ resources, particularfy targeting women and those from lower-income families. The Hg Foundation grant will a150 fund the programme's evaluation lo drive measurable. long.lemi. and scalable impact. Fondatlon Florence Size of Grant: £188 500 over three ears Le Fond de Dotation Florence Is a new French foundation, founded in 2023. Ils mission is lo support young peoplo from 50cioeconomiGally disadvantaged backgrounds to succeed in higher education and then ae$S professional jobs. Its highly tsllored and selective programme comprises lour pillars of a¢livity'. financial support.. personalised mentorship- internships,. and sl0-CUltUral suppgrt. The Hg Foundation's É225,000 grant will enable Florence lo exiend its current fDCUS (business and finance} into Tech and STEM. The initiative indudes a comprehensive prog¥am with financial support, mentorship, and access to internships. lo apprtsxlmalely 120 students over three years. with the ambition to scale beyond. Hg will nlribule its expertise and network to shape Florence's initiatives, wsth representalion on Florence's Executive Committee. Page 4
Docuslgn Envèlope ID.. FAD8D62E-1Cf541E&A8F41C85B3608B19 HG FOUNDATION TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 for Good- for Social Actlon Slzè of Grant.. £485 000 ovèr thrèe Apps for Good, an organisation f(yJnded in 2010, provides free tech intK)valion courses to schools and gives teachers r@ady-made education conlenl, $0 young people from all backgroun(fs can develop digital and essential skills. Apps for G(iod and The Hg Foundaliori formed a three-year partnership to launch the App for Social Action programme an innovative app-developfflenl course, mapped to the computing curriculums across the UK. 11 is dellvered by teachers over seven sessions. with the OPPDrtunily lo interact with industy volunteers. The programme wll reach up lo 24.000 state school students 8ged 11-14 in 600 schools across the UK - the 18rgo51 reach of any of the Foundation's partnerships lo dale. In &ddition, part of The Hg Foundation'5 grant will support an evaluation of the programme, enabling furthor development and improvements for greater impact in the fijlure. Teachln WlthChatGPT.o .uk Slx¢ of Grant.. £155 000 over one ear TeachlngWithChalGPT.org.uk is a free online sOUrCe lo ernpower UK teachers and other edtjcalors to use ChalGPT effectively lo enhance their day-to-day work. The development of the guide was supporled by The Hg Foundation wrth Bain & Compony's Social Impact pracli¢e, and wtth irbput Irom a nurnber of s¢hools and edu¢alional charities. In Search lo develop the guide it was found that, of Igachers who had already used ChalGPT and similar Al tools. tho vast majority reported that il had saved Ihem lime, improved lessons and reduced their tim8 to prepare for their dasses. Dospile Ihis expertence, in late 2023. 50Yo of teachers said that they had not y&1 used generative Al. In partriershlp with the Education Endowment Foundation. the Hg Foundotion is supportlng a randomised control trial exploring how the Ltse of ChalGPT. supported by the free guide. can save STEM teachers lime in prEparing lessons. and rnoniloring the quality of the lesson plans produced. If the trial Ss successful we hope Ihal it will pave the way for Tnore work to see how generative Al tools can support Ihe work of STEM teachers in particular, who are in short supply in global education syEtems. Let's Get Road - STEM Pathwa stz• of Grant: £421 200 over three The Hg Foundation is working wllh Lets Get Ready ILGRI lo develop a new STEM Pathway programmè. Research shows that individuals from low-income backgrounds. rural communities and those who are BlacklAfri¢an American and HispaniclLatinx. have a higher college dropout r8le due to the firsan¢ial pressLrre5 arsd difficulties they experience when settling into college. Let's Gel Ready has 25 ye?rs' exporien¢e in improving college relenlion, The Foundalion-fvnded programme will focus on guiding LGR sludents through their college transition lo successful careers in Ihe fields of Science, Technology. Engineering and Malhemalics. Over three years. the partnership will support 6.900 STEM students. doubling e current number of LGR students interested in STEM. As a result of this support. the programme aims to lower college dropout rates and increase graduation rates among these students, as well as fostering ?n interest in and progression to STEM careers. The Foundalion's support will also enable Ihe creation of LGR'S first-ever career and alumni platlorfn. as well as a straleglcally important Impact evaluation of LGR'S overall provision. Page 5
Docu51gn Envel)p ID.. FADB062E-IC1541E&AeF4.IC85B3608819 HG FOUNDATION TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Brltlsh Com uter Soclet and Microsoft-TEALS Slze of Grant- £40 200 over one èar The Hg Foundation has partnered wlh Mtcrosoft and BCS. The Chartered Inslitule for IT to help bring the Microsoft TEALS Program lo Ihe UK. The TEALS Program has been running in the United States slnce 2009 and has helped over 100.ODO students receive Computer Science learnillg pathways. It is also available to pupils in Canada, Mexico. Israel, Colombia, Kenya and India. As part of the TEALS Piogram. volunteers mLtsl have a degree irs Compijter Science, or equivalent industry experien¢e. They are brought into schools lo support teachers, partiCulaY non-specialisls. who leach Cornputing at Key Stage 3 lages 11 to 14} and Computer Science GCSE al Key Slage 4. Volunteers can also help boost pupils, employability skills by linking learning to the World of work and providin9 enrtchmenl sessions such, inclduing conne¢lions with employers. The UK partnership will pilot the programme in a small number of schools. primarily serving disadvantaged eommunilies. and gather feedback on its implemenlalion in a UK Conlexl. Blrkbe¢k- A¢¢ess to DI Ital Skllls and Careers Size of Grant: £94 287.48 over one ear Birkbeck is the educational home lo a diverse communlty of learners., 40•/D are from households wllh an Income below £25,000, 78% are combining studies wtth work and caring responsibilities, 48Vts of undergraduates are from Black. Asian. and Minority Ethnic IBAMEI backgn)unds. and the average age of students 15 35 years old. The partnership with the Foundation will support The Access lo Digital Skills and Careers Progfamme {ADSCP}, designgd to create pathways to digital and technology careers for Blbeck students, particulady for ndèrreprèsenled groups. The ADSCP consists of three key plllars.. a Career Accelerator tr¥JDlcamp, a Tech Skills certification scheme, and an Acces5 Tech micro-placgmenl inilialive. The programme first launched with funding support from The Access Foundation. In this pilot year. the programme supported 328 students lo improve their digital skills ond explore areers in the technology sector, of which 90Yo of participants had at least one marker of socio-economic disadvantage. The r)exl phase will see the programme IDughly double iri size With the combined support of The Hg and The Access Foundations. XTX Markets and Pu oseful Ventures Slzp of Grant- £2 000 000 over fivè èars A eollaboralion with XTX Markets anLI Purposeful Ventures. the £7m 'Malhs Excellenee Fund, will support schools in England to Smprove attalnment and progTe5sion in Maths from 11-16 and 16-18 years of age, increasing the number of students who are on track lo succeed in A-level Maths and beyond, with a focys on those from disarjvantaged backgrounds. The Fund draws on a rssoarch report published by XTX Marke15 and the University of Nottingham which highlighted major inequalities in young people's chances of joinirwJ and leaving the 'Malhs exllenCe pathw&y'_ a routes into high quality STEM degrees and ultimately tech careers. The Fund is supporting four partnerships lo 8ddTess this challenge.. The Inspiration Trust, working with 12 schools in East Anglia; Malhemati¢s in Education and Industry IMEII, SUPPOTting 10 schools in Bimiingham- th¢ Co-op Academigs Trust and 12 01 ils schools in the North of England., and United Learning. which will support 14 of Ets schools In five clusters across England. After a sop year, the projects will be Implemented in the 2024125 academic year and Nn for five years In total. with a robust ev8luallon of Impact In the latter phase. Page 6
