THE PRET FOUNDATION REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Charity registration numbers: 1050195 and SC050501
THE PRET FOUNDATION LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2020 Truslees C Schlee A Wareham P Christou V Cumlnel D McDermoll O Wlnterkorn Chief Executive Officer C Schlee Principal Office Pr61 A Manger 10 8ress&nden Place London SW1E 5DH Audllor RSM UK Audit LLP Chartered Accouni8nls Rivtsrmead House 7 Lewis Court Grove Park Leicester Leiceslershlre LE19 1SD Bankers HSBC Bank plc 4 Robertson Street Haslings East Sussex TN34 1HW Registered Charity Numbers England and Walos 1050195 S¢olland {from 29 September 20201 SC050501
THE PRET FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their report together with the audited financial slalemenls for the y8ar anded 31 December 2020. STRUCTURE, GOVERNANCE AND MANAGEMENT la) Constitution The legal lorm of the Charity is that of 8 TTUSI. The Charity's governing document Ss a Trust Deed dated 19 July 1995 together with Oeed of Amendment dated 11 June 2019 and Deed of Amendment dated 17 Seplerllber 2020. Since the year end, a new Trust Deed dated October 2Q21 was approved, which replaced the previous Trust Deed. Ibl Change of name On 11 June 2019 the Charlly chang8d Ils nam6 from Prot Foundallon Trust lo The Pret Foundation. Icl Selection and training of Trustees Trustee5 represelll both senior management of Pret A Manger IEuropel Limited and independent individuals with relevant skills and experience. Trustees who served during the year and up to the dale of this report were as follows.. C S¢hl&e A Wareham P Chrislou L GLJlowski Iresigned 2512120201 V Cuminel D McDermoll lappoinl8d 2615120201 D Winlerkorn lappoinled 2615120201 Trusteès arè appolnled In a¢Gordanca with clausè g of thè Twsl Deed. New Trustees are provided with a copy of the Trust Deed, lalesl aocounls. recent mlnutes. and sullable Chaty Commission guldancg. {d) Principal risks The Trustees actively VIeW the principal risks which the Foundation faces on a regular basis, in particular those relating lo ils operations and finances. They are satisfied that systems are in place lo miligale the Foundation's exposure lo the principal risks. The Trustees, formal risk management strategy comprises.. an annual review of the risks which the Foundation may fa., thé 8dèqua¢y of Current systems and procedures to mitigate those risks identified in the strategy,. and the implemenlalion of procedures d8signed lo minirllise any potential risk on the Foundallon should any of those risks malerialise. Th8 slral8gy on risk 15 reviewed and discussed al meetings of th8 Trustees and details of key risks facing the Foundation and how they are managed and miligaled are detailed wilhiii the financial rewew. Key controls L)sed by the Found81ion include.. formal agendas for all Trustees, meetings., slrelegic planning, budgeting and management acaounting., formal proposal processes., donations made after careful velling of beneficiary charilles.. clear authorily limits and annual review of charities,. and annual review of main wnlraolor.
THE PRET FOUNDATION REPORT OF THE TRUSTEES Icontlnued> FOR THE YEAR ENDED 31 DECEMBER 2020 COVID The finan¢lal and optsrallonal impact of the pandemic has been significant. due to imposed trading restrictions on Pret a Manager IEuropel Limilsd shops, which represents the Foundation's principal source ol funding. The Foundation has available cash reserves and is commilled to continuing lo work toward Sls wre objectives and continuing lo safeguard the financial position of the Foundation as government reslriclions are eased. PUBLIC BENEFIT The Trustees have paid due regard lo Charity Commission guidance on public b&n8fi1 in deciding what acllvllles the Foundation should undertake. Throijgh ils activities of food dislribullon, employment programmes, and cash donations lo grass root homeless charities, The Pr81 Foundation helps lo improve the welfare of the homeless. The Pret Foundallon aligns ils oblectives and actiwties lo achieve this public benefit 89 detailed in thè Objectives and Aclivilies section. OBJECTIVES AND ACTIVITIES The objective lor purposel of the charity is the alleviation of poverty, in particular hunger and homelessness. This is achieved by the following acllvllies.. IJ Food Distribution The Foundation arranges lor Ljnsold food lo bo wllecled al the end of each day from Prel A Manger shops either by a Prel A Manger food van dedicated to Ihls activity or by the arranging of food collections by local charili8s. The food 1$ then delivered lo shelters for the hungry and homeless Ishelters, hostels and outreach programm6sl at no cost lo the beneflcSary. 2J Th8 Rlslng Slars and Shootlng Stars Employment Programme The Rlslng Stars Programme offers homeless people the opportunity of 8 14-weèk work èxperfèncè programme. with the alm of helplng them build a new future. The programme off8rs 14-week pald plaMentS within Prel A Manger, gSving individuals from homeless backgrounds andlor with criminal records the same benefits as Pret A Manger employees, logelh8r with a mtrnlor. career advice and a reference for future employ8rs. 11 can lead lo a permanent position within Prel or help lo provide th8 Confiden and experience to follow a career elsewhere. The Shooting Stars Programme offers a cohort 018 gr8dualed Rislng Stars the opportunity to partiapale in a 7- month career development programm8 each year. 11 consists of learning modules over a period of 5 days, ¢ulmin81ing in a Nation81 Apprentiship Level 2 in work skills and the opportunity lo take GCSE English and Maths. The Shooting Stars finish the programme with a clear Personal Developm&nl Plan IPOPI should they wish lo remain in Pret or follow a career elsewhere. 3) Grants of Cash, Equlpment and FOOLI Donations The Foundatson supports smaller, grass-root homaless ¢haritlas whoro 18nglbla results ¢an be Seen as 8 result of making cash donations, kitchen equlpmenl donallons and food donallons. The Foundation continues lo slrenglh&n relationships with exisling charities with repeal donations, while also establishing partnerships with new ¢harities. 4) Shelter The Pr81 Foundation, in parlnership wllh Wesl London Mlsslon, established The Prel House al Sl. Luke's.. a 26 room shelter in Kenninglon, London of which The Prel Foundation consislenuy has access to 6-bedrooms, or more if required. The Prel House provldes shelter for current or graduated Rising and Shoob'ng Stars who work in P1 shops nearby. Day-lo-day operations are managed by Wesl London Mission.
