Charity Règlstration No, 278286 THE RATIU FAMILY CHARITABLE FOUNDATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 THE RATIU FAMILY CHARITABLE FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Tru8teeB Mr N C Raliu Mrs l M G Raliu MTISPR¥liu Mrs hrt C I C MAIIis DrDDan R Pollitzer Mr P M Hairap MrA Raliu Charity numbèr 278286 Prin¢lpal address 18 Filzhar(linge Street London, WfH 6EQ Independent gxaminer HINOOCHA PANDIT & CO LTD 34 Queensbury Station Parade Edgwar8 Middlesex, HA8 5NN THE RATIU FAMILY CHARITABLE FOUNDATION CONTENTS Page Truslee5' report Independent oxaminef s report ststèment of finanaal activities Balanck sheet Notes lo the financial staternents 8-18 THE RATIU FAMILY CHARITABLE FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The trusl8és prasent Iheir annual report and finanaal stalemenls for the year ended 31 December 2023. The financAal statements have been prepared in accordancg with the accounting policies sel out in note I to ihe financial statements and comply with the Foundation's Tiu31 Deed, the Charities A¢1 2011 and "Accounting and Reporting by Charities.. Slalement ol Recommended Practice applleable lo charilies preparing Ihei¥ accounts in 8cctsrdanco wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191. ObjoctÉves and actÈvitiès Thé principal objectives of the foundation 8re'. Advancement of education to the public Relief of poverty Promotion and furtherance of education and research to indude history. geography, ¢ulture, arts. music. lileralure, language, induslries and economy of Romania and the Romanian peoplè Publishing the résults of any such research al the discrèbon of the Trustees Relief of Rom8ni8n refugees in the United Kingdom The Foundation conlinues lo strive lo identify appropriate and effective mean5 of furtheflng Ihe objectivés oullined above. Grant making policy The trustees have paid due règ8rd to guidance issued by the Charity Ctsmmission ir) dectding what aci1￿14@$ the Foundation should undertakè. Grant applications and r8quests are received in Romania and in the United Kingdom and are then submilled lo the United Kingdorn offic@. Prior lo a trustees, meeting, 8118ppli¢alions are updated on the Foundation's internal database and a list of recorlltnendalion is drawn up by th8 dire¢tor. Al the following trustees, rneeliry the applications are considered and either accepted or rejected based on whether they rneet the aims and obje¢tivÈs and if they are In Ilne with the criteria set for approvals. All approved grants ar& paid subsequ9nlly. AchÈ&vèments and perfom)ance During the year, Ihè Foundation appioved and made grant payments to 10 in81ilutions and 40 individuals. Grants lo individuals include 2 projeGI grants and lon Raliu Derno¢racyAward. The Trustees were satisfied that the crileria for grant approvals had bèen satisfactorily mel. The Raliu Grants wère awarded lo Romanian studÈnls to study a lange of SLJbjecis in the UK. The Foundation supported several projécts in Romania during the year. The Raliu Democracy Dialogues ran very successfully in association with the LSE IDEAS Ihinklank te8m and addilionalty other confèrences under the RATIU FORUM heading were held both physi¢311y and on-liné using ZOOM. Annual awardees were honoured for "The Elisabelh Pilkinglon Ratiu Mental Health Award and Ihe Ihe'lon Ratiu Award for Inve8tigalivo Journalism." Flnan¢l81 review The source of funding lor the Foundation is by way of unrestricted charitable donation of £900,000 12022 £500.000 and a Violin valued al £375,000) from B8llerive Limited Ilhe parent corTIP8r)y of Regent Housè Properties Limited, a company in which one of the Iiuslees, Mr N Ratiu is a director). Th8 Foundation a5most entirely relied on funding from Bellerivè Limited. Al the year end, the Foundation owed £51,359 12022 £558,295) to Bellelive Limlled. Total granls and donations approved by Ihe Foundation in 2023 were £205.004 {2022= É259,6641. Invèstmant and re$•rvè policy and perfomiance 11 is the policy ol the Foundation that unrestricted funds whid) have not been designated for a specif5c use should be maintained at a level equivalent lo between three and six month's expenditurè. The trustees consider that reserves al this level