The PINE Foundation
Registered Charity No. 1038938
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED
31ST MARCH 2023
The PINE Foundation Year ended 31st March 2023
Index
| Index | |
|---|---|
| Page: | |
| 1 | Legal and Administrative Details |
| 2-12 | Trustees' Report |
| 13 | Independent Examiner's Report |
| 14 | Statement of Financial Activities |
| 15 | Balance Sheet |
| 16-22 | Notes to the Financial Statements |
The PINE Foundation Legal and Administrative Details For the year ended 31st March 2023
TRUSTEES
Professor Serguey Braguinsky (Secretary to the Board of Trustees) Mr Kentaro Nishida Professor Atsushi Ohyama
SOLICITORS
Bates, Wells & Braithwaite Scandinavian House 2-6 Cannon Street London EC4M 6YH
INDEPENDENT EXAMINER
Moore Kingston Smith LLP 6th Floor 9 Appold Street London EC2A 2AP
BANKERS
Barclays Bank plc 114 Fenchurch Street London EC3P 3HY
REGISTERED OFFICE
30 Dartmouth Road Forest Hill London SE23 3XU
Tel: 44 (0)20 8699 5135 Fax: 44 (0)20 8699 8525
STATUS
The PINE Foundation (Foundation for Progressive International Education) is a charitable trust governed by a Trust Deed made on 2 March 1994.
The PINE Foundation is registered in the United Kingdom as a charity and its registered charity number is 1038938.
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TRUSTEES’ REPORT
The Trustees of The PINE Foundation present their report and independently examined financial accounts for the year ended 31 March 2023. The Trustees confirm that the annual report and financial statements comply with current statutory requirements, the conditions of the Charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in 2015 and updated in 2019.
OBJECTIVES AND ACTIVITIES
Summary of objectives for the public benefit
The objectives of The PINE Foundation, according to its Trust Deed, are to promote and advance education and research in economic, political and sociological processes for the benefit of the public and in particular, without prejudice to that generality, to promote and advance education and research in Russia and the former Eastern bloc countries.
Purposes of the charity/mission statement
The creation of human capital is key to economic progress and democracy, while a competitive and prosperous free market economy constitutes the most important condition for such human capital creation. The PINE Foundation is committed to sponsoring research and educational projects that will help to accumulate such human capital and continue such activities for the public benefit in the year under review.
Main activities related to these purposes
In the year under review, The PINE Foundation continued two main activity streams related to its purposes: supporting PhD-level education and research relevant to the Foundation’s mission; and supporting investment in human capital in earthquake- and tsunami-devastated areas in Japan. The third activity stream (supporting research projects in Russia related to building a market-oriented economy) remained suspended due to Russian aggression against Ukraine and the ensuing Western sanctions. The Trustees hereby confirm that they complied with their duty to have regard to the Charity Commission’s guidance on public benefit when exercising any powers or duties to which the guidance is relevant. In particular, the Trustees gave full consideration to how the main activities of The PINE Foundation will contribute to meeting the charity’s aims and objectives for the benefit of the public.
The main strategy for achieving objectives for the public benefit lies in making education and research grants. The first main activity stream to achieve The PINE Foundation’s purposes in the year under review consisted of supporting two individuals in high-level PhD programmes in areas directly related to the Foundation’s mission. These individuals are supported to help them defray part of the costs associated with enrolment in their programmes and carrying out research.
The second main activity stream to achieve The PINE Foundation’s purposes consists of support for the internationally-oriented education of children affected by the March
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2011 earthquake and tsunami in North-Eastern Japan. To further this objective, the Trustees have continued to work with two English teachers, previously affiliated with the former Fukushima Friends UK charity, to follow up on the project started in 2016, aiming to advance English education for children in the Fukushima prefecture, one of the areas most devastated not only by the earthquake and the tsunami but also by the fallout following the nuclear disaster at the Fukushima Nuclear Power Plant.
The third activity which previously consisted of support for the Industrial Policy Research Group, an informal network of economists and social scientists working on various issues related to the transition to a market economy in Russia, was suspended in February 2022 following the Russian invasion of Ukraine and remained suspended. More details about this are provided below.
The Trustees have also continued to seek other ways of achieving the Foundation’s purposes as related to the public benefit through advancing education and research as well as closely monitoring the progress of the projects sponsored by The PINE Foundation.
