Petv HarrlSOD Fw•d*do Report and Con501idat¢d Financial Year Ended 31 May 7021 PETER HARIUSON FOUNDATION Annual report **d con5011d*ted IIDand#l st*teiii¢D15 l•r theye*r thded 31 MAY ZD21 CurttentS Page: Rcwjrt ofthc In￿e¢S Rq)ort ofthe ITHIEF￿laud1IorS 12 Co(￿lId￿le￿ Stll*mcDt of Financial Auivities 13 ConsolidaT¢d Balanc¢ She 14 Balance Sh¢¢t 15 Cl)￿5011dd1Cd Sla¢emcnl of Cash Flows 16 Note5 forn)ing part of thr financial $thia)￿nts Trustees Pe￿ R HJrriwrt KGCN CBE (thceascd 18 June 2021) J C Harrison-Lc¢ LLB PJGLe¢DLLLB N P Harri50n DlreclDr A C Ross OBE PrlnflpAI office Se¢LMLd Flo)r, Foundoiion How 4248 LoTklon Rorf ReiBai SuTTey, RH2 9 Binkers Couits & Co. 440 Strand Lthdon WC2R tK2S Bank of ScDdand. Tbc Mourf Edinburgh EHI IYZ Sfjntand¢r UK pl Ludgate Hill. London EC4M 7RE Audllor mrY)￿ Kingstort Smith LLP. Betsts Tell￿ ￿ cc￿on3vinJS for the Beijing 2022 PaTulympi¢ Games. £36.0(￿) ￿ Hor51ey and Bwkham KidinB forthe Disabled iowzrds the t￿lIdinge05ts of a classroom, fully acC￿1b1¢ lo11c￿ viewing are4 tack TOOM and stord8e within th¢ new accessible riding ccntrc. £30,000 ￿ ihc Ob5ervalory for in se￿ for Disthility Re5eawh. £30.¢XK) tD Vauyhall City tsjwaTib the 5al&ry ora RidinB Manager. £30.￿￿ to CEDA for their SwiAbiliiy Wogramn￿. £25,000 ￿ Portland Collcue I￿vardS thcirNew5Wt Creauve Art8 and Spolts Hub. £25,000 lo Access Sport CIO for their Ignile LoNth)n woj¢cU crcalin8 life clwiging wnillg Opportunities for disabled ¢hildrEn ond families in Ikprived aTe¥ of Lonthn. £25.￿0 to YHA England llnd Wa1¢5 towank Projcd90.. aclivity breaks for yOUng￿0pk who live challengiTrg L5.¢XK) io The Mcath Epilepsy Charity ￿￿3[￿S their Active Body: Calm Mind knclping th05¢ with complex epilepsy, s¢vere learning physical disabilities through SE￿. £25.OiN) th ihc Briiish Gymnastics Follndauffi towards their Hardship Grdllt PTograTh £25,(KK) to Midland Mencap for their Co%enty Adive Proieci olTuing iKlvsive exercis& 5POrt activilies for all. £24.841 ID Ansry Community Sports Club ¢owar&% the cou ofcriEkei ttL% and grwnd iwvem¢nts ￿ enable io cltsb io fiyther develop crickei for disabled p¢opl¢ in Mid S￿￿Ex. £24,0(Ki ￿ the Brig￿¢)ll Table Tennis Club towarts their ￿ysiG￿l disabilities thble lenni5 programm £24.￿0 ￿ Horitons for th¢ir Schools aryl Familic5 ProiecL £23.41110 Youth SponTru& (Ysr) wwaTd5 th¢ir'Move Lik¢ Me. projecl increasing sp(rfing op1m)￿lIt¢S for peopl¢ with SEND arKI bJildiDg skilWc(thfMkmce thfou8h SPWL £20.014 10 Level w￿er knvardq swimming lessons for ¢hilthen with disabiliiies in Sussex and Keni. Cgre for Chlldrtm ••d Ywn2 Pe* wtth Spedal lieed%£36S961 Grnn¢s were made to J ehariiie5. The ryin¢1￿1 awards wcw. £30,(th io the RO￿ Road A5*KI￿lon forrESpi￿¢1rt. £30.IY)J ￿ Cl￿P Mohawk fortheiT Family sUp￿rt Prui￿L £25,(H)O io Lifeliics towards enlwncing the livcs ollife-limi*d and disabled children and their familiES carcd for by Chesthut Trec House childrcn's hospic £25.0(rfJ 10 Extrdtime forou( ofxhool a¢iivi4ies for children And yowlg peoplc with dIS￿lI111¢S. £24.000 ￿ thc GASP Motor Project forthe