THE PRET FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 ACHIEVEMENTS AND PERFORMANCE The Trustees deem the Foundation lo have fulfilled ils objectives for the year. l) Food Distribution In 2020 over 6 million main meal items were collected and distributed on behalf of Charities 12019.. 6 million), wllh food from approximately 96°A of Prel shops co11ecled by or distributed lo charities al the end of each business day 12019.. 960/.l. We also donated over £1 m of surplus ingredients from our depot during the first lockdown in March. Over 120 homeless charities and shelters in London benefilled frorll food donations in 2020 12019: 1201. Food distribution in London is via Pret's Charily Run with food being distributed 7 days a week, wllh 8 delivery routes {2019'. 8 roulesl. The vans collect and dlslrSbule 16ftovor food from the shops lo homeless charities. Clean Society manages thls operallon on behalf of The Pret Foundallon. Where th8 Foundation cannot collect unsold food from a shop. il arranges for a regislared charity lo do so, thus avoiding unnecessary wasla golng lo landflll. In regional shops food dislritiullon is serVid by volunteers from local charities co-ordinated by a member of The Prel Foundation learn. 2) The Rislng Stars and Shootlng Stars Programmes The Rising Stars programme was esl8bllshed in 2008 and over 525 Rising Stars have SucsSfullY graduated since it began. Each Rising Star obtains a 14-week placement. with the goal b8lng that Ihis leads to a career either within Prel or in another organisalion. Throughout the programme history graduation rates have been very high12019.. 79°/01. During 2020 however the programme was pul on hold. Whilst 7 Rising Stars were recnjiled on lo tha progrAmm8, only 2 successfully graduated due lo the pandernic. The Prel Foundation ulilised the furlough scheme durlng Ihls perlod for Ihosg alroady recruited on to the programme and Prel-A-Manager also supported during this lime with the decision that Rising Stars would b8 prolèctèd from redLJndancy. Weekly support groups continued Ihmughoul the year over Zoom. ensuring that peer support, and that of a resilience coach was still available should it be required. We expect that those who were recrubled on lo the programme during the ¢ourse of 2020 will resume their training once restrictions have lifted and graduate in 2021. The Shooting Stars programrne was s81 up In 2015 and lo data over 45 people have been recruited on lo the plogramme. Shoollng Stars allend numerous one day workshops allaining a National Apprenlice5hip - Level 2 in work skills. During 2020 no new Shooting Stars were recruited. One Shooting Star has successfully graduated as a General Manager since the programme began. 3) Cash. Equlpmont and Food Donations The Foundallon supports smaller, grass-rool chari1Ses with donations., cash. equipment or food donations. In 2020, 44 donations were made {2019'. 2111. Donations cover various prolecls and pay for support workers, rent, course supplies, cotjnselling, and drop.in nIres. Total donallons (including èquipment and foodl were £0.2m {2019'. £0.8ml. Nlna Allard loln8d lo head up Th& Prel Foundallon In 2020, managlng the actlvi1Ses of the Foundatlon th a team ol five full-lime people as directed by the Trustees. Funds for the Foundalion significantly decreased in 2020, bul carne from three sOUS.. Product donatlons.. £431k, of which, £253k was ralsed frorn the 10p donations on Soup sales alongside £178k generated from the Christmas Campaign Iwilh 50p donated from 6 Chrislmas products sold). The ¢ampaSgn was prominent in every Prel shop window alongside strong in-shop and produ¢l packaging communications. Customer Donallons: £108k of in-shop donallons from customers, predomlnalely in Cash, however The Pret Foundation Ss also starting lo roll out conlaclless polnls lo collect dlgilal donalions. Other Donatlons- £2,262k, comprising a small number of significant donations as well as from Prat employees through small-scale fundraising acllvill&s.
