Company registration number 10187396 (England and Wales)
OPEN SOCIETY FOUNDATION LONDON
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
OPEN SOCIETY FOUNDATION LONDON
COMPANY INFORMATION
Directors
Alexander Soros
Michael Vachon
(Appointed 3 January 2024)
Company number
10187396
Registered office
4th Floor Herbal House
8 Back Hill
London
EC1R SEN
Auditor
Critchleys Audit LLP
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
Solicitors
Farrer & Co
66 Lincoln's Inn Fields
London
WC2A 3LH
OPEN SOCIETY FOUNDATION LONDON
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 20
OPEN SOCIETY FOUNDATION LONDON
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the company is to promote open society values worldwide.
Review of the business
Open Society Foundation London is a “not-for-profit” and is part of the Open Society Foundations network, a “family” of organizations. Open Society Foundation London receives grant funding from sources within the Open Society Foundations network equal to its net expenditure.
Open Society Foundation London works in partnership with other organizations within the network to promote open society values worldwide. In 2023 Open Society Foundation London worked in partnership with other Open Society Foundations network organizations on four areas of focus:
Climate Justice—We are committed to climate justice and addressing the unequal burdens of the climate crisis. We support grassroots action and global efforts to take common action in the face of this common threat.
Equity—We view equal treatment for all—regardless of ethnicity, religion, gender, disability, or sexual identity—as a fundamental part of healthy democracies. At a global level, we support efforts to redress continuing inequities in global governance and in the global economy that are a legacy of colonial exploitation.
Expression—Against the background of the rapidly evolving media environment, we promote robust and independent journalism and we support efforts to strengthen freedom of expression, privacy, and access to information.
Justice—Access to justice and the rule of law based in human rights are the bedrock of peaceful, sustainable futures. We support human rights movements and institutions, as well as the reform of judicial and systems, and the promotion of democratic participation at all levels.
Information on the work of these areas of focus is available at www.opensocietyfoundations.org.
Because Open Society Foundation London receives grant funding equal to its net expenditure, the surplus for the financial period and equity at year end are equal to the value of tangible assets less lease incentive liabilities.
Principal risks and uncertainties
Open Society Foundation London has secure grant funding arrangements and therefore does not face significant business risks.
Section 172 Report
This is the Section 172 report of Open Society Foundation London.
Open Society Foundation London works in close alignment and collaboration with the Open Society Foundations global network to further its objective “to promote open society values worldwide.” The company’s sole member is Open Society Institute, based in the United States.
Key stakeholders
As a grant-making foundation, our key stakeholders are our grantees and staff.
OPEN SOCIETY FOUNDATION LONDON
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Grantees
The Open Society Foundation London awards grants, scholarships, and fellowships to organizations and individuals who share open society values, who have a vision, and whose efforts will lead to lasting social change. Building long-term relationships of trust with the organizations we support, and understanding their health, effectiveness, and resilience is a core element of our approach to organization-centered grant making. This understanding enables staff to make better decisions about if and how to provide funding to help organizations develop, achieve their aspirations, and contribute to our short- and long-term goals. We provide different types of grants, from project-level grants to general operating support covering the day-to-day costs of operations with an emphasis on maximizing flexible funding. Guided mostly by our program staff, the kind of grants any Open Society program makes depends on its strategy and its vision of how to use its budget most effectively.
The Open Society Foundation London works in collaboration with other grant-making entities within the Open Society Foundations network to promote open society values.
Information about the vast majority of Open Society grants awarded since 2016 is available on our website. The database contains as complete a picture as possible of our grant making, although we do omit grants and modify descriptions under some circumstances, including where it is necessary to comply with personal data protection laws, and when disclosure may put at risk the safety or work of a grantee or the Open Society Foundations.