will ensure that, in the Èvent r>f a significant drop in funding, they will be able to conlinLJÉ the Foundation's current activitie5 while consideration is given lo way8 in which additional funds may be raised. This level of reseNes has been maintainéd throughout Ihe year. THE RATIU FAMILY CHARITABLE FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Rlsk management The Iiustees have assessÈd the major risks lo whith the Founnations are re¢o9nised on receipl. Other donations are rÈeognlsed On￿ the Foundation has been notified of the donation unless performan￿ condillons require deferral of the amount. Income lax recoverable in relation lo donations ieceived under Gift Aid or deeds of covenant is recognisod at Ihe lime ol the donation. Legacies are recognised on receipt OT otherwise if thé Foundation has been nolified of an impending distribution, the amount is khown, and recaipl is expected. If tho amount is not known. the legary is treated as 8 ￿ntingent a88el. Investmenl income is accounied for in the perlod in whith the charity is entitled to receive. THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ountlng poli¢i•s (Continued) 1.5 Resources *xpended Expènditure is recognlsed once there Is a legal o¥ ¢tsnslructive obligation to transfér èconomic benefit lo a third party, il is probable that a transfer of economic betièfits will be required in settlement, and the arnr)unl ol the obli9ation can be Measured reliably. Expenditure is classified by aclivty. The cosls of éach aclivity are made up tsf the total of direct costs and 8haTed costs, including support costs involved in undertaking each activity. Direct costs attributaile to a single activity are alloGaled directly to that activity. Shared costs whith contribute lo more than one activity and support costs which are not attributable lo a single actiwly are apportioned between those activities on a basis consistent with the use of resources. Central staff costs Arè allocated on the basis of lime spent, and depreciation charges are allocated on the portion of the asset's use. Expenditure Is accounted for on an accruals basis, except in the case of grants. which are accounted for whèn they are awarded. Allocation of support costs are based on what they relaté tc>. Irrecoveraue VAT is includèd with the expense items to whl¢h il relales. Costs of generating funds comprise the c051$ of fundraising. publicity and programme costs. Chaiilable actiwliès include costs ol PfojeGts and exhibitions undertaken and donations paid lo individuals and inslilulions to further the tsbjeclives of the charity. Govemancè costs represent those costs of the strategic managemenl of Ihe charity and of complying wllh constitutional and stalulory Taquiremenl8. 1.6 Tangible fixed assets Tangible fixed assets arè initially measured al cost and subsequently mèasured al cost or valuation, nel ol depreciation and any impairment losses. Depreciation is recogniséd so as to write off thè cost or valuation of assets lèss their residual values over their useful lives on the following bases.. Heritage a8sels Equipment Nil The gain or loss arising on the disposal of an asset is determined as the differencé bètween the sale proceeds and the carryillg value of the asset, and is recognls8d in the slalemenl of financial activities. Equipment includes a fine violin which is belng maintained in prime condition and is expected to appreciate in value and is thus nol deprecial8d. 1.7 Heritage assets Heritage assels are a¢eounted at cost, Whe￿ this infomation is not available, amd cannot be obtained 8t cost which Is commensurate with the bènéfits to the Foundation, IhÈ assets are not reeognised in the statement of financial position, but are disclosed as a note Its the accounts. At each r8POrting 6nd date, the Foundation reviews the carry(ng amounts of the hèritage assets lo determine whethér there is any indicalion that ihose assets havè suffered an impairment loss. 1.8 Flxed a$sèt investments Fixed asset investments are initially measured St transaclion price excluding transaction costs. and are subsequently measured al lair value al each reporting date. Changes in fair value are recognised in nel incomellexpenditurel for the year. Transaclion costs are expensed as incurred. THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ounting policies Icontinued) 1.9 Impairment of fixed asset At each reporling end date, the Foundation re￿ewS the earrylng amounts of ils tangible assets lo delermine whether there is any indi¢81ion that those assÉts have suffered an impairment Ioss. If any such Ind￿atIOn exists, the recoverable amount of the asset is èslimated in order lo determine the ex1enl ol the impairment loss lif any). 