salary of the Prognmw CLw)rdin￿or￿nd Execuiive Assi5tsnt. £24,(MK) io the Royal SL*iety for B11￿j Childrm IRSBC) tOW3rd5 their Keni Family Support knic PETER HARRISON FOiINDATION Report ofthe trustees for tht year ended 31 May 2021 (eon¢lnued Achlevements and prrfOrn￿ThCe (tomthiued) £149,752 The awardcd wincipally comprists 4 bur5arics tothlling £139552 ¢(￿Mencing in Sepiernber2021 ioseth¢r with othertsssiswice olUIW io deserving pupils ￿ ReIga￿ Gramnw sch￿1. An oward of £10,000 was a150 mode ￿ Raven Housing TnL*t for the refU￿1$hment of lap￿p5 for disadvan￿Sed children and young people who ncd them for ffjidy duriDB thc COVID-19 pandemic. Trnst¢C5' Dlscretl•￿ry Proeramm4£125 Unrestricted Income Fund Ex￿dable Capitsl ErKlOWn￿Trt Fund £125.W £5 4 wer¢ madc Yariery of tharitics aTMI (￿lSa170￿S. The wincipal awards wcrc:_ £50,000 lo thc Bleichky Park TrusL iowards thc cost of (kveloping an ¢xhibition spxe io lell thc siory of breaking naval enigma code5 in World War11 and a Tthv leaming ¢entre. £50,(I)O io Thc Commtsniiy FoundaliDn for Swr¢y. ￿ coniinue contr11￿ting to th¢ fimdins of dcsuving causes in Surrey. £25.(￿ to Thc Community FouThloiion for Swtry. for their CoroMVin￿ Re4Thse Fund. Thc Trustees hav¢ Tefcrrcd ￿ the Chariry Commi&5iOll'S 8uidan¢e on public benefit wbcn r¢viewing their aims and objectives and in planning activities. In particular. the TnNees consider how planned u¢tivities will coniributr lo th¢ aims Jnd obj￿IlVe$ they have seL The TTu51ces L*lieve that. thken iog¢ther. thesc grants mc¢L the (*Jjective of benefiting as varied a cross-S¢CtiDll of the comrnunity as possible in the vario￿$ grani-making fields. Th¢ TnLsltts will coniinue for a widc variety of PnJiLrts thai enable those with disabilitics orutho ore othrrwise di5advartknged to Jdlieve their fijll put¢niial. 4. Fllt*rt plans The TnJs*cs inlend ￿ mainwin a $i8tyifi￿￿ grdnt-making lo ￿ri& a wide rdn8c of charitsbl cause5 ofparticular iniereM io thern. Grdnts will conÈinue ￿ be made in the Foundaiion's fDur programmes. In decidin8 on these grdnLS. Trusm will coniinue ￿ favour PfDj¢Cts (iKth ¢apithl and rcvenue) wh¢re suppon from the Foundation will Make a substantial difference in in¥Koving the quality of life for pewyle who face difficulii¢5 through disabilily or disLdvantsg¢. Plxemial proiccts in the Opportwiiues Through Srffjrt pro8rJmme will conlinue to be considered on a UK wmk basi5; and recipients of grants will range from tIK Plhrnlympic level to prngrJmmcs ofbenefiito local communiiics. 5. The ljnpfjet •rCow[￿19 As with all other OTganisalions COVID-19 had an the FIHmdation. The Fowmlation's ￿aff have been able to effLriiv¢ly wi)Tk fwom 1￿M¢with liitle effec( on IWd15oiis. Following the relaxation of rcsiriuions 51aff have sthrLcd to return to work at the charitys o(fKe on a part titne b&si& On¢ of thc mllin irnpacts of the physical loEkdowrLS has beett on visits to rhorilies. which are io &￿Ss certain 8Tani applicJnts and the progress 0[￿lts made, and which ¢eased during the lo¢kdowm5. However increased corrcspondcnce