DoGu¥w Envelope ID.. FADBD62E-1C1541E>A8F4-IC8583608B19 HG FOUNDATION TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Unlversl of Manchester mA'thg ro ramrne Slze of Grant.. £116 101 over one ear We are piloting with the University of Manchester the extension of the Imperial College mA"ths programme to thg North Wesl of England. The pilot is focussed on supporting students from lower income households lo attaln the highest grades in A Level Malhemalics. opening up opportunilies and access to university in STEM subjects and onwards inlo tech careers. The project will initially r8¢ruit up lo 50 target students from the Greater Manchester area embarkin9 on the first year of their A level slltdies. Informed by data frum the pitot and an evaluation of the ongoing work at Imperial, The Fourtd81ion is looking al Ihe potents'al scalability of this progfamme in future years. JINC- Vocatlonal tech and En Ineerin Careers Pro ramme Size of Grant.. £502 600 over two ears Founded in 2003. JINC works collecltvely schools and employers lo in)prove students, social skills and provide career guidance. boosting PTospec15 for young people ffom 50cioeconomic disadvantsged neighbourhoods. JIMC finds that young people that grow up in pov¢ty are often missing ioje models and guidance when it come5 to their education and future work. This hinders their ability to makg good ¢hoices for their future. Our partnership with JINC. which is th8 largest social mobilty-fo¢us8d charity in The Nelhorlandg. will support a Iwo-year programme targeted al slydenls in vocational and pre4vocalional schools and exposing them to careers in technology. Over the course of the programme students. typically aged 16 and above. will receive initiatives such as flash intemshlps and career coaching. This will initially open up JINC'S programmes to around 1,500 a(tiJilional young people, across four citips in the Nglherlands. SEO- Tech Develo Size of Grant: £1 80 600 over three eais SEO Tech Doveloper was founded as a vtrtual inlensivg, freo immersion programmg lo propel firsl-year and Sophomo Black. Lalinx, and Native AmeriGan computer science and 50ftware engineering college students to the next level, ensuring they are ppared lo effectively compete for inlemships In the tech worfd. The Hg Foundation is the seed-funder of the programme and has been heavily involved in its developm@nt, which draws on SEO'S fjQ+ years of experience of running programmes in education and other competillve professional sertors, such as law and fir)ance. Teth Developer is centred around a six-week virtual summer residency, whlch Includes 300+ hour5 of technical and soft-skllls training. Partlclpants also have exclusive access to tech intemships through SEO'S partner omployers. The programrne focuses on experiential leaming, team and projecl-based work. along with sustained exposure to teeh industry professionals and educators through curiiculum delivery, seminars and mentorship. The Foundation's second commitment to Tech Developer will enable the programme lo double in size. reaching 500 students Dver 8 Ihree-year period, as well as growing a new First Year Academy lo build the pipeline of students interested in and equipped wlh the tech skills lo participate in the main programme. The grant will also support an indopendenl impact evaluation of Tech Developer- the first time SEO has taken this approach. Page 7
DONgn Envelope ID.. FADBD62&-1C1541E3-A8F4-1c85B3608B19 HG FOUNDATION TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 nftARCH 2024 wArdl Global- Em owerln R¢fu e$ and Immi rant Women for futUTe-read tech roles Slze of Grant: £763 800 over three ear Upwardly Global supports over 2 million college-educaled ref4Jgees and immigrants faclng under- or un- employ7nent. Since 2000, Upwardly Global has been helpin9 individuals occess professional careers in the US and has placed nearly 11,000 people into skill-aligned roles. As a result of their support, average starting salaries for those placing in tech Toles are $70k - representing a $55k average income gain to candidates who were previously in luw-wage work or unemployed. often tor several years. The Hg Foundation and Upwardly Global's $1 million partnership w411 reach 250 immigrant and refugee women over three ar$. The programme comprises industry-specifi¢ coa¢hing. re-and upskilling, networking, mentorship ar>d job placernent support. The organisatton will also s¢ale its suite of tools for job seekers via ils leaming management platfom), that hosts an eLeaming Ilbrary of job readiness training modules. Generation Global- Em er Coalitlon Slze of Grant: £79 798 over one ear Th8 Hg Foundation fijnded a follow up piece of work lo a major research project we co funded lo give global Insi9hl into hiring trends lo entry level jobs in the technology sector. Developed by Generation, the study surveyed more than 4,000 employed and unemployed people and collected 1,325 responses from te¢h and non- tech employers, spanning eight countries-. Brazil, Canada. France. Germany. India. Mexico. the UK and the US. The res&arch explored critical i¥¥ues such as demand for entry level tslenl; how lob requifements are evolving., the drivgrs of successful applications,. ar how employors screen Cvs and aim to increase diversity. The overall aim was lo identify inlervenliofts that can be made to support under-repTeseTrted communities to aCsS and thrive In entry-level tech jobs. and to inform the debate around solutiorks to increasing the SL*pply and dlversity of talent. Following the research project, The Hg Foundallon also supported Generallon Global wth a second grant lo help the organisation build a coalilion of employers lo test the most promising approaches at scale. lo see whether they are suctsssful and cost effective in harnessing the talent of under-seTved groups. U Reach- Tè 50 Size of Grant- £1511938 over two of£1999 609 which $tsrtad In 2021 oaTS comméncln ost ear ènd followln an Inltlal three ear rant Research consistently shows that the UK tech workforce does not reflect the wider Population, with those from lower socio-economlc backgrounds and stste schools signsficAntly underrepresented. UpRea¢h's Tech500 prograrnme, established in partnership with The Hg Foundalon, helps lalenltrd undergTrduales from less advantsg&d backgrounds secure graduate roles In the teehnology sector. The programme supports 500 Associates at any one lime. 11 offfjrs partiGipants comprehensive and exclusive training, netwo¥klng and development opportunities to boost their SLr¢cess rates in progressing to lop jobs. upReach also works with leading te¢hndogy firms to influence hiiing behaviours and to support them in their commitment to SOCi81 mobility and divorsity in the workplace. After supporting the inception of the programme and its first three years of operation. The Hg Foundation made a new £1.5m commitment lo upReach to sustain and develop the programme. extending the project into 2025 and beyond. By thè end of this grant period, 1,000 students in total wlll have been able to access the programme. The second grant will also support an indep&ndenl evaluation of impact, to determine a causal link beeen upReaeh's activittes and employment outcomès. Page 8