1.10 Cash and ca6h èqulvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-tem liquid investments with original malurilies of three months or less, and bank overdrafts. Bank ovèrdrafts are shown IhSn borrowings in wrrent liabilities. 1.11 Financial instruments The Foundation has elected lo apply the provlsions ol Section 11 'Basic Financial Inslrumenls, and S@ctK>n 12 'Other Financial Instruments Issues. of FRS 102 to all of ils financial ￿nStrUments. Fln8ncial instruments are recognised in Ihe Foundaliot)'s balance sheet when the Foundation becomes party lo the conlraclual provisions of the insliumenl. Financial asseis and liabililies are offset. with the net amounts Presented in the financial slalemenls, when Ihere is a legally enfor￿able light to sel off Ihg recognised amounts and there is an inlention to settlè on a nel basis or lo re81ise Ihe asset and sèttle the liability simultaneously. Basic financial assets Basic financial assèts. which include debtors and cash and bank balances, are initially measured at Iransa¢lion price induding Iransaction costs and are subsequently cariiéd at amortised cost using the effective interest rnelhod unless the arr8r)gèment constitutes a financing transaction, where the tr2nsaction is measured at the present value of Ihe future receipts discounted al a mart(et rale of interesl. Fin8n¢i81 assets cl8ssilied as receivable within one year are not am(¥rtised. 8asi¢ flnancial liabilitiès Basic financial liabilities, induding creditors and bank loans are initially recognised al Iransadion price unless the aiiangèmenl conslilules a finallcinu transaction, where the debt instrument is measured al thè present value of the future paymenls discounted al a market rate tsf inlerést. Financial liabilities dassified as payable within one year are not amortis8d. Dèbt instruments are subsequently carried al amortised cost, using the effeelive interest rate method. Trade creditors are obligations lo pay for goods or services Ih81 have been 8cquir8d in the ordinw course ol operation5 from supplieis. Amounts payablè ar@ classified as current liabilities if payment is due within one year or le55. If not. they are presented as non-current liat￿litIes. Trade creditors are recognised initially at Iransaclion price and subsequently measured al amoriised cost using the effective interest method. De￿¢09￿111On of financial liabilltles Financial liabililiÈs are derecognised when the Foundalion's conlra¢tual obligations expire or are discharged or c8ncelled. 1.12 Foreign èxehango Transaolions denominated in foreign currencies are recorded al the rale wling at Ihe dale ol the Iransaction. Monetary assets and liabilities denominated in loreigr) curren¢iès are translated into sterling al the rates of exchange ruling al the balanc8 sheet date. All dIfferen￿S are included in Slatemeiil of Financial Adivilies. io- THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ountlng poli¢itrs {Contlnuedl 1.13 Accumulatgd funds Restricted funds Restricted funds can only be used for partioular purpo8e5 Within the objectivés ol the charity. Restrictions arisa wh8n specified by the donor or when thè funds are raiseil for particular purposes. Unrestricted funds Unreslrided funds are donations and other incoming resources received or goneraled foT expenditure and are available lo use to furthèr any of the purposes of Ihe charily. 