We expect that employees and others acting on our behalf operate in a manner that is fair, respectful, and cooperative with those we serve. The Open Society Foundations maintains an ombudsperson to receive complaints about abuse of authority, including by Open Society programs, or by members of Open Society boards or staff. The principal responsibilities of ombudspersons involve investigating complaints, facilitating the resolution of disputes, identifying particular abuses or patterns of abuse that warrant attention by the Board of Directors of the Open Society Foundations, and making recommendations that are intended to stop or reduce abuses.
There is a guide and protocol that staff are required to follow when responding to allegations of discrimination, including sexual harassment, within grantee organizations. Our website makes available a policy, setting out our expectations of organizational grantees in handling such allegations within their organizations, as well as providing information about how the Foundations approach these situations.
Staff
As part of the change in strategic direction and global restructure taking place across Open Society, a program of voluntary separations for program staff was conducted. The global restructure remains ongoing and as workforce planning is completed it is expected there will be involuntary separations in 2024, and a comprehensive support package to help staff transition has been put in place.
Key decisions
Strategic direction
We are rethinking Open Society’s strategic focus and priorities, to better equip us to address the challenges of a vastly changed landscape today. While our mission remains the same—to build vibrant and inclusive societies—we are making difficult choices on how we focus and structure our work for greater impact. This is resulting in continuing to work on certain portfolios while significantly decreasing or winding down work on others.
Open Society over the years has taken on a wide range of issues, and we believe a greater focus in fewer areas will help increase our impact. We plan to coordinate our global work around key opportunities with significantly larger commitments, a more integrated approach, and a strengthened ability to pivot quickly and take risks on cutting-edge issues. We have started to work with partners in developing short-term, high-impact campaigns and longer-term global initiatives.
OPEN SOCIETY FOUNDATION LONDON
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Alexander Soros
Director
18 September 2024
OPEN SOCIETY FOUNDATION LONDON
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Alexander Soros
Catherine Livingston
(Resigned 3 January 2024)
Michael Vachon
(Appointed 3 January 2024)
Business relationships
Business relationships are detailed in the Section 172(1) statement included in the Strategic Report.
Financial instruments
Because the company has secure grant funding arrangements it is not subject to noteworthy liquidity or cash flow risks and does not use financial instruments.
Future developments
Open Society Foundation London will continue to work in partnership with other entities in the Open Society Foundation network “family” of organizations and collaborate on the new strategic direction.
Energy and carbon report
The company purchased 492,875 kWh (2022: 416,473 kWh) of electricity in the year, all of which was “green” sourced and had 0 gram per kWh CO2 emissions. The company did not purchase gas, transport fuel, or other energy sources in the year.
Electricity purchased is all used to power the company’s office and, as the electricity has zero carbon emissions the best indicator of usage intensity is electricity kWh per square foot of office space. The office size is 28,798 square feet and thus the indicator is 17.1 kWh (2022: 14.5 kWh) per square foot.
The office was built and designed with energy efficiency in mind, such as efficient HVAC and lighting. There were no new initiatives in 2023 to reduce electricity consumption.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Alexander Soros
Director
18 September 2024
OPEN SOCIETY FOUNDATION LONDON
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
OPEN SOCIETY FOUNDATION LONDON
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OPEN SOCIETY FOUNDATION LONDON
- 6 -
Opinion
We have audited the financial statements of Open Society Foundation London (the 'company') for the year ended 31 December 2023 which comprise the income and expenditure account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its deficit 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 the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
OPEN SOCIETY FOUNDATION LONDON
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPEN SOCIETY FOUNDATION LONDON
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our knowledge and experience;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
OPEN SOCIETY FOUNDATION LONDON
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPEN SOCIETY FOUNDATION LONDON
- 8 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims;
reviewing relevant correspondence.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Robert Kirtland
Senior Statutory Auditor
For and on behalf of Critchleys Audit LLP
19 September 2024
Chartered Accountants
Statutory Auditor
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
OPEN SOCIETY FOUNDATION LONDON
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Income
3
70,044,532
45,228,966
Administrative expenses
(70,513,248)
(46,518,923)
Other operating income
560,000
Operating deficit
4
(468,716)
(729,957)
Interest receivable and similar income
7
90,051
27,416
Deficit before taxation
(378,665)
(702,541)
Tax on deficit
8
(19,381)
Deficit for the financial year
(398,046)
(702,541)
The income and expenditure account has been prepared on the basis that all operations are continuing operations.
