Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 Charity number-. 1196957 TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 AEONIAN FOUNDATION MENZIES BRIGHTER THINKING
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION CONTENTS Page Reference and administrative detsils of the Charity, its Trustees and advisers Trusta•s' raport Independent auditors. report on the financial statements Statement of financial activities 10 Balance sheet Statement of cash flows 12 Not•s to th• financial statam•nts 13-20
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 DECEMBER 2022 Trustees Andrew Pegg Michelle Roberts Myriam White Jeremy Hawkey Charity registered number 1196957 Registered office Menzies LLP Centrum House 36 Station Road Egha Surrey TW20 9LF Independent auditors Menzies LLP Chartered Accountants Centrum House 36 Station Road Egharn Surrey TW20 9LF Bankers HSBC PL 8 Cork Str88t London W1S3LJ Sollcltors BDB Pitmans LLP One Bartholomew Close London EC1A 7BL Investment Advisors HSBC PLC 8 Cork Street London W1S3LJ Page 1
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION TRUSTEES, REPORT FOR THE PERIOD ENDED 31 DECEMBER 2022 The Truste8s pres8nt their 8nnLJal report together with the audited financial statements of th8 Charity for the period 6 December 2021 to 31 December 2022. The Trustees conlirm that the Annual report and financial staternents of the ehaiitable cornpany comply with the current statutory requirements, the requirernents of the charitable Incorporated organisation's governing document and the prtrvisions of the Statement of Recommended Practice ISORPI applicable to eharities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffective 1 January 20191. Oblectlves and actlvltles a. Pollcles and oblectlves The objects of the CIO are such exclusively charitable purposes as may be detemiined from time to time by the charity trustees. The Charity Truste8s' curr8nt priorities are.. advancing éducation of disadvantaged persons by developing th8ir tnental, physical and tnoral c8pabiliti85 through educational services or leisure tirne actiwts"85,' the relief of tnental or physical illness and the preservation of health among disadvantaged persons,. working to prevent or relieve poverty or homelessness., and promoting sustainable development through the preservation, conservation and protection of the environment and the prudent use ol resources. The Charity s current policy is to make grants to registered charities based in the United Kingdom and with proven track records in their particular areas of activity. In setting objectives and planning for aotivities, the Trustees have given due consideration lo general guidance published by the Charity Commission relating to public benefit, including the guid8nce'Public benefit.. running a charity IPB21'. b. Strategi85 for achieving objective$ The Charity achieves its objectives by supporting organisations selected by the Trustees and in particular by making grants. c. Grant-making polici•s The Trustees award grants which are most likely to further the Charity's purposes efficiently and effectively. In particular.. the Trustees allocate the available funds according to the relevance of the organisation's work lo the objects and strategic aims of the Charity, the number ol individuals likely to benefit from the organisation, the quality and value of the benefit the organisation is able to provide. the resources and financial health of the organisab'on and the efficiency and security of the administrative systems and processes used by the organisation., and the Trustees wll consider supporting sm811er and less well-known organisations if the Trustees determine they have an ability to achieve real growth and deliver a meaningful and significsnt impact in furtherance of the Charity's purposes, or organisations which may bg large but do not have a regular funding base as the U$ is perhaps 1855 popular. Applications from organisations or groups which are not registered charities may be considered at the Trustees, discretion, Whe the trustees ctsnsider they can be satisfied that the grant is applied foi chaiitable purposes. The Trustees prefer not to receive unsolicited applications from organisalions and these wll only be considered in eXpIlOnal circumstances and will support in priority the work of organisations whose work is known to them or can be readily inspected and where they can be assured that the grant is being applied lor the purposes for which it is given. The size of grants awarded is entirely at the discretion of the Trustees ol the Charity and there is no fixed size. The Trustees are willing to make grants to support both core funding and specific projects. The Trustee5 Intend to develop long term strategic relationships with the Ch3rity's grant recipients and intend, therefore, to support organisations On 8 rnulti-y8ar basis where appropriate, in ord8r to est8blish a meaningful and ongoing relationship with the r8cipient. Page 2