THE PRET FOUNDATION REPORT OF THE TRUSTEES {continued) FOR THE YEAR ENDED 31 DECEMBER 2020 ACHIEVEMENTS AND PERFORMANCE {conNnuedl 4) Shelter In 2018 The Pret Foundation identified a partner lo work with for this activity sIaM, Wesl London Mission, and a sile lo convert, Sl. Luke's. The facility was opened in QI 2019, containing 26 bedrooms, a ¢ommunal kitchen, living and garden areas, ready for CLJrrent or graduated Rising and Shooting Stars in need of accommodation in exchange for a subsidised rent. This partnership ended on 1 February 2022. and the P1 Foundation will explore other appropriate opportunities in the future. In 2020 9 Rising or Shooting Starts resided al the Prel House12019,' 151. 4 su¢c8ssfully moved on lo privately rented accommodation, 1 left The Prel House and 4 remained al tho end of th8 ygar. FINANCIAL REVIEW (al General Gifts and donation paid have decreased since the previous year, from £730,166 last year to £190,717 this year. Al 31 Oecember 2020. the lolal funds held by the Foundation was £2,016,12012019.. £517,366). The Foundation has continued by good housekeeping and budgeting lo maintain a healthy balance sheet. Expenditure was cul significantly in the year lo match th8 much redUd donation income. Sev¢ral significant individual donations were received in the second half of 2020 and wlll halp tha Foundation lo continue ils charitable activities for a significanl period. The continuing use of budgets and regular fin8nclal infomlalion again proved an effective control,. expenditure and staffing levals continue lo be carefully monitored. Ibl Prlncipal fundlng sourcès The Foundation's princlpal source of ongoing funding is the receipt of contribLJtions from Prgt A Mang8r (Europe) Limi18d land ils cu8lomer81, who established the Foundation over twenty years ago. Both organisalions continue lo operate closely together and senior managerll8nl of Prel A Nlanager (Europe) Limited sils on the Board of Truslees and assists Pr81 A Manager IEuropel Limited in carrying out their continuing commitment toward The Foulldalion's objectives. The Foundatlon acknowledges the importance of good practice in fund raising as being essèntial in mainlalnlng public confidence in the charity and are ¢ommilled lo ensuring all our activities are oompllanl with legislative, regLJlatory and best praelice standards. The Foundallon does not use professional fundraisers. {cl Reserves policy Unreslricled funds are needed.. al to provlde fund8 whlch can bè deslgnated lo speclflc projects lo enable these prolecls lo be undertaken al short nollc8,' and bl to cover administration, ftjndraising and support costs wilhoul whlch the Foundation could not function. The Trustees consider it pwdenl that unrestricted reserves should be sufficient: cl lo provide a pool equal to 10¥fj of charitable expenditure from which funds ¢an be designated to specffic projects,. and dl lo cover one ye8Vs 8dminislralSon, fundraSsing and support costs. As at 31 December 2020, unr8slri¢led reserves not invested in functional fixed assets were £1,824k, £1,477k aLY)ve the minimum level. The level of reserves is monilored and reviewed by the Trustees al each TTuslee meeting.
THE PRET FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 PLANS FOR THE FUTURE The Trustees aim lo continue lo develop the four key aclivilies. l) Food Distribution The Foundation will maintain dislribullon of unsold food from Prel A Manger shops lo charities, who provide the food lo the homeless via shelters, hostels and outreach programmes. 2) The Rising Stars and Shootln9 Slars Programmes For tha Rising Stars programme the aim In 2020 Is ¢onsislenl wllh the last few years with an objective of employing Rlsing Stars across the country, aiming lor a 70% graduallon succ88s ral8. For the Shooting Stars Progtarnme th8 oblg¢llv& Is lo select 7 Sh(x)ling Stars with a 100 % graduation success ral&. 3) Cash, Equipment and Food Donations The Foundation will continue lo work with existing benefiCaries, as well as Identifying and supporting other small charities Ihal hav6 a dire¢l impact on hom&lessness and poverty. The Foundation airns lo reflect the presence of Prel A Manger outside of London by ensuring a fair distribution of resources to charities based in the UK regions. 4) Shelter Ov8r the Course of Ihe year, the objectives are lo continue to èmbed effective ways of working lor thé Pret House with partn8r West London Mission and lo lind the right tenants from within the Rising and Shoollng Stars populations. and to evalua18 the success of this activity. This partnership ended on 1 February 2022, and the Pret Foundalion will explore other appropriate opportunities in the future. New Inltlatlves In 2020 and continuing into 2021, the Foundallon focused on weathering the COVID-19 storm and prol8Cting ils key objectives. As such, activities were reduced during the crlsis lo match a reduction in income durlng this period. In 2021, the Foundation will be focussing on new fundraising activities so as lo ensure a sustainable future. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees a responsible for preparing Ihe Raport of the Trustees and the fin8ncial statements in a¢¢ordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerBIIy Accepltrd AccoLJnling Praclicel. The law applicable lo charities in England and Wales requirtss the Trustees lo prepare financial slalemenlg for each flnanclal year whlch glve a true and fair view of the slate of affalrs of Ihe Foundallon and of the incoming resources and application of resourc8s of th8 Foundallon for the period. In preparing thes8 financlal stslemenls, the trusl8es are requlred lo.. select suitable accounting policies and then apply them consislenily., observe the mtslhods and principles in the Charities SORP., make judgements and asllmales that are reasonable and prudent.. slal8 whether applicable accounting standards have been followed, subject to any departures disclosed and explained in th& financial statements., and prepare the financial sialemenls on a going concern basis unless it is inappropriate lo presume that the Foundation will eontinue in business.
