Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 Charity number.. 1196957 TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 AEONIAN FOUNDATION MENZIES BRIGHTER THINKING
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION CONTENTS Page Reference and administrative detail8 of the Charity, its Trustees and advisers Trustees. report Independent auditors. report on the financial statements Statement of financial activities 10 Balance shaat 11 ststement of cash flows 12 Notes to the financial statements 13-22
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees Andrew Pegg Michelle Roberts Myriam White Jeremy Hawkey Charity registered number 1196957 Reglstered offlce Menzies LLP Magna House 18-32 London Road Staines-Upon-Thames TW18 46P Independent auditors Menzies LLP Chartered Accountsnts M8gn8 House 18-32 London Road Staines-Upon-Tharnes TW18 48P Bankers HSBC PLC 8 Cork Street London W1S3LJ Solicitors BDB Pitmans LLP One B8rtholomew Close London EC1A 7BL Investment Advlsors HSBC PLC 8 Cork Street London W1S3LJ Page 1
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The TIu5tees piesent their annual report together with the audited financial staternents ol the Chaiity foi the year ended 31 December 2023. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements ol the charitable incorporated organisation's goveming document and the provisions of the Statement of Recommended Practice ISORPI applicable to charities preparing their accounts in accordance with the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffective 1 January 20191. Objectives and activities a. Policie8 and objectives The objeds of the CIO are such exdusively charitsble purposes as may be determined from time to time by the charity trustees. The Charity Trustees. current priorities are.. advancing education of disadvantaged persons by developing their mental, physical and moral capabilities through educational services or leisure time activities.. the relief of mental or physical illness and the preservation of health arnong disadvantaged persons., working to prevent or relieve poverty or homelessness., and prornoting sustainable development through the preservation, conservation and protection of the environment and the prudent use of resouices. The Charity's current policy is to make grants to registered charities based in the United Kingdom and wrth proven track records in their particular areas of activity. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, induding the guidance 'Public benefrt.. running a charity IPB21'. b. Strategies for achieving objectives The Gharily achieves its objectives by supporting organisations selected by the Trustees and in particular by rnaking grants. e. Grant-making poliei•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 to the objects and strategic aims ol the Charity, the number of individuals likely to benefit from the organisation, the quality and value of the benefit the organisalion is able to provide, the resources and financial health ol the organisation and the efficiency and security ol the administrative systems and processes used by the organisalion., and the Trustees will consider supporting smaller and less well-known organisations if the Trustees deterrnine they have an ability to achieve real growth and deliver a meaningful and signrficant impact in furtherance of the Charity's purposes. or org8n15alions which may be large but do not h8ve a regular funding base as the cause is perhap5 less popul8r. Applications from organisations 01 groups which are not registered charities may be considered at the Trustees, discretion, where the trustees consider they can be satisfied that the grant is applied for charitable purposes. The Trustees prefer not to receive unsolicited applications from organisations and these will only be considered in exceptional 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 for the purposes for which it is given. The size of grants awarded 15 entirely at the discretion of the Trustees of the Charity and there is no fixed size. The Trustees are willing lo make grants lo support both core funding 8nd specific projects. The Ttustees intend to develop long term stiategic relationship5 with the Chaiity's giant recipients and intend. theiefoie. to support organisations on a multi-year basis where appropriate, in order to establish a meaningful and ongoing relationship with the recipient. Page 2