OPEN SOCIETY FOUNDATION LONDON
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Deficit for the year
(398,046)
(702,541)
Other comprehensive income
-
-
Total comprehensive income for the year
(398,046)
(702,541)
OPEN SOCIETY FOUNDATION LONDON
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
7,644,248
8,348,753
Current assets
Debtors
10
12,357,631
6,298,570
Cash at bank and in hand
6,432,493
6,485,213
18,790,124
12,783,783
Creditors: amounts falling due within one year
11
(17,310,637)
(13,090,083)
Net current assets/(liabilities)
1,479,487
(306,300)
Total assets less current liabilities
9,123,735
8,042,453
Creditors: amounts falling due after more than one year
12
(4,552,632)
(3,073,304)
Net assets
4,571,103
4,969,149
Reserves
Income and expenditure account
4,571,103
4,969,149
Members' funds
4,571,103
4,969,149
The financial statements were approved by the board of directors and authorised for issue on 18 September 2024 and are signed on its behalf by:
Alexander Soros
Director
Company registration number 10187396 (England and Wales)
OPEN SOCIETY FOUNDATION LONDON
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Income and expenditure
£
Balance at 1 January 2022
5,671,690
Year ended 31 December 2022:
Deficit and total comprehensive income for the year
(702,541)
Balance at 31 December 2022
4,969,149
Year ended 31 December 2023:
Deficit and total comprehensive income for the year
(398,046)
Balance at 31 December 2023
4,571,103
OPEN SOCIETY FOUNDATION LONDON
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
18
210,893
(1,347,354)
Investing activities
Purchase of tangible fixed assets
(353,664)
(206,629)
Interest received
90,051
27,416
Net cash used in investing activities
(263,613)
(179,213)
Net decrease in cash and cash equivalents
(52,720)
(1,526,567)
Cash and cash equivalents at beginning of year
6,485,213
8,011,780
Cash and cash equivalents at end of year
6,432,493
6,485,213
OPEN SOCIETY FOUNDATION LONDON
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Open Society Foundation London is a private company limited by guarantee incorporated in England and Wales. The registered office is 4th Floor Herbal House, 8 Back Hill, London, EC1R SEN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Income and expenditure
Revenue recognition
All income is included in the income and expenditure account when the company is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Open Society Foundation London receives income from the Foundation to Promote Open Society (FPOS) and the Fund for Policy Reform Inc. equal to its net expenditure calculated by reference to agreed budgets. Any income received in excess of the net expenditure is therefore treated as deferred income. A debtor is recognised when the relevant income received is less than the amount due for the year.
Grants payable
Grants are recognised within expenditure when they have been approved by the company and this has been communicated to the beneficiary. Grants due after more than one year are discounted at a market rate of interest
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the period of the lease
Fixtures and fittings
3-5 years straight line basis
Computers
3-5 years straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
OPEN SOCIETY FOUNDATION LONDON
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Taxation
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
The initial costs connected with the leases (including legal and professional fees and stamp duty) are charged to expenses in the year in which it is incurred.
OPEN SOCIETY FOUNDATION LONDON
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are the treatment of the liability resulting from the lease incentives on the current leasehold property occupied by the company and the accounting for the company's grant liabilities.
3
Income
The income of the company for the year has been derived from grants receivable.