THE PRET FOUNDATION REPORT OF THE TRUSTEES (contlnued) FOR THE Y&4R ENDED 31 DECEMBER 2020 STATEMENT OF TRUSTEES. RESPONSIBILITIES {continued} The Trustees are responsible for mainlalnlng proper accounting records which disclose with reasonable accuracy al any time lh& financial position of the Foundation and which enable them to ensure that the financial slalemenls comply wllh the Charities Acl 2011, Ihe Charity (Accounts and Reports) Regulations 2008,. and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other Srragularllies. In so far as the Trustees, indivldually, are aware.. There is no relev2nl audit information of which the Foundation's auditor is unaware-, and The Trustees have taken all steps that ought lo have been taken to make th&ms&lves awar8 of any relevant audit infomialion and lo establish that the auditor is aware of that information. AUDITOR A resolution lo reappoint RSM UK Audit LLF for the ensuring year will be proposod al the forthcoming Annual General Meeting. This report wa5 approved on behalf of tha Board of the Trustees on on their behalf. 25th October 2022 and Slgned A Wareham Truste6 Dale.. 2511012022
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE PRET FOUNDATION Opinlon We have audited the financlal slalemenls of The Prel Foundation {Ihe 'Foundalion'l for the year 6nded 31 December 2020 which comprise tha Slalemont of Financlal A¢livilies, Balance Sheet. Ihe Stalemenl ol Cash Flows and notes lo the financial slaternenls. induding significant a¢counllng policies. The financial reporting framework that has been applied in their preparation is appllcable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard appliGable in the UK and Republic of Ireland" Iuniled Kingdom Generally AGcepl&d A¢¢ounling Pra¢li¢el. In our opinSon the fbnanclal slalèments.. give a true and fair view of the slate of the charlly'5 affairs as 8131 Dember 2020 and of ils incomlng resources Bnd application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generally A¢cepl8d Accounting Practice., and have been prepared in accordanc& wllh the requlremenls ol the Charities and Trustee Investment (Scollandl Act 2005, rUlatIOn 8 of the Charities Accounts Iscollandl Regulations 2006 las amended) and the Charities Act 2011. Basls for oplnion We have baen appolnled audltors under secllon 4411 Ilcl of the Charllias and Tru8188 Invèslmènl (Scollandl Act 2005 and under secllon 144 of the Chari1S6s Act 2011 and report in accordance with regulations made und8r those Acts. We conducted our audit in accordance with Inlemalional Stancsards on Auditing IUKI IISAs IUKII and applicable law. Our responsibilities under those standards are further desaribed in the Auditor's responsibilities for the audit of the financial slalernenls section of our rtsport. We are independent of the in accordance with the ethical requirements that are relevant lo our audit of the financial slalemenls in the UK, including the FRC'S Ethical Slanéard and we have fulfilled our other ethical responsibilities in 8¢¢ordance with these requirements. We believ8 that Ihtr avdil evldence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions rèlating to going concern In auditing the financial statements, we have concluded that the Iruslees, use of tha going concern basis of accounting in the preparallon of the financial slalements is approprtale. Based on the work we have performed, we have not Idenllfled any material uncertainties relating to events or tondiuons Ihal, individually or collectively, rnay cast significant doubl on thè charity's ability lo continue as a golng con¢&rn fr)r a parlod of at least twelve months from when the flnanclal slalements are aulhorised for issue. Our r¢sponsibillties and the responsibllilies of the Iruslees wllh respe¢l to golng concom arg dfjscribed in the relevant s8cllons of Ihls report. other infomiation The other information comprises the inforfflallon includtsd in the annual report other than the financial slalem6nls and our audSlor's report Ihereon. The trustees are responsible for the other information contained within the Rgport of the Trustees. Our opinion on thè financial statements does not cover the other information and, we do not express any form of a$sur8nce canclusion thereon. Our responsibllily is lo read the other Informallon and, in dolng so, consider whether th8 Other Inforrnalion is malerlally Inconslsl8nl wllh the finanolal statements or our knowledge oblalned In the course of the audit or otherwise appears lo be malerlally misslaled. If we identify such material inconsistencies or apparsnl rnalerial misstalements, we are requiied lo determine whether this gives iise lo h malerial misslalemenl in the financial statements themselves. If, based on the work we have psrfomed, we conclude that there is a malerlal misslalement of this other information. we are required lo report that fact. We have nothing lo report in this regard.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE PRET FOUNDATION Icontinuedl Matters on whl¢h we are required to report by oxceplion We have nothing lo report in respe¢l ol the following Inallers where the ChBrilles Accounts (Scollandl Regulations 2006 las amended) 8nd the Charities Act 2011 require us lo report lo you If, in our opinion.. the information given in the financial slalements is inconslslenl in any material respect with the trustees. annual report., or proper and sufficient accounting records have not been kept., or the financial stalemenls are not in agreement with the accounting records and relums,, or we have not received all the inlormallon and explanallons we requlre for our audll. Responsibilities of Trustees As explained more fully In the slalemenl of Iruslees, responsibilities set out on pages 5 and 6 the Iruslees are responsible for the prepafalion of the financial slalemenls and for btring satisfied that they give a true and fair view, and for such internal control 2s the trustees determine Is necessary lo enable the preparation of financial slalemenls that are free Irom material miss¢atemenl, whether due lo fraud or error. In preparing the financial slalernenls, Ihe trustees are responsible for assessing the charily's abilily lo continu& as a going concern, disclosing, as applicablè, matt8rs r8laled lo going