and thc usc of trclwloBY such as Zoorn miligaied the effect of this restriction The itLieDiion is w reswne visits ￿ chan"t•es altho￿ this will be on a limited basis initialty. The othu impart has Ix¢D on Trustre meeiings. these ￿v¢ conlinued ID be held by using Zoom. Jlihough the difficuliies Prcsented by COVtt>lO meani thai onty three mttiings were held during ihe year nther thlln the u5uuI four. The impact of COVID-19 on the ¢i)arity'5 finances is tonsider¢d in the fmancial review below. PETER HARIUSON FOUNDATION Report oftke trllstees for the year ended 31 May 2021 (condRued) & Fl*aDd*l revlew The finan¢iJl statements ¢OtLwlidate the results ofthe FomHlation with those 5ub5ldl￿, PHF Inves¢ments Limiled, for th¢ yfdr cnd¢d 31 May 2021. (11 Total grnss In¢orne Total gross illcome for the yearamountcd ￿ £3.010.8￿ {2020: £3J21.681). The uttresthaed incomc fund rcc¢iYed from pr(4xny development loans of £1.222.149 {7020: £1 ?10.079}, rental in¢ome or£i.528J7612020.. £1.791.652} and irtcome from IL5ted iDvesmiertis of £?59244 (2020.. £307.302). Th¢ rcport Dn invcstmertts Ixlow cxpiains thc in typcs of invcstmcnt and hcncc thc changes in income. {ID Ch*rllable gr￿15 #wirded After due co1￿1deration atKI assessmtnl thc TnA¢c¢5 bavr aw¥dcd grattts fortheycllrof £1.4?4.55112020.. £1,992,812). Details of the wincipal grants given are thowrt in section 3 aiK*Ve. (111) Investments The Tntslees. overdll inv¢51meni otyeaive is to achicve swfficienl totsl rctums ￿ fund its ex1￿1ng gran( pro8fdmme whi15t also proiectittg the capi￿1 va]ue ofits ￿ets for the benefit of fuwre beneficiarie& This rcmjins wincipal (*ie¢uve plthou8h the TnLStecs are consci￿5 thai COVID-19 has had. atld will continue 10 have for some lime, wi impaci on the FoundaiioD's income and thc value of its ￿SCts. The Found&tion 15 reluliv¢ly wtll-placed as the Trustees are Jbk ki ￿ju9 the Icvel of grants awarded should there bc a 5ignificanl fall irt income. The Foundation's prin¢ipal invesvnenLS ¢onyi5e invcstmeni pr(ryKrties and propcrty developm¢nL loans which arc held by the ¢harity's wholly owned thidiary PHF InVesuM￿ Limi￿& In addiiiryb the chariry Iuylds managed inve51rnent ￿nds. Invesuncni properties are boughi and 501d &p¢ndinB ort m8rkd condili(KbS and opp0m￿l¢1¢S arising. Ther¢ were no PUTch8ses or disposols ofprnperties during the yE4r. With the coniinued uncer¢ainty cats5ed by COVI[ 19 thc Trwtecs I￿1 the propcrtics Valued by chart¢r¢d surycyors for thc third ycar in su¢cessioii. C0VIL￿19 has h8d o significant impact on some of the prO1￿rtIeS. ienAnts consequent thanges have led io a net decre￿ in th¢ propcrti¢< valllc. Neg￿1/[¥￿￿5 arr undtrway with tcnants whi¢lL if success￿1, should improve the properties, value5. As some trnants are involved in hosw'u]iry the Foundaiion has been relatively fominate that lh¢ (kcrtase in renwl income c￿npa￿d ￿ 2020 bECll limitrd ￿ 15Y* {£1528J76 in 2021 ond £1.791,652 irt 2020). The FOu￿jaIl0n ha5 loans devEiopnyxLts which eam in*resi on ¢ulain developmertts. Also ¢ntstle the FowidJtion share of any developmeni PTofLts, but T￿1 of any1055es. The inLcresi on th¢5e loans is pay8ble quanerly which wovid¢s thc Foundaiiott with regular incomc froln which rund Brunts. There were loan re￿Yments of £9.650.