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The Ttustee5 acknowledge they have a duty to avoid exposing the Chaiity's resouice5 and reputation to inappropriate iisk and agree, therefore, to carry out a risk assessment as to proposed grants. As part of this, the Ttustees will cairy out proportionate and effective due diligence, including appropriate vetting procedures (the level of which should take into account the value of the proposed grant) including due diligenTr on the identity and background and governance procedures of the recipient and any partners with which the recipient will work, and on the proposed use of the grant and how this will advance the Charity's objects. The Trustees will meet approximately four times a year to consider the award of grants. Potential grant recipients will be required to 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 iecipienls will be asked to acknowledge the distribution, to comply with the reporting mechanisms and to sign any grant agreement provided by the Trustees. The Tiustees shall receive and consider reports on grant expenditure by existing grant recipients, as required under the grant documentation entered into with the grant recipient. A comprehensive measurement system will be put in place to assess the impact of contributions and make adjustments with a formal annual review prosS. It is expected that the amount of funding allocated to each organisation will vary depending on their success and credible future plans but as far as possible each will be supported on a long-term basis with only gradual adjustments to funding allocations. Achievements and performance a. Main achievements of the Charity The Chaiity made grants of £1,912,512 to 5UPPOrted org8nisations during the peiiod12022.. £581,250). Uncondition81 grant corntnitrnents at the year end were £183,067 12022". £612,540), tnaking total grants recognised In these accounts of £2,095,57912022". 21,193,790). A loan facility of £1.5M to a supported charrty was agreed this year, an initial amount of £1,245,964 was drawn down wvth the balance being available until May 2026. This was to enable the supported charity to refinance an existing loan at a more beneficial rate of interest and to provide additional finance to enable it to continue and develop its operations. Organisations to support were carefully selected following extensive research and dialogue with the organisations. During 2023, fourteen organisalions were selected lo receive support. three operating in South Africa. five in MadagaSr and six in the UK. These oig8nis8tions offer services in health. education. dis8bililies. homelessness and environment81 improvement. Each organisation was assessed to fully understand their scale and requirements and appropriate quartedy unrestricted lundirig grants were provided to them to enable them to build their capaaty to suctsssfLJlly deliver more projects in subsequent years. Some speafic 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 8 professional HSBC investment manager. Whilst these funds will typirally rise and f811 with the global stock matkels, over a long period of time they are expected to make an above inflation rate ietuin, currenuy 8ssumed to be +2P/o. The expected late of return is related to the risk factor decided foi the portfolio which will be reviewed frorn titne to time. The majority will initially be invested in a general fund called a Core Multi-asset Solution ICMSI but over time a greatei proportion will be assigned to higher risk, higher volatility, lower liquidity investments including private equity IPEI and funds specifically aligned with the CIO'S objectives (Thematicl. All funds will be invested into collective investment funds, not individual shares, bonds or other investments. Funds will be selected to be ethical and sustainable, initially on the basis of avoiding unethical or non-sustainable investments through negative screening. As the portfolio develops an increasing focus will be placed on selecting specific elhi¢31 and sustainable investments through positive screening. Consideration will be given to investing a pioportion of the funds into social inve5trnent lunds at a lower than maximum possible expected retum but this will always be balanced against the opportunty cost to the CIO of lower future funds being available for grants. All investment decisions will be determined by the CIO'S investment committee consisting of at least fv40 trustees nominated by the majority of trustees frorn time to time. Page 3
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Advi will always be sought fiotn piofes5ional investment advisors, initially from HSBC Private Bank. In the event that the investment committee decide to make any investments which have not been recommended by HSBC, e.g. soaal investments or non-HSBC approved funds, they will seek explicit majority approval from the full board of trustees. The investment committee will report to the full board of trustees annually on investment perfom)ance and any material changes in investment strategy, risk profile, investment advisors or fund managers. During the period a gain of £1,996,458 was made on investments in 2023. Financial review No donations were received in the period to December 2023 12022." donations and tax recovered of £34,492,315). Investment income amounted to £706,47912022." 