D(SIgn Env6kn*10." FAD8D82E.1C11E3-A8F4.1ce6B3608919 HG FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 In addition to the above flagship programme grants. in the year the Foundation has also funded some sm811er pilot projects lo explore new areas ol work, includiro= A grant lo Sustainability First lo investigate the Green Tech Sector and the possibility of a programme lo wlden access lo careers in this growing area A projèct with the University of Exeter and Ihe South West So¢lal Moblllty CommissSon. looking al work tsxpellence for school-aged students in the le¢h sector A partnership with Tutor Trust lo support the extension of their tutoring model into Further Education Colleges in England. focusing on those students who have failed lo achieve threshold grades in their GCSE exams at age 16. And we have contlnued funding for programmes supwrted in previ($ years.. Generatlon France - Ton Emplol The collaboration between The Hg Foundation and Generation France aims ID bridge Ihg gap betweeri Ihg rnany employars who Struggle lo recruit entry level tslent and young people from disadvantaged backgrounds who are not in any form ol training or work. The programme comprises specific technical. behavioural. rnindsel and professional skills training, as well as menlorlng during and after the programme.11 will rea¢h unemployed learners in France through expanding Generalion's existing employability programmes 8nd developing new employment tracks in lech-relaled roles. Technieal Unlversity of Munich- MINT4mpulse an der SGhule MINT-Impuls8 8n der Schule, run by the Technical University of Munlch ITUMI, encourages girls lo study thematics, Information Tèchnology, Natural Sciences and Technology {MINT> by providing inspirational enrichment aclivittres, boosting confidenc8 and breaking down inraIned gender stereotypes. The project, seed-funded by The Hg Foundation, reaches girfs aged 14-16 at select schools in rural Bavaria which struggle to take part in exlraCurricLar pro9rammes becaijse of a lack of resources and géographic isolation. MonltDrfn achlevement The Foundation has a major focus on impact measurement. both to understand Ihe exlenl lo which the programmes il funds tributeS to ils overdll mission. and to build capacity and understanding in our partnerships and in the secloi more widely. The Foundation defines dear intemi8diatè and end-point KPl$ for each grant, in collaboration with its partners. For direct delivery granls, these typically relate to measures such as participation and engagement levels; 8¢tivity outcomes such as improved knowledge, skills and confidence,. intermediate outcomes such as results and attainm&nt'. and longer-lerrns outcomes. for example progresslon to hlgher education, Intemship and career placements. Alongslde quanlilative measurements, assessment often includes qualitstNo meth¢xts to expk)re particlpantS' altil4Jdes and aspirations. Our overall approach lo evaluation is captured in our published Evaluation Guide, which includes our overarching theory of change and outcomes framework. The Foundation's partners have on going access to our independent evalualion consultsnls lo help Ihem irnplemenl the recommendalh)ns in the guide and advise on related issues. As part of the development of a partnership proposal, expert advice is taken froin our evaluation consultants, and mPaCt considerations incorporated Into the design and implemenlation of the programme put forward lo the trustees. Page 9
Docusrgn Env6bpe10.' FADBD62E-Ic1IEj-AF4-lC8sB36O88lg HG FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 AFI our major partners have been paired with an independent evaluator to 8xpk>re how best to measure progr8mme Impa and increase our understanding of efficacy. For Ihoso al an eadier stage in their evaluation Journey. this includes work lo bulld data capabilities and refine the programme model. readying it for quanlitslive ev21Ltation-, for others. we awe directly supporting a quantilalive evaluation of impacl. including through buil¢Jing an understanding Df the counler-fadual - what would likely have happened to these learners anyway. without any additional support for example through comparison groltps. quasi-gxperimentsl designs and randomised control trials. The Foundation also gathers comparable data from its partners on the costs of all the programmtss tt funds. This is informing a cost effectiveness framework which will allow the Foundation lo make instructive comparisons ecross the four principal segrNen15 of work in its portfolio.. atliludes and aspirations., education attainment- entry level employability., and ernployability for highty skilled individuals. Fundralslng Hg Foundation does not undertake any hJndrai$ing activities from the genoral public. At pres&nt its sole sourcè of income is from the Hg Group. Related Partie5 In accordance with rts constilulion. the majority of the trustees are employees or partners of the Foundalion's don¢X, Hg Group. There are four independent TTuslees.' Thomas Attwood, Sir Kevan Collins, Richard Donn9r and Elona Mortimer Zhika. Thomas Attwood and Richard Donner were prevlously partners in Hgcapital LLP. Elona Mortimer Zhika is the CEO of IRIS, a Soare company in the Hg portfolio. Flnan¢lal review The charitys results for the peri are sel out in the Statement of Financial AGtivlties. The charity had net incomlng resources of £2.811.188 12023.. £3.789,451). comprising income of £6,849,591 12023.. £6,490.7991 and expenditure of £4,038,40312023.. £2,701,348). Funds brought forward from the previous year amounted lo £6.943.21212023: £3,1 $3,761). Income was solely derived from donations of profit and carried interest from the Hg Group. The charity only has unreslricled funds. Invèstm¢nt pollcy and perfonnance The ffinancial objective of the CIO Is io at least maintsin the real value of ils assets. It wll have the abllity lo invest excess cash on a conservative basis lo protect cash b81an¢e$ prior to dtslribulion and is aiming to provide a wBII-balanced portfolio of investments. 11 will adhere lo a reserves policy {as s8t out below). The CIO may also decide on a case by ¢ase basls lo m3ke 50rAal investments In supwrt of its missSon. A'social investment" means a relevant acl of charity which is being carried out 'Wilh a vtew to both ¢Jireclly furthering the charily's purposes and achieving a financial return for Ihe chariW. The CIO recognises these investments may have a relatively higher risk reward profile, ar*d which should be considered in a broader portfolio constiuct¢onl asset allocation strategy. The Iruslees of the CIO have the final decision making power for any financial investment matters but have delegated lo a Finance Commiitee {Ihe "Finance Committee'l to revigw and Fnake recommendations to the tvuslees. The Finance Committee are charged with ageIng a suitable asset alloealion strategy which is sol $0 as to achieve the overall CIO invesim@nt objective. Page 10
