Charity registration number 1194169 Compgny registration number 12303342 (England and Wale51 EA FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
LEGALAND ADMINISTRATIVE INFORMATION Trustees R Bronze F Fosse DrASen Dr T Sikorski L Mortimer l Talbot Legal Advisor Maria Loukanova Charity number 1194169 Company numb8r 12303342 Registered office 25 North Colonnade London E145HZ Auditor Alliotts LLP 3 London Square Cross Lanes Guildford GU1 1UJ
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Contents Openingstatement bythe Chalr and Foundation Director................................................... Statement of Trustees. Responsibilities............................................................................... Governanceand Financialreview......................................................................................... Governance...................................................................................................................... Conflict of Interest.. Risk Management............................................................................................................. FinancialRevi8w............................................................................................................... Reserves Policy................................................................................................................. Investment Policy.........-.......................-...........-....-......-...........-......-.........-......-....-.-........ EAFoundation'5Grant-makingObjective$........................................................................... Grant-makingprocedure................................................................................................... Key Actlvitles Achievementsand Performanc8....................................................................................... Highlights:..................................................................................................................... GranlsAwarded.............................................................................................................. 10 GrantsAwarded........................................................................................................... Pl8nsfor2024.... Statement of Trustees, Responsibilities.. IndependentAuditor's Report................................................................................................. 16 Statement of FlnancialActlvltles............................................................................................ Balance Sheet......................................................................................................................... 20 Notes........................ 21
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Opening Statement by the Chair and Foundation Director During 2023, the world continued its slow and focused post-covid recovery. This process was made even more challenging by the global economic crisis triggered by the war in Ukraine and several humanitarian emergencies across the world. All these events have put significant pressure on the charitable sector, which has been forced to step up to respond to overwhelming global needs, against a backdrop of shrinking statutory and wider funding, in addition to other resource pressures. This year, as a Foundation, we listened ever closer to our partners and worked to ensure that our response was appropriate to meet their needs. We recruited our first Foundation Director who was given a mandate to build 8 lean and efficient infrastructure that would enable us to achieve our key objective to find and fund partners that deliver the greatest imp8Ct for the communities we aim to support under each of our funding pillars. We have achieved a significant increase in our grant-making this year with £1,082,749 of grants awarded, 81most 80Wo of which1£846,8871 was disbursed before theyear end. Subsequent payments will be made based on payment schedules as agreed with all funded partners. We intend to build on this with the developrnent of more strategic partnerships and higher value grants to a small and selected group of partners. As we look forward to 2024. we find ourselves in an amazing and privileged position. witnessing the positive imp8et of projects that are underway. nurturing key partnerships 2nd learning from communities who are best placed to lead on their own solutions. We will remain focused on our comrnitment to fund under-served communities on under-supported issues across our funding priorities. We hope this approach will result in the greatest improvements in the lives of our partner communities. Richard Bronze Chair Georgina Awoonor-Gordon Foundation Director
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Statement of Trustees, Responsibilities The Trustees present their report 8nd financial statements for the year ended 31 December 2023. The fin8n¢ial 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 articles of association, 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 IFRS 1021 leffective 1 J8nuary 20191" Governance and Financial review Governance EA Foundation was established in November 2019 as 8 charitable company (company number 123033421, and then April 2021 as a registered charity Icharity number 1194169 in England and Wales). It was set up by Amrita Sen, Fredrik Fosse, Richard Bronze and Trevor Sikorski, committed to addressing inequities faced by some of the most marginalised communities globally. They also control a company called Energy Aspects. EA Foundation owns shares in EA Group Holdings Ltd Ithe parent company of the Energy Aspects group) and currently derives its income solely from this source. In keeping with Charity Commission guidelines, EA Foundation is completely independent and has no direct connections with the operations of Energy Aspects or its clients. The Charity works entirely for public benefit and in no way works to advantage Energy Aspects- which in turn has no control over grant making or any other decisions at EA Foundation. EA Foundation I'the Charity") is governed wholly by a Board of Trustees I'the Trustees") which has overall responsibility for the Charity's activities, management and control. Trustees also sit as Directors under Company Law and were appointed in a voluntary capacity to lend their expertise to ensure the effective management of the Charity. Trustees are not paid and any expenses and related party transactions are fully disclosed in notes 8 and 17 to these 8ccounts. The original trustees are the founders of the Charity and all work for Energy Aspects, the main donor to the Charity. Two trustees are not employees of Energy Aspects. None of the trustees has any beneficial interest in the charitable company. All the trustees are members of the charitable cornpany and guarantee to contribute £1 in the event of a winding UP. The Board meets at least four times a year (every quarterl and the Charity is empowered to delegate management of the Charity to an appointed Director. The Charity's Director is usually present at Board ot Trustees meetings and is in regulai contact with the Chair of the Board of Trustees.