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE PERIOD ENDED 31 DECEMBER 2022 The Truste8s acknow18dge they have a duty to avoid exposing the Charity s resource5 and reputation to in8ppropri8te risk and agree, therefore, to carry out a risk assessment as to proposed grants. As part of this, the Trustees will carry out proportionate and effective due diligence, including appropriate vetting procedures Ithe level of which Should take Into account the value of the proposed grant) including due diligence on the identity and background and goveinance procedures of the recipient and any partners with whieh the recipient will work, and on the proposed use of the grant and how this wll advance the Charity's objects. The Trustees will meet approximately four limes a year to consider the award ol grants. Potential grant recipients will be required lo submit a 'proposal' setting out the activities on which the grant would be used, the anticipated impact, as well as the projected expenditure and grant funding requirements and related timescales. All grant CIpients will be asked to acknowledge the distribution. to comply with the reporting mechanisms and to sign any grant agreement provided by the Trustees. The Trustees shall receive and consider reports on grant expenditure by exisling granl recipients. as required under the grant documentation entered into with the grant recipient. A Comprehensive rne8surement system will be put in place to assess the impact of contributions and mak8 8djustrnents with a forrnal annual review proces5. It is expected that the amount of funding allocated to 8ach organisation will vary d8p8nding on their succ855 and credible future plans but as far as p0551ble each wll b8 SUPPOrt8d on a long-t8rm basis with only gradu81 adjustments to funding allocations. Achi8vements and performance a. Maln achl•vamanis of th• Charlty The Charity made grants of £581,250 to supported organisations during the period. A further £351,116 was aulhorised and paid shortly after the year end. Unconditional grant cornmitments al the year end were £261,424, making total grants recognised in these accounts of £1,193,790. Organisations to support were carefully selected following extensive research and dialogue with the organisations. During 2022, the charity's first year, nine org8nis8tions were selected to receive support, Iwo operating in South Africa, three in M8dagascar and four in the UK. These organisations offer services in health, education, disabilities. homelessness and environtllent81 improvement. Each oiganisation was assessed to fully understand their scale and iequiiements and appropriate quarterly unrestricted funding grants were provided to them to enable them to build their capacity to successfully delivei more projects in subsequent years. Some specific restricted funding was provided to support rural health improvement projects in South Africa and Madagascar. b. Investment policy and performance The CIO will have the majority of its funds invested in a HSBC investment portfolio advised on by a professional HSBC investment manager. Whilst these funds wll typically rise and fall with the global stock markets, over a long period of time they are expected to make an above inflation rate return. currenuy assurned to be +2010. The expected rate of return is related to the risk f8¢tor decided for the porttolio which will be reviewed frorn time to time. The majority will initially be invested in a gener81 fund called a Core Multi-asset Solution ICMSI but OV8r titne a greater proportion wll be assigned to higher risk, higher volatility, lower liquidity investrnents including private equity IPEI and funds specifically aligned with the CIO'S objeetives (Thematiel. All funds will be invested into ctsllective investment funds, not individual shares, bonds tsr other investments. Funds VAII be selected to be ethical and sustainable, initially on the basis ol avoiding unethical or non-sustainable invesimenls through negative screening. As the Pcirtlolio develops an increasing focus will be placed on selecting specific ethical and sustainable investments through positive screening. Consideration will be given to investing a proportion of the funds into social investment funds at a lower than rnaxirnum possible expected return but this will always be balanced against the opportunity cost the CIO of lower future funds being available for grants. All investment decisions will be det8rmined by the CIO'S inv8stment committ8e consisting of at18ast two trustees norninated by the majority of trust885 from tin18 to time. Page 3
