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Registered number: 5452659
Charity number: 1111719
ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
CONTENTS
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Reference and administrative details of the Foundation, its Trustees and advisers
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Independent auditors' report on the financial statements
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Statement of financial activities
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Notes to the financial statements
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 DECEMBER 2022
Trustees
M Biteye (appointed 19 July 2023)
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R M Fernandes (appointed 24 January 2023)
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E S Genser (appointed 19 July 2023)
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N B Mbazima (resigned 31 January 2023)
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A Michaud-Ahmed (resigned 31 May 2023)
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T M Mkhwanazi (appointed 24 January 2023)
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D G Wanblad (resigned 2 November 2022)
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Company registered number
5452659
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Charity registered number
1111719
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Registered office
, London, United Kingdom
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Company secretary
Anglo American Corporate Secretary Limited
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Independent auditors
PricewaterhouseCoopers LLP, 1 Embankment Place, London, United Kingdom, WC2N 6RH
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Bankers
Barclays Bank PLC, 1 Churchill Place, Canary Wharf, London, E14 5HP
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
TRUSTEES' ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees (who are also directors of the charity for the purposes of the Companies Act 2006) present their annual report together with the audited financial statements of Anglo American Foundation (the "Foundation") for the year ended 31 December 2022. The Annual Report serves the purposes of both a Trustees' annual report and a directors' report under company law. The Trustees confirm that the Annual Report and audited financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
The Foundation, by virtue of qualifying as small under 382 and 383 of The Companies Act 2006, has taken advantage of the exemption from preparing a Strategic Report as permitted under section 414A(2) of the Companies Act 2006.
Objectives and activities
a. Policies and objectives
The Foundation is committed to empowering young people to create a greener, fairer future. The Foundation collaborates with a range of organisations to develop programmes focused on three priority areas:
· creating economic opportunity
· building resilience
· giving young people a voice
Outside of these priority areas, the Foundation also supports projects aligned to the United Nations Sustainable Development Goals, as well as providing funding to emergencies on a case by case basis.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Foundation’s aims and objectives and in planning future activities and setting the grant making policy for the year. The Foundation delivers public benefit by contributing to sustainable livelihoods and youth empowerment in the countries in which the AA plc Group operates. The short and long term objectives of the Foundation are consistent.
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, including the guidance 'Public benefit: running a charity (PB2)'.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
Objectives and activities (continued)
b. Trustees
The Trustees are selected from amongst current or former senior AA plc Group managers and bring a broad range of perspectives from their respective disciplines within the company.
The following served as Trustees throughout the year (unless otherwise stated) and to the present time:
M Biteye (appointed 19 July 2023)
R M Fernandes (appointed 24 January 2023)
E S Genser (appointed 19 July 2023)
N B Mbazima (resigned 31 January 2023)
Y Mfolo
A Michaud-Ahmed (resigned 31 May 2023)
T M Mkhwanazi (appointed 24 January 2023)
J Samuel
D G Wanblad (resigned 2 November 2022)
c. Giving structure
The Foundation puts young people at the centre of its approach, giving them the tools to create a positive impact and unlock their potential. A rigorous, evidence-led methodology involves working with young people and partner organisations to identify the need and understand key barriers to empowerment, ideate, pilot and refine innovative approaches to tackle barriers across our three priorities and implement and scale effective models in partnership.
d. Meetings and processes
Meetings are held throughout the year when the Trustees consider applications for funding from bona fide organisations whose objectives match the charitable objectives of the Foundation. A working party, made up of two members of Anglo American Services (UK) Ltd. ("AA Services") staff, considers and evaluates the applications and puts forward proposals to the Trustees.
No staff are directly employed by the Foundation and as such there are no key management personnel other than the Trustees. No gift in kind has been recognised in respect of the time spent by AA Services staff working on activities of the Foundation.
Achievements and performance
a. Key performance indicators
During the year, the Foundation awarded grants totalling £12,886,505 compared to £3,411,124 in 2021. As at 31 December 2022 the Foundation had total funds of £69,144,705 compared to £77,332,942 in the prior year. The financial position of the Foundation is comparable to the prior year, with a reduction in total funds, due to grants awarded being greater than the donations received during the year.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
Achievements and performance (continued)
b. Review of activities
The following is a selection of the significant grants approved by the Trustees for the year ended 31 December 2022:
£6,196,050 - The Global Fund to Fight AIDS, Tuberculosis and Malaria
The Global Fund is a worldwide movement to defeat HIV, TB and malaria and ensure a healthier, safer, more equitable future for all. Our pledge is part of a wider fund of $100 million raised by private sector companies and foundations to scale, across Africa, interventions that work to catalyse health outcomes by harnessing the potential of digitisation and knowledge-sharing among community health workers. The fund is anticipated to grow over time, with a ringfenced Digital Health Impact Accelerator Catalytic fund to improve the quality of community-based care systems across Africa through technology.
