Center on Long-term Risk Annual report and financial ststements For the period ended 31 December 2022 Charity registration number.. 1195079 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long- term Risk Contents P3ge Reference and administrative details Trustees. report Independent Auditors, report 9-11 Statement of financial activities 12 Statement of financial posltion 13 Statement of Cash flow 14 Notes to the financial statements 15-23 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Reference and administrative details For the period ended 31 December 2022 Trustee5 Linh Chi Nguyen Tobi35 Baum3n Max Marian Daniel lonas Emanuel Vollmer Stefan Torges Charity registered number 1195079 Reglstered addreSs&FI*Klofflce 3, Floor, Block C, Imperial Works Perren Street, London NW5 3ED IndependentAudltor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers Unity Trust Bank PLC, Four Brindleyplace, Birmingham B12JB Wise Payrnents Ltd, 6" Floor, Tea Building, 56 Shoreditch High Street, London El 6JJ Legal Advlsers Stone Kin8 LLP Boundary House 91 Charterhouse Street London ECIM 6HR Maurice Turnor Gardner LLP 15 Floor, Milton House Milton Street. London EC2Y 9BH 8D8 Pitmans LLP One Bartholomew Close London ECIA 7BL Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Trustees, report For the period ended 31 December 2022 The trustees present their annual report together with the financial statements of Center on Long-term Risk I'the CharitVI for the period from 7 July 2021 to 31 December 2022. STRuuRE, GOVERNANCE AND MANAGEMENT Constitution The Center on Long-term Risk I"CLR" the "Charity") is 3 Charitable Incorporated Orgariis3tion, governed by its Constitution, as dated 25th March 2021. The Charity has been recently registered as a charitable incorporated organisation ICIOI is a corporate body with a constitution that is registered with and regulated by the Charity Commission. It was reElStered on 7 July 2021 with its Charity ReEistration Number being 1195079. See the Affiliations section below for details of the Charity'5 founding. Appointment of trustees New trustees are selected by vote of the existing trustees. The trustees seek candidates who have expertise and experience relevant to the Charity's operations and mission. Newtrustees are given relevant internal documentation and onboarding materia15, referred to Charity Comrnission guidance for new tru5tee5, and introduced to existing trustees and staff. The Charity is governed by the board of trustees, however day-to-day operations are delegated to the senior management team, consisting of the followinE individuals.. Jesse Clifton Stefan Torges, Emery Cooper Daniel Kokotajlo From December 2021 From Decerrber 2021 to April 2022 During the period, Je55e Clifton led the Causes of Conflict Research Group, CLR'S largest research program. Emery Cooper and Daniel Kokotajlo led smaller research projects. Stefan Torges led CLR'S operations function, and it5 comrnunity-building activities. Specific trustee and staff duties and delegations are set out in the Charity's delegation scheme. The tru5tee5 consider that they, together with the aforementioned Senior management team cornprise the CharitV'S key management personnel. The trustees are not remunerated for their services to the Charity. The remuneration of the senior management team is reviewed and agreed annually by the trustees taking account of employment market information and the needs of the Charity. In 2023, Stefan Torges resiened from his senior management team position at CLR and his employment was ended. He was later appointed as a trustee of the Charity. Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Trustees. report (continued) For the period ended 31 December 2022 The Charity is recognised by HMRC for Gift Aid. The trustees have complete control of the Charity in relation to the application of funds. Trustees are appointed in accordance with the Charity's governing document. All decision-making of the Center on Long-term Risk is made in accordance with the Charity's Conflict of Interest policy. Trustees The trustees who served during the period were.. Ruairi May Donnelly- Chair lappointed on 7 july 2021 and resigned on 3 july 20231 Linh Chi Nguyen (appointed on 18 January 20221 Tobias Baumann (appointed on l December 20211 Max Marian Daniel (appointed on 13 September 20211 Jonas Emanuel Vollmer lappointed on 7 July 20211 Daniel Kestenholz (appointed on 7 July 2021 and resigned on 15 September 20211 Following the end of the period, Stefan Torges wa5 appointed as 3 Trustee on 3 July 2023. Affiliations The Charity was founded in order to assume the operations of an existing research project that was previously operated as part of the Effective Altruism Foundation I-EAF Switzerland~I, a Swiss non-profit. These operations were transferred to the Charity in 2021-22. EAF Switzerland still provides support to the Charity, including financial support, and receive5 donations to provide to CLR. EAF Switzerland's affiliated non-profit5 in the USA and Germany, namely Effective Altruism Foundation, Inc. I'EAF USA") and Stiftun8 fur