Details of significant activities contributing to the achievement of stated objectives
a) Grant making
- Grant making was the main activity contributing to the achievement of both short-term and long-term goals. Overall, The PINE Foundation spent £66,748 on grant-making activities per the SOFA. £21,641 of this amount constituted grants awarded to individuals and institutions (details are provided below in the “Achievements and Performance” section), while £45,107 was used to cover support and governance costs. Trustees continuously monitor projects and this year in particular they paid special attention to checking regularly on the wellbeing of their beneficiaries. The Trustees are not compensated for this activity.
b) Fundraising
- Fundraising (generating voluntary donations and managing investments) was one of the significant activities contributing to the achievement of the objectives stated above. In the year under review, The PINE Foundation raised £73,801 in new donations. The costs of fund-raising activities (comprised of both the costs of generating voluntary income and the costs of managing investments), per the SOFA amounted to £19,804 during the year under review. This mostly reflects direct costs in terms of compensation for the Administrative Officer’s time, including applying for Gift Aid, but fundraising and investment management activity were also conducted by the Trustees, who did not receive compensation for their services.
Details of grants
The grant-making policy of The PINE Foundation is guided by the basic goals set forth in The PINE Foundation’s Deed of Trust as stated at the beginning of this section of the Trustees’ Report. Selecting projects for grants entails an extensive search for and examination of potential projects to support, conducted by the Trustees.
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In conducting this search the Trustees rely on their own expertise as well as actively soliciting opinions from outside experts, including but not limited to prominent scholars and experts in the field, and former and current beneficiaries of The PINE Foundation. Projects identified through the search process are subject to thorough examination and cross-checking by the Board of Trustees. The final decision with respect to each grant project individually is taken at Board meetings and involves further discussion followed by the voting procedure.
The details of the grants provided by The PINE Foundation during the year under review are as follows.
1) Shotaro Yamaguchi, University of Maryland, £10,150, to support his continued enrolment in the PhD programme
Mr Shotaro Yamaguchi was in his fifth year of the PhD programme in strategy and entrepreneurship at the University of Maryland, receiving a financial aid package consisting of a tuition waiver and partial financial support. He has continued to receive a supplementary grant from The PINE Foundation to support his PhD study.
The Trustees continue to be impressed by Mr Yamaguchi’s research agenda accomplishments. In the year under review he successfully completed two more research papers, which he submitted to peer-reviewed journals for possible publication. Mr Yamaguchi represents the type of globally-oriented young Japanese scholars which The PINE Foundation considers, as part of its mission, as meriting support. Professors Braguinsky and Ohyama continue to constantly monitor Mr Yamaguchi’s performance in the PhD programme and provide him with scholarly advice, and the Trustees are satisfied with his progress.
2) Takuya Hiraiwa, University of Maryland, £10,150, to support his enrolment in the PhD programme
Mr Takuya Hiraiwa was in his second year in the PhD programme in strategy and entrepreneurship at the University of Maryland during the year under review, receiving a financial aid package consisting of a tuition waiver and partial financial support. The PINE Foundation provided him with a supplementary grant to support his PhD study.
Professors Braguinsky and Ohyama continue to monitor Mr Hiraiwa’s performance in the PhD programme and provide him with scholarly advice, and the Trustees are satisfied that his study is off to a very good start. Even though only in his second year, Mr Hiraiwa already has two research papers submitted to peer-reviewed journals.
3) Ms Fiona Stamp: £1,300 for the online English education project.
As mentioned in previous Trustee Reports, the COVID pandemic has resulted in the necessity to move English classes in Fukushima prefecture, for the children who participated in the initial classes supported by The PINE Foundation five years ago, to an online format. The first two years of online education consisted of two classes, both taught online on a fortnightly basis, by two English teachers based in the UK, with several British children of the same age participating, to make friends with the
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Japanese children and to learn about Japanese culture. The Trustees have received detailed reports from both teachers and also interviewed one of the students taking the classes and were very satisfied with how the project was going. Unfortunately, Ms Kumiko Yabe, who spearheaded Fukushima Friends UK, the UK-registered charity which partnered in this project with The PINE Foundation, retired during the year under review, but she urged the Trustees to continue supporting the project by disbursing funds directly to the teachers involved. This request by Ms Yabe was echoed by the children and their guardians, and the two English teachers involved also expressed their readiness to continue. After due diligence (including consultation with the Independent Examiners and also obtaining Ms Yabe’s commitment to monitor the project in a private capacity), the Trustees were satisfied that the online classes could continue even without mediation by Fukushima Friends UK. They designated one of the teachers, Ms Fiona Stamp, to be the recipient of the funds whereby The PINE Foundation can continue to render support to the online English classes by covering the teachers’ remuneration and logistical support costs.