concern and using the going concern basls ol accounlSng unless the trustees ellher Inl¢nd lo Ilquldale the charity or lo cease operations, or hÈvè no realistic allernatlve bul lo do so. Audllorfs responsibilities for the audlt of the flnanclal statements Our oblecllves are lo obtain reasonable assurance about whether the financial statements as a whole are fre8 from material misstatement. whether due lo fraud or error, and to ISSU8 8n audltor's report that includes our oplnion. Reasonable assurance is a hlgh level of assurance, but is not a guarantee that an audit conducted in accordan¢e wllh ISAS IUKI will always detect a material misslalement when il exists. Miss121emenls can arise from fraud or error and are considered malerlal if, individually or in the aggregate, they could reasonably be expected lo Influen the economi¢ decisions of users taken on the basis of these financlal slalomtrnls. The extent to whlch the audit was considered capable of dtrttrcting irregularities, including fraud Irregularities are installS of non-compliance with laws and regulallons. The objectives of our audit are lo oblaln sufflcienl appropriate audit evidence regarding Compliance with laws and regulations that have a direct effect on the determination of maltsrial amounts and disclosures in the financial slalemenls, lo perform audit procedures lo help idenllfy InstallS of non-compliance with other laws and regulations that may have a material 8ffè¢l on the financial siatemenls, and to raspond appropriately lo identified or suspected non- complian¢$ wllh laws and regulations idents'fied during the audS1. In relallon to fraud, the oblécllvas of our audll are to Identify and assess the rfsk of malerlal mlsstalerllent of the finandal slal&m&nts due lo fraud. lo obtain sufflcienl approprlale audit evldence regardlng the assessed risks of malerlal mlsslalemenl due lo fraud through deslgnlng and Implemenllng appropriat8 responses 8nd to respond appropriately lo fraud or suspected fraud idenllfied during the audit. However, il is the primary resp(>nslbillty of management, with the oversight of those charged with governance. lo ensure that the enllly's operations are conducted in accordan with the provISnS of laws and regulations and for the prevention and detection of fraud. In identifying and assesslng risks of material misslalernenl in respect of Irregularllles, including fraud, the audit engagement team.. obtained an understanding of the nature of the sector, including the legal and regulatory framework that the charity operates in and how the charity are complying with the legal and regulatory framework., inquired of management, and those charged with govemance, aboul their own idenlificalion and assessment of the risks of irregularities, including any known a¢lual, suspected or alleged instances of fraud., discussed mallers about non-¢ompllanc& with laws and regulab'ons and how fraud might occur including assessment of how and where the financial statements may be suseeptible lo fraud.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE PRET FOUNDATION {continuedl As a result of these procedures we consider the mosl significant laws and regulations that have a direct and Indirect Impact on tho financial s18lemenls are FRS 102, Charilies SORP IFRS 1021, Charities and Trustee Inveslmenl (Scollandl Act 2005, regulation 8 of the Charities Accounts Iscollandl Regulations 2006 las amended), the Charities Act 2011, the charity's governing document and tax legislation. We performed 8udil procedures to detect non-compliances which may have a material impact on the financial slalements whSch included revlewlng the lin8nclal $181emanls including the Tru$lees' Report, remaining alert lo new or unusual transacllons whlch may not b8 In accordance wlth the governing documents, inspecting ¢orresponden¢e with local lax authorltles and evaluallng advice received from inlernallexlernal advisors. The audit engagement team identified the risk of management overrlde of controls as tha 8rea where the financial slalemenls were most susceptible lo rnalerial misstalemenl due to fraud. Audit pro¢edur8s performed included bul were not limited lo testing manual journal entries and other adjuslmenls and evaluating the buslnoss rallonale In relation lo signifieAnl, unusual transactions and transactions entered into outside the normal course of business challenglng ludgmenls and esllmale8. A further d8scriplion of our responsibilities for the audit of the financial slalemenls is located on the Financial R8POrting Coun¢S1's websitè al hll '.Ilwww.frc.or .LJklauditorsres onsibililies. This description forms part of our auditor's report. Usè of our report Thls r$port Is made Solely lo th8 charity's Irusle88, as 8 body, in ao¢ordanoe with section 4411llcl of the Charities and Truste8 Inveslmsnl IS¢ollandl Act 2005, 8nd r8gulallon 10 of tha Charities Accounls (Scollandl Regulations 2006 las amended) and the Charities Act 2011. Our audll work has been undertaken $0 that we might stala lo thè charity's trustees those matters we are required to slate lo Ihem in an auditor's report and lor no other purpose. To the fullest extent pemiiltad by law. we do not accept or assume responsibility lo anyone other than the charity and Ils Iruslees as a body. for our audll work. lor Ihls report, oy fo¥ the opinions we have formed. LI14 u¢ I,I,è LLI RSM UK Audit LLP St2lulory Auditor Chartered Accounlanls Rivermead House 7 Lawls Court Grove Park Leicester Leicestershlre LE19 1SD Dale.. 2811012022 RSM UK Audll LLP Is ellglble lo act as an aUdOr in terms of section 1212 of the Companies Act 2006.
THE PRET FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 Unrestricted funds 2020 2019 Notes Income from: Donations Investment Sncome 4 lal 41bl 2.801,935 599 2,208,795 703 Total 2,802.534 2,209,498 Expendlture on.. Charitable activities 51al 1,303,780 2.183,823 Total 1,303,780 2,183,823 Net movement In funds 1,498,754 25,675 Rèconclllatlon of funds: Total funds brought fonNard 517,366 491,691 Total funds carrled forward 2,016,120 517.366 The Stalem6nl of Flnancial Activities indudes all gains and losses rewgnised In the year. All Income and expenditure derNe from continuing operations. 10