DOw9n Envdryje ID.. FADBD62E_IC1541E3-A8F&1C85B3608B19 HG FOUNDATION TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Internal controls and risk management Tho TNslees have responsibility for ensurtng that the Foundation has in place an appropriate system of controls, financial or olhermse, to provide reasonable assurance that il is operating effectively and in line with Charity Commission guidelines. The systems of finanaal control are reviewed regularly and have been refined where necessary during tho r¢porting period to provide reasonable assurance against material misstatement or loss. The Trustees review the risks faced by the Foundation on a regular basts. The main risks iderstified al the last review lie in the operational risks from ineffective grant making. the capacity of Ihe Foyndation lo make effectNe grants and the challenges in a55essing the impact of programmes in a limely and prowrtion8te manner. Notable financial risks identified include.. Risk of grant reclplents mismanaging or fraudulenuy usSng funds donated to them. To mitigate this, there is a robust due diligence process ahead of allocation of any grants, all grant rèclpients a expeoted to adhere to grant making policy stipulations. grant agreement is signed by both parties and a grant monitOTing process is in place which includes regtJlarfinan¢ial reporting by the grant reupienl. Hg Group is the primary funder of The Hg Foundalion- the exact amounts donated are subject to Hg Group's managed funds httIng targets and timelines. There is a risk that if Hg Group funds do not hil expected targets and forecasted budgets the fundFng for the Foundation will be reduced or delayed. To miligale this risk, the Foundation's forecasted budget is cautious and is provided by the Hg Group finance team, who update it on a regular basis. External I macro evonls pose a potential risk to Hg Group's business li.e. Hg Foundation's primary funding source} due lo impact on the global economic and political environment. The Hg Group finance team and Hg Foundation Trustees regularly monitor budgets and where necessary will explore altgmalive funding sources. Reserves pr>li¢y The Finance Committee meets 8t least quarterly to review the slr&legy, budgets. operating plans and forecasts. It considers conlracled cashflows and unrestricted reserves versus planned grant Commitments for the following three years. On Ihis basis, the Finance Committee aims to ensure Ihal there will bo suffiaenl funds available lo meet grant commitmènts for the following 36 months plus oper81ional costs. Contracted cashftows are based on the Foundation's share of contracted profit from the Hg Group during the subsequent three financial years. The Fountjalion's share of Carried InleTesl is only recognised on receipt. The Fir*ance Committee consrders this to be a conservative approach and are satisfied that tho charity is meeting this policy satisfactorily. Plans for the future The Foundation has a number of key priorities for the period ahead- Effectively monitoring and supporting our existing partnerships. Induding making regr8nls lo help the most effective partnerships scale further Idenlifytng new progr8mmes in areas where there are gaps in our portfolio. Including lunding more work in Europe and North America Developing further our approach lo impact, especially around making inslruclive comparisons across programmes operating in similar areas and driving for similar outcomes Making full use of the eco-system of expertise around the Foundation, Including fiom Hg Group and its portfolio of software companies and other collaboialors who share our mission Understanding more about the pipeline of lalenl into tech. and where there are the greatest opportunitlos for effe5ve Intervention. both to inform the Foundation's own work and that of olheTS in the spaca Building the Profile of the Foundation further lo encourage collaborglion and partnership Page 11
Eknusign Envelope ID.. FADBD$2E-IC1541E>A8F4-1C85B3608B19 HG FOUNDATION TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Structurep goveTnance and managemont Govornlng DoGument and Constitutlon The Hg Foundation was illCOTporaled on 27th April 2020. The Foundation Is a Charitable Incorporated Organisalion and a registered charity {number 1189216). 115 goveming dOCuent is its Constilulion. TrustEe¥- Appolntment, Induction and Tralning New Trustees are appointed by a resolulion passed al 8 meeting of the existing Foundation Tiustees or by written resolution. such a resolution sh811 be effective only if al least hav of the current Foundation Trustees have voted in tts favour. The constitution allows for a minimum of 3 Trustees and a maximum of 10 Trustees. al any given time at least 2 Trustees musl not be officers, partnors or employees of Hg Group or H9 Advisory GmbH & Co. KG. On appoinlménl. new Trustees sign a INstee declarallon stalemenl committlng them lo giving of their lime and expertise. They ale made aware of their legal obligations under Charity Law, the decision making process of thè Foundation, key policles and pracedures. its strategic aims and recent performance. New Trustees are provided th a copy ol the current version of the Constilulion and a copy of the latest statement of acwunls, and are given an opportunity to meet with team members and organisattrons support¢d by the Foundation. Organbatlon Al the quarterfy trustee meetings, the Trustees discuss areas of a5Vity such as grant making {following the recommendations of the Partnerships Commilleel, performance against objectives, a high level review of the budget and cashflow forecasts, following prior in depth consideration by the Finance Committee. Other topics are discussed periodically and as needed for exampl8, approach lo scale up, impact evaluation. the pipeline into the technology workforce. Al annual Strategy meetings, the Twslees mgel to discuss over811 strategy. perfomiance, annual budget and to dotermine how best to direct lis resour$ to meet its obje¢tNes. Key managoment personnel remuneration The Tnjstees consider the board of Trustees. and the CEO. as comprisin9 the key management personnel of the Foundation in charge of dirgcling and controlling the Foundation and running and operating the Foundation on a day to day basis. Al Twslees give of their time freely and llo trustee remuneration was paid in the period. In accordance with the Foundation's Conflict of Interest Poliey, Trusl&es are required to declare and regislgr any personal interests, business interests or other dlrecl or indirect int8rèsts that might potentially conflict wllh their duties as a Trustee and absonl themselves from decisions where a conflict of inlèresl arises. Page 12