Use of volunteers
The Trustees of The PINE Foundation donate their time and effort to the Foundation without receiving remuneration. Outside volunteers do not play a significant role in The PINE Foundation apart from the contribution of occasional professional advice solicited by the Trustees from their colleagues in academia.
STRUCTURE GOVERNANCE AND MANAGEMENT
Constitution and organisational structure
The PINE Foundation (Foundation for Progressive International Education) is a charitable trust governed by a Trust Deed made on 2 March 1994. The Trust Deed stipulates that The PINE Foundation is governed by its Board of Trustees. All decisions are made jointly by the Trustees at their meetings, conducted at least four times a year, either face-to-face or via web conferences. The Administrative Officer appointed by the Trustees and answering to them is responsible for executing the Trustees’ decisions and administering The PINE Foundation’s day-to-day operations. The PINE Foundation does not have affiliated charities or other related parties or entities.
Induction and training of Trustees
The Board of Trustees of The PINE Foundation only appoints a new Trustee following a careful selection and interviewing process, during which Board members discuss with the prospective new Trustee his/her duties and obligations according to Charity Law, and also provide detailed explanations about The PINE Foundation, its mission and operations. In other words, a deep understanding of both The PINE Foundation itself and of the relevant regulations is the most important condition of being appointed a Trustee of The PINE Foundation, so that the new Trustee approved by the Board of Trustees will have already been inducted and have received basic training. All the Trustees constantly update their knowledge of Charity Law and SORP as part of their ongoing duties, and they also closely follow developments that are relevant to the Foundation’s activities.
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ACHIEVEMENTS AND PERFORMANCE
Summary of main achievements
In accordance with the objectives of The PINE Foundation as stated in its Trust Deed, at the most fundamental level, the Foundation’s achievements should be assessed by the impact its activity has on the progress of economic research and education in the areas where The PINE Foundation’s beneficiaries conduct their activities. The power of ideas and human capital to bring about such progress is enormous, especially in the long run; and the activity of The PINE Foundation can be expected to have a major impact on the goals of its mission, much more than can be measured by simple quantitative measurements of performance for any particular year.
In view of the above, the Trustees do not impose specific quantitative performance measures in terms of charitable activities. The Trustees constantly communicate with all the beneficiaries and monitor the projects while also embracing feedback from the beneficiaries. The constant hands-on process of bilateral communication in which the Trustees give guidance and advice to the beneficiaries, whilst the latter continue to explore new ways of conducting their research and study, and respond to the Trustees with new ideas, has been the biggest asset of The PINE Foundation so far. This is also the most important channel through which the Trustees ensure that the Foundation’s donations are used for their intended purposes.
In the year under review the main achievements, as reflected in the grants detailed above, consisted of: 1) providing a “window of opportunity” for studies and important and exciting research agendas to two PhD students, Mr Yamaguchi, and Mr Hiraiwa (Mr Caldwell who had been supported until the previous year successfully defended his thesis and graduated); and 2) providing financial and logistical support for international-oriented education to children affected by the fallout from the Fukushima nuclear disaster, stemming from the 2016 Summer English classes in Fukushima prefecture supported by the PINE Foundation.
Difference made to beneficiaries and wider society
The difference made to beneficiaries and the wider society follows directly from the summary above. For the PhD students supported by The PINE Foundation such support gives them a chance to focus on their studies and research. As mentioned in last year’s report, Mr David Caldwell had an especially difficult time during the COVID pandemic and had to seek an extension for his dissertation defence, made possible by continued support from The PINE Foundation beyond the initially agreed period.
The Trustees are happy to report that Mr Caldwell successfully graduated from the PhD programme at Durham University and obtained his doctoral degree so that he will be referred to as Dr David Caldwell from now on. The title of his thesis is “Polarization and Cultural Realignment in Britain, 2014-2019.” In this thesis, which the Trustees have also read and consider to be of high quality, Mr Caldwell addresses some big questions related to electoral realignment in Britain and whether it reflects the British voters developing more polarized and ideological issue preferences, or
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whether it is the elite policy (political parties) divergence that destabilised established electoral coalitions. Dr Caldwell’s main finding is that most of the polarisation cannot be explained simply by partisan polarisation, that is, party identity no longer anchors political behaviour, as can be seen especially in the case of Brexit. Instead, polarisation reflects deeper underlying causes of a demographic and economic nature. While the immediate contribution of Dr Caldwell’s thesis is to provide a more complete picture of polarisation in the British case, the implications from his study are much broader, as both the findings and the methodology he developed could be applied to other countries experiencing similar changes, such as the US and much of Europe.