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE PERIOD ENDED 31 DECEMBER 2022 Advice will always be sought from profession81 investrn8nt advisors, initially from HSBC Privste Bank. In the event that th8 investment cornmittee decide to rnake any investrnents which have not been recommended by HSBC, e.g. social investments or non-HS8C approved funds, they will seek explicit majority approval from the full board ol trusteès. The investment committee will report to the full board of trustees annually on investment performance and any material changes in investment strategy, risk profile, investment advisors or fund managers. During the period a loss of £376,765 was made on investments due to the adverse financial circumstances in 2022 including those arising from the Ukraine conflict. Financial review During the period the Charity received initial funding of £27,610,316 on which Gift Aid of £6,881,999 was receivable lowing at th8 year 8ndl. - Going concern After making appropriate enquiries, the Ttustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concem basis can be found in the accounting policies. b. Reserves pollcy Total funds at the year end were £33,016,011. The Charity does not maintain specific reserves but a substantial proportion of its investment portfolio is held in liquid investrnents which can be withdrawn al short notice1£26.578,1941. In a addition HSBC provide a Lombard Loan facility secured on the investrnents held wth them from which funds rnay be drawn down on The Trustee5 wish to use funds to 5UPPQrt the chosen charities with amount to be alloted each year. e. Principal funding The funding of the Charity has come from donations, ¥¥hich are invested to produce investment income and capital growth. Structu. governance and management a. Constitution Aeonian Foundation is registered as a charitable inwrporated organisation ICIOI and was set up under a constitution dated 6 December 2021. b. Method5 of appointment or election of Trustees The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the constitution. c. Pollcles adopted for the Inductlon and tralnlng of Trustees All trustees register lor the Institute ol Chartered Accountants in England and Wales online trustee training course and cornplete the modules which are relevant to their role and the requirements of the foundation. d. Related party relationships Non8 Financial risk management The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and fInanS of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. Page 4
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE PERIOD ENDED 31 DECEMBER 2022 The rnain risk considered by the TrLJStees is investTnent performance and the Trustees have appointed HSBC Private Banking to manage the investrnent portfolio on their behalf. Plans for futura p•rlods The charity intends to extend its support to approximately tswelve organisations by the end of 2023 and provide significant extra project grants to nine organisations it stsrted supporting in 2022. The budget for 2023 has been agreed by the trustees at £1.5m with the majority ol the prospective projects identified and plans being developed. All supported organisations will continue to receive appropriate levels of unrestricted funding to ensure they have the resources required to execute this expanded level of project work. Statement of Trust&es' responsibilities Th8 Truste85 are r8spon5ible for pr8paring the Trust88s' report and the financial st8t8m8nts in accordanc8 Wlth applicabl law and Unit8d Kingdotn Accounting Standards IUnit8d Kingdorn G8n81ally Acc8pt8d Accounting PiactiC81. Charity law requires the Trustees to prepa financial statements for each financial period. Under charity law, the TrLJStees must not approve the financial statements unless they are satisfied that they give a true and fair view ol the state ol affairs ol the Charity and ol its incoming resources and application ol resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently., observe the rnethods and principles of the Charitses SORP IFRS 1021,. make judgments and accounting estimates that are reasonable and prudent., stste whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the fin8nci31 ststements., prepare the financial 5tatemgnts on the going conGern basis unless it is inappropriat9 to presutng that the Charity will continue in busines5. Auditors The auditors, Menzies LLP, have indicated their willingness to continue in office. The Trustees wll proSe a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by.. Do¢uS*n•dtsy'. PL# 4CD3 Arhdrew Pegg Chair Date.. 07-Jul-2023 Page 5