2148,5891. After deducting grants paid and overhead costs and accounting for investment gains the charity made a net surplus of £344,82512022'. £33,016,011). a. Going Goncern After making 8ppropriale enquiries, the Trustees have a reasonable expectation that the Charity has adequate resour$ lo continue In opeiation81 existence for the foreseeable future given the substantial reserves. For this reason. they continue lo adopt the goin9 conc&m basi5 in pieparing the financial statem8nts. Further details 18g8rding the adoption of the going concern basis can be found in the accounting policies. b. Reserves pollcy Total funds at the year end were £33,380,83612022.' £33,016,011) The Charity does not maintain speafic reserves but a substantial proportion of its investment portfolio is held in liquid investrnents which can be withdrawn at short notice 1£34.875,837112022.' £26,578.1941. In addition HSBC provide a Lombard Loan facility secured on the investments held with thern from which funds may be drawn down on demand. The Trustees wish lo use funds lo support the chosen ch8rilies with an amount to be allotted each year. c. Principal funding The funding of the Charity has come from donations, which are invested to produ investment income and capital growth. Structure, govemance and management Constitution Aeonian Foundation is registered as 8 ¢haril8ble incoiporaled organi$81ion ICIOI and was Sel up under a constitution dated 6 December 2021. b. M•thods of appointmènt or èlèction of Trustèas The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the tems of the constitution. c. Policies adopted for the induction and training of Trustees All trustee5 register for the Institute of Chartered Accounlanls in England and Wales online trustee training course and complete the modules which are relevant lo their role 8nd the requirements of the foundation. d. Related party relation¥hip¥ None Page 4
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 è. Financial risk rnanagement The Trustees have assessed the major iisks to which the Charity is exposed, in particular those ielated to the operations and finances of the Charity, and are satisfied that systems and procedures are in pla to mitigate exposure to the major risks. The rnain risk considered by the Trustees is investment perf0rnan and the Trustees have appointed HSBC Private Banking to manage the investment portfolio on their behalf. Plan8 for future periods The chaiity intends to extend its support to approximately Fifteen organisations by the end of 2024 and provide significant extra project grants to nine organisations it started supporting in 2022. The budget for 2024 has been agreed by the trustees at £2.5m with the majority of the prospective projects identified and plans being developed. All supported organisations will continue to receive appropriate levels ol unrestricted funding to ensure they have the resources required to execute this expanded level of project work. Statement of Trustees. responsibilities The Trustees are responsible for preparing the Tiustees, report and the fin8nci81 statements in accordan with applic3ble law and United Kingdom Accounting Standaid5 IUnit8d Kingdotn Gen8rally Acc8Pt8d Accounting PractlC81. Charity law requires the Trustees to piepare financial statements ft>i each financial period. Under charity law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and lair view of the state of affairs of the Charity and of its incoming resources and application of 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 methods and principles of the Charities SORP IFRS 1021.. make judgments and accounting estimates that are reasonable and prudent.. slate whether applicable UK Accounting Standards IFRS 1021 have been followed. subject to any materi81 departures disclosed and explained in the financial statements, prepare the financial statements on the going conrn basis unless it is inappropriate to presume that the Charity will continue in business. Auditors The auditors, Menzies LLP, have indicated their willingness to continue in offi. The Trustees will propose 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." $1gNd by.. 4CD3 Andrew Pegg Chair Date.. 24 September 2024 Page 5
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION MENZIES INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF AEONIAN FOUNDATION Opinion We have audited the financial statements of Aeonian Foundation Ithe'charity'l for the year ended 31 December 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, induding 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 Finanaal Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practicel. The financial statem8nts have been prepared in 8ccordance with "Accounting and Reporting by Ch8rrties pieparing th8ir accounts In accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021" in preferents to the 'Accounting and Reporting by Chaiities. Statements of Recommended Practice" Issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. This has been done in order lor the financial statements to provide a true and lair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019. In our opinion the financial statements.. give a tiue and fair view of the state of the Charity's affairs as at 31 Decetnber 2023 and Of its inctstning resources and application ol resources, including its income and expenditure for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in 8cwrd8nce with the Fin8nci81 Reporting St8nd8rd applicable in the UK and Republic of Ireland IFRS 10218nd in othei respects the requirements of the Charities Aci 2011. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in aordanCe 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 fullilled our other ethical responsibilities in accordance with these iequiiements. We believe that the audit evidence we have obtained 15 sufficient and appropriate to provide a basis foi our opinion. Concluslons relatlng to golng concem In auditing the financial staternents, we have concluded that the Trustees. use of the going concem basis of accounting in the preparation ol the financial statements is appropriate. Based on the work we have perfonned. we have not identified any materi81 uncertainties relating lo events or conditions that. Individually or wllectively, rnay cast significant doubt on the ch8rity's 8bility to continue as a going concern for a period of at least twelve tnonths from when the financial 5tatement5 are authorised for 185ue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this report. Page 6
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF AEONIAN FOUNDATION (CONTINUED) Other infomiation The other inforrnation comprises the infomialion included in the Annual report other than the financial statements and our Auditors, report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial ststements does not wver the olhei information and, except lo the extent olhetwise explicitly stsled in our report, we do not express any form of assurance condu510n thereon. Our responsibility Is to read the other infoirnation and, In doing so, consider whether the other Information Is materially Inconsistent with the financial statements or our knowledge obtained In the couise of the audit, or othetwise appeals to be materially misstated. If we Identify such material inconsistenaes or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Mattèrs on which w& ar8 rèquir•d to r•port by èxeèption We have nothing to report in respect of the following matters where the Charities IAccounts and Reportsl Regulations 2008 requires us to report to you il, in our opinion.. the information given in the financial staternents Is inconsislenl in any Tnalerial respect with the report of the Trustees., or sufficient accounting records have not been kept", or the Charity's financial statements are not in agreement with the accounting records., or we have not received all the information and explanations we require lor our audit. Responsibilities of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees are responsible for the preparation of the rinanaal statements and for being satisfied that they give a tiue and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation ol financial statements that a free from material misstatement, whether due to fraud or error. In preparing the finanaal statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, rnatters related to going concem and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to ce8se operations. or have No realistic allernalive but lo do so. Page 7
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF AEONIAN FOUNDATION (CONTINUED) Auditors. responsibilities 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 lo issue an Auditors. report that includes ourour opinion. Reasonable assurance is a high level of assurance. bul is not 8 gU818nlee th818n audit conducted in 8wrdanoe with ISAS IUKI will ahfifays detect 8 material tnisstatement when it exist5. Mi5Statements can arise from fraud 01 eiroi and are considered material if, individually 01 In the aggregate, they could iea50nably be expected to influence the economic decisions of Ljsers taken on the basis of these financial statements. Irregularities, induding fraud, are instances of non-cornpliance with laws and regulations. We design procedures in line with our our responsibilities, outlined above, to detect material misstaternents in respect of irregularities, 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 induding the Charities Act 2011 and the Data Protection Act 2018. We assessed the extent of compliance with these laws and regulations as part of our prOdureS on the related financial statement items. We understood how th8 Charity 15 complying with those legal 8nd regulatory frameworks by, making inquirie5 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 tearn collectively had the appropriate competence and capabilities lo identify or recognize non-cornpliance with laws and regulations. The assessment did not idenlrfy any Issues In thi5 area. W8 ass855ed th8 susceptibility of th8 financial statements to material rni55tat8tll8nt, including how fraud might occur. We considered the opportunities and ItIveS that may exist wrthin the oigani5ation for fraud and identified the greatest potential lor fraud in the following areas, posting of fraudulent journal entries, authorisation, processing, and payment of fraudulent grant claims and timing of revenue recognition. Audit procedures performed by the engagement team included.. Identifying and assessing the design effectiveness of controls man8gement has in place to prevent and detect fraud., Understsnding how those charged with governance considered and addressed the potential lor override of controls