Effektiven Altruismus l EAF Gerrnany I, provide similar support. These three international non-profits have a website at ea-foundation.or CLR provides advice to these organisations. including making grant recommendations, but does not provide funding to them. CLR has an affiliation with the Cooperative Al Foundation ICAIFI, a UK Charity. CLR staff advised on the founding of CAIF, and provided advice and administrative support as it began operations. CLR has an affiliation with Polaris Ventures, a Swiss non-profit. Polaris provides funding to CLR, and CLR has advised on Polaris's grantmaking in the past. CLR is 3150 loosely 3s50Clated with the broader effectNve fJltrui5m movement, a community of individuals and organisations focu55ed on using evidence and reasoning to benefit others as much a5 P055ible. Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Trustees. report Icontinuedl For the period ended 31 December 2022 OBJEcfivES AND ACTIVITIES Policies and objectives The principal objectives of the Charity are for the public benefit.. To advance research, especially in the field of emerging technologies Isuch as artificial intelligence) and their risks and benefits, by activities such as.. Conducting research Supporting individuals and or8ani5ation5 to carry out research via grant making and non-financial support Hosting events such as workshops and retreats Providing coaching, mentoring and scholarship5 to those interested in working in our research field To advance other purposes that are exclusively charitable under the law of England and Wales. as the trustees determine, by grant making. The trustees confirm that they have compiled with the Charity Commission's guidance on public benefit when planning the Charity's activities for this period. Pro8rams CLR aims to advance research that reduces the worst risks of astronomical suffering l-s-risks~l in the future. We currently believe that such scenarios most likely involve transformative Al systems, and so have a primary focus on research aimed at making the development and deployment of artificial intelligence IAII systems safer. Our primary research programs are.. Al conflict- Most of our research efforts are focussed on better understanding on how we can prevent Al systems from eneaging in catastrophic conflict. Evidential Cooperation in Large Worlds IECLI.. applied ethics research inve5tigatin8the implication5 of evidential decision theory and findings of modern cosrnology for ethical decision-making. S-risk macro strategy.. Broader research aimed at better understandin8 how we can reduce sufferine in the long-term future, for example identifying causes or considerations that we have overlooked 50 far. CLR'S team regularly consider the path to impact of our research and prioritise on the basis of the research's eventual implementation. The bulk of our work focus5es on identifying risks and p055ible interventions, and evaluating these interventions, with the goal of informing advocacy for the inclusion of relevant inteNentions in Al development. In addition to our staff directly conducting research. we work to advance research in thi5 field by supporting ènd building the community of people engaged in the field. Our primary programs here are.. Running an annual Summer Research Fellowship. engaging a cohort of interns to conduct research projects under the supervision of experienced mentors. Running events to facilitate research progress and exchange of knowledge. Providing mentoring, coaching and scholarships. Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Trustees. report Icontinuedl For the period ended 31 December 2022 CLR also aims to make grants to support research efforts outside our organisation, but no such grants were made in this period Ithough grants were made from EAF Switzerland on CLR'S recommendation). Grants are evaluated by a committee of fund managers appointed by the board and including two board members,. and are made in accordance with a grant makinE policy. Risks and uncertainties The trustees have considered the key risks and uncertainties to CLR'S ability to carry out its charitable purposes, including reputational and organisational risks, and are satisfied that Systems, actions and/or procedures are in place in order to manage those risks. Key risks and uncertainties. and their mitigations, include.. Strategic uncertainty around the most promising research directions, given the complex path to impact of res8arch into the safety of emerging technologies. This risk is managed via regular review of strategic plans bv the trustees, strategy discussions among the team and input from external experts and collaborators. Risks to staff retention,. managed via regular check-ins of staff 5at15faction, and via notice period5 and documentation of key operational processes. Risk of105s of funding, managed by monitoring the diver51ty of funding strearns and rnaintaining substantial financial reserves. ACHIEVEMENTS AND PERFORMANCE During 2021 and 2022, the activities of an ongoing research projectwere transferred from EAF Switzerland to the Charity. Detailed strategic