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION MENZIES INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF AEONIAN FOUNDATION Opinion We have audited the financial 5taternents of Aeonian Foundation (the 'Charity'l for the period ended 31 Decernber 2022 which Comprise the Statement of Iinaneial activities, the Balance sheet, the Statement of eash flows and the lated notes, including a summary of significant accounting policies. The financial reporting framework thal 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 of Ireland, (United Kingdom Generally Accepted Accounting Practi1. The financial statements have been prepared in accordan with Accounting and Reporting by Charities preparing their accounts in accordance Mqth the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021" in preference to the °Accounting and Reporting by Charities.. Statements of ReMmended Practice issued on 1 April 2005 which is referred to in the extant regLJlations bLJt has been withdrawn. This has been done in order for the financial statements to provide a true and f8ir view in accordance with the Generally Accepted Aocounting Practi effective for reporting periods beginning on or after 1 January 2019. In our opinion the financial statements.. give a true and lair view of the state ol the Charity's affairs as at 31 Decernber 2022 and of its incoming resources and application of resources. including its income and expenditure for the period then ended.. have been properly prepared in 8ccord8nce with United Kingdom Generally Accepted Accounting Pr8CtiC8,' 8nd have been ppared in accordan with Aeeounting and Reporting by Charities preparing their aeeounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and in other respecis the requirements of the Charities Act 2011. Basls for oplnlon We conducted our audit in aCrdan with International Stsndards on Auditing IUKI IISAS IUKII and 8pplicable law. Our responsibilities und&r thos8 Standards are further described in th8 Auditors, responsibilities for th& audit of the financial statements section of our r8POrt. W8 are ind8pend8nt of the Charity in accord8nC8 Wlth th8 8thical requirements that 8re r81evant 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 requirernents. We believe that the audit evidence we have obtained is sufficient and appropriate to promde a basis lor our opinion. Concluslons relatlng to golng 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 the work we h8ve perforrned, we have not identified any rn8terial uncertainties relating to events or conditions that, individually or coll&ctively, may Cast significant doubt on the charity's ability to contlnug as a going concern for a p8riod of at least twglvg rnonths from when the financial statements arg authorised for issug. Our responsibilities and the responsibilities of the Ttustees with respect to going coneern are described in the relevant sectitsns ol this reptsrt. Page 6
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF AEONIAN FOUNDATION (CONTINUED) Othèr Infom)atlon The other information comprises the inforrnation included in the Annual report other than the financial statements and our Auditors. report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any fonn of assurance conclusion thereon. Our responsibility is to read the other inforrnation and, in doing so, consider whether the other inforrn8tion is materi811y inconsistent with the financial st8ternents or our knowlgdge obtained in the wurse of the audit, or othgrwise appears to be materially misststed. If we identify such material incon5iStencies or apparent materi81 tMisst8tements, we are rgquir8d to detertlline whether this gives risg to a material misstaternent in th8 financial staternents themselves. If, based on th8 work we have p8rformed, w8 conclude that there is 8 material misstaternent of this other infortnation, we are required to report that fact. We have nothing to rert in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the followng matters where the Charities (Acwunts and Reports) Regulations 2008 requir8s us to report to you if. in our opinion.. the information given in the financial statements is inconsistent in any material respect with the report of the Trustees., or sufficient accounting records have not been kept., or the Charity's financial ststements are not in agreement with the accounting records., or Wg h8V8 not received all thg information and explanations we requir8 for our audit. Responsibilities of truste85 As explained more lully in the Trustees, responsibilities statement, 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 contrtsl as the Trustees detemine is necessary to enable the preparation of financial statements that are free from material misstatement, 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, disclosing. as applicable, matters related to going concern and using Ihe going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 7