Dr Caldwell remains in touch with the Trustees after his graduation. He has moved to the United States due to family circumstances and received a job offer from the Judicial Council of California. In his letter to the Trustees, sent right after his defence and graduation, Dr Caldwell expressed his deep gratitude to the Trustees and specifically mentioned that he “certainly would not have made it with the PINE Foundation.”
For Shotaro Yamaguchi and Takuya Hiraiwa, The PINE Foundation’s support is crucial in enabling them to continue pursue their PhD studies and engage in research with a minimum of distraction. Both of them are making good progress in their studies and both work on research related to the role of high-level educated human capital in Japan’s industrialization process, with lessons for developing countries and countries in transition. The Trustees expect this research, when completed, to have important implications for understanding the process of economic development as driven by markets and human enterprise.
To sum up, grants awarded by the PINE Foundation make a considerable difference to the beneficiaries and will make a difference to wider society as the beneficiaries accumulate a high-level of human capital and become powerful advocates for the causes that constitute the mission of The PINE Foundation.
The support to children affected by the earthquake and the nuclear accident fallout, conducted through online English lessons, has had a very direct impact on the children’s lives by giving them chances to acquire new skills and, especially, giving them motivation. The Trustees were very pleased that the online format could be successfully applied to continue this project despite the pandemic, and they note that this made a great difference to the children involved, given all the challenges they faced in the past several years because of COVID 19.
It is painful for the Trustees to have to report the suspension of The PINE Foundation’s support for the Industrial Policy Research Group in Russia. The Group had functioned in an extremely difficult situation for quite some time, even before Putin’s government decided to invade Ukraine. Russian liberal scholars, such as the Professor, had conducted intellectually honest and practically relevant research, constituting a powerful force that opposes the departure from a market economy and political democracy and The PINE Foundation was and remains proud of the support it rendered to their activity as an important part of its mission. After the beginning of the Russian invasion of Ukraine, however, the Trustees had no choice but to suspend
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their charitable activities for residents of Russia which, most unfortunately, includes the Professor and his team.
Professor Braguinsky has been in regular contact with the Professor and other members of the Industrial Policy Research Group. They are doing reasonably well, given the circumstances, and continue to express their gratitude for the difference made to their work by the earlier support from The PINE Foundations. The Trustees hope that support for the Professor can be resumed at some point in the future, although currently it is not possible to predict when that might happen. In the meantime, the two previously approved grants for the Professor, which could not be disbursed due to COVID remain in the PINE Foundation’s account for the time being.
Fundraising and investment performance achievements
The amount of donations received by The PINE Foundation somewhat increased in the year under review. Together with the investment portfolio’s return, the incoming resources are sufficient to secure financial stability and to continue implementing The PINE Foundation’s mission.
The investment strategy for most of the year under review continued the previously approved policy of holding a diversified global equity portfolio, taking into account the historically low interest rates on bank deposits and low rates of return on fixedincome assets. The value of the investment portfolio performed reasonably well in the year under review.
FINANCIAL REVIEW
During the year under review The PINE Foundation received £73,801 worth of new donations. The PINE Foundation also received £15,695 in interest and dividends on its investments. The PINE Foundation’s annual expended resources amounted to £86,552 as per SOFA. (Of these, £66,748 was spent on grant-making activities, while fund-raising and costs of managing investments totalled £19,804.) The amount of grants disbursed by The PINE Foundation directly to its beneficiaries was £21,641. The reduction in the amount of grants disbursed compared to the previous year was primarily due to the suspension of support for the Professor and the Industrial Research Policy group in Russia mentioned above. Also, Dr Caldwell successfully defended his dissertation and graduated from the Ph.D. programme, so he no longer required support from The PINE Foundation. The net movement in funds during the year under review (after factoring in the change in the value of the investment portfolio) amounted to minus £5,143, leaving the unrestricted funds at £938,400 as of 31 March 2023.
The PINE Foundation has continued its policy of keeping its operational costs at a low level, and it continues to have no borrowed funds. The Trustees are confident that The PINE Foundation remains a ‘going concern’ and will be able to meet its obligations to beneficiaries for the foreseeable future as well as have enough funds to increase its support, including potential new beneficiaries and activity streams.