ti)ciJsun Envelope ID.. FADBD62E-1c1541E&F4-IC65B3GoS81g HG FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Stat•ment of Trustee$. responslbllltles The Trustees are responsible for preparing the Trustees, report and the fin8ncTr81 stalemènls in accordance wlth applicable law and United Kingdom Accounlbng Standards (United Kingdom Generally Aceepled A¢¢ounling Practice). The law applicablo to charities in England & Wales requires the Tfuslees to prepare financial stslemenls for each financial year which givo a true and fair view of the slate of aftairs of the CIO and of ils incoming resouTces and application of fesources, including Ils income and expenditure. lor that period. In preparing thes@ financial slalemenls. the Trustees are required to-. Select suitable accounting policies and then appty them consislenlly, observe the methods and principles of the Charibes SORP IFRS 102).. make jLKlgments and accounting eslimales that are reasonable and prudentr stsl& whether applicable UK Accounting Standards IFRS 1021 have been followed. subject lo any material departures disclosed anrs explained in the finandal statements.. prepare the financial statements on the Going concem basis unless il is InappropT101e lo presume that the CIO will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain the CIO'S transactions and disdose with reasonable accuracy al any lime the financial position of the CIO and enable them to ensure that the financial slalements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and (feleclion of fraud and other iffegularilies. Disclosuro of infomiatlon to Iudltors Each of the persons who are Trustees at the time when this Trustees. report is approved has nfirffled that= so far as that Trustee is aware, there is no relevant audit information of which the charivs auditors are unaware. and that Trustee has taken all the steps that ought to have been taken as a Trustee in order lo be aware of any relevant audit inforrnalion and to establish thal the cherills auditors are aware of that information. Auditors The auditr>rs. RPG Crouch Chapman LLP. have indicated their willingness lo continue in office. The designat&d TNstees will proposè a motion reappointing the auditors at a meeting of the Trustees Approved by ord&r of the members of the board of Trustees and slgned on thelr behalf b. Rl¢hard Donner Tru51ee Dale.. 14-Jan-2025 Page 73
Dsan Envelo ID.. FAD6D62E-1C1541E>A8F4.1C8583608B19 HG FOUNDATION INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF HG FOUNDATION Oplnlon We have audited the financial statements of Hg Foundation Ilhe 'eharitl) for the year ended 31 March 2024 which Comprise the Slalemenl of Financi81 Activities, the Balance Sheet. Ihe Slalemenl of Cash Flows and the related notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in their prèpaialion is applicable law and United Kingdoffj Accounting Stsndards. including FiTiancial Reporting Standard 102 The Financial Reporting Standard applicable in tho UK and Republic of Iland. (United Kingdom Generalty Acceptèd Accounting Pra¢ti¢el. The firkandal stalernents have been prepared in aCrdanCe wlh Accountlng and Reporting by Ch8rFties preparing their accounts In accordance with the Financlal Reporbng Standards applicable in the UK and Rèpublic of Ireland (FRS 102) in preference to the Accounting and Reporting by Ch3rities'. Stalem&nl of Recommended Practice issued on 1 April 2005 which is referred to in the extant fegulalions bul has been withdrawn. This has been done in order for the accounts lo provide a true and fai¥ view in ac¢x)rdance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or aftef 1 January 2015. In our opinion the financl81 statements.. giv8 a true and fair view of the Slate of the Chaty$ affairs as at 31 March 2024 and of Its Incoming resources and 8ppIic81ion of iesourGes for the year then end&d.' have been properly prepaied in accordance with Unlted Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirem6nts of the Charities Ad 2011. Basls for opinlon We conducted our aLTdit in accordance with Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our respon5ibililies under those standards are further described in the Auditors. responsibilities for the audit of the financial statements section of our report. We are independ&nt of the charity in acrdance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, induding Ihe Financial Reporting Council'5 Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with Ih6se requirements. We believe that the audit ev¢dence we have obtsined is sufficient an appropriate to providè a basis for our opinion. Conclusions rÈlating to golng concern In auditing the financial statements. w6 have ¢onduded that the TTUStees' use of the golng concern basis of accounting In the preparation of fman¢i81 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 colltrdively. may cast significant doubl on the charity's ability lo continue as a going concern for a period of al least e1ve months from when the financial statements are aulhorised lur issue. Our responsibilities and the responsibilities of the Trustees wllh respect to 90ing concern are described in the relevant sectiorss of this report. In our evaluation of the TTuslees' conclusions. we Considered the risks associated with the Charit$ business mod81. including the effects arising from macro-economic unc8rtainles and analysed how those risks might affect the charitys financial resources or ability lo eonlinue operations over the period of 1ve months from the dale when the financial statements are aulhorised for issue. In accordance vrith the above. we have nothlng lo report in these raspects. However, as we cannot piedicl all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time Ihey were made, the absence of reference lo a material uncertainty in Ihis audilorfs report is not a guarantee that the charity will continue In operation. Page 14
OocusYJn Env6lope10.. FADBD62E.1C1541E3-ABF4-1C858360BB19 HG FOUNDATION INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF HG FOUNDATION (CONTINUED} Other Informatlon The other Infomialion comprises the infomialion included in the Annual Report other than the financial statements and our Auditors, Report thereon. The Trustees are responsible for the Other information contained within the Annual Report. Our opinion on the financial statements does not cover the other inform81ion and. except to the eKtenl otherwise expli¢illy slated in our report, we (Jo not express any form of assurance conclusior* Ihereon. Our responsibility is lo read the other information and, in doing so, Consider whether the other information is materially inwnsistent with the financial statements or our knowledge obtained in the course of the audll, or otherwise appears lo be materially misstsled. If we idenlify such mal¢rial inconsistencies or apparent material misstslements. we are r&quired lo determine whether this gives rise to a material misstatement the financial statements themselves. If, based on the work we have performed, we nclUde Ihal there Is a material misstalemenl of this other infornation. we are required lo report that fact. We have nothing lo report in this regard. Capability of th¢ audit to d8tact Irrogularities including fraud We gained an understsndin9 of the legal and regulalory framework applicable to the charity 8nd the Industy in which il operates. and con8ldere£l the llsk of acts by the charity which were contrary lo applicable laws and regulations, induding fraud. Thes8 included, bul ware not limited to, wmpliance with the Charities Act 2011 and FRS102. We designed Judit proceduros lo respond to the rtsk, rgcognlslftg that the risk of not delecling a material misstatement to fraud Is hlgher than the risk of not delecling one resulting from error, as Iraud may involve (Jeliberale concealmant. We focused on laws and regulations that could give rise to a material misslalemenl In the finanaal slatemenls. OLtr