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF AEONIAN FOUNDATION (CONTINUED) Audltors. rasponslbllltlos for th• audlt of the flnanclal statam8nts Our objectives are to obtain reasonable assurance about whether the financial staternents as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, report that includes ourour opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements Can arise frorn fraud or error and are considered material if, individu8lly or in the aggregate, they could reasonably be expected to influence the econornic decisions of users tsken on the basis of these fin8n¢i81 st8ternents. Irregularities, including fraud, are instances of non-complianc8 With 18ws and r8gul8tion5. We design procedures in line with our our iesponsibilities, outlined above, to detect tnateiial misstatements in respect of iiregularities, including fraud. The extent to which our our procedures are capable of detecting irregularities, including fraud is detailed below". The Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including the Charities Act 2011 and the Data Piot8ction Act 2018. We assessed th8 8Xtent of cotnplianc8 with th858 laws and r8gulations as part of our procedures on the related linanaal statement Items. We understood how the Charity is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes. The engagement partner assessed whether the engagement team collectively had the appropriate cornpetence and capabilities to identify or recogntie non-compliance with laws and regulations. The assessment did not identify any issues in this area. We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur. We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas.. posting of fraudulent journal entries, authorisation, processing, and payment of fraudulent grant claims and tirning ol revenue recognition. Audit procedures perforrned by the engagement tearn included.. ldentifw.ng and assessing the design effectiveness ol controls management has in place to prevent and detect fraud-, Understanding how those charged with govemance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporng process., Remewing the system for authorising grant payments. Challenging 3SSUtnptions and judgrnents made by management in it5 significant accounting estim8tes,' and Identifying and testing journal entries, in partieular any joumal entries pc>sted with unusual aeeount eombinations. ecause of the inherent limitations of an audit, the is a risk that wewè will not detect all irregularities, ineluding those leading to a material misstatement in the financial statements or non-eomplianee with regulation. This risk inereases the more that complianee with a law or regulation is removed from the events and transactions reflected in the financial statements, as we we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. wNw.Irc.or .uklaudilorsres onsibilities. This description forrns part of our our Audiiors. report. Page 8
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF AEONIAN FOUNDATION (CONTINUED) Usè of our rèport This report is made solely to the Trustees in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 Our audit work has been undertaken so that we might state to the Trustees those matters we are required to state to them in an Auditors, report and for no other purpose. To the fullest extent perrnitted by law, we do not accept or assume responsibility to anyone other than the Trustees for our audit work, lor this report. or for the opinions we have P.ned by.. .11¥16*tLV71 Chartered Accountants Statutory Audilor Centrum House 36 Station Road Egham Surrey TW20 9LF D8te.. 12-Jul-2023 Menzies LLP is eligible to act as an auditor in temis of section 1212 of the Companies Act 2006 Page 9
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE PERIOD ENDED 31 DECEMBER 2022 Unrestricted funds 2022 Total funds 2022 Not• Income from: Donations and legacies Investments 34.492,315 148,589 34.492,315 148,589 Total Sncome 34,640,904 34,640,904 Expenditure on= Raising funds Charitable activities 54,766 1.193,362 54,766 1.193,362 Total expenditure 1.248,128 1.248,128 Net income before net losses on investments Net losses on investments 33,392,776 137e,7651 33,392,776 1376,7651 Net movement in funds 33,016,011 33,016,011 R•eoneiliation of funds.. N9t movemgnt in funds 33,01fj,011 33.016,011 Total funds carrled forward 33,016,011 33,016,011 The Ststement of financial activities includes all gains and losses recognised in the period. The notes on pages 13 to 20 form part of these fin8nci81 ststements. Page 10