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Policy for Holding Reserves
The policy for holding reserves adopted by the Trustees of The PINE Foundation is based upon forecasts of levels of income versus forecasts of expenditure in future years on the basis of planned activities and the assessment of the likelihood that future needs and opportunities might be met out of future income. More specifically, the Trustees forecast a stable and steady flow of needs arising from the obligation to continue to support, for the foreseeable future, projects selected by the Trustees. As already mentioned, this kind of reserves policy is in line with the mission of The PINE Foundation and its goals and objectives as stated in the Trust Deed. The amount of net current assets (mostly cash reserves held in the bank) at 31 March 2023 was £202,641.
The reasons for holding these reserves and the split between cash and the investment portfolio are guided by fulfilling The PINE Foundation’s mission to support academic research, the excellence of which is built, and must be maintained, over time. The PINE Foundation also promotes education with the aim of nurturing new generations of broad-minded people with an international perspective, as well as researchers and reform-minded policy-makers. This is not a goal that can be accomplished by a large one-off injection of money. The Trustees have an obligation according to The PINE Foundation’s Deed of Trust to act to promote those goals, and this requires the maintenance of relatively large reserves, especially in an environment where the inflow of new large donations is very hard to predict. To put it simply, inasmuch as support to its beneficiaries makes a difference in their lives and wider society as outlined above, a sudden termination of such support (which could happen at any time if The PINE Foundation did not follow its policy of holding reserves) would be truly devastating both to the beneficiaries and to the mission of the Foundation. The importance of this was once again demonstrated during the COVID 19 pandemic. Since similar contingencies may arise for any beneficiary and at any time, the Trustees intend to maintain the level of reserves of The PINE Foundation at approximately the same level (barring yearly investment portfolio fluctuations) for the foreseeable future in order to maintain the Foundation’s ability to support its beneficiaries for the public benefit in the long run.
CONTINUED IMPACT OF RUSSIA’S INVASION OF UKRAINE
As noted in previous reports, The PINE Foundation has supported the process of transition to a market economy and democratic society in Russia as an important part of its mission. The dangerous drift toward the restoration of the worst practices of the Soviet era, which went against values the support for which is The PINE Foundation’s mission, culminated in February 2022 in the blatant act of aggression against neighbouring Ukraine, which triggered an unspeakable human tragedy. The invasion quickly escalated into a full-scale war, with the year under review being the first but, unfortunately, most likely not the last year of this conflict. The Trustees’ thoughts remain first and foremost with the sufferings of the Ukrainian people who are the victims of this blatant act of aggression and brutality.
In some sense, supporting activities aimed at reversing the current situation and putting Russia once again on the path of transition to a market economy and democracy has never been as important as it is today. The Trustees plan to actively
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seek ways in which The PINE Foundation can do so, in line with its mission, and in ways that would also satisfy the criteria of (a) compliance with the Western sanctions imposed on Russia in response to its aggression, and (b) not putting potential beneficiaries at risk. It is the Trustees’ sincere hope that the situation in Russia will eventually change. While it is hard to predict the exact timing, the recent trends toward renewed totalitarian rule, punctuated by the invasion of Ukraine, run contrary to the whole logic of the country’s development since the collapse of communism. The Trustees are committed to resuming the help provided by The PINE Foundation for projects related to this transition as soon as circumstances change and it becomes a meaningful activity once again.
PLANS FOR FUTURE ACTIVITIES
Regarding Fukushima online English classes, the Trustees have received reports from Ms Stamp and her colleague indicating that the classes are going very well. Professor Braguinsky also interviewed one of the more senior children involved (Miss Honoka Kondo, who graduated from high school and enrolled in Yamagata University Engineering Department in the year under review) and obtained a very positive assessment of the classes as well as a strong desire to see them continued. The Trustees thus plan to support the online English classes beyond October when they are scheduled to end according to the current project.
As mentioned in the previous report, Miss Honoka Kondo, whom the teachers unanimously single out as their best student, has written to the Trustees about her ambition to become even more proficient in English language and culture with a view of becoming a “cultural ambassador” between Japan and the UK (and other countries) in the future, and she has requested support for such study in the UK. Following up on that request, Professors Braguinsky and Ohyama held a detailed discussion with her, and advised Miss Kondo about the opportunities offered by her University, with The PINE Foundation providing supplementary funds if necessary. It turned out that study abroad programmes are indeed offered by Yamagata University, and Ms Kondo is currently exploring them. The Trustees will continue to engage in conversations with her about this and will provide supplementary support if and when it is needed.