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Conflict of Interest The Charity's Director 18 responsible for ensuring that all transactions are compliant with our Conflict of Interest policy. Trustees are required to verbally declare any conflicts of interest at all Board meetings and to submit written dectarations for all funding rounds. Where a conflict with an applicant has been declared, Trustees would be expected to discuss the application, however, would not be included in any final decisions. Risk Management We have adopted the Charity Commission's definition of risk as'any event that could prevent a charity achieving its aims or carrying out its strategies,. Trustees work to ensure that appropriate policies and procedures are in place to mitigate exposure to risks which might jeop8rdise the wellbeing of the communities we work with and EA Foundation's reputation and that of our partners. Our Risk Management policy has been developed in direct response to the guidance provided by the Charity Commission ICC261. We ensure that our assessment of risk is guided by our capacity to continue meeting the needs of our end target communities, now and in the future. As a funder, it is our responsibility, in addition to ensuring our own organisational sustainability, to also strongly consider relevant risks and related impact on our target communities. funded partners, staff and aff iliates. guidance on managing organisational risk to support the achievement of our strategic objectives, protect key stakeholders, business assets and to ensure the continuation of business operations and financial sustainability. Ikn&PoLa frameworktorthe following.. Risk governance Identification of risks Assessment ot risks Mitigation Monitoring and review Communicating and Reporting Financial Review In total, our spending consisted of £846,887 in grant awards12022: £167,4261 and £59,765 on staff costs and administrative overheads12022: £17,652). The increase in administrative costs was mainly due to the recruitment of a Director in lune 2023, and establishing new operational systems and processes to increase efficiency of our operations as we scaled up. Despite this significant growth in gr8nt-m8king and administrative costs, we were able to off-set extra Costs by Continuing to benefit from the skills of variou$ staff at Energy A$pe¢ts who donate their time to support our growth in various areas including communications, finance, administration and graphic design. We acknowledge and appreciate the invaluable assistance
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 provided free-of-charge. Their contributions have not been monetised in these accounts or by Energy Aspects Ltd. Our revenue in the year totalled £212,63112022'. £5,063,597). There is a notable difference in this year's income due to the fact that the Foundation realised significant income last year of £4.97rn f rom the sale of some its shares in Energy Aspects, which is suff icient to fund our operations for several years. As part of our 2022-25 strategic plan, we will continue to draw down on this income and interest generated by it to fund our grant-making and operational costs. The Board h8s approved a three- year budget to implement our strategic plan over this period and will be guided by our Reserves policy. Reserves Policy In the period of 31 December 2023, our Reserves policy states that the Charity should hold unrestricted funds suff icient to enable the award of grants up to £1.5m in 2024 and £2.6m in 2025 in addition to holding 6 months of reserves to cover operational costs for the respective years. The level of reserves might be adjusted in subsequent years, accordingly, based on any contextual considerations and projected income from the future sale of shares. Investment Policy Shares owned in Energy Aspects are our main source of income, along with bank interest generated on our cash reserves. The Trustees are keen to ensure long-term sustainability of the Charity and will explore the investment options which will enable us to continue meeting our objectives.
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 EA Foundation's Grant-making Objectives The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. We fund projects internationally which work to address issues aligned to our five strategic pillars outlined in the Key Activities below. We are open to applications from a diverse range of organisations, irrespective of turnover, especially in relation to our support of emergency response appeals. The following types of organisations are eligible to apply for funding= Registered Charitable Incorporated Organisation ICIOI Charitable company, limited by guarantee Other UK Registered Charity Community Interest Company ICICI, limited by guarantee We fund mainly through UK-based organisations, with closed calls for charitable organisations registered overseas. All eligible companies las outlined above) must have an asset lock in their constitution which ensures that funds and any profit are ploughed back into the organisation. Grant-making procedure ooooo'oo The diagram above shows an overview of our grant-making process. For more information on our grant-making procedure, please see our Guidance at htt ".Ilwww.