(W (2020.. £7,SNJ,(KKJ) during the year. no fiwther loAhns (10?0.. £6.750.0(N)) were made. The liming of the addiiional loaN% of the rEpaym¢nts in boih 2021 and ?￿0 were such that the av¢rnge amouni leni significantly diiferent Jrtd conxqu¢ntly the kjan interesi recehvablc of £1,222,149 in 2021 was not dissimi]8r from thE £1,210,079 rc¢eivabl¢ in 2020. The TrLLsiees have invcsled £7,500.IKKJ in variou5 charity funds. The fi￿dS ate held primarily io gen￿4(¢ income in order to finance the payment ofgrdnts. COV1[￿19 led ID a general fall in diyidends paid and nsequently incom¢ from lislcd inV¢SLmcnLS fell from L307.302 in 2020 ￿ £259.244 in 2021. Th¢ muTket recovery meani that the value of the ￿led in¢￿85ed from £6.994207 & 31 May 2020 10 £8.136,192 at 31 May2021. The Found*ion and ILS subsidiary held the ythr end of £14J03.73? (2020: £4.134A195). The increa5¢ in cash lJrgely arDse from loan repayments which wer¢ received towanls the end of the year. The held is 5ignifi¢anLly more than the chariLy nec&% ￿ meei Its and opcrdiingco5￿ and thc Tn￿ecS llre considerins how to invesi Ihc Su￿1￿5 fiw&. PETER HARRISON FOUNDATION Rrport of iht trustees for the y￿r e•ded 31 Mly 1021 (¢oNtl*¥ed) revlew {cuntlnued) (111) Inv¢5trnettts {¢ontlD#ed} The Trustecs regularly monilOT the Foundation's inv¢5tmcnts and cth reserves with a view kn balaneihg Prud￿ce with the need to Bcncrn* income. In so doioB thc Tnts(ees cot&sider thc risk5 &wciaied with each class ofinvestmenl bearin8 mind the risk5 inherem with tlL05C panicular assets and the wider economic risks arising. Thc COV1[￿19 ernergency has increa5cd these risks th¢ TnMc¢5 CQThshdEf that weseni mix providcs o re&sonable of rcwms with an xccpthble levcl of risk but continue io keqj the churiry's &S5ets under review. With COVID-19 the TnLStces took a prudeni view awaYdinB grznts. tsking inioview intome received th¢r than anticip￿ed i￿orne which was the aFpro•ch th ill priory￿$ wl]cn incomc could be forecL41 ITiiJr¢ rcliDbly. This approarh. tDBethcrwith there beiThs thrte tnwee meelings during the yeor. rJiher the ￿$￿aL (￿r, meani thal grdllts awarded dwinsthe ytar fell frnm £1.992,812 in ?O?O to £1.424.051 in ?021. Thc T￿￿eeS consider thst the chaTiry'$ invests))ents and the income the￿ i￿￿￿lleD￿ 8ellcrotc should bE sufficienL ￿ meet the dbjrity's FY¢sent ob1ib4t1N￿ and aLw its ability to conlinue to grants in ihE long ienn. 7. Reserves polScv The Trusi¢£s hove the flexibility. if they 50 WIS￿ ￿ 5￿K1 the F￿nd￿lOn.$ eXp￿¥jabI¢ endowmeni fi￿￿ in fi￿rIlm¢￿t of the chariry's objccliwes. Howcvcr in older ￿ balancc th¢ nc¢d% of CUfTcnL and potcn¢ial futu beThcfLeiaries of ilL¢ chariry the Trwces have adopted the ryjlicy ofretsining the expendable endowrnent fund. iogethEr with any Capital profits arising fro￿ th¢ s31c of the FoU￿110n.$ invesunCTh￿ the income 8encrd*d rrom ihis caimtal being ￿