report The below sections provide an overview of CLR'S aims, activitie5 and achievements in 2021-22, and plans for 2023. Further detail on all of these topics is available in our 2023 fundraiser ost on the Effective Altruism Forum Athievements during thè period Research CLR'S Causes of Conflict Research Group works on understanding how we can prevent Al systems from engaging in catastrophic conflict. In 2021-22, the group has made research progress on.. Understandin8 the reasons why Al systems might engage in conflict Understanding the circumstances under which technical work done now could reduce these risks Building methods and knowledge to support future work developing and assessing interventions for reducing conflict Beginning to develop and evaluate Specific interventions, including surro oals preventing conflict-seekin references, preventing commitment races and developing cooperation-related content for a hypothetical manual for overseers of Al training. Evaluating the behaviour and reasonin8 of Large Language Models ILLM51, particularly behaviours relevant to cooperation. ate Other researchers at CLR have made progress on various topics relevant to our priorities, including.. The implication5 of Evidential Coo er3tion in Lar e Worlds for cause priorit153tion. The probability that Earth-originating civilisation will encounter alien civilisations. The optimal spending schedule for interventions to reduce Al risk. Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Trustees. report (continued) For the period ended 31 Decernber 2022 CLR'S work was disseminated to target audiences in various ways, including.. Publication in online forums of relevant research communities, for example Je55e Clifton, Samuel Martin and Anthony DiGiovanni's When does technical work to reduce AGI conflict make a difference? on the Al Alignment Forum Tristan Cook and Guillaume Corlouerfs The o Effective Altruism Forum. Publication at acadernic conferences Internal research documents have been shared with relevant individual external researchers. Other research work ha5 not yet been shared, but 15 used to inform future re5earth, and/or will be published in future. timal timin of s endin on AGI safet work on the Community-building In 2022, we undertook the following activitie5 airned at Strengthening and supporting the community of people engaged or interested in s-risk research.. In February-march 2022, we ran two S-risk Intro Fellowships, intended to help people learn about CLR'sthinking on our research topic. with 7 participants each. In October 2022, we ran an S-iisk Retreat with 33 participants, airned at facilitating the exchange of ideas between participants in our research community. In summer 2022. we ran a Summer Research Fellowship, where Fellows joined our team as interns for two months, to carry out a research project supervised by an experienced mentor. We conducted over 150 coaching and advising calls with individuals. and invited several people to visit our offices to talk to our team. We collected participant feedback after all of our event5, which was generally very p051tive. Grontmuklng We operate the CLR Fund to support research in our priority areas. In this period, no Erant5 were made from the UK Charity. However, we recornmended nine grants which were made by EAF Switzerland, totallinE 304,350 USD. Details of grants made and recommended may be seen on the Fund web Evaluation We collect systematic feedback on community-building and operations projects through surveys and interviews. We collect feedback on our research by submitting articles to journals & conferences and by requesting feedback on drafts Df documents from relevant external researchers. Additional published work is linked on our website, and in our 2023 fundraiser ost on the Effective Altruism Forum Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Trustees. report (continued) For the period ended 31 December 2022 Plans for 2023 Research The Causes of Conflict Research Group plans the following work streams.. Evaluating Large Language Models.. We will continue building on our work on evaluating LLM5 that we started in 2022. As well as publishing our existing results, we plan to scope an agenda for assessing cooperation- relevant capabilities. Cooperation-related interventions.. We will continue our evaluations of cooperation-related interventions started in 2022, aiming to decide which interventions to prioritise for further development. In parallel, we will continue developing content for an overseer's manual for Al systems. S-risk macro strategy.. A number of re5earcher5 on the team will continue Spending sorne of their time thinkin8 about s-risk prioritization more generally, such as the value of alternative research priorities to Al conflict. Other re5earcher5 at CLR will continue their work on Evidential Cooperation in Large Worlds, and 5trategy-related qualitative modelling. Communlty-bulldlng At the end of 2022. we planned the following community-buildine activities for 2023.. Hosting another S-risk Intro Fellowship and Summer Research Fellowship Continuing