The Trustees also plan to continue supporting Mr Shotaro Yamaguchi and Mr Takuya Hiraiwa in their PhD studies. Mr Yamaguchi, in particular, is entering the final year of his PhD programme and will be on the job market. His dissertation, which examines the impact of high-level educated human capital on Japan’s industrialization in the late 19[th] -early 20[th] century, and draws lessons for today’s countries in transition, and for developing countries, is shaping as an outstanding research product, fully aligned with the PINE Foundation’s mission. The Trustees are therefore planning to provide him with The PINE Foundation Dissertation Fellowship for his final year in the programme.
The Trustees are also very satisfied with Mr Hiraiwa’s progress and will continue to support him going forward. Professors Braguinsky and Ohyama are also planning to support more excellent PhD students and/or junior scholars at the start of their careers, who are conducting research projects aligned with The PINE Foundation’s mission, and they will bring such candidates to the Board’s attention in due course.
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As the above plans require long-term commitment on the part of The PINE Foundation to its beneficiaries, the Trustees will continue to give priority to keeping adequate reserves and preventing the depletion of the Foundation’s unrestricted funds. The supporters of and donors to The PINE Foundation have repeatedly made it known to the Trustees that this is their desire also.
The Trustees intend to continue their efforts to cut costs, although they realize that they have currently almost reached the limit of what can be done without jeopardising the ability of The PINE Foundation to meet its objectives. The Trustees have expressed their renewed commitment to do whatever they can on a voluntary basis to help the Foundation.
RELATED PARTY TRANSACTIONS
Related party transactions are as reported in note 12 of the financial statements.
Statement of Trustees’ Responsibilities
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, and the provisions of the trust deeds. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Independent Examiners
Moore Kingston Smith LLP have indicated their willingness to continue in office as independent examiners and offer themselves for re-election at the forthcoming Annual General Meeting.
This report was approved by the Board of Trustees on December 15, 2023 and signed on its behalf by:
Serguey Braguinsky, Trustee, Secretary to the Board of Trustees
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Independent Examiner's Report to theTrustees of The Pine Foundation For the year ended 31st March 2023
I report to the trustees on my examination of the accounts of The PINE Foundation for the year ended 31 March 2023.
Responsibilities and basis of report
As the charity trustees of the Foundation you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Foundation's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent Examiner's Statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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(1) accounting records were not kept in respect of the Foundation as required by section 130 of the Act; or
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(2) the accounts do not accord with those records; or
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(3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
6th Floor 9 Appold Street London EC2A 2AP
Date:
Luke Holt FCA, for and on behalf of Moore Kingston Smith LLP Chartered Accountants
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The PINE Foundation Statement of Financial Activities
For the year ended 31st March 2023
| Note Income Income from: Donations and Gifts Dividends receivable Total Income Expenditure Expenditure on raising funds: Fundraising 2 Charitable Activities: Grant Making 3 Total Expenditure (Loss)/gain on investments 8 Exchange gain Net (expenditure)/income Net Movements in Funds Balances brought forward at 1st April Balances carried forward at 31st March |
Unrestricted Funds £ 73,801 15,695 89,496 19,804 66,748 86,552 (10,449) 2,362 (5,143) (5,143) 943,543 938,400 |
Total 2023 £ 73,801 15,695 89,496 |
Total 2022 £ 63,376 13,885 |
|---|---|---|---|
| 77,261 | |||
| 19,804 66,748 86,552 |
19,632 88,549 |
||
| 108,181 | |||
| (10,449) 2,362 (5,143) (5,143) 943,543 938,400 |
74,103 593 43,776 |
||
| 43,776 | |||
| 899,767 | |||
| 943,543 | |||
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The PINE Foundation Balance Sheet at 31st March 2023
| Note Fixed Assets Tangible fixed assets 7 Investments 8 Current Assets Debtors 9 Cash and cash equivalents Creditors: Amounts falling due within one year 10 Net Current Assets Total Net Assets Funds Available Unrestricted general fund |
2023 £ 1,598 253,821 255,419 (52,778) |
2023 £ - 735,759 735,759 202,641 938,400 938,400 938,400 |
2022 £ 522 253,661 254,183 (56,848) |
2022 £ - 746,208 |
|---|---|---|---|---|
| 746,208 197,335 |
||||
| 943,543 | ||||
| 943,543 | ||||
| 943,543 |
Approved by the Board of Trustees on…December 15, 2023 and signed on its behalf by:
…………………………………………….