or other inappropriate influence over the finanaal reporting process., Reviewing the system for authorising grant payments, Challenging assumptions and judgments made by rnanagernent in its significant accounting estim8tes'. and Identifying and testing joumal entries, In particular anyjoumal entries posted with unLJsual account combinations. Because of the inherent lirnitations of an audit, there Is a iisk that wewe wll not detect all itregularities, including those leading to a material misstatement in the linanual statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions ieflected in the financial statements, as we we will be less likely to become aware of instances of non-complian. The risk is also greater regarding irregularities occurring due to 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 al.. www.frc.or .uklauditorsres onsibilities. This description forms part of our our Auditors, report. Page 8
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF AEONIAN FOUNDATION (CONTINUED) Use of our report This report is made solely lo 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 lo the Trustees those matters we are required to slate to them in an Auditors, report and for no other purpose. To the fullest exlenl peirnitted by law. we do not 8¢cepl or assume responsibility to anyone other than the Ttustees for our audit work, for this report, or for the opinions we have F.1gned by.. LLWILS ILP 4tLV71 Chartered Accountants Statutory Auditor Magna House 18-32 London Road Staines-Upon-Thames TW18 4BP Date.. 26-Sep-2024 Menzies LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 20( Page 9
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 Unrèstrictèd funds 2023 Total funds 2023 Totèl funds 2022 Note Incorne frorn.. Don8lions and legacies Investments 34,492.315 148.589 706,479 706,479 Total Income 706.479 706.479 34,640,904 Expenditure on.. Raising funds Charitable activities 139,861 2,218,251 139,861 2,218,251 54, 766 1, 193,362 Total expenditur8 2,358.112 2,358.112 1,248, 728 Net18XP8nditur8Vineom• befor8 nèt gainslllos$8s1 on invèstments Net gain51110ssesI on investments 11,651.6331 1,996.458 {1,651.6331 1,996.458 33,392, 176 (376, 7651 Net movement in funds 344,82S 344,82S 33,Ot6,011 Reconciliation of fun(Is= Total funds brought fotward Net rnovement in fLJnd5 33,016.011 344.825 33,016.011 344.B25 33,016,011 Total funds carried fonward 33,360,836 33,360,836 33,016,011 The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 13 to 22 form part of these Iinan¢ial 51alemenl5. Page 10
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION REGISTERED NUMBER. BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Nots Fixed assets Investments 34,875.837 1,245.964 26,578, 194 so81 investments 12 36,121,801 26,578, 794 Current assets Debtors 13 19,628 3,893 6,918,797 484, 125 Cash at bank and in hand 23,521 7,402,922 Creditors.. amounts falling due within one year 14 12.770,3861 (902,605) Net current IlabllStles l assets 12,746,86SI 6,500,317 Total assèts less current liabilitiès 33,374.936 33,078,511 Creditors.. amounts falling due after more than one year 15 114,1001 (62,5QOJ Total net asset$ 33,360.836 33,076,011 Charlty funds Unrestricted funds 17 33,360.836 33,076,011 Totsl fijnds 33,360,836 33,016.011 The financial statements were approved and authorised for issue by the Trustees and signed on their behaw by.. 81gNd by.. ACD3 Andrew Pegg Chair Date." 24 September 2024 The notes on pages 13 to 22 form part of these Iinanaal 5t8tement5. Page 11
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows from operatin9 activities Net cash from operating activities (Note 191 4,113,251 26,955,644 Cash flows from in¥tIng activitie Proceeds from sale of investments 1.139,861 18.694,6411 {26,948, 7351 706,479 148.589 Purchase of investtnents Dividends and interest Net cash used in investing activities 16,848,301) 126,799,546) Cash flows from financing aetivitie$ Cash inflows from new tKJrrowing Repayments ol borrowing 3.254,818 11.000,0001 321,827 Net cash provided by financing activities 2,254,818 327,827 Change in cash and cash equivalents in the year 1480,2321 484,125 Cash and cash equwalenls at the beginning of the year 484,125 Cash and cash equivalents at the end of the period (Note 181 3,893 484, 725 The notes on pages 13 to 22 form part of these Iinancial Statements Page 12
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 General information 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 set out in the Trustees. Annual Report. Accounting policies 2.1 Basis of preparation of financial staternentB The financial statements have been prepared in accordance with the Charities SORP IFRS 1021- Accounting and Reporting by Charities.. Statement ol 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 leffeclive 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 publi¢ benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless Otherwise stated in the relevant accounting poliry. 