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Key Activities The Board of Trustees remains committed to our mission of providing financial Support to organisations to help them address issues aligned to our 5 strategic pillars as outlined below. Edu¢ation.' to provide educational opportunities, particularly for disadvantaged individuals and comrnunities. Basic SeNices.' to improve access to basic services and infrastructure to disadvantaged communities, including butnot lin7ited to healthcare, clean water and electricity. Poverty Reduction.. to support people in reduced circumstances, with in sufficient me8ns. or those who 8re experiencing times of need therebyproviding important support for the relief ofpoverty or otherforms ofdis8dv8ntage such 8$ disability. Environmental Sustainability.. to address environmental challenges and promote sustainable development, both in its own right and through the pursuit of the otherkey 8re8s of focus. Emergency R8sponse.' The Board is committed to supporting activities which 8ddress the suffering ofcommunities 8ffected by conflict. health. natural dis8sters or other emergencies. We provide grants. by invitation only. to reputable organisations to ensure rapid and effective emergencyresponses to crises across the globe. E4 Foundation Achievements and Performance This year, the Board set out ambitious plans to activate its commitment to our strategic pillars by investing in our operations to scale up our Erant-making. Our focus over the year was on our core grant-making activities. Highlights in 2023: The Board awarded over£1m in grants. This year saw our first structured open call for proposals bringing in over 500 applications for funding,. Over the course of the year, Trustees awarded 31 gr8nts to 24 organis8tions, of which approximately 45¥0 were to organisations new to us, resulting in a thematic and geographic diversification of our porttolio.
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Trustee Amrita Sen and our Communications volunteer made our first project visit to India to visit funded partners The Cycle and Sanitation First India This year saw the recruitment of 8 Director in June to scale up our gr8nt-making and strengthen operational infrastructure to ensure we were fit for purpose.. To enhance our operations, we developed an Employee Handbook of key policies and procedures, led by our Legal Advisor. Strategic partnership.. this year saw us establish the first multi-year partnership 8rrangementwith The Cycle- and, In line with our commitment to transparency, we started publishing data on all grants approved on 360Giving Initiative Grants Tho Board approved the following Project and Emergency Response grants. Most of the projects we fund cut across two or more of our five strategic pillars and for ease of reference, the grants outlined below have been grouped according to their primary objectives.. Grants Awarded Education Partner AdAmi Project Amount £10,000 Location Sierra Leone Summary Working with vulnerable young mothers18ged up to 251 in Bo district, Sierra Leone, to= al complete their education bl move towards employment A remote programme for up to 20 post-doctoral African researchers, to strengthen skills in post-doctoral academic grant writing. Top-up funding for the primary school library hub Street Connected Children and Young People ISCCYPI project in Mombasa 8ddrosses access to basic education which acts as a barrier to livelihoods off the street. The Catalyse Leadership Programme aims to enable 40 community-based volunteers I'catalysts'l, to catalyse Africa Research Excellence Fund £23,925 Afric8-wide {AREF} African Children's Fund Consortium for Street Children £5, 700 Zimb8bwe £50,000 Kenya Eduspots £44.666 Gh8n8 htt htt 10
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 change in their communities through their leadership of up to 40 community-owned library-education spaces. Providing leadership educ8tion to over 700 girls113- 21 years) living in some of the most marginalised communities in the Majority World (Global Southl- Global Girl Project £30,000 Glob81 Majority United World Schools IUWSI £40,554 M8d8gascar Enabling 250+ children in two communities of the highly remote Andavadoaka region of southwest Madagascar to gain literacy, numeracy. and essential life skills through quality, inclusive primary education. Developing a mobility ecosystem using bicycles to improve education, health and livelihoods in the Zomba, Lilongwe and Kasungu regions of Mal8WI. World Blke Rellef £50,000 Malawi Basic Services Partner African Adventures Foundation Amount £10,000 Location Ghana Summary Addressing access to sanitation, 'Not Just a WASHroom' willsee the Construction of 12 new accessible latrines and six new urinals at three schools in Woe, with access to clean piped water installed. Funding for the Refugee Advice Project, supporting new refugees to access sustainable income and housing- crucial stepping stones out of poverty. To embed and integrate lifesaving and life-changing Community Health Worker ICHWI training into the fabric of partner organisations across Pakistan. Strategic grant to support both organisation development and contribution towards project costs. to expand WCF'S proven methodology of mobilising community health groups run by trained local women to bring people together to identify their most critical British Refugee Council £25,000 London MAITS £23,000 Pakistan The Cycle £100,000 Indi8 Women and Children First (WCF) £23,000 M&lawi, T8nz8ni8, Uganda 11