1.14 Taxation The Foundation ts an exempl charity within the meaning of Schedule 2 01 the Charities Act 1993 and as such is a eharily within the meaning of Section 506111 of the Taxes Act 1988. Accordingly. the Foundation is pol8nli8lly exempi from laxalion in respect of income or capital oAins received within categories Covèred under Sèction 505 of Taxes Act 1988 or Section 256 of the Taxation ol Chargeable Gains Act 1992 to the exlenl that such in¢ome or gains are applied exclusively for charitable purposes. The Foundation receives no such exemption in respect ofvalue Added Tax. CTltlcal accounting è$iimates and lUdgem￿ts In the application of the Foundation's accounting policies. the Iruslees are required to mak8 judgements, 051imates and assumptions about Ihs ¢arrying amounl of assels and liabilitiés that are not readily apparent from other sources. Tha ¢slimates and associated assumptions are based on historieal experience and olher faclors that are considered lo be relevant. Actual resuEts may differ from Ihese eslimales. The eslimales and undeTlying assumptions are reviewed on aft ongoing basis. R8wsions to accounting Éstimates are re¢ognised in the pèriod in which the estimate is revised where the revi550n affects only that period, or in the period of the revislon and fulure perit)ds where the rev¢sion affects both current and future periods. Key SOUf¢èS of 8Stimatlon uncèrtainty The estirnalès and assumptions which have a signlfi¢anl risk of cau8ing 8 material adju51tnenl to the carrying amounl of assets and liabilities ale as follows.. Valuatlon of Heritage Assets.. As described in note 14 to the financial slal8menls, heritage assets are deemed lo hav8 indetermlnale life. In the opinion of the Irustees, the market value is higher than the boL)k value. Incom& from donations and legacies Unrestricted funds 2023 Unrestrictèd funds 2022 Donations and gifts 940,4( 876,568 Dur¢ng the ye8r, donations of £900,00012Q122- £500,000 and a violin valued al £375,000) were received from Bellerive Limited, the parent company of RegÈnt House Propetti@s ￿MIted. a company in which one of thè trustees. Mr N Ratiu is a director. THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Income from investments Unresttlcted Unrestricted funds funds 2023 2022 Rental income 28.361 25,552 Othèr income Unrestricted Unrttstylctèd funds funds 2023 2022 Olhel income 191 Expenditure on raising funds Unrestricted Unr•stricted funds tund$ 2023 2022 Fundralslng and publicity Costs of generating donations and ltrgacies 3,463 9,088 Charitable acllvities Donatlons Donations paid and pald and related related costs costs 2023 2022 Grant funding ol acliv11ies (see note 81 Share of governance costs (see note 91 205,005 251,876 259,664 242,071 456.881 501,735 12- THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Grants payable Donations paid and relatèd costs 2023 Dortatlons paid and related costs 2022 Grants lo inslElulions-. Advancément of education of public Relief of poverty Promotion and furtheran￿ of education & research 39.646 17.815 39,864 66,410 22.511 6,410 97,225 155,331 Gr8nls to individuals 107.780 104,333 205,W5 259,864 Promotion and furtheran￿ of education and research lo includo hislory, geogr8phy, culture, arts, rnusic, 5ileralure, industrie5 and economy of Romania and thè Romanian peoplo. Support Costs allocated to actlvlties 2023 2022 Exchange lossès Goveinance costs 6,591 245,285 977 241.094 251,878 242,071 2023 2022 Governance costs ¢omprlse: Operaling1é8se charges Accoulltsncy Legal and professional Romanian property expenses Insurance Light and hèat Travelling expellse$ Svndry expenses 89,597 2,520 21,740 79,987 84 9,533 26,282 15,542 88,466 2,640 2LS,514 72,358 411 8,544 29,064 19,097 245,285 241,094 13 THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Net mov&ment in funds 2023 2022 The nel movement in funds is slated after chargingl{crediting)'. OpeFaliftg laase charges 89,597 88,466 41 Trustees None of the trustees {or any persons Connected wlh them) received any rèmuneration during the year. bul they werè leimbursed a lolal of £3,600 tr8vèlling and subsislen¢e expenses12022- £6,488). 12 Employees The averagè monlhly number of employees during the year w8S". 