THE PRET FOUNDATION BALANCE SHEET AT 31 DECEMBER 2020 Notes 2020 2020 2019 2019 Fixed assets: Tangible assets 191,756 252,557 Current assets: Debtors Cash at bank and in hand 10 186,076 1,818,964 120,180 269,798 Totsl current as8818 2,005,040 389,978 Llabilitle$: Creditors.. amounts falling due within one year 1180,6761 1125,1691 Nel Current assets 1,824,364 264,809 Total nèt ass•ts 2,016,120 517,366 The funds of the ¢harlty'. Unrestricted funds 2.016.120 517,366 These financial slalemenls on pages 10 10 21 were approved by the Trustees and aulhodsed for issue on and signed on Ihtrir behalf by.. C Schlee Truste8 11
THE PRET FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 Notè 2020 2019 Cash flows from operating activities: N&1 cash provided by operating activities 14 1,548,567 366,864 Cash flows from Investlng actlvltles.. Invastmenl Income Purchase of tangible fixed assets 599 703 1116,1511 Net cash provlded byllused Inl Investlng activities 599 1115,4481 Change in cash and cash equivalents in the reporting period 1.549,166 251,416 Cash and cash •qUFvalents at the beginning of tha reportlng period 269,798 18.382 Cash and cash equivalents at the end of the reporting perlod 1,818,964 269,798 12
THE PRET FOUNDATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 Legal status of the Charitable Foundatlon The Pret Foundation is an unincorporated charitable Foundation registered as a Charlly at the Charity Commlssion in England and Wales Icharlly Commlsslon numbor Is 10501951 and from 29 September 2020 was also registered as a Charity with the Scollish Charity Regulator Icharirty Commisssion number is SG0505011. The prlnclpal place of buslness is Prel A Manger, 10 Bressenden Plac8. London, SW1 E 5DH. The remit of the Foundallon is "the rellef of poverty In partfcular homelessness In the UK.. Hislorfcally. Ihls has been achbeved through the distribulion of unsold food al the end of each day from Pr&1 A Manger shops. erllployrnenl programmes offering work lo homeless people and financial donations to grass root homeless partner charities. Accountlng pollcles Basis of preparation The financial slalemenls have be6n prèpared under the historical cost convention with items rewgnised at cost or transaction value unless otherwise slated In the relevant notes lo these accounts. The financial stalèmenls hav$ b$en prepared in accordance with Slalement of Recommended Practice.. AccounlSng and Reporiing by Charities preparing their a¢¢ounls in 8ccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, Charities and Trustee Investment Iscollandl Act 2005, regulation 8 ol the Charities Accounts (Scotlandl Regulations 2006 {as amended) and the Charities Aat 2011 and UK Generally Accepted Practic& as It applies from 1 January 2015. The financial statements have been prepared to give a 'lrue and fair, view and have departed from the Charities (Accounts and Reports) Regulations 2008 only lo the exlenl required lo provlde 'lrue and fair view,. This d8Parturg has involvad following Accounting and Reporting by Charities preparing their accounts in accordance with the Flnancial Raporting Standard applicable in the UK and Republlc of Ir8land {FRS1021 issued on 16 July 2014, including the adoption of the amendrllents issued in October 2019, rather than th8 Accounllng and Rèporting by Charities.. Slalemenl of Recommended PracliG effective from 1 April 2005 which has since been wllhdrawn. The financlal sl8lem8nls are prepar6d In sterling, whl¢h is the functlonal currency of the Foundation. Monetary amounts in these flnandal slal8m8nls aro rounded to thg nearfjst £. Thg Prel Foundation meBts the definition of a public benefit enllty under FRS 102. Assets and IiBbilities are initially recognised at hisloriGal cosl unless othenNise slated in the relevant accounting pollcy notes. Golng concern Al the lime of approving the financial slatemenls, the Injstees continue lo adopt the going concern basis of accounting in preparing the financial slalements. Following the uncertainly presented by COVID-19, a detailed review ol Ihe Foundation's resources and challttnges presented by the current economic clirnale has been undertaken, Based on the Foundation'5 abllily lo flex and control ils expendilure dependent on income levels and ils strong cash reserves, Iruslees have concluded that the going concern basis remains appropriate and that the Foundation is able lo meet Ils liabllllles as they fall due. The Iruslees make this assessment in iespecl of a period of at least one year from th8 dale of aulhorfsallon for issue of the financial slalemenls and have concludèd Ihal the Foundallon has adequate resources lo continue in Opgrational existence for the foreseeable future and there are no material uncertainties aboLJI the Irusl's ablllly lo wnlSnue as a golng ¢oncern.
THE PRET FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng pollcies (continued) Income All Income is recognised once the Foundation has entillement to the funds, any pgrformance conditions attached lo the ilernlsl ol Income have boen mel.11 Is probable that the income will be received and the amount can be measured reliably. Inwme from donallons, Includlng glfts ale recognised where there is enlillemenl, probability of receipt and the amount can be measured reliably. Inve8lm8nt income Is recognisad on 2 receDiable basis. Funds Unreslrfcled funds aré avallable for use al the discretion of the Trustees In furtherance of the chadtsble obl8clives ol the Foundation. Expendlturo and irrecoverable VAT Expenditure is recognised once there is a legal or conslrucllve obllgation lo make a payment lo a third party, il is probable that settlement will be required and the amount of obligation Can be measured reliab. Expenditure Is classifled under charitable aclSvity rather than the typ& of expense, In order lo provlde more useful information to users of th8 financlal slal8tnents. chatable activity costs comprise both d1cl expenditure, Including dlrect staff costs altdbUlab lo the aclivily, and support costs re181ing lo Ih8se aclivilies. As The Prel Foundation Is unable lo reclaim any of the Valuo Addsd Tax IVATI that it Incurs, all 8xpendllur8 In these flnaneAal stalem¢nls in relallon lo acllvllltss Is shown Inclusive of any VAT whlch cannot be recovered. Fixed assets Tanglble fixed assets are initially recorded at cost and