£3,044,000 - The Disaster and Emergencies Committee
The DEC brings together 15 leading UK aid charities to raise funds quickly and efficiently at times of crisis overseas. Our donation was part of the co-ordinated response to the war in Ukraine millions of people affected by the conflict in Ukraine, and refugees in neighbouring countries. DEC charities are supporting the local aid effort to provide cash assistance, food, healthcare, clean water, shelter, protection, and so much more.
£1,274,633 - Pyxera Global
Pyxera Global is a non-profit based in Washington, DC that has worked in over 90 countries—to create opportunities for collaboration for purposeful global engagement between multinational corporations, national development agencies, local governments, and non-governmental organisations. Pyxera Global is our lead partner implementing our employee volunteering programme: Ambassadors for Good.
£761,000 - The Salvation Army
A worldwide Christian church and registered charity, which has been fighting against social inequality and transforming lives for over 150 years. The Salvation Army mobilized their established network of local partner organisations in Ukraine and neighbouring countries to provide immediate support and identify gaps in wider response activity as the situation unfolds.
£361,080 - China Development Research Foundation(CDRF)
CDRF is a public foundation initiated by the Development Research Center of the State Council (DRC). Its mission is to advance good governance and public policy to promote economic development and social progress. Our grant is supporting the expansion of CDRF’s early childhood development programme.
£346,630 - MTV Staying Alive Foundation
With a focus on sexual and reproductive health, as well as covering essential topics such as mental health, gender-based violence and LGBT+ issues, MTV Staying Alive Foundation enables young people to make safer choices. Our partnership is delivering MTV Shuga, the award-winning mass behaviour-change campaign to improve the sexual and reproductive health of young people.
The amounts disclosed are for the total grants approved during the year and the grants generally consist of annual payments for durations of up to 5 years over the period from 2022 to 2026.
All organisations match the Foundation’s objectives. The Trustees will continue to consider donations to charities
whose objectives align with its own.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
Financial review
a. Going concern
The Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future for the period of at least 12 months from the date of approval of the financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
The Foundation’s ability to operate as a going concern is assessed in conjunction with the AA plc Group as it is dependent upon the ability of the AA plc Group companies to make donations to the Foundation. The Foundation’s cash flow forecasts for the period to the end of July 2024, with considerations given to the uncertainties of the wider macroeconomic environment and trading performance of the AA plc Group, show that the Foundation maintains sufficient liquidity throughout the period of assessment without the use of mitigating actions.
On 28 February 2023, the Foundation received £3,500,000 from AA Services representing the annual donation for 2023. This funding, together with existing funds will enable the Foundation to meet its committed liabilities of £6,075,346 for 2023 and £4,878,907 for 2024 to 2026.
b. Reserves policy
Donations are made to the Foundation at the beginning of each financial year which are then held in an interest bearing bank account. The Foundation intends to pay out all funds received. It is the policy of the Foundation to ensure that there are sufficient cash reserves to cover all committed donations and governance costs. The unrestricted reserves as at 31 December 2022 were £69,144,705 (2021 - £77,332,942).
c. Material investments policy
The current investment policy of the Trustees is to place funds in an interest bearing account in order to earn interest whilst awaiting decisions by the Trustees.
d. Principal funding
AA Services makes donations to the Foundation from its available cash balances. It is envisaged that this is likely to remain the major source of income in the future. As at 19 July 2023 the charity had received post year end payments from AA Services totalling £3,500,000.
Structure, governance and management
a. Constitution
Anglo American Foundation is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
The Foundation is constituted under a Memorandum of Association dated 13 May 2005 (revised 27 March 2018) and is a registered charity number 1111719.
b. Methods of appointment or election of Trustees
The management of the Foundation is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. Any new Trustees would be selected by the existing Trustees from amongst current or former senior AA plc Group managers or appropriate external independent candidates. The induction process for any new Trustee comprises a series of briefing meetings with the current Trustees.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
Structure, governance and management (continued)
c. Policies adopted for the induction and training of Trustees
New trustees are provided with the following key documents:
• the charity's governing document;
• the charity's latest Annual Report and financial statements; and
• minutes of recent trustee meetings.
New trustees also meet with other existing trustees and key people within the Foundation to get a better understanding of its work.
Trustees are also provided with appropriate training resources by an external training provider on an on-going basis.
d. Risks and uncertainties
The Trustees have assessed the major risks to which the Foundation is exposed, in particular those related to the operations and finances of the Foundation, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The principal risk is related to unauthorised payments being made. This is mitigated by dual approval requirements, segregation of duties and restricted access to banking systems.