our coaching meetings and calls Hosting another S-risk Retreat Creating learning resources foi people interested in s-ri5k research Evaluating new activities related to disseminating research ideas Grantmttking In 2023, we plan to continue evaluating grant opportunities throvgh the CLR Fund both to recomrnend grants to EAF Switzerland and to make grants ourselves. FINANCIAL REVIEW Rèsult for the period The results for the period are shown in the statement of the financial activities on page 12. During the period, the Charity received donations and other income totalling of £3,375,082. The cost of raising funds for the period totalled £3,154. Expenditure on charitable activities of £1,717,793. The result for the period ended 31 December 2022 was a surplus of £1,654,134. The balance of the unrestricted reserves as at 31 Oecember 2022 was £1.535,347 and restricted reserves £118,787. Funding CLR is funded bygrants from several charitable foundations in the UK and overseas. and by donations from individual donors. CLR maintains one restricted fund, the CLR Fund, for the purpose of giant making. Donors may make unrestricted gifts to CLR, or gifts to the CLR Fund 5pecificallv. ReseNes pollcy CLR'S policy is to always maintain a minimum of at least 3 months, operating expenses in its own bank accounts, which equates to a target of approximately £430,000 based on spending in 2022. At 31 December 2022, the bank balance lapproximately £805.0001 less liabilities (approximately £108,000) exceeded this target. As an additional target, CLR'S policy is to always ietain at least 6 month'5 operating expen5e5 including receivables, committed funding and funds earmarked for CLR held with regranting partner5. This target was also exceeded on 31 December 2022. Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Trustees. report (continued) For the period ended 31 December 2022 Going concern At the time of writing, it has IC> months of reseNes based on the current planned rate of expenditure. including receivables. The trustees are satisfied that the Charity will be able to meet its liabilities for at least a period of 12 months following the end of the accounting period. They therefore consider the State of CLR'5 finance5 to be satisfactory and consider it appropriate to prepare the financial st3ternent5 on a going concern basis. Trustees, responsibilities statement The trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102.. The Financial Reporting Standaid applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial period. which give a true and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity for the period. In preparing these financial statement5, the trustee5 are required to.. select suitable accounting policies and then apply them consistently.. observe the methods and principles in "Accounting and Reporting by Charities,. Statement of recommended practice applicable to charities preparinE their accounts in accordance with Financial ReportinE Standard 102.. make judgements and accounting estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards have been followed, subject to any material departures disc105ed and explained in the financial statement5', and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The trustees are responsible for maintaining proper aecounting records which disclose with reasonable atcuraty at any tirne the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed/constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the Charity 3nd financial information included on the Charity's web51te. Legislation in the United Kingdom goverriing the preparation and dissemination of accoLJnts may differ from legislation in other jurisdictions. This report was approved by the trustees and signed on their behalf bv.. Max M3rlan Danlel Max Marian Daniel Trustee Date: 2023110130 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Buzzacott Independent auditor's report to the Trustees of Center on Long-term Risk For the period from 7 July 2021 to 31 December 2022 Oplnlon We have audited the financial statements of Center on Long term Risk for the period ended 31 December 2022, which cornprise the Statement of financial activities, the Statement of financial position, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic tsf Ireland, Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the CharitV'5 affairs as at 31 December 2022 and of it5 result for the period then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities underthose 5tandard5 are further described in the auditor'5 re5pon5ibilitie5 for the audit of the financial staternent5 Section of our report. We are independent of the Charity in accoidance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on thework we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity 's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections Of the report. Other information The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility 15 to read the other information and, in doing so, consider whether the other information is materially incon51Stent with the financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there 15 a material misstatement of thi5 Other information. we are required to report that fact. Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Buzzacott Independent auditor's report to the Trustees of Center on Long-term Risk For the period from 7 July 2021 to 31 December 2022 Matter5 on which we are required to rèport by exception We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion.. the information given in the trustees, annual report, is inconsistent in any material respect with the accounts: or sufficient accounting records have not been kept,. or the accounts are not in a8reernent with the accounting record5 and return5; or we have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Trustees. responsibilities statement on page 7, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material mi55tatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosin& as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations. or have no realistic Iternative but to do so. Auditor's re5pon5ibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in aecordante with ISAS IUKI will always detect a material misstatement when it exists. Mi55tatements can arise frorn fraud or error and are considered material if, individually or in the aggregate, they could reason3bly b8 expected to influence the econornic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irreEularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud 15 detailed below. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement director ensured that the engagement team collectively had the appropriate competence, tapabilities and skills to identify or recognise non-compliance with applicable laws and regulations.. We identified the laws and regulations applicable to the Charity throuÉh discussions with management and from out knowledge and experience of the Charity sector- We focused on specific laws and regulation5 which we considered may have a direct material effect on the accounts or the activities of the Charity. These included but were not limited to the Charities Act 2011, Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United KinEdom and Republic of IrelandlFRS 1021 leffettive l January 20191,. and We 355essed the extent of compliance with the laws and regulations identified abovethrough making enquiries with management and review of minute5 of trustee5' meetings. io Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Buzzacott Independent auditor's report to the Trustees of Center on Long-term Risk For the period from 7 July 2021 to 31 December 2022 We a5se55ed the susceptibility of the Charity'5 financial statement5 to material mi5Statement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To addre55 the risk of fraud through management bia5 and override of contro15, we.. performed analytical procedures to identify any unusual or unexpected relation5hip5; and reviewed journal entrie5 to identify unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. reading the minutes of meetings of those charged with governance., and enquiring of management a5 to attual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that law5 and regulations are from financial transactions. the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees 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 further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our Auditor's report. Use of our report This report is made solely to the Charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations rnade under section 154 of that Act. Our audit work has been undertaken 50 that we might state to the Charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity's trustees as a body, for our audit work, for this report. or for the opinions we have formed. Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 60L Date.. 31 October 2023 li Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk- Registered Charity number 1195079 Statement of financial activities For the period from 7 July 2021 to 31 December 2022 Unrestrlcted Restrlcted Total funds funds funds Note 2022 2022 2022 Income from.. Donations 3,256.238 56 118.787 3,375.025 56 Other income Total Income 3,256,294 118.787 3,375.081 Expenditure on: Raisingfunds Charitable activities 3,154 1.717,793 3,154 1,717.793 Total expenditure 1,720,947 1,720,947 Net Income and net movement In funds 1.535,347 118.787 1,654.134 Reconciliation of fund5: Total fund5 at 31 December 2021 Total funds at 31 December 2022 14 1.535,347 118.787 1,654.134 This is the Charitws first period of activity since its formation. All reeognised gains and losses are included in the above statement of financial activities. The notes on page 15 to 23 form part these financial statements. 