2.2 Going concern The charity has significant reserves amounting to £33,360,836 backed by an investment porrfolio. The trustees therefore consider the charity has mtsie than adequate iesources to enable it to continue its operations lor at least twelve months from the date oif approval of these financial statements and for the forseeable future. The financial statements are accordingly prepared on the going concern basis. 2.3 Income All income is recognised once the Charity has entitlement to the income, it is probable that the incorne will be reiVed and the amount of income receivable can be measured reliably. Income tax recoverable IN relation lo don8tions received under Grft Aid or deeds of venant is recogni8ed al the tirne of the donation. Income tax e0Verable in relation to investment income is recognised at the time the investment incotne is receivable. 2.4 Expènditurè Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount ol the obligation can be measured reliably. Expenditure is classified by activity. The costs ol each activity are made up of the total of direct 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 to more th8n one activity and support costs which are not attributable lo a single activity are apportioned between those activities on a basis consistent with the use of resOUrs. Central staff oosts are allocated on the basis of lime spent. and depreciation charges allocated on the portion of the 8$5el's use. Expenditure on raising fund5 includes all expenditure incurred by the Chaiity to raise funds for ils charitable purposes and indudes costs of investment tnanagement. Expenditure on charitable activities is incuired on directly undertaking the activities which further the Charivs objectives, as well as any associated support costs. Page 13
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Icontinuedl 2.4 Expenditure Icontinued Grants payable are charged in the year when the offer is made except 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 mel 8t the year end are noted as a commitment, bul not accrued as expenditure. All expenditure is incluswe of irrecoverable VAT. 2.5 Intsrest r•e&ivabl• Interest on funds held on deposit is induded when receivable and the amount can be measured reliably by the Charity,. this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Foreign currencies Monetary assets and liabilities denominated in foreign currencies are translated into sterfing at rates of exchange ruling at the reporting date. Transactions in foreign currencies are translated into sterling al the rate ruling on the dale of the Iransaclion. Exchange gains and losses are recognised in the Statement of finanual activities. 2.7 Inve¥tments Fixed asset investments are a form of financial instrument and ar8 initially 18cognis8d at their transaction cost and Subsequently measured at fail value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'GainsllLossesl on investments, in the Statement of financial activities. Social Investments held as fixed assets are shown at cost less provision for irnpaimient. 2.8 Cash at bank and in hand Cash at bank 8nd in hand indudes cash and short-term highly liquid investments wth 8 short m*urity of three months or less from the dale of aul51110n or opening of the deposit or Similar account. 2.9 Liabilitie8 and provision8 Liabilitie5 are recognised when there Is an obligation at the Balance sheet date as 8 iesult of a past event, it is probable that a transfer ol economic benefit will be required in settlement, and the amount ol the settlement can be estimated ieliably. Liabilities are recognised at the amount that the Charity anticipates Vt will pay to settle the debt or the amount it has received as adVand payments for the goods or serviTrs it must provide. 2.10 Financial instruments The Charity only has financ4al assets and financial liabilities of a kind that qualify as basic financial instrurnents. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement V81ue with the exception of bank loans which are subsequently measured at amortised cost using the effective interest n18thod. Page 14
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from donations and legacies Unrestricted funds 2023 Total funds 2023 To181 funds 2022 Donations 27,670,316 6,881,999 Gift Aid Recovered 34,492,315 Total 2022 34,492,315 34.492,315 Investment income Unrèstrictad funds 2023 Total funds 2023 Totèl funds 2022 Income from listed investments Interest received on cash deposits Intere* received on loans 657,733 10,019 38,727 657,733 10,019 38,727 36, 798 706,479 706,479 148,589 Total 2022 148,589 748,589 Page 15
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Investment management costs Unrestricted funds 2023 Total funds 2023 To181 funds 2022 Investment m8n8gemenl fees 139.861 139,861 54. 766 Total 2022 54, 766 54.766 Analysis of grant8 Grants have been awarded to the following organisations in support of the Chaiity's giant making progiamme:_ 2023 2022 SEED Madagascar Feedback Madagascar Africa Tikkun Treloar Trust Solar Aid 322,295 336,430 36,000 75,000 153,958 117,060 391,684 117,285 141,000 135,000 20,000 71,089 118,378 60,400 160,(4 157,5QO 36,OQO 75,OQO 105,490 75.000 337.046 56,250 Slep by Step Money for Madagascar Starfish Greathearts Foundation Bulldog Trust Khula Education 30,000 Learn, Achieve, Become Yateley IndLJStiies For The Disabled Ltd The Big Give Trust Headroom Young Peoples 167,5QO 2,095,S79 7, 193, 790 Page 16