2023 Numbèr 2022 Number Total Volunteers assist as and when required with events or9anised by the Foundation and external eonsultanls are used where speafic Skills are needed. The Foundation does not have any pald trustee or an èxecutive on a permanènt basis. There weTe no employees whos8 annual remuneration was more than £80.000. Remun•ratlon of key n￿nagement personnel 13 Tanglble fixed assets Fr8ohold prop&rty Eqylpm8nt Total Cost Al 1 January 2Q23 120,840 375,000 495.840 At 31 Decembèr 2023 120,84D 375,000 495,840 Carryirtg amount Al 31 December 2L)23 120.840 375,000 495,840 Al 31 December 2022 120,840 375,000 495,840 Equipment includes 2 fine wolit) which is being maintained in prlme ¢ondition and is expected to appreciate in value, and is thus not depreci¥led. 14 Herltage a$sets At 1 January 2023 and at 310ecembèr 2023 626.503 14- THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 H&ritsge assets Icontlnuadl Heritage a8sels inelude12nd and bulldings in Romania. It is the Foundation's policy lo maiD(ain the property lo a standard and 1$ deèmèd to have indelerminale life. In the opinion of the trustees. the m8tkel value is higher than Ihe book value. 15 Fixed as&8t Invéstment8 Paintings Cost or valuation Al 1 January 2023 & 31 December 2023 1,200 Carrying amount Al 31 Dècember 2023 1,200 At 31 December 2D22 1.200 16 Debtors 2023 2022 Amotjnts falling due within onè year: Other debtors Prepayments and aecrued income 9,323 40,188 7,929 36.115 49.511 44,044 17 Credltor¥- amounts falling duÈ within one year 2023 2022 Other creditors A¢eruals and deferred incomè 52,359 3,544 1,000 2,400 55,903 3.400 18 Crèdltors.. amount5 falling due after more than one year 2023 2022 Other creditors 558,295 15- THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 19 Restrlcted lund$ The restricted fund8 of the charily comprise the unexpended balances of donations and grants held on Iiusl subject lo specific conditions by donors as to how they may be used. At l January 2023 At31 December 2023 634 634 Previous year: At l January 2022 At31 Decèmber 2022 634 634 20 Unrèstrlcted funds The uthreslrided funds of the charity comprise the unexpended balances of donations and granls which are not subject lo specific conditions by donors and granlors as lo how they may be used. These include designated funds which have been sel aside out ol unrestricted lund¥ by thè trustees for specific puiwses. At1 January 2023 Incoming r•sourcas Re$our¢¢s expended At31 December 2023 General funds 608.169 968,975 1460,3441 1,116.800 Prèvious year: At 1 January 2022 Incoming rgSOLtrces R8¥oureès expèndèd At31 D￿eMber 2022 General funds 216.681 902,311 151 Cl.8231 608.169 16- THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 21 Anaty8is of net assets betrthen funds Unrestrictsd funds 2023 Restrlcted lunds 2023 Total 2023 At 31 December 2023.. T8ngiblè assets Herilaue assets Investments Current a5Sètsllliabilities) 495,840 626,503 1,200 (6.743) 495,840 626,503 1,200 16,1091 634 1,116.800 634 1.117,434 Unre$trlctsd funds 2022 Restrlcted funds 2022 Total 2022 At 31 Decgmber 2022: Tangib18 assets H&rilage assets Inveslmenls Current assetsllliabilitiesl Long lÈrm liabilsties 495,84Q 626,503 1,200 42,921 (558.2951 495,840 626,503 1,2 43,555 1558,2951 634 608,169 634 608,803 17 THE RATIU FAMILY CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 22 Related party transactions During the year the company p81d rent and sèrvieAs arnounting 10 £72,WO (2022 £72,OOQI to DRT Lease Limi16d. All Iransactions were conducted on a nom81 trading basis. Mr N C Raliu, one of the Iruslees. is a director ol Regelll House Propè￿eS Limited, a company whid) made payments on bèhalf of the Founda(ion. Amount due lo Reoent House Properties and rènts payable lo ORT Lease Limited are funded by Bellerive Limited, the parent company of Regent HoLFse Properties Limited. DRT Lease Limited and Bellerive LimilÈd 8re under common control. Bellerivè Limited took over £8,47512022 .' £42,126) and £72.00012022 . £72.000) owed by the Foundation to Regent House Properti8s Limiled and DRT Lease Limited. Al Iho balance Sheèt date, incjuded in creditors is amount owed lo.. Bdlerive Limited- £51.35912022 .. £558,295). During the yéar the following grhnts were paid lo institutions in which eilh¢r Mr N C Ratiu, Mr I S P Ratiu or Mrs l M G Raliu ar¢ also trusleeslofficers '. Centrul Ratiu Pentru Democratie (Raliu Centre for D@moc¥acyl- £51,442 {2022 - £86,e80) Romanian Cullural Centre- £1.15012022 £866) Pro Palrirnonio Foundation UK- £64412022 = £8381 Fundalia Pro Falrimonio- £nil12022 £4,754). 18.