Financial risk management
The Foundation's exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of assets, liabilities and the financial statements. Credit risk is not considered to be material on the basis that funding will continue to be received from AA Services.
Members' liability
The Foundation is a company limited by guarantee and has no share capital. The liability of each trustee in the event of winding up is limited to £1. The Trustees have control over decision-making and operations of the Foundation.
e. Plans for future periods
Having launched its new youth empowerment strategy at the end of 2022, the Foundation will pilot the new strategy in South Africa and Peru before scaling up more broadly across its footprint.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
Statement of Trustees' responsibilities
The Trustees (who are also directors of the Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulation.
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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 Statement of Recommended Practice: Accounting and Reporting by Charities (2019);
∙make judgments and estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Trustees' confirmation
Each of the persons who are Trustees at the time when this Trustees' annual report is approved has confirmed that:
∙so far as that Trustee is aware, there is no relevant audit information of which the company's auditors are unaware, and
∙he has taken all the steps that he ought to have taken as a Trustee in order to make himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
Independent Auditors
Under section 487(2) of the Companies Act 2006, PricewaterhouseCoopers LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the financial statements with the registrar, whichever is earlier.
Approved by order of the members of the board of Trustees on 19 July 2023 and signed on their behalf by:
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE OF ANGLO AMERICAN FOUNDATION
Report on the audit of the financial statements
Opinion
In our opinion, Anglo American Foundation’s financial statements (the “financial statements”):
∙give a true and fair view of the state of the charitable company’s affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, and cash flows, for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 31 December 2022; the statement of financial activities (incorporating an income and expenditure account), the statement of cash flows for the year then ended; and the notes to the financial statements, which include a description of significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charitable company’s ability to continue as a going concern.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE OF ANGLO AMERICAN FOUNDATION
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.
Trustees’ Annual Report
In our opinion, based on the work undertaken in the course of the audit the information given in the Trustees’ Annual Report for the period ended 31 December 2022 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Trustees’ Annual Report.
Responsibilities for the financial statements and the audit
Responsibilities of the trustees for the financial statements
As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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 to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the charitable company and its industry/environment , we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011 and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries. Audit procedures performed by the engagement team included:
∙Understanding and evaluating the design and implementation of controls designed to prevent and detect irregularities and fraud;
∙Inquiry of management, Internal Audit and the Company's legal advisors regarding their consideration of known or suspected instances of non-compliance with laws and regulations and fraud; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE OF ANGLO AMERICAN FOUNDATION
Use of this report
This report, including the opinions, has been prepared for and only for the charitable company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
∙we have not obtained all the information and explanations we require for our audit; or
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙certain disclosures of trustees’ remuneration specified by law are not made; or
∙the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Entitlement to exemptions
Under the Companies Act 2006 we are required to report to you if, in our opinion, the trustees were not entitled to: take advantage of the small companies exemption from preparing a Strategic Report. We have no exceptions to report arising from this responsibility.
Alex Lazarus (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
19 July 2023
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2022
Net (expenditure)/income before net (losses)/gains on investments
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Net foreign exchange (losses)/gains on grants
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Total funds brought forward
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Total funds carried forward
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The Statement of financial activities includes all gains and losses recognised in the year.
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The notes on pages 15 to 26 form part of these financial statements.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
REGISTERED NUMBER: 5452659
BALANCE SHEET
AS AT 31 DECEMBER 2022
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements on pages 12 to 26 were approved and authorised for issue by the Trustees on 19 July 2023 and signed on their behalf by:
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The notes on pages 15 to 26 form part of these financial statements.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
Cash flows from operating activities
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Net cash used in operating activities
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Cash flows from investing activities
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Investment in liquidity funds
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Net cash used in by investing activities
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Change in cash and cash equivalents in the year
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Cash and cash equivalents at the beginning of the year
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Cash and cash equivalents at the end of the year
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The notes on pages 15 to 26 form part of these financial statements
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Anglo American Foundation is a charitable company limited by guarantee, incorporated in the United Kingdom and registered in England and Wales.
The nature of the Foundation’s operations and principal activities is set out in the Trustees' annual report.
The address of the registered office is given on the Reference and administrative details page.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Anglo American 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 otherwise stated in the relevant accounting policy.
The Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future for the period of at least 12 months from the date of approval of the financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
The Foundation’s ability to operate as a going concern is assessed in conjunction with the AA plc Group as it is dependent upon the ability of the AA plc Group companies to make donations to the Foundation. The Foundation’s cash flow forecasts for the period to the end of July 2024, with considerations given to the uncertainties of the wider macroeconomic environment and trading performance of the AA plc Group show that the Foundation maintains sufficient liquidity throughout the period of assessment without the use of mitigating actions.