tests included, but were not limited lo." • agr&em&nt of the financial statement disclosures to underlwng supporting documenlalion., • enquiries of management- review of minutes of board meetings throughout the period,. and obtaining an undèr$landing of the control onvironmenl in monitoring compliance wilh laws and regulations. There aw inherent limitations In the audit procedures described above and the fijrther removed noncompliance with laws and regulations is froffl the events and transactions reflected in the financial statements, the less likely we would become aware ol it. We also addressed the risk of management overrlde of Inteinal cor¢lrols. includlng lesling joumals an¢J evaluating whether there was eviden of bias by the Trustees that represented a risk of material misstatement due to fraud Matters on whlch we are r•qulred to report by gx¢eptlon We have nothing to report In respect of the following matters where the Charities (Accounts and Reports) Regvlalions 2008 requires us to report to if, in our opinion.. the infomialion glven In the Trustees, Report is inconsistent in any material respect Smth the financial slalemenls., or sufficient accounting records have not been kept,. or the financial slalements are not in agreement with the accounting records and retums: or we have not received all the infomiatlon and explanations we require for our audll. Page 15
t)ocuskdn Envek)pe ID.. FADBt)62E-1C1841E3.A8F4-1C85B3608819 HG FOUNDATION INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF NG FOUNDATION {CONTINUEDI Responslblllties of tru$tees As explained more fully in the Truslee$' Responsibilities Slalemenl. the Trustees are sponsible for Ihe preparation ol the financial stalemonts which give 8 true and fair view. and for such inlemal control as the Trustees determine is n¢¢essary lo enable the PlBparalion of financial slalements that are free from material misstalemenl, whether due to fraud or error. In preparing the financlal statements, Ihe Trustees are responsible for 8Ssèsslng the charttys ability lo continu@ as a going concem, disclosing, as appli¢8ble, mallers related to going concern and using the going concorn basis of 8ccounllng unless th@ Tiustees either intend to1Squidale the charty or to cease operations. or have no realistic allemalive but lo do so. Audltor$' responslbllltie$ for the audit of the financial statemgnts We have been appointed as auditor under 58clion 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect theunder. Our objectives are lo obtain reasonable 8ssu¥an¢e about whether the financial stalemènls as a whole are free from material misstatement, whether due to fraud or error, and lo issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit ¢onduded in accordan¢e wlh ISAS IUKI will always delect a rnalerial misstatement when It exists. Misslalements can arise from fraud or error and are considered material if, individually or in the aggregate. they coul¢J reasonably be expected to intluence the ec(Inomic decislons of users taken on th& basis of these financial ststoments. Irregularities. In¢ludir¥J fraltd, are instances of non-compllance with laws and regulations. We design procedures in line wilh o¢Jr responsibilities, outlined above. to detect material misslalemenls in respect of irregularilitss, ineluding fraud. Th8 extent to which Our procedures ar8 capable of detecting irregularities, including fraud is detailed in the relevant paragraph above. A further description of our responslbllllles for the audit of the finan¢ial statements is located on the Financial Reporting Cotjncil's website al: www.frc.o .uklaudilorsre5 onsibililies. This description forms part of our Auditors. Report. U$¢ of our report This report is made solely lo the ¢hariV$ Iruslees. as a body, in accordance with Part 4 of the Charities IAccoun15 and Reports) Regulations 2008. Our audit work has betsn undertaken so Ihal we might stale lo the charivs Iruslees those malte¥s we are required lo slalo lo them in an Auditors, Report and for no other purpose. To the fullest exlenl permilled by law. we do not 8¢cepl or assume responsibility lo snyone other than the charity and its trustees. as a body, for our audit work, for this report. or for the opinM)ns we have formed. RPG Crou¢h Chapm 40 Gracechurch Sireel London EC3V 08T LLP Date: RPG Crouch Chapman LLP are eligible to act as auditors in temis of section 1212 of the Companies Act 2006. Page 16
)91g EnvelLPe ID.. FAD8D6?-1Cl1E>A8F4-1c8SB36OS81g HG FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted tunds 2024 Total lunds 2024 Tolal funds 2023 Note Income from: Donations and legacles Investmer¢ts 6,595,225 254,366 6,595,225 254,366 6,490,799 Total In¢ome 6.849.591 6,849.591 6,490, 799 Exp&ndlture on". Charitsble activities 4.03B.403 4,038.403 2. TOI.348 Total expendlturo 4,038,403 4.03B,403 2.701.348 Net movement In funds 2.811.188 2.811,188 3,789.451 ReGonciliation of funds: Totsl funds brought fomard Nel movement in fvnds 6.943.212 2,811.188 6,943.212 2,811.188 3. 153,761 3, 789.451 Total funds carried ftsnyard 9.754,400 9,754.400 6,943,212 The Statement of Finaneial Activities includes all gains and losses recognisod in the year. The notes on pages 20 to 30 form part of these financial slatemenls. Page 17
DO1 Envelop8 ID-. FADB062E-1C1541E>ABF*1C65B3608B19 HG FOUNDATION BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Investments 11 912,756 450,277 912,756 450.277 Current assets Debtors Cash at bank anQ in hand 12 194.880 9.168.948 592,106 6,453, 719 17 9.363.828 7.045.825 Creditors.. amounts falling due wthin one year 13 {522.1841 (552,890) Net Current assets 8,841,644 6.492,935 Total net assets 9,754.400 6.943,212 Ch•rity funds Unrestricted funds 9,754,400 6,943,212 Total fund$ 9,754,400 6.943,212 The financial statements were approved and 4Lthorised lor Issue by the Twstees and signed on their behalf b. fvJwl Rl¢hard D¢nn¢r Truslee Dale.. 14-Jan-2025 The notes on pages 20 to 30 form part of these financial statements. Page 18
t)owsign Envolope ID.. FADBO62E-1C1541E3.A8F4.1c836o8Blg HG FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Cash flows from opeTatlng actlvitles Net cash used in operating actlwtie5 3,177,708 3.976,314 Cash flows from investlng activities Purchase of investments (462,479} (450,277) Net cash used In InvestEng actlvltltrs (462.4791 {450.277) Cash flows from financing activiti0$ Net cash provided by financing aetlvltles Change in cash and ¢ash equivalents in the year Cash and cash equivalents at th¢ beginnlng ofthe year 2.715.229 3.526.037 6.453,719 2,927.682 Ca$h and cash equivalenls at the end of the year 9.168,948 6,453, 719 Th6 riole5 on pages 20 10 30 form part of these financial statements Page 19