12 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Rlsk- Registered Charlty number 1195079 Statement of financial position As at 31 December 2022 2022 2022 Note Fixed A55et5 li 569,634 Current 355ets Debtors Cash at bank and in hand 12 277,973 914,356 1,192,329 Creditors: Amounts falling due within one year 13 1107.8291 1,084,500 Net current assets 1,084.500 Totsl assets less current Ilabllltles 1,654,134 Charity funds Unrestricted funds Restricted funds Total funds 14 1,535,347 118,787 1,654,134 14 The financial statements were approved by the trustees on 30 October 2023 and signed on their behalf by.. Max Marlan Danlel Trusteè 13 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Statement of cash flows As at 31 December 2022 2022 2022 Cash flows from operating activitie5 Net cash provided by operating activities 1,522,330 Cash flows from investing activities.. Purchase of Fixed Assets 1607,9751 Net cash provided by investin8 activities 1607,9751 Change in cash and cash equivalent in the period 914,355 Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 914,355 Reconciliation of net income I lexpenditurel to net cash flow from operating activities Net income for the reporting period las per the statement of financial activities) Assets received as donation Depreciation charges L055 on the Sale of fixed assets Increase in debtors Increase in creditors 1,654,134 148,6121 44,941 42,012 1277,9731 107,828 Net cash provlded by operatlng actlvltles 1.522.330 The notes on pages 15 tts 23 form part of these financial statements. 14 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements For the period ended 31 December 2022 General information Center on Long-term Risk I'the Charitll is a charitable incorporated organisation iaoi, not having share capital. and is incorporated in England and Wales. The Charity registration number is 1195079. Its registered office is in 3, Floor. Block C. Imperial Works Perren Street. London NW5 3ED. Accounting Policies Basls of preparatlon of flnanclal ststements These accounts have been prepared for the period from 7 July 2021 to 31 December 2022. The period is more than 12 month5 due to this being the Charit¢s first accounting period since registration. The financial statements have been prepared under the historical cost tonvention. The financial statements have been prepared in accordance with the Statement of Recommended Practice applicable to charitie5 preparing their financial statements in accordance with the financial reporting standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 (Charities SORP IFRS 1021" The financial reporting standard applicable in the UK and Republic of Ireland I'FRS, 1021, and the Charities Act 2011. The Charity continues as publit benefit entity as defined by FRS 102. The accounts are presented in sterling and are rounded to the nearest pound. Critical accountin8 estimates and areas of judgement The preparation of financial statement5 in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Charity's accounting policies. The following principal accounting estirnates and judgements have been applied.. The estimate of the useful economic lives attributed to tangible fixed assets The estimate of the value ascribed to donated assets The method used for apportioning indirect costs across different expenditure heading5 The judgement rnade as to whether the accounts should be prepared on a going concern basis (see 2.3 below) Assessment of golng concern The trustees have 355essed whether the use of the going Concern assumption is appropriate in preparin8 these accounts. The trustees have rnade this assessment in re5PeCt to a period of at least one year from the date of approval of these accounts. The trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability tsf the Charity to continue as a going concern. The trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. 15 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements (continued) For the period ended 31 December 2022 Fund accounting Restricted funds are to be used for specific purposes as specified by the donor. Expenditure which meets their criteria is charged to the fund. Unrestricted general funds are available for use at the discretion of the trustees in the furtherance of the general objectives of the Charitv. Income recognition Income is reco8ni5ed in the period in which the Charity Is entitled to receipt, the amount can be measured reliably, and it is probable that income will be received. Grants and donations received for the general purposes of the Charity are included as unrestricted funds.. grants and donations for activities restricted by the wishes of the donor are taken to restricted funds. Donated assets are initially recognised at an estimate of its carrying value at the time of transfer. Expendlture Liabilities are reco8N15ed as expenditure as 500n a5 there is 3 legal or constructive obligation committingthe Charity to make a payment to a third party or it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliablv. Expenditure 15 included in the accounts on an accruals basis and includes attributabl8 VAT, which cannot be recovered. Expenditure is allocated to the particular activity on a direct basis or by allocation based on the level of direct expenditure relatirig to that activity. Expenditure comprises the following.. a. The cost5 of charitable activities comprise expenditure related to the Charity 's prirnary charitable purposes. Such costs include.. General overhead costs Related support costs b. The cost of raising funds comprises expenditure related to the Chariv expenses in relation to raising funds for the Charity. Such costs include.. Related support costs c. Support costs are the costs associated with the governance arrangements of the Charity and the general running of the Charity. Included within this category are costs associated with the strategic management of the Charitrfs activities as opposed to day-to-day management. Support costs are allocated on the basis of time spent of these attivitie5. 