4
Operating deficit
2023
2022
Operating deficit for the year is stated after charging/(crediting):
£
£
Exchange gains
(365,965)
(7,372)
Depreciation of owned tangible fixed assets
1,058,169
1,215,470
Operating lease charges
1,990,956
1,990,956
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,000
21,735
For other services
Other assurance services
12,474
11,340
Taxation compliance services
2,640
2,400
Other taxation services
720
All other non-audit services
3,720
3,465
19,554
17,205
OPEN SOCIETY FOUNDATION LONDON
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Program
103
93
Support
42
49
Total
145
142
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries (including benefits-in-kind)
16,309,763
15,360,103
Social security costs
2,438,912
2,390,520
Pension costs
1,738,122
1,667,010
Other short term employee benefits
817,391
838,350
21,304,188
20,255,983
Redundancy payments made or committed
7,810,195
1,806,716
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
90,051
27,416
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
19,381
OPEN SOCIETY FOUNDATION LONDON
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(378,665)
(702,541)
Expected tax credit based on the standard rate of corporation tax in the UK of 21.52% (2022: 19.00%)
(81,489)
(133,483)
Adjustement for non-taxable trading activities
100,870
133,483
Taxation charge for the year
19,381
-
9
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
9,819,634
922,605
1,780,827
12,523,066
Additions
88,788
25,655
239,221
353,664
Disposals
(94,832)
(94,832)
At 31 December 2023
9,908,422
948,260
1,925,216
12,781,898
Depreciation and impairment
At 1 January 2023
2,070,408
542,708
1,561,197
4,174,313
Depreciation charged in the year
712,717
180,783
164,669
1,058,169
Eliminated in respect of disposals
(94,832)
(94,832)
At 31 December 2023
2,783,125
723,491
1,631,034
5,137,650
Carrying amount
At 31 December 2023
7,125,297
224,769
294,182
7,644,248
At 31 December 2022
7,749,226
379,897
219,630
8,348,753
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
26,491
91,008
Prepayments and accrued income
12,331,140
6,207,562
12,357,631
6,298,570
OPEN SOCIETY FOUNDATION LONDON
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Creditors: amounts falling due within one year
2023
2022
£
£
Lease incentives
306,458
306,301
Trade creditors
3,047,043
1,578,334
Corporation tax
19,381
Other taxation and social security
701,789
668,125
Deferred income
4,593,363
Other creditors
4,821,248
4,595,646
Accruals and deferred income
8,414,718
1,348,314
17,310,637
13,090,083
12
Creditors: amounts falling due after more than one year
2023
2022
£
£
Lease incentives
2,766,687
3,073,304
Other creditors
1,785,945
4,552,632
3,073,304
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,738,122
1,667,010
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
14
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
OPEN SOCIETY FOUNDATION LONDON
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
15
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
1,990,955
1,990,955
Between two and five years
7,963,820
7,963,820
In over five years
1,990,955
9,954,775
11,945,730
16
Related party transactions
Key Management Personnel
Salaries and other short term employee benefits for key management personnel totaled £1,278,155 (2022: £1,656,944 98).
Foundation to Promote Open Society and Fund for Policy Reform, Inc. - Common control
During the year the company received grants of £70,044,532 (2022: £45,228,966) from the above entities. At the year end there was accrued income of £4,768,583 (2022: £5,167,828) in respect of Fund for Policy Reform Inc. and accrued income of £6,341,949 (2022: deferred income £4,593,363) in respect of Foundation to Promote Open Society.
17
Ultimate controlling party
The company's immediate parent is Open Society Institute, incorporated in the USA. The address of its registered office is 224 West 57th Street, New York, NY 10019, United States.
18
Cash generated from/(absorbed by) operations
2023
2022
£
£
Deficit for the year after tax
(398,046)
(702,541)
Adjustments for:
Taxation charged
19,381
Investment income
(90,051)
(27,416)
Depreciation and impairment of tangible fixed assets
1,058,169
1,215,470
Movements in working capital:
Increase in debtors
(6,059,061)
(2,912,853)
Increase in creditors
10,273,864
681,711
(Decrease)/increase in deferred income
(4,593,363)
398,275
Cash generated from/(absorbed by) operations
210,893
(1,347,354)
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