Docusign Envebpe ID.. FADB062E-1C1541E3A6F4.IC85B3608B19 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 General Informatlon The Charity is a CIO regISted with the Charity Commission in England and Wales, charity number 1189216. Its registered address is 2 More London Riverside, London, SEI 2AP. The principal activities of ihe CIO is to support skill development for the modem job market and contribute lo improved. quality employment prospects for those who may otheMs¢ experitrnce barriers lo aGce55. Accountlng poll¢ios 2.1 Basts of preparation of flnan¢lal statements The financial slateTh8nts have been prepared in accordance with the Charities SORP (FRS 1021- Accounting and Reptsrting by Charities.. Statement of Recommended PraGtiGe applicable to charities preparing thelr accounts in accordanc& with the Financial Reportino Stsndard applicable in the UK and R¢public of Ireland IFRS 102} {effe¢tlve l January 2019). the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The financial statements have been prepared to give a 'lrue and fairf wew and have departed frorn the Charities {Accounts and Reportsl Regulations 2008 only to the extent Tequired lo provide a 'true Bnd fairf view. This departure has involved following the Charities SORP IFRS 102) published in October 2019 rather than the Accounting and Reporting by Charities.. Stalernent of Recommended Pracli¢e effective from 1 April 2005 whith has since been wilhdrawn. The trustees confirm their explicit and unreserved compliance with the above legislali(M. Hg Foundation meets thè definition of a public benefit entity under FRS 102. Assets and liabilities are Inllially recognised at histori¢al cost or transaction value unless otheise stated in the ielevant accounting policy. The accounts have been prepared in Sterling and all amounts are rounded lo the nearest £. 2.2 Golng eoncern Based on their assessment of the twelve months from the dale on whtch the balance sheet was signed, the Trustees are of the opinion that the charity is a going concern as the charity holds significant cash ieserves and the o¢¢ounts have Iherefore bean piepared on the going ¢oncem basis. 2.3 Income All income is recognised once the Charity has entyttement to Ihe income. 11 is probable Ihal the income wll be ye1ved and the amount of income receivable can be measured reliably. Grants are induded in the Slalement of Financial Ath'vilies on a receivable basis. The balance of income received for specific purposes bul not expended during the period is shown in the Televanl fijnds on the Balance Sheet. Wher¢ income is ieceived in 8dv8n¢e of entitlement of receipt, ils recognition is deferred and included in Creditors as deferred income. Where enlivement occurs before income is received, the Sn¢ome is acciued. Page 20
DoCu9Th Env61c*e10.- FADBD62E.1C1541E&A8F4-1C85B3608819 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 A¢¢ountlng pollcles {continuedl 2.4 Expenditurè Expenditure is reeognised once there Is a legal or construelive obligation to transfer enOmiC benefit lo a third party, il is probable Ihal a transfer of e¢onomic ben¢fils will be required in s¢lllemenl an the amount of the obligation can be mèasured reliably. Expenditure is classified by activity. The costs of each activity a made up of the total of dirtscl costs and share(1 costs, including support costs Invofved in undertaking each aclivlly. DiTecl costs altribulable lo a slngle a¢tivlly a 8llo¢ated directly to that activity. Shared costs which contribute lo more than one activity and support costs which are not attribLTrtable to a slngle activity are apportioned between Ihose activities on a basis consistent with the use of resources. Central staff costs are alloGaled on th8 basis of timo spent, and depreciatio charges 8lloc8ted on the portion ofthe asset's tssè. Expenditure on charitable aclivilie5 is incurred on directly undertakin9 the activities which further the Charivs objectives. as well as any asso¢ialed support costs. Granls payable are tharged in Ihe year when the offer is made excopl in ihos¢ cases where the offer is conditional, su¢h grants being re¢ognised es expenditure when the Conditions attaching are fulfilled. Grants offered subject lo conditions whi¢h have not been mel at the year end are noted as a commitment, bul not accrued as expenditura. All expenditure is indusive of irrecoverable VAT. 2.5 Interest recelvable Intere51 on funds held on deposit is included en Teceivable and the amount can be measured reliably by the Charily.. this is normally upon notificalion of the interest paid or payable by the institution with whom the funds are deposited. 2.6 TaxatSon The Charity is considered lo pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore il meets the definition of a Charitable company for UK corporatiDn tax purposes. Accordingly. tho Charity is polantially exempl from tsxalion respacl of Income or capltal gains received within calegorfes covered by Chaptèr 3 Part 11 of the Corporation Tax Act 2010 or Se¢Jon 256 of the Taxation of Chargeable Gains Act 1992. to the exlenl th81 such income or gains are applied exclusively lo charitable purposes. 2.7 Investment$ Fixed asset inveslments are a forrn of financial instrument and are initially reeognised at their transaction cost and subsequently measured al fair valije at the Balance Sheet dale, unless the value C8nnol be measured reliabty in which case K is measured al Cost less impairment. Inveslrnent gains and losses, whether realised or unrealis8d, ale combined 8nd presentèd as 'GainsllLossesl on inveslmenls. In the Statement of Finaneial Activities. 2.8 Debtors Trade and other debloTS are recognised at the 8ettlement aFT)ounl after any trade dlscounl offered. Prepayments are valued al the amount prepaid nel of any trade discounts due. Page 21
DoEusign Envelupe ID.. FAD8D62E-1C1S41E3-A8F4-1C85B%O6B19 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accountlng policies (contlnuedl 2.9 Cash at bank and In hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short malurily of three months or less from the d8te of acquisition or opening of the deposit or similar account. 2.10 LlabSllti•s and provislons Liabllili88 are re¢ogni$ed when there is an obligation at the Balance Sheet date as a result of a past event. it is probable that a transfer of economlc benefit will be required in settlement. and the amount of the setttement can be estimated reliably. Liabil¢ties are recognised al the amount that the Charity anticipates it w¢ll pay to settle the debt or the amount it ha5 received as advanced payments foi the goods or services it must provide. Provisions are measured al the best estimate of th8 amounts required lo settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts. discounted al the p-tsx discount rale that reflects the risks specific to the liabilily. The unw(ndin9 of the discount is re¢ognised in the Statement of Financial Aclivilies as a financo wst. 2.11 Flnanclal Instruments The Charity only has financial assets and financial liabilities of a kind that qualfy as basic financial instruments. Baslc financial instruments are initially recognised al transaction value and subsequently measure(l al their settlement value wth the exception of bank loans which ale subsequently measured at amortised cost using the effective interest method. 2.12 Fund a¢¢ountlng General funds are unrestricted funds which a available for use al the discretion of Ihe Trustees in furtherance of the general objectives ot the Charity and which have not been designated for other purposes. Investment income. galns and bsses are allocated to the appropriat8 fijné. Critical accounting estimates and areas ¢f judgment Éstimates and judgments are continually evaluated and are based on historical experience and other factors, induding expectations of fvIU events that are believed lo be reasonable under the ctr¢yMst8n$. Critical accounting eslimales and as$umptsons'. The CharSty makes estSmates and aswmplions concerning the future. The resulting accounting estimates and assumptions 1. by definition. seldom equal Ihe related actual results. The Irltstees are of the opinion that none of the estimates made result in a significant risk of causing a material adjustmènt lo the carrylng amounts of assets and liabilities within the next finandal yèar. however, they are of the oplnion that the following esh'mates are sunifi¢ant accounting eslimales used in the financlal stalemenls.. Page 22