16 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements (continued) For the period ended 31 December 2022 Tangible fixed assets Capitalisation policy of the Charity is that items over £l.000 in individual value are capitalised. Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each a55et over it5 estimated useful life. Buildin8 improvements Fixtures and fittings IT equipment 25% on straight line 25% on straight line 25% on straight line Oebtors Trade and Dther debtors are recognised at the settlement amount, less any provisions for non-recoverabilitv. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. 2.10 Cash at bank and in hand Cash at bank and in hand represents suth accounts and instruments thatare available on demand or have a maturityof less than three months from the date of acquisitions. 2.11 Creditors and proVisS Creditors and provision5 are recogni5ed when there is an obligation at the balance Sheet date as a result of a past event, it 15 probable that a transfer of economic benefrt will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the Charity anticipates it will pay to settle the debt. They have been discounted to the present value of the fvture cash payment where such discounting is material. 2.12 Taxation Center on Long-term risk is a rwstered Charity and therefore 15 not liable to income tax or corporation tax on come derived from its charitsble activities, as it falls within the various exemptions available to registered charitie5. 2.13 jUdmentS in apptying attountingpoli¢ies and key sources of estimation untsrtainty The preparation ofthefinancial statements require5 managementsto rnakejudgements, estimatesand assumptions that affect the arnounts reported for assets and liabilities as at the period end and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from these estimates. The Trustees believe that there are no areas Invo1ng Significant estimation, uncertainty or the application of significant judgement. 17 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements (continued) For the period ended 31 December 2022 Donations & legacies Unrestrlcted fund Restrlcted fund Total fund Period from 7 July 2021 to 31 December 2022 Perlod from 7 July 2021 to 31 December 2022 Perlod from 7 July 2021 to 31 December 2022 Donations 18,774 18.774 Grant5 3,184,160 118,787 3,302,947 Gift Aid income 4,693 4.693 Grants from EAF group- Donation in KindlNote 171 48,611 48.611 3.256,238 118,787 3,375.025 Other income Unrestritted fund Restrirted fund Total fund Perlod from 7 July 2021 to 31 December 2022 Perlod from 7 July 2021 to 31 December 2022 Perlod from 7 July 2021 to 31 Detember 2022 Other income 56 56 56 56 Raising funds Unrestrided fund Restrirted fund Total fund Period from 7 July 2021 to 31 December 2022 Period from 7 July 2021 to 31 December 2022 Period from 7 July 2021 to 31 Detember 2022 Allocated staff cost Inote 71 3.154 3.154 3,154 3,154 18 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements Icontinuedl For the period ended 31 December 2Q22 Expenditure on charitable activities Unrestricted fund Restricted fund Total fund Period from 7 July 2021 to 31 December 2022 Period from 7 July 2021 to 31 December 2022 Period from 7 July 2021 to 31 December 2022 Grants (note 81 Other expenditure on charitable activities (note 71 4,878 1,712,915 4,878 1.712.915 1,717,793 1,717.793 Analysis of total expenditure Raising fund5 (note Sl Charitable activities (note 61 Total fund5 Staff Costs (Note 161 Grants INote 81 Travel & Accommodation Staff Welfare expenses Contractors, expense5 Other professional services Insurance Rent & Maintenance expenses Immigration Bank fees Furni5hing5 undei £lOOO Telephone, Printing & Stationery Software expenses IT equipment under £lOOO Events other operational expenses Depreciation Loss on disposal of assets Bank Revaluation5 Unrealised Currency Gains Realised Currency Gains Total support costs 3.IS4 878.823 4,878 110.943 68.562 56,542 3,923 3,197 237.934 5,308 9,132 10,937 25,791 75.681 6,374 61.643 8,230 44,942 42.012 5,057 412 11531 1.660.168 881.977 4.878 110,943 68.562 56,542 3.923 3.197 237.934 5.308 9.132 10.937 25.791 75.681 6.374 61.643 8,230 44,942 42.012 5.057 412 11531 1.663,322 3.154 Governance cost Legal fees Audit fee5 Accounting fee5 39,109 10.000 8,516 39,109 10.000 8,516 Total charltable actlvlties 57.625 1.717.793 S7.625 1.720,947 Total Expendlture 3.154 19 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements (continued) For the period ended 31 December 2022 Grants Unrestrirted fund Period from 7 July 2021 to 31 December 2022 RestrictÈd fund Period from 7 July 2021 to 31 December 2022 Total fund Period from 7 July 2021 to 31 December 2022 Scholarship awarded to Individual 4,878 4078 4.878 4.878 Audltors. remuneratlon Period from 7 July 2021 to31 Oetèmbèr 2022 Audit fee 10.000 10.000 10. Trustees, remuneratlon No trustees received any emoluments for their services as trustees during the period. Reimbursement of expenses incurred by Trustees are disclosed in Note 17. 