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 problems and find imp8cttul, sustainable solutions Poverty Reduction Partner Aliv8 and Kicking Amount £45,876 Location Kenya Summary Supporting activities which offer pathways out of poverty for refugees 8nd their families by upskilling 30 refugees to set up their own micro enterprises producing and repairing sports b811s. Eastside House £39, 7 75 USA Fighting Food security in the Bronx, Newyork. Promoting sustainable agriculture and livelihoods initiative in the Amhara region of Ethiopia. Follow-on funding: providing training 8nd support beekeepers and farmer$ in the Aleppo region of Syria. For the renovation of the kitchen, critical to the successful delivery of the courses and in effectively reaching thousands of marginalised women at risk. Mercy Hands Europe £39.853 Ethiopia Mercy Hands Europe £55,000 Syria Wonder Foundation £36,433 El Salv8dor Practical Action £20,000 Bangladesh Providing dignified employment through gathering and recycling floating waste in the Padm8 River. Bangladesh. Towards Sparking Futures, an employability program specifically designed to support the most marginalised young women, aged 14 to 22 years in London to overcome socio-economic barriers Sparking Futures programme: as above The Baytree Centre £70,000 UK The Baytree Centre £50,000 UK Environmental Sustainabillty Partner APT Action on Poverty Amount £20.000 Locatlon Ugand8 Summary Funding for a skills development programrne to increase the capacity for climate smart, market orientated vegetable production among South Sudanese refugees in Palabek Refugee Settlement. 12
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Feed the Minds £48, 777 M8d8g8SC8r Follow-on funding for the Tanjon8 Livelihoods and Biodiversity Project supporting 90 women in Mandrosoa in Silk production Supporting smallholder farmers ISHFI in Gwanda District, Matabeleland Province to adapt to the effects of climate change on poverty, family food and nutrition security and household sustainable livelihood. To significantly impact climate change mitigation, reduce greenhouse gas emissions from household Cooking, and deforestation Practical Action £49,974 Zimbabwe Vita UK (formerly New Hopel £50,000 Ethiopia Emergency Response Partner Mercy Hands Europe Amount £4,927 Location Syria Summary Emergency support for families in Aleppo district of Northern Syria affected by a severe earthquake, primarily in the form of cash transfers. British Red Cross £20,000 Syria / Turkey Towards the earthquake crisis appeal. British Red Cross £50,000 Africa Towards the Africa Food crisis appeal to support populations struggling for food in Eastern Africa due to severe droughts. British Red Cross £25,000 Libya Emergency response to the floods in Libya British Red Cross £50,000 the Occupied Emergency response to the Palestinian humanitarian crisis in Israel and the Territory I Occupied Palestinian Territory Israel Global UKforUNHCR £31,950 Supporting UNHCR'S Emergency Fund. to enable timely response to future humanitarian crises across the world. 13
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Plans for 2024 As part of our FunderPlus supportto ourfunded partners, we plan to set up two special funds to support the strengthening of our partners. Safeguarding and Monitoring, Evaluation and Learning IMELI activities; Partnership working: we will strengthen our relationships with funded partners, building on initial project grants to strategic partnerships and higher value gr8nts- and, Project visits: we will endeavour to visit projects to ensure continuous 18arning and improvement of ourgrant-makingapproach. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were= R Bronze F Fosse DrASen Dr T Sikorski L Mortirner J Talbot Auditor In accordance with the company's articles, a resolution proposing that Alliotts LLP be reappointed as auditor of the company will be put at a General Meeting. The trustees. report was approved by the Board of Trustees. R Bronze Trustee 2410912024 Date.. 14
EA FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Statement of Trustees, Responsibilities The trustees, who are also the directors of EA Foundation for the purpose of company law, are responsible for prep8ring the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting standards (United Kingdom Generally Accepted Accounting Practicel- Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent,. state whether applicable UK Accounting standards have been followed, subject to any material departures disclosed and explained in the financial Statements., and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 15
EA FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EA FOUNDATION Oplnlon We have audited the finanaal statements of EA FoLJndation (the 'charity'l for the year ended 31 December 2023 which comprise the statement of financial activities, the balan sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable the UK and Republic of Ireland (United Kingdom Generally ACpted Accounting Practice). In our opinion, the financial slatemenls.. give a true and fair view of the slate of the charitable company's affairs as at 31 December 2023 and of its incoming resour$ and applicab'on of resources. including its income and expenditure, for the year then ended., have been properly prepared in accordance wf(h United Kingdom Generally ACpIed Accounting Practi., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted Dur audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described In the Audilorts SponSIbl1111es for the audit of the financial slalements section of our report. We are Independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial staternenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, Individually or collectively, may ca51 significant doubl on the charity's abilty lo continue as a going concern for a period of at least twelve months from when the financial slalements are authorised for issue. Our responsibilities and the responsibilities of the trustees ¥hrith respect lo going concern are described in the relevant sections of this report. Other Infomiatlon The other information comprises the information induded in the annual report other than the finala1 statements and our audilorfs report Ihereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. Our re5ponsibilily is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl wth the financial slalements or our knowledge obtsined in the course of the audit, or otherwise appears to be materially misstated. If we idenb'fy such material inconsistencies or apparent material misslalemenls, we are required to determine whether this gives rise to a material misslatemenl in the financial statements themselves. If, based on the worf( we have performed, we condude that there is a material misststement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the information given in the Iruslees, report for the financial year for which the finanryal slalements are prepared, which includes the directors. report prepared for the purposes of company law, is consistent with the financial statements., and the directors. report included within the trustees. report has beèn prepared in accordance with applicable legal requirements. 16-
EA FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EA FOUNDATION Matters on whlch we are requlred to report by exceptlon In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors. report included wthin the trustees, report. We have nothing lo report in respect of the following mallers in relaty'on lo which the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us", or the financial statements are not in agreement with the accounting records and returns., or rtain disclosures of Iruslees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and lake advantage of the small companies, exemptions in preparing the trustees, report and from the requirement lo prepare a strategic report. Responsibilities of trustees As explained more fully in the statement of trustees, responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial slalemenls and for being satisfied that they give a true and fair view. and for such internal control as the Iruslees determine is necessary lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trLJStees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or to cease operations, or have no realistic altemalive but to do so. Auditor's responsibilities for the audit of the financial statements Our objedives are lo obtain reasonable assurance about whelhei the financial slalemenls as a Who are free from material misslatemenl, whether due lo fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misslalement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, induding fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delect material misstatements in respect of irregularities. including fraud. The extent lo which our procedures are capable of delecling Irregularf(ies, including fraud, is detailed below. Extent to which the audit was considered capable of detecting irregularities, including fraud the engagement partner ensurèd that the engagement team colledively had the appropriate compètencè, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable to the charity through discussions with Iruslees and other management, and from our knoedge and experience of the se¢tor', • we focused on specific laws and regulations which we considered may have a direct material effect on the rinancial statements or the operatlons of the charity, including the Companies Act 2006, the Charities Act 2011, the Charities SORP, laxalion legislation and data protection, antFbribery, employment, environmental and health and safely legislation., we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence," and identified laws and regulations were Communicated wthin the audit team regulady and the team remained alert to instsnces of non-compliance throughout the audit. 17-
EA FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EA FOUNDATION We assessed the susceplibilty of the charity's financial statements lo material misslalement, including obtsining an understanding of how fraud might 0Ur. by. making enquiries of management as to where they Considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud,. • considering the internal controls in place lo mitigate risks of fraud and norFcompliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we". perfomied analytical procedures lo identify any unusual or unexpected relationships", tested journal entries lo identify unusual transactions., assessed whether judgements and assumptions made in detemiining the accounting eslimales were indicative of potential bias., and investigated the rationale behind significant or unusual transactions. Audit response to risks identified In response lo the risk of irregularities and non-compliance wth laws and regulations, we designed procedures which included. but were not limited lo". agreeing financial statement disdosures to underfying supporting documentation., enquiring of management as to actual and Potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial Iransaclions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required lo identify non-compliance wth laws and regulations lo enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A ftjrther description of our responsibilities is available on the Financial Reporting Council's website al.. https'.11 www.frc.org.LJklaLJditorsresponsibilities. This description fomis part of our auditorfs report. Use of our report This report is made solely lo th& charitsble company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit worf( has been undertaken so that we might stsle lo the charitstle company's members those matters we are required to slate lo them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Stephen Meredith BA FCA DChA (Senior Statutory Auditor) for and on behalf of Alllotts LLP 2510912024 Chartered Accountants ststutory Auditor 3 London Square Cross Lanes Guildford GU1 1UJ 18-