S Braguinsky
Trustee
…………………………………………….. A Ohyama Trustee
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The PINE Foundation Notes to the Financial Statements For the year ended 31st March 2023
1 Accounting Policies
Accounting Convention
The PINE Foundation meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015 and updated to second edition 2019) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. The trustees believe that the current resources viewed against commitments (as well as future plans and possible contingencies) make sure that The Pine Foundation will continue to operate as a going concern. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
The principle accounting policies adopted in the preparation of the financial statements are set out below:
Fixed Assets
Individual fixed assets costing more than £500 are capitalised at cost and are depreciated on a straight line basis over their estimated useful lives as follows:
Office equipment 3 years
Depreciation rates, economic lives and impairment of asset values are reviewed annually.
Investments
Investments are initially measured at cost and subsequently measured at fair value as per quoted market price. Any realised and unrealised gain or loss is taken to the Statement of Financial Activities.
Cash and Cash Equivalents
Cash and cash equivalents includes cash held in hand, deposits held at call with banks and cash held as investments with a maturity of 90 days or less.
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The PINE Foundation Notes to the Financial Statements For the year ended 31st March 2023
1 Accounting Policies (continued)
Financial Instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity 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 instruments are measured at amortised cost with the exception of investments which are measured at fair value.
Judgements and Key Sources of Estimation Uncertainty
In the application of the charity’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 most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to:
Useful Economic Lives - The annual depreciation charge for property, plant and equipment is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed annually and amended were necessary to reflect current circumstances.
Income
All income is included when the charity has entitlement to the income, there is probability of receipt and the amount can be measured.
Donations are treated as income in the period in which they are receivable. Interest receivable is treated as income of the period in which it accrues.
Grants
Grants made by the Foundation are treated as expenditure of the period in which they are approved and the offer is conveyed to the recipient, except in cases where an offer is conditional, such grants being recognised as expenditure only when the conditions are fulfilled.
Expenditure
Expenditure is included in the SOFA on an accruals basis.
Cost of generating funds are costs incurred in attracting voluntary income to support the charity's activities, together with the cost of managing the charity's investments for both income generation and capital maintenance.
Charitable activity costs include grants payable to third parties in furtherance of the charitable objects of the trust, together with attributable support costs.
Support costs include costs related to the approval and monitoring of grant awards together with central office and administration costs.
Governance costs, which are included within support costs, are costs incurred in connection with the strategic management of the charity and in compliance with constitutional and statutory requirements.
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The PINE Foundation Notes to the Financial Statements For the year ended 31st March 2023
1 Accounting Policies (continued)
Allocation of expenditure
Expenditure is allocated between costs of generating funds and charitable activities on the basis of direct allocation where possible and an apportionment of employee time spent where applicable.
Fund accounting
General funds are unrestricted funds available for use at the discretion of the trustees in furtherance of the general objects of the charity and which have not been designated for other purposes.
Restricted funds represent amounts given to the charity for specific purposes, in accordance with the donors' wishes.
Operating leases
Costs under operating leases are charged to the Statement of Financial Activities in the period to which they relate.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net income/(expenditure) result.
Taxation
As a registered charity, the Foundation is generally exempt from Income Tax but not from VAT. Irrecoverable VAT is, in accordance with standard accounting practice, included in the cost of those items to which it relates.
Functional currency
The functional currency of the Foundation is UK sterling rounded to the nearest pound.