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION BALANCE SHEET AS AT 31 DECEMBER 2022 2022 Not• Fixed assets Inv8stm8nts 26.578.194 26,578,194 Current assets Debtors 12 6,918.797 484,12S Cash at bank and in hand 7,402.922 Creditors.. amounts falling due wthin one year 13 1902,6051 Nét current assèts 6.500,317 Total assets less current liabilities 33,078,511 Creditors.. amounts falling due after more than one year 14 162,500} Net assets excludlng pensSon asset 33,016,011 Total nèt ass•ts 33,016,011 Charity funds Restricted funds 16 Unrestricted funds 16 33,016,011 Total funds 33,016,011 The financial ststements were approved and authorised for issue by the Trustees and signed on their behalf by.. Do¢usbJntsY'. ACD3 Andrew Pegg Chair Date". 07-Jul-2023 The notes on pages 13 to 20 form part of th8s8 fin8nci81 st8t8m8nt5. Page11
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2022 2022 Cash flows from operating activities Net cash from operating activities (Note 171 26.955.844 Cash flows from investing activities Purchase of investrnents Dividends and interest 126,948,135) 148,589 Net cash used in investing activities 126,799,546} Cash flows from financing a1VitieS Cash inflows from new borrowing 327,827 Nat cash prOvId by financlng actlvltlos 327,827 Change In cash and cash equlvalents In the perlod 484,12S Cash and cash equivalents at the beginning ol the period Cash and eash •quival•nts at th• ènd of thè rItsd INotè 181 484,125 The notes on pages 13 to 20 form part ol these financial statements Page 12
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 G•naral Infomiatlon The Aeonian Foundation is a Charitable Incorporated Organisation, and incorporated in England & Wales. The registered address can be found on page 1 and principal activities are sel out in the Trustees, Annual Report. Accountlng pollcles 2.1 Basis of preparation of financial ststements The fin8nci81 st8ternents have been prepared in accordance with the Charities SORP IFRS 1021 Accounting nd Reporting by Chariti85.' Stat8fT18nt of Recommended Practice applicab18 to chariti8s preparing their accounts in accordance Wth the Financial Reporting Standard applicable in the UK and R8public of Ireland IFRS 1021 leffective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. Aeonian Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwse ststed in the relevant accounting policy. 2.2 Income l income is recognised once the Charity has entitlement to the incorne, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 2.3 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer eoonornic benefit to 8 third Party, it is probable that a transfer of 8conornic b8n8fits will be required in s8ttlern8nt and th8 amount of th8 obligation can be m8a5ured r81iably. Expenditure is classifiéd by activity. Th8 costs of 8ach activity 8r8 made up of the total of direct costs and shar8d costs, induding support cost5 Involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single acts.vity are apportioned between those activities on a basis consistent with the use ol resources. Central staff costs are allocated on the basis ol time spent, and depreciation charges allocaled on the portion ol the asset's use. Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of investment management. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. Grants payable are charged in the period when the offer is made exp1 in those cases where the offer is conditional. such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been rnet 8t the period end are noted as a commitment, but not accrued as expenditure. 18XP8nditur8 is inclusiv8 of irrecov8rabl8 VAT. Page 13
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 Aceountlng pollclès leontlnuadl 2.4 Forèlgn currènelas Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statement of financial activities. 2.5 Investments Fixed asset investrnents are a form ol financial instrument and are initially recognised at their transaction cost and subsequently Measured at fair value at the B8lan¢e sheet date. unless the value cannot be measured reliably in which Case it is rne8sLJred at cost less impairment. Investrnent gains and losses. whelher realised or unrealised, ar8 combined and pres8nted as 'GainsllLossesl on inv8Stn18nts' in the Statement of financi81 actiMti85. Investments held as fixed assets are shown at cost less provision for impaiment. 2.6 Cash at bank and in hand Cash at bank and in hand includes cash and short-tem highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.7 Llabllltles and provlslons Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised al the amount that the Charity anlicipales it will pay to setlle the debt or the amount it has received as advanced payments for the goods or seNices it must provide. 2.8 Financial instruments The Charity only has financi818ssets and financial liabilities of 8 kind that qualify as basic financial instruments. Basic finanoial instrurnents are initially recognised at transaction value and subsequently me8sured at their S8tt1ement value with the exception of bank 108ns which ar8 subsequently measur8d at arnortisgd cost using the effective interest method. Page 14