On 28 February 2023, the Foundation received £3,500,000 from AA Services representing the annual donation for 2023. This funding, together with existing funds will enable the Foundation to meet its committed liabilities of £6,075,346 for 2023 and £4,878,907 for 2024 to 2026.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Foundation for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Donation income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Gifts in kind income is recognised once the giver has confirmed the offer of the gift and the amount of the gift can be measured reliably.
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 of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including 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 than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Foundation's objectives, as well as any associated support costs.
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 met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Foundation; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Interest recievable is disclosed within cash flows from operating activities in the Cash flow statement.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair 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 ‘Gains/(Losses) on investments’ in the Statement of financial activities. The investment has been classified as a current asset based on the maturity date. The investment was deemed to not be classified as a cash and cash equivalent based on management's intention to hold the investment.
The charity's functional and presentational currency is Pound Sterling (GBP) as this is the currency of the primary economic environment in which the charity operates.
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.
Cash at bank and in hand includes cash and short-term 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.
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Liabilities and provisions
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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 at the amount that the Foundation anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Critical accounting estimates and areas of judgment
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Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Trustees do not consider there are any critical judgments or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.
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Interest receivable on cash
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
5.Interest receivable (continued)
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Interest receivable on cash
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The audit fee payable to the Foundation's auditors for the audit of the Foundation's annual financial statements, of £11,466 (2021 - £10,283), has been borne by AA Services and treated as a gift in kind.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Grants to Institutions
2022
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Grants, Education and training
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Grants, Health and welfare
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Grants, Community development - other
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Grants, Employee matched funding
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Grants to Institutions
2021
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Grants, Education and training
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Grants, Health and welfare
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Grants, Capacity development
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Grants, Other social investments
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Grants, Community development - other
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Grants, Employee matched funding
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Further details in respect of the more significant grants approved by the Trustees for the year ended 31
December 2022 are disclosed in the Trustees' Annual Report.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Analysis of expenditure by activities
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Grant funding of activities
2022
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Community development - other
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Grant
funding of
activities
2021
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Community development - other
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Fees payable to the Foundation's auditors for the audit of the Foundation's annual financial statements
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Trustees' remuneration and expenses
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During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
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During the year ended 31 December 2022, no Trustee expenses have been incurred (2021 - £NIL).
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As a registered charity, the Foundation is potentially exempt from taxation on its income and gains falling within Chapter 3 of Part 11 of the Corporation Taxes Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable purposes. No tax charge has arisen in the current or preceding year.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Creditors: Amounts falling due within one year
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There are no performance-related conditions attached to any of the commitments due within one year.
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Creditors: Amounts falling due after more than one year
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Of the creditors falling due after more than one year, £1,780,883 is due in 2024, £1,549,012 in 2025 and £1,549,012 in 2026. In 2021, £668,915 was due in 2023 and £222,176 in 2024.
There are no performance-related conditions attached to any of the commitments due after more than one year.
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Financial liabilities measured at amortised cost
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Financial liabilities measured at amortised cost comprise grant liabilities.
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Summary of funds - current year
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Balance at 1 January 2022
£
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Balance at 31 December 2022
£
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Balance at
1 January 2021
£
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Balance at
31 December 2021
£
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Analysis of net assets between funds
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Analysis of net assets between funds - current year
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Creditors due within one year
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Creditors due in more than one year
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Analysis of net assets between funds - prior year
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Creditors due within one year
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Creditors due in more than one year
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Reconciliation of net movement in funds to net cash flow from operating activities
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Net expenditure/income for the year (as per Statement of Financial
Activities)
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Increase/(Decrease) in creditors
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Net cash provided by operating activities
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ANGLO AMERICAN FOUNDATION
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Analysis of cash and cash equivalents
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Total cash and cash equivalents
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Analysis of changes in net debt
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Related party transactions
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In the year, donations of £5,000,000 were received from AA Services (2021 - £80,289,155). The Trustees are all employed by AA Services or other subsidiaries of Anglo American plc.
In the year, donations of £434,250 were received from Anglo American Technical & Sustainability Services Ltd (2021 - £NIL).
The audit fee payable to the Foundation's auditors for the audit of the Foundation's annual financial statements, of £11,466 (2021 - £10,283) has been borne by AA Services.
During the year, the Foundation made a donation of £NIL (2021 - (£953,671 ZAR 20,000,000)) to Anglo American Foundation Trust in South Africa.
There were no other related party transactions.
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Post balance sheet events
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On 28 February 2023, the Foundation received £3,500,000 from AA Services representing the annual
donation for 2023.
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