EA FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrlcted Unrestrlcted funds funds 2023 2022 Notes In¢om9 from: Donations and legacies Investments 5,045,648 17,949 212,631 Total income 212,631 5,063,597 Expenditure on- Charitable activities 906,652 185,078 Total expenditure 906,652 185,078 Net incomellexpenditurel {694,0211 4,878,519 Other recognised gains and losses.. Other gainslllossesl 11 13,0421 8,235 Net movement in funds {697,C631 4,886,754 Reconciliation of funds: Fund balances al 1 January 2023 4,941,048 54,294 Fund balances at 31 December 2023 4,243,985 4,941,048 The statement of finanaal activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 19-
EA FOUNDATION BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Fixed assets Investments 12 27,900 Current assets Debtors Cash at bank and in hand 13 49,350 4,612,213 4,951,981 4,661,563 4,951,981 Credltots: amounts falllng due wlthln one year 14 1445,4781 110,9331 Net current assets 4,216,085 4,941,048 Totsl assets less current liabilities 4,243,985 4,941,048 Net assets excluding pension liability 4,243,985 4,941,048 The funds of the charlty Unrestricted funds 4,243,985 4,941,048 4,243,985 4,941,048 The financial statements were approved by the Iruslees on . 24109k024 R Bronze Trustee Company registration number 12303342 (England and Wales) -20-
EA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles Charity infomiation EA Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 25 North Colonnade, London. E14 5HZ. 1.1 Accountlng conventlon The financial statements have been prepared in accordance with the charity's Articles of Association, the Companies Act 2006 and 'Accounting and Reporting by Charities.. Slalement of Recommended Practi applicable lo charities preparing their accounts In accordance with the Finanaal Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191" The charity is a Public Benefit Enlily as defined by FRS 102. The financial statements are prepared in sleding, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded lo the nearest £. The financial statements have been prepared under the historical cost convention. 1.2 Going concern Al the lime of approving the financial stslemenls, the trustees have a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. Thus the Iruslees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestrictèd funds a available for use at the discretion of the trustees in furtherance of their charitable objectives. 1.4 Income Income 15 recognised when the charity is legally entitled to il after any performance conditions have been met, the amounts can be measured reliably, and il is probable that income will be received. Cash donations are recognised on reipt. Other donations are recognised once the charity has been notified of the donation and a cash value can be established ¥Mth reasonable certainty, unless performance conditions require deferral of the amount. Income lax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised al the lime of the donation. Legacies are recognised on receipt or otherwse 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 Irealed as a contingent asset. 1.5 Expenditure Expenditure is recognised once there is a legal or conslruclive obligation lo transfer economic benefit lo third paty, it is probable that a transfer of economic benefits will be required in selllemenl, and the amount of the obligation ¢an be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of diwl costs and shared costs, induding Support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute lo more than one activity and support costs which are not attributable to a single activity are apportloned between those aclivilvès on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. Expenditure is allocated to each charitable activity on a direct cost basis, or as an apportionment of support costs based on time spent by stafflvolunteers 21
EA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ounllng poll¢lg$ Icontlnuedl 1.6 Flxod asset investments Fixed asset investments are initially measured al cost and subsequently measured al cost less any accumulated impaiimènt losses. The investments are assessed for impairment al each reporting dale and any impaiment losses or reversals of impairment losses are recognised immediately in nel incomellexpendilurel for the year. 1.7 Cash and cash equivalents Cash and cash equivalents Include cash in hand, deposits held at call with banks, other short-lerm liquid investments with original malurilies of three months or less, and bank overdrafts. Bank overdiafis are shown ¥Mthin borrowings in current liabilities. 