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure on charitable activities Summary by fund type Unrestricted funds 2023 Totsl 2023 Tol81 2022 Direct Costs 2,218,251 2.218,251 1, 193,362 Total 2022 1, 193,362 1. 193,362 Analysls of expendlture by actlvltles Grant funding of activities 2023 Support costs 2023 Total funds 2023 Total funds 2022 Activities 2,095.759 122,492 2,218,251 1, 193.362 Toto12022 I, t93, 790 (428) 1, 193,362 Analysis of support costs Totsl funds 2023 Tol81 fvnrls 2022 Activities 2023 Bank Interest 4,075 3.843 70,959 43,615 4,075 3,843 70,959 43,615 Currency gainsAosses Loan interest paid Governance costs (37,2691 33,335 122,492 122,492 1428) Total 2022 (428? {428) Page 17
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Auditors. remuneration 2023 2022 Fees payable to the Charity's auditor for the audit of the Charity's annual accounts 11,190 8, 100 Fees payable lo the Charity's auditor in respe of.. Preparation of financial statements in accordan with Charities SORP All non-audit services not induded above 4,410 9,795 12.558 10. Trustees. remuneration and expense8 During the year, no Trustees recèived any remuneration or other benefits (2022- £NIL). During the year ended 31 December 2023, no Trustee expenses have been incurred (2022- £NIL). 11. Flxed asset Investments Listed investments Cost or valuation At 1 January 2023 Additions 26,578,194 7,448.676 11,139.8611 1,996.458 17.6301 Disposals Revaluations Foreign exchange movement At 31 Decernber 2023 34,875,837 Net book value Al 31 Decerllber 2023 34,875,837 At 31 Dember 2022 26,578, 194 Page 18
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 12. Social investments Mixed motive investments Totsl Cost or valuation Additions 1,245,964 1,245,964 1,245,964 1,245,964 Impaimient provision Net book value At 31 December 2023 1,245,964 7,245,964 At 31 December 2022 Socjal investments comprise.. Mixed motive investments A long term loan facility of up to £1.5m was made lo Y8teley Industries for the Disabled Limited. one of the Aeonian Foundation's supported charities. lo enable il to restructure its operations. of which £1.245.964 had been drawn down by the year end. The loan is iepayable in 15 years and beais interest at 1Q/ts over Bank of England Base Rate. 13. D•btors 2023 2022 Due within one year Other debtors 19,628 6,918, 797 19,628 6,918, 797 14. Creditors= Amounts falling due within one year 2023 2022 Bank loans Tiade creditors 2,582,645 321,827 71,514 13,224 55Q.040 Accru815 and deferred income Grants payable 18,774 168,967 2,770,386 902.605 Page 19
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Creditors: Amounts falling due after more than one year 2023 2022 Grants payable 14,100 62,5ts0 16. Financial instruments 2023 2022 Financial assets Finanaal assets measured at fair value through income and expenditure 34,875,837 26,578, 194 Financial assets measured at fair value through incorne and expenditure comprise listed investments. 17. ststement of funds ststement of fund8- current year Balance at 31 December Balance at 1 January 2023 Gainsl (Lossès) Incomè Exp•nditur• 2023 UnrtrICted funds General Funds 33,016,011 706,479 12,358,112) 1,996,458 33,360,836 Statement of funds- prior year Balance at G8insl 31 December (Losses) 2022 Income Expendrfu Unrestricted funds General Funds 34,640,904 (1,248, 728? 1376,765) 33,076,011 Page 20
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 18. Analysis of net assets betsyeen funds Analysis of net assets beeen funds- current year unstriCted funds 2023 Total funds 2023 Fixed asset investments 34,875,837 34,875.837 1,245,4 1,245.964 57.697 57.697 12,804.5621 12,804,562) 114.1001 114,1001 Soual investments Current assets Creditors due within one year Creditors due in more than one year Total 33,360,836 33,360.836 19. Reconciliation of net movement in funds to net cash flow from operating activities 2023 2022 Net income for the year las per Statement of Financial Activitiesl 344,825 33,Ot6,011 Adjustments for.. IGain5llLosses on investments Inel of foreign exchange movemenlsl Dividends and interest from investments Decreaselllncreasel in debtors IDecreaselllncrease in creditors Currency losses on investments 11,996,458) 1706,4791 6,899,169 1435,4371 7,631 369.941 (148.5891 (6,918, 7971 637,278 Net cash provided by operating activitie# 4.113,251 26,955,844 20. Analysis of cash and cash equivalents 2023 2022 Cash in hand 3,893 484, 125 Totsl cash and ¢a¥h equivalents 3,893 484. 125 Page 21
Docusign EnvelopÈ ID." OACD86CA-08E244BB-BBA9-115489742604 AEONIAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 21. Analysis of changes in net debt At31 December 2023 At 1 January 2023 Cash flows Cash at bank and in hand 484.125 1480,2321 1327.8271 12.254,81BI 3.893 12,582.6451 Debt due within 1 year 156.298 12,735,050) 12,578,752) 22. Related paty transactions During the year the charity received donations of £Nil12022.. £27,610,316) from Mr Andy Pegg, one of the trustees. Page 22