subsequently measured at cost, nel of depreciallon and any impairment losses. Tangible fixed assets with a cost price in excess £1.000 are capilalised and all other expendllure is charged lo the slalemenl of finanoial activities. Depreciation is recognised so as to wrllo off the st of assets less their residual values over their useful Ilvès on th8 followlng basls.. Fixture8 4nd fithngs over 5 years The oaln or loss arlsffing on thè dlspos81 of an assells delermlned as the difference between the sale proceeds and the carrylng value of the asset and S credlled or charged to slalement of financial activlligs. Impairment of fixed assets An assessment is made al each reporting dale of whether there are indications that 8 flx8d asset may be Impaired or that an impalm¢nl loss prevlously rtscognised has fulw or partially reversed. If such indications exlsl, the Trust eslimalgs the recoverable amount of the asset. Shortralls between the ¢arrying value of fix6d assols and thèir recoverable amounts. being the higher of falr value less costs to 5811 and value-in-use, are recognised as impairment losses. Impairment losses are Tecognised in slalemenl of financial aclivilies. 14
THE PRET FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies (continued) Impairment of flxed assets (conllnued) R8cognised impairment losses a reversed il, an only if, the reasons for the impairment loss have ceased lo apply. Reversals of impalrmenl losses are recognised in statement of financial activities. On reversal of an impairmenl losss, the depreciation is adjusted lo allocate the asset's revlsed carrylng amount (less any resldual valu81 ovér Its ramaining useful life. Flnan¢lal Instruments The Foundation only has financial assets and liabSllU8s ol a kind that qualify as basic financial inslrumenis and are not considered lo be ol financi81 nature. Such financial instruments are initially recognised al Iransadion value and subsequently measured at their selllemenl value. Debtors Olh8r debtors whlch ara rac&VAble within one year and which do not conslitule a finandng Iransacllon ar8 initially measured 81 the transa¢llon price. Other debtors are subsequently measured al amortised ¢osl, being the transaction price less any amounts sèttléd and any impairment losses. Cash at bank and In hand Cash al bank and In hand Includes cash and monltss on short term doposils al the bank. other short-lerm Ilquid investments with original malurilies of three months or less. Creditors Creditors are recognised where the Tst has a present ob11galion resulllng from a past event that will probably result in the transfer ol funds lo a third party and the amount dus lo s&lllo the obligation ¢an be measured or esllmaled reliably. Creditors are nOrrnal reccKJnised al their settlement amount. Taxation The Foundation is a registered ch8rily and accordingly is exempt fiom laxalion on ils incorne and galns where they are applièd for d)arilabl6 purposes. Ponslon For defined contribution schemes the amount charged lo tho Statement of Financial Activities is the contributions payable in the year. Differences beiween contributions payable in the year and contributions 8Ctually paid are shown as either accruals or prepayments. Crltlcal accountlng estimates and areas of judgement Estimates and judgements are conllnually evaluated and are based on historical experience and other factors, including expectations of future events that are b81iev8 lo be reasonable under the circumstances. Ther6 are no critical accounting estimates and areas of judgement to note. 15
THE PRET FOUNDATION NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2020 Analysis of Incoma {al Donatlons 2020 2019 Don8tlons recelved 2,801,935 2,208,795 Ibl Investment income 2020 2019 In18resl receivab18 599 703 Analysis of expendlture In¢urred by The Pret Foundatlon The Trust fulfilled its charitable purposes by picking up unsold food from Prel A Manger shops throughout the UK and delivering il lo other charllies that assisl with the relief of povetty. In other instances the Foundation made cash grants as the Trustees saw fil. The accounts do not include the monetary value of the unsold food collected and distributed from the Prel A Manger shops as ihe Trustees believe that the food has no monetary valu8 by virtu& of it being unsold. (al Charltable activities The Rising Cash, stars and •qulpmènt Food Shooting Stars and food dlstrfbutions programmès donatltsns Total 2020 Total 2019 Shelter GSfts and donallons (See note 5lcll Food delwery costs Apprenticeship costs Sheltèr ¢osts Food donallons Equipment donations Support costs (See note 5lbll 190,717 190,717 730,166 706,578 706.578 690,202 54,236 161,628 121,141 195.320 3,762 39,254 10,715 54,198 216,631 313,055 54,236 121,141 3.762 10.715 57,51S 57,519 89,642 11,951 764,097 143,878 262,713 133,092 1,303,780 2,183,823 Ib) Support costs The Rising Cash, Stars and equipment Food Shooting Stars and food dlstrlbutlons programmes donatlons Total 2020 Total 2019 Shelter Staff costs {See note 61 Charlly sile vislts Team expenses Bank charges Audit and accounting fèes 14,660 Consultancy costs 1,569 Other co$ls 1,130 37,624 67,723 37,624 7,525 150.496 238.219 18,193 42,050 206 14.387 2,529 4,554 2,530 506 10,119 22 47,289 5,060 3.645 14.660 1,569 1,130 14.659 1,569 1,130 3,310 353 255 57,519 89,642 57,519 11,951 216,631 313.055 Support costs are allocated on a basis consistent wllh the actlvSlles of the Trust. 16
THE PRET FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 Analysls of expendllure In¢urréd by The Prèt Foundation (¢ontlnued) Icl Gifts and donations Noof gifts Noof gifts 2020 2019 The Foundab'on has made the following gifts of £5.000 or more.. The 999 Club The Clock Tower Sanctuary Emmanuel House Day Centre Salford Loaves & Flshes 240 Project GardtK>ard Gilizens Action Homeless Leiceslar Glasgow City Mission Nolra Dama R8fugée Cenlrè Shelter from the Storm The Choir with No Name Acllng on Impulse Albert Kennedy Trust Genesls Trust lackney Doorways AKr Asplre Oxford Communlty Entèrprise Ltd London City Mission Nolre Dawe de France Trust Off the Fence Trust Barllabas Bridges Pro11 Crisis Centre Minisleries Glass Door Firm Foundation Manchester City Mission Bethany Christian Trust Corllerstone Manchester Accu¢ll Ozanam Madelelne Manna Islington Olallo InHope 10,000 15,628 21.000 17,500 10,928 22,500 16,500 7,914 10,028 6,520 20.862 7,300 8.512 7.700 10.000 5,OOC> 10.000 10,000 10,000 11,750 18,352 17,396 12,370 9,360 7.50D 24,785 12,645 6.358 10,000 17,160 5,360 12,027 8,225 11,000 10,000 10,000 7.000 8,117 10,000 10,000 10,000 12,000 40,000 Sublolal Iconllnued on following pag81 14 127,817 29 401,480