1.8 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 instrLJmenls. Financial instruments are recognised in the charity's balance sheet when the charity becomes party lo the contractual provisions of the inslrumenl. Financial assets and liabilities are offset, w(th the net amounts presented in the financial slatemenls, when there is a legally enforceable right lo set off the recognised amounts and there is an intention lo settle on a net basis or lo realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which indude debtors and cash and bank balans, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement conslilules a financing Iransaclion, where the transaction is measured al the present value of the future receipts discounted al a market rale of interest. Financial assets classified as receivable within one year are not amortised. BasiTC financial IITabilitses Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transacty'on. Financial liabilities classified as payable within one year are not amortised. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.9 Retlrement beneflts Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. In¢omg from donatlons and 19gac19$ Unrestrlcled unrestr1Qd funds funds 2023 2022 Donations and gifts Gift of shares 82,471 4,963,177 5,045,648 -22-
EA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Income from Investments Unrestricted Unrestricted funds funds 2023 2022 Interest receivable 212,631 17,949 Expendlture on charltable actlvltles Charitable actlvltles 2023 Charitable actlvltles 2022 Dlroct ¢o$ts staff costs Grants awarded Donations 36,952 848,887 100 167,426 883,939 167,426 Share of support and governance costs (see note 61 Support Governance 1,085 21,628 762 16,890 906,652 185,078 Analys1$ by fund Unrestricted funds 906,652 185,078 -23-
EA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Grants payable 2023 2022 Grants lo institutions.. SanitatlDn First The Baytree Centre Mercy Hands Europe British Red Cross United World Schools African Children's Fund AdAmi Project Africa Research Excellen Fund African Adventures Foundation Alive and Kicking APT Action on Povety British Refugee Council Consortium for Street Children Eduspols Feed the Minds Global Girl Project MAITS Practical Action UK for UNHCR Vita UK Women and Children First Wonder Foundation World Bicycle Relief 87,500 35,000 93.529 145,000 36,499 5.700 9,000 21,533 5,000 41,288 10,000 22,500 25,000 22,333 24,388 27.000 11,500 64,977 10,650 45,000 20,700 32,790 50,000 87,500 37,726 22,200 20,000 846,887 167,426 Support costs allocated to actlvltles 2023 2022 Bank charges Website and admin expenses Insurance Telephone Governance costs 100 758 99 128 21,628 157 605 16,890 22,713 17,652 Analysed between: Charitable activits'es 22,713 17,652 Governance costs includes payments to the auditors for the audit of £8,10012022.' £8,100). -24-
EA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Net movement In funds 2023 2022 The nel movement in funds is slated after chargingllcredilingl.. Fees payable for the audit of the charity's financial statements 8,100 8,100 Trustees None of the trustees lor any persons connected with them) received any remuneration or benefits from the charity during the year. Employees The average monthly number of employees during the year was.. 2023 Number 2022 Number Employment costs 2023 2022 INages and salaries Other pension costs 36,000 952 36,952 There were no employees whose annual remuneration was more than £60,000. Remuneration of key management personnel The remuneration of key management personnel was as follows.. 2023 2022 Aggregate compensation 33,272 10 Taxatlon The charity is exempl from lax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied lo ils charitable objects. -25-
EA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 11 Other galns and losses Unrestricted Unrestricted funds funds 2023 2022 Gainslllossesl upon". Foreign exchange 3,042 18,2351 12 Flxed asset Investments other investments Cost or valuation Al 1 January 2023 Additions 27,900 Al 31 December 2023 27,900 Carrying amount Al 31 Dember 2023 27,900 Al 31 December 2022 13 Debtors 2023 2022 Amounts falling due within one year- Other debtors 49,350 14 Creditors- amounts falling due within one year 2023 2022 Trade creditors Accruals and deferred income 119 445,359 564 10,369 445,478 10,933 15 Retlrement beneflt schemes 2023 2022 Defined contribution schèmes Charge to profit or loss in respect of defined contribution schemes 952 -26-
EA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 15 Rgtlrgmgnt bgneflt s¢h9me$ Icontlnuedl The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. 16 Unre$trlcted funds The unrestricted funds of the charty comprise the unexpended balances of donations and grants which are not SLJbject to specific conditions by donors and grantors as to how they may be used. These indude designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At 1 January 2023 Incomlng resourcgs Resources gxpended Galns and losses A131 De¢gmbar 2023 General funds 4,941,048 212,631 1906,6521 13,0421 4,243,985 Previous year- At 1 January 2022 Incoming resources Resources expended Gains and losses At31 December 2022 General funds 54,294 5,063,597 1185,0781 8,235 4,941,048 17 Related party transactlons During the year, the charity acquired an additional shareholding valued at £27,900 in a class of shares of EA Group Holdings Ltd. which are re¢orded al purchase ¢osl. The Charity also holds a minor shareholding in EA Group Holdings Ltd that was previously gifted to it. for which the trustees were not able to establish a value. EA Group Holdings Ltd is the ultimate parent of Energy Aspects Ltd, which is currently the source of all donations lo the charity. As detailed in the Trustees. Report, four of the trustees are employees of Energy Aspects Ltd. -27-