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The PINE Foundation Notes to the Financial Statements For the year ended 31st March 2023
| 2 Fundraising |
Total | Total | |
|---|---|---|---|
| 2023 | 2022 | ||
| Costs of generating voluntary income Costs of managing investments 3 Charitable Activities |
Activities undertaken |
£ 9,750 10,054 19,804 Support |
£ 9,672 9,960 |
| 19,632 | |||
| Total | |||
| directly | Costs | 2023 | |
| Grants to individuals and institutions Governance costs |
£ 21,641 - 21,641 Activities undertaken |
£ 37,967 7,140 45,107 Support |
£ 59,608 7,140 |
| 66,748 | |||
| Total | |||
| directly | Costs | 2022 | |
| Grants to individuals and institutions Governance costs |
£ 45,584 - 45,584 |
£ 36,425 6,540 42,965 Total |
£ 82,009 6,540 |
| 88,549 | |||
| Total | |||
| 2023 | 2022 | ||
| 4 Grants awarded were as follows: |
£ | £ | |
| Fukushima Friends UK Takuya Hirawiwa |
1,300 10,191 |
1,300 8,771 |
|
| A Professor & Industrial Policy Research Group Moscow | - | 21,701 | |
| S Yamaguchi | 10,150 | 8,812 | |
| D. Caldwell | - 21,641 Total |
5,000 | |
| 45,584 | |||
| Total | |||
| 2023 | 2022 | ||
| 5 Support Costs Staff Costs Travel and Subsistence Property Costs Telephone and Faxes Other Office Running Costs Accountancy Governance Costs Independent Examiner's fees - current year All support costs relate to the charity's grant making activities. |
£ 19,500 722 6,000 1,757 778 9,210 7,140 45,107 |
£ 19,344 - 6,000 1,514 777 8,790 6,540 |
|
| 42,965 | |||
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The PINE Foundation Notes to the Financial Statements For the year ended 31st March 2023
6
| Staff Costs | Total | Total |
|---|---|---|
| 2023 £ 39,000 - 39,000 |
2022 | |
| £ | ||
| Wages and Salaries Social Security costs |
38,583 104 38,687 |
|
| Staff costs are allocated to functions as follows: Fundraising - cost of generating voluntary income Fundraising - cost of managing investments Support costs Total |
9,750 9,750 19,500 39,000 |
9,672 9,671 19,344 38,687 |
No employee earned in excess of £60,000 in the year (2022: none).
The Foundation employed one full-time person during the year (2022: one full time). Details of remuneration in respect of key management personnel is set out in note 12.
7 Fixed Assets
| Cost | Office Equipment £ |
Total £ |
|---|---|---|
| At 1st April 2022 and 31st March 2023 Accumulated Depreciation At 1st April 2022 Charge for year At 31st March 2023 Net Book Value At 31st March 2023 At 31st March 2022 |
4,326 4,326 - 4,326 - - |
4,326 |
| 4,326 - |
||
| 4,326 | ||
| - | ||
| - | ||
8 Investments
| Investments | ||||
|---|---|---|---|---|
| Total | Total | |||
| Listed investments at market value: | UK | Overseas | 2023 | 2022 |
| £ | £ | £ | £ | |
| At 1st April Unrealised gain/(loss) in market value At 31 March At historical cost: At 31st March 2023 At 31st March 2022 |
215,112 2,617 217,729 196,476 196,476 |
531,096 (13,066) 518,030 344,584 344,584 |
746,208 (10,449) 735,759 541,060 541,060 |
672,105 74,103 |
| 746,208 | ||||
Of the 2022 comparatives above, £192,196 of the opening market value and £22,916 of the unrealised gain relates to UK based investments with all other movements relating to overseas investments.
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The PINE Foundation Notes to the Financial Statements For the year ended 31st March 2023
| 8 9 10 |
Investments (Continued) | ||
|---|---|---|---|
| Investments greater than 5% of the portfolio valuation. Ishares SPDR S&P500 ETF Japan Daiwa AM Topix Fund (ETF) |
2023 £ 217,729 350,767 167,263 735,759 2023 £ 1,598 1,598 2023 £ 8,844 43,493 441 |
2022 £ 215,112 364,167 166,929 |
|
| 746,208 | |||
| Debtors | 2022 | ||
| Prepayments | £ 522 |
||
| 522 | |||
| Creditors | 2022 | ||
| Amounts falling due within one year: Accruals Grant creditor Taxation & other social security |
£ 8,184 47,833 831 |
||
| 52,778 | 56,848 | ||
11 Financial Commitments
At 31 March, the Foundation had total commitments under operating leases as follows:
| Land and Buildings | 2023 £ 1,500 |
2022 £ 1,500 |
|
|---|---|---|---|
| Expiring within one year | |||
| The lease is currently on a rolling quarter by quarter basis. Lease payments of £6,000 (2022: £6,000) were recognised in the year. |
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The PINE Foundation Notes to the Financial Statements For the year ended 31st March 2023
12 Key Management Personnel
The key management personnel of the Foundation are the trustees who currently consist of:
Professor Serguey Braguinsky Mr Kentaro Nishida Dr Atsushi Ohyama
Key management personnel received no remuneration for their services to the Foundation during the year (2022: £nil).
Travelling expenses amounting to £722 were paid during the year to 1 trustee (2022: £nil).
The trustees donated a total of £73,801 to the Foundation in the year (2021 - £63,376).
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