Ckncusn Envelope ID.. FADBD62E-IC1541E3-A8F4-1C8S83608619 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Critlcal a¢¢ounting estlmate$ and areas of Judgrnent {contlnuedl Accruals Material 8C¢m81s are included for prolecl fundlng for which an obligation lo pay exists. The amounts are based on best eslimales of the amounts which will be due and payable in the future. A¢¢ruals of loweT values comprise expected costs for expenditure to be invoiced in the ftjture and is based on best estsmales or invoices received after the year end. A¢tTued InGome Provisions are made for in¢ome relating to the year which is expected lo be received after the year end. The figure is bas6d on best eslimales or communication received after the year end. Income from donations and 18ga¢le$ UnrestriGted funds 2024 Total funds 2024 Donations 6,595,225 6.595,225 Unrestri¢l8d funds 2023 rotal funds 2023 Donations 6.490.799 6,490.799 Investment income Unrestricted funds 2024 Total funds 2024 Total funds 2023 Investment Income 254.366 254.366 Page 23
Docusi9n &nvalop& ID.. FAOB062E-1C1541E3-A8F*1C65836088t9 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysls of grants Grants to Institutions 2024 Total funds 2024 Project grants 3,601,289 3.601.289 Grents to Inslilulions 2023 Tolol fvnds 2023 Project grants 2,561,501 2,561.501 The Charity has made the followng material grants to in$lilutSons durlng the year= 2024 2023 Name ol institution Partnership - SEO- Sponsoy for EducatlDnal Opportunity Partnership- upReach Charitable Co. Partnership- Assonat Finance Generation Partnership - Apps for G¢x)d Parbietship- Jlnc Grant Partnership- Tèchnische Universitat Munchgn Partnershlp - Purposeful Ventures Partnership - Lets Get Ready, Inc 636.923 607.935 306.195 295.000 257,056 214,076 200.000 145,718 460,280 580,895 225,966 2,662,903 1,267, 141 Olhor grants lo institutions 938,386 1,294,360 3.601.289 2,561.501 2024 Individually material 9rants Grants IndividtJally not material 2.662.902 938.387 3.601,289 Page 24
tjocusign Envek7pe FD: FADBD62e-1C1841E>A8F4-IC85B3608819 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysls of exp¢ndlture on charltable activities Summary by fund type Unre$triGt•d funds 2024 Total 2024 Project grants Adminislralion of the charity 3,601,289 437,114 3,601.289 437,114 4.038.403 4.038.403 Unreslrictpd funds 2023 Total 2023 Prolect grants Administration of the chaiity 2.561.501 139,847 2,561,501 139,847 2, 701,348 2.701,348 Page 25
t&)cusiqn Envelopp ID.. FAD8062E-fC1541E&A8F4-1¢8583608819 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysls of expenditure by actlvltles Grant lunding of activities 2024 Support costs 2024 Totsl funds 2024 Project gr8nl$ Administration of the Charity 3,601.289 3,601,289 437,114 437,114 3.601,289 437,114 4.03B,403 Gr8nl funding ol activities 2023 Support cosls 2023 Total funds 2023 Project grants Administration of the charity 2.561.501 2,561,501 139,847 139.847 2,561,501 139.847 2,70q.348 Page 26
DoEtssign Envdope ID-. fADBD62E.1C1M1E3-A8F4-1C8583608879 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analys15 of exp*ndlture by activitle$ (Contlnued) Analy$l$ of support costs Total funds 2024 Total funds 2023 Legal Fees Audit Fees Bank Charges Other Cts5ts Events Insurance General Adml Marketing Irecruilmenl) Travel & Entertainment Analysis & Evaluation Staff C051s Digitsl Communlcatlons and Equipment 4,498 11.000 1.846 3,982 2.2QO 554 2.100 71.000 552 540 18,771 551 250 1, 783 1,229 5.500 97,631 20,432 7,081 36,125 305.239 44,157 437.114 139,847 Audltors, remuneratlon 2024 2023 Fees payable lo the Charills auditor for the audit of the Charilys annual account5 11.000 11,000 10. Trustees. remunèrdtlon and expen$¢$ Durfng th8 year. no Trijslees received any remuneration or other beneffts (2023- £NIL). Key management comprises the trustees and th8 charity CEO. Key rnanagemenl remuneration amounted lo £145,00012023'. £97.6311. The chartty doe5 not operate ils own payroll and 811 staff costs are -Charged from Hg Group. During the year erEded 31 March 2024. no TrLtsleo expensas have been incurred (2023- £NIL). Page 27
IY0¢usLon Envelope ID.. FAOBD62E-1C1541E34BF4_1c858360881$ HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Flxed asset Invo$tments Unlisted Investments Cost or valuatlon At 1 April 2023 Additions Revaluations 450,277 462,479 At 31 March 2024 912,756 Net book value At 31 March 2024 912.756 At 31 March 2023 450,277 12. Debtors 2024 2023 Due within one year Prepaymenls and accrued inGome 194.880 592.106 194,880 592,t06 13. Croditors: Amounts falllng due wi.thin one year 2024 2023 Trade creditors Accruals and deferred income 282,850 270,040 522,184 522,184 552.890 Page 28
9ocusjn env&lopè ID.. FAD8D62E-1C1541E3-A8F4-IC8583608B19 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. Financlal Instruments 2024 2023 Financlal assets Financial assets me88ured al fair valLte through income and expendltu 912,756 450,277 Financial assels measured at fair value through income and expenditure comprises the charivs invéstment in Cornerstone l LP. 15. Funds The charity only has unrestricted, general funds. Al amounts inlcuded In these accovnls thèrefore repres¢nl unreslricled, general funds. 16. Reconciliation of net movement In funds to net cash flow from operating activities 2024 2023 Nel incoffle for the period las per Statement of Financial Aclivitiesl 2,811,188 3. T89,451 Adjustments lor.. Decrease in d8blors Increaselldecreasel in CrltorS 397.226 130,706} 186,554 309 Net cash provided by operating activitles 3.177,708 3,9T6.314 17. Analysis of ¢a$h and cash equlval¢nts 2024 2023 Cash in hand 9.168,948 6.453.719 Total cash and cash •qulvalents 9,168.948 6.453,719 Page 29
Docvsign ErN6ltpe ID.. FADBD62E-1C1541E>A8F4-7C85B3608819 HG FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 18. Analysls of Changes In net debt At 1 Aprll 2023 Cash flow$ At 31 March 2024 Cash at bank and in hand 6.453,719 2.715.229 9,168,948 6A53,719 2.715,229 9,168,948 19. Flnanclal commitments During the year, the charity committed to make total future investments of £3,800.00012023= È3,500,0001. During the year. £462,479 12023.. £450,277) was drawn down. faking the lotsl investment so far lo £912,756, as dis¢losed in Note 11. 20. Related party tran$a¢tlons During the year ended 31 March 2024, the charity received donations of £6.595,22512023.' £6,490,799) from the Hg Gioup. The charity Is connected to Hg Group through ils trustees as follows.. Trustees Anna Martina Sanow, Richard Earnshaw. Robbie Crtrino, Juan Campos, Genli Zhao and CarDling Lofgren are employees of Hg Group or its associated companies in Munich and New York. During the year, the charity incurred expenditure of £305,23912023= £97,631) representin9 a re-ch8rge of wages and salaries and assoclal8d staff casts from Hg Group. Included in grants mad& are grants lo TEAK and The Education Endowmenl Foundallon. Sir Kevan Collins serves on the board of Trustees of the latter, whereas Robert Citrino serves on the board of the former. The trustees are satisfied that any polenlial conflicts of inlarèsts have been managed satisfactorily. Page 30