THE PRET FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 Analysls of expendlture Incurred by Tho Pret Foundation {GonlinuedJ Icl Glfts and donations (continued) Noof glfts Noof gifts 2020 2019 The Foundation has made the followng gifts of £5,000 or more Icontinuedl.. Subtotal brought forward from prior page 14 127,817 29 401,480 Vlneyard Community Centre Hlnde Sl Melhodlsl Church The Upper Room Ace of Clubs Sl Cuthbetfs Centre ASLAN FCENS The Margins Project Fareshare The Suited and Booled Centre Brlxlon Soup Kltchen Caring in Bristol Casllemilk Community Church Chellenham Open Door Crawley House, Crawley Hope Housing Tmining and Support Limited aggs Day Centre Pelerborough Soup Kitchen The Friary The People's Kllchen The Vineyard Arches Trust Breaking Barrlers C4WS Street Connect Sl Pelrock's Imagine If l Trust Harrow Law Centre The Food Chain Th8 Runnlng Charity Wycome Homeless Projects Other amounts less than £5,000 6,860 9,770 9.800 17,394 15,487 18,880 12,680 16.500 18.000 11,863 7,500 5,000 15,000 9,007 6,200 6.500 8.000 7.800 8,000 9,045 5.500 9,982 8,752 12,000 6,500 6,000 5.000 14,800 5,500 5,460 5.000 31,766 10,000 8,500 10.000 5,ClOO 10,000 5,000 7,540 Total 25 190,717 136 730,166 18
THE PRET FOUNDATION NOTES TO THE ACCOUNTS (conlinuedl FOR THE YEAR ENDED 31 DECEMBER 202 Analysis of staff costs and numbèrs Total staff emoluments for the year were as follows.. 2020 2019 W8ges and $818ries Social security costs Pension contributions 126,985 19.732 3.779 209,282 24,039 4,898 150,496 238,219 These SIS relate lo Ihg relmbursemenl of wages and salaries by the Foundation lo Prot A Manger IEuropel Limited, for the lime incurred by employees of Prol A Mangsr (Europe) Limlled on the Foundation's acliviti&s. The wages and salaries of £126,985 is nel of CJRS grants received of £17,143 by Pret A Manger (Europe) Lirnited for the employees that incurred time on the Foundatlon's aclivilies. The average number of empbyees whose wages were recharged lo the Foundation during the year were 512019.. 61. No employees a PBid through the Foundation and no Omployees or Trustees were paid in excess of £60,000 in the year {2019'. £NIII. Trustees, remuneratlon and expenses and costs of kay management personnel No Trusteè racèivèd any remuneration or payrnenl for expenses during the year12019'. £Nil). The Foundatlon considers Ihal the only key management are the Trustees and Chlef Executlve Officer, and these personnel are not remunerated during this year or the prior y8ar by th& Foundation. Auditors remuneration Fees payable lo RSM UK Audit LLP and its associates in respect of both audit and non-audil services are as follows.. 2020 2019 Audit rÈmunerallon- 2020 audit Audll retnuneralion 2019 audit Other services.. All other non-audil services - 2020 All oth8r non-8udil sérvlcés 2019 23,400 8,400 11,400 4,200 2,400 3.000 38,400 14,400 19
THE PRET FOUNDATION NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2020 Tanglble flxed assets Flxtures and fittings Total Cost Al 1 January 2020 and al 31 December 2020 304,004 304,004 Dapreciation and impainnent At 1 January 2020 Charged in tha year 57,447 60,801 51,447 60,801 Al 31 December 2020 112,248 112,248 Carrying amount Al 31 December 2020 191.756 191,756 At 31 December 2019 252,557 252,557 Debtors 2020 2019 Other debtors Inole 121 Prepayments and a¢¢rued Sn¢ome 186,076 120,180 186,076 120,180 11 Crèdltors.. amounts falllng due wlth5n one year 2020 2019 Trade credllors Other credllors (note 121 Accruals 153,076 66,362 58,807 27,600 180,676 125,169 20
THE PRET FOUNDATION NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2020 12 Related party Ir3nsaetions The main related party to the Foundation is Prel A Manger (Europe) Limited, a Company which operates chain of food retain oullels across the United Kingdom. Donations during the year were from Prel A Manger IEurope) Limited. The value of donallons r8¢eived via Prel A Manger IEurope} Limited are £431.46712019.' £1,345,035). The Trustees are selected from the senior management ol Prel A Manger (Europe) Limited. During the year, the FoLJndalion was charged £150,49612019.' £238,219) in salary costs, for lime incurred by Prel A Manger {ELJropel Limi18d employees on the Foundabon's activities, which was nel of £17,143 01 CJRS grants received by Pret A Manger (Europe) Llmiled for those employees. During the year Prtrt A Manger IEurop81 Limited also made payments on behalf of The Prel Found8tion ol costs which were then recharged lo the Foundation of £503,302 12019,, £1,017,928) and al 31 Decembèr 2020 the Foundation was owed by Prèl A Manager (Europe) Limited £186,07612019.' £66,362 was owed by th8 Foundation lo Prel Europe). During the year, the Foundation re¢eivod a donation from JAB Holding Company Limlled of £1,877,237 12019.. £nil}, who are the owners ol Prel A Manger (Europe) Limited. In the prior year, Prel A Manger (Europe) Limited commiled lo donating £120,000 which was included within aCcued income al the prior year end. During the year, the Foundation received donations amounllng lo £350,000 (2020.. £nill from two founders of Prel. Al 31 December 2020, £5,060 {2019'. £nill was owed by the Foundallon lo The S&R Coaching Consultsncy Ltd, an enlily owned by one of the Foundation's Trustees. D. McDermott. 13 ultimate controlllng party Tho Iruslees do not consider that there Is any one conlrolling party. 14 Reconciliation of n8t Income to net cashflow from operating actlvStles 2020 2019 Net income for the reportlng p8riod 1,498,754 25,675 Adjustmènls for: Depreciallon Investment income Ilncreaselldecrease in debtors Increaselldecreasel in creditors 0,801 51,447 15991 17031 165,8961 464,991 55,507 1174.5461 Net cash provldèd by operating activities 1.$48,567 366,864 15 Post bal8ncè shfjgt event Since th& year end, the Foundation and Wesl London MissDn have terminated their agreement wllh respecl lo Prel House. 21