11. Tangible F5xed Assets Bulldlng Improvements Flxtures and Flttlngs IT Equlpment Total Cost Additions Donated Assets Disposal At 31 December 2022 567,354 8.711 116.2181 559,847 22,798 22,702 122,7021 22,798 17,823 17.198 117.1981 17,823 607,975 48.611 156,1181 600,468 Depreciation Charge for the period Di5P05a15 At 31 December 2022 29,325 14.1321 25,193 7,458 15.6761 1,782 8,159 14,3001 3,859 44,942 114,1081 30.834 Net book value At 31 December 2022 534,654 21,016 13,964 569,634 20 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements (continued) For the period ended 31 December 2022 12. Debtors 2022 Other debtors 252,141 25,832 277.973 Prepayments 13. Creditors 2022 Trade creditors 60,575 964 Taxation and Social security Accruals 46,290 107,829 14. Analysis of Movement in Funds Unrestricted fund Perlod from 7 July 2021 to 31 Detember 2022 Restricted fund Perlod from 7 July 2021 to 31 December 2022 Total fund Perlod from 7 July 2021 to 31 December 2022 Income Expenditure Balante as at 31 Dember 2022 3,256,294 11.720.9471 1,535,347 118.787 3.375,081 11,720.9471 1,654,134 118,787 The restricted fund relates to CLR Fund which is used to make grants to organisations and individuals working to advance CLR'S priorities, for example supporting independent researchers. IS. Analysis of assets between funds Unrestrlcted fund Restrlcted fund Total fund Tangible fixed assets Current assets 569,634 1,073.542 1107,8291 1,535.347 569,634 1.192,329 1107.8291 1.654,134 118,787 Balance as at 31 December 2022 118,787 21 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements (continued) For the period ended 31 December 2022 16. Analysls of staff costs Ralslng funds Charltable activities Total fund 2022 2022 2022 Salaries Employer'5 national insurance Employer's pension contributions Total staff costs 2,735 285 134 757.7 83.002 38,031 760.525 83,287 38,165 3,154 878,823 881.977 The number of employees whose remuneration (including taxable benefits but excluding employerfs pension contributions) was £60,000 or more during the year were as follows= 2022 £60,000 - £70,000 £70,000 - £80,000 £80,000 - £90,000 £90,001- £100.000 The average number of staff during the period of report lon a head Count basis) was 15. The key management personnel comprise of the trustees and the senior management team. who have the authority nd responsibility for plannin& directing and controlling the activities of the Charity, under the guidance of the trustee5. Tot31 salary given to key management personnel duringthe period was £245,564. Trustees are not remunerated fortheir services. 17. Rèlated Parties During the reporting period the following transactions occurred with related parties.. Unrestricted donations and grants totalling £2,731,439 were received from related parties during the reporting period. The Charity reimbursed out of pocket expenses incurred by trustees in tarrying out their duties on behalf of the Charity durin8 the reporting periods as follow5: A total of £6,983 of travel expense5 were met relating to 4 trustees. £115 of computing expenses were met relating to I trustee. £67 for food expenses were met relating to I trustee. £108 for office supplies were met relating to I trustee. No amounts were due to these trustees at period end. 22 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067
Center on Long-term Risk Notes to the financial statements (continued) For the period ended 31 December 2022 16. Related Parties Icontinuedl Donatlon In klnd: A research project previously operated by Effective Altruism Foundation I'EAF Switzerland") was taken over by Center on Long-term Risk, and the physical assets used by the former in relation to thi5 project were also transferred to the Charity on 31 December 2021 as part of this arrangement. The carrying values of the assets transferred were as follows.. 2022 Building Improvements Furniture & non-IT equipment over £lOOO IT equipment over £lOOO Total 8.711 22.702 17,198 48.611 An equivalent amount has been recorded within income frtsm donations, effectively reflecting the receipt of donated asset5, and the above amounts have been taken to equal the deerned c05t of the relevant assets foi these account5. There were no other related party transactions during the period of report. 18. Commitments under operating lease As at 31 December 2022, the Charity has future minimum lease payments due under non-cancellable operating leases for each of the following period5'. 2022 Not later than l year Later than l year and not later than S years Total 388.094 323,412 711.506 23 Doc ID.. 54c290a578fa959c947dac24b7eccd121ac90067