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 Income from donatSons and legacles Unrestricted funds 2022 Total funds 2022 Donations Gift Aid Recovered 27,610,316 6,881,999 27,610,316 6,881,999 34,492,315 34.492,315 Investment income Unrestricted funds 2022 Total funds 2022 Income frorn listed investrn8nts Interest 111,791 36,798 111,791 36,798 148,589 148.589 Investment management costs Unrestricted funds 2022 Total funds 2022 Investrnent management fees 54,766 54,766 Page 15
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 Analysls of grants Grants have been awarded to the following organisations in support of the Charity's grant making programme'.- 2022 SEED M8dagascar Feedback Madagascar Africa Tikkun 160,004 157,500 36,000 75,000 105,490 75,000 331,046 56,250 167,500 30,000 Treloar Trust Solar Aid st&p by St8P Money for Madagascar Starfish Greathearts Madagascar Yateley Industries Khula Education 1.193,790 Analysls of expendtture on charltable actlvltles Summary by fund type Unrestricted funds 2022 Total 2022 Direct costs 1,193,362 1.193,362 Page 16
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 AnalysSs of expendlture by actlvltles Grant funding of a1VitieS 2022 Support Costs 2022 Total funds 2022 Activities 1.193.790 14281 1,193,362 Analysis of support costs Total funds 2022 Activities 2022 Bank int8rest 3,506 137,2691 33,335 3,506 137,2691 33,335 Currency gainsllosses Governance costs 14281 14281 Audltors, remuneratlon 2022 F88s payable to the Chaiity'5 auditor for th8 audit of the Charitls annual accounts 8,700 Fees payable to the Charity's auditor in respect of.. Preparation of financial statements in accordance wth Charities SORP All ntsn-audit services not included above 2,400 12,558 10. Trustees. remuneratSon and expenses During the period, no Trustees received any remuneration or other benefits. During the period ended 31 Dmber 2022. no Trustee expenses have been inourred£-. Page 17
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 11. Flxèd assèt Invèstmants Llsted Investments Cost or valuatlon Additions 26.948.135 1376.7651 6,824 Revaluations Foreign exchange movernent Al 31 December 2022 26,578,194 Net book value At 31 December 2022 26,578,194 12. Debtors 2022 Due wlthln one year Other debtors 6,918,797 6.918,797 13. Cradltors.. Amounts falllng du• wlthln onè yèar 2022 ank loans Trade creditors 327,827 11,514 13,224 550.040 Accruals and deferred income Grants payable 902,605 Page 18
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 14. Credltors.. Amounts falllng due after more than one year 2022 Grants payable 62,500 15. Financial instrum•nts 2022 Finan¢ial assets Financial assets rreasured at fair value through income and expenditure 26,578,194 Fin8nci81 assets rn8asured at fair valu8 through income and 8xpenditure cornprise list8d investments. 16. Statement of funds Stat8ment of funds - curr8nt period Balance at 31 Dec*mbèr 2022 Gainsl (Losses) Income Expenditure Unrestricted funds General Funds 34,640,904 11,248,128) 1376,76SI 33,016,011 17. Analysis of net assets beeen funds Analysis of net assets between funds . current period Unrestricted funds 2022 Total funds 2022 Fix8d a5S8t inv85tm8nts 26,578,194 7.402,922 1902.6051 162,5001 26.578.194 7,402,922 1902,6051 162,5001 Current assets Crediiors due wthin one year Creditors due in more than one year Total 33,016,011 33.016.011 Page 19
Docusign En¥ÈlopÈ ID". 60CEOOCF-B59A-4D96-9B23-CC9AEF1C0875 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 18. Reconclllatlon of net movement In funds to net cash flow from operatlng actlvltles 2022 Net income for the period185 per Stalernent of Financial A¢tiMtiesl 33.016.011 Adlustments for: ILossesl on investmenis (net of foreign exchange movements) Dividends and Inte$t from investments 369,941 1148,5891 16.918,7971 637,278 Ilncieasel in debtors Increase in creditors Net cash provided by operating activities 26,95S,844 19. Analysis of cash and cash equivalents 2022 Cash in hand 484,125 Total eash and cash èquivalènts 484,125 20. Analysis of changes in net debt At31 December 2022 Cash flows Cash at bank and in hand 484.125 1327.827 484,125 1327,8271 Debt due within 1 year 156,298 156,298 21. Related party transactions During the year the charity received donations of £27.523.916 from Mr Andy Pegg. one of the trustees. 22. Post balance sheet events Since the y88r end the Charity has 8gre8d to loan one of its supported ¢h8rities £1.5m to fund its charit8bl8 activities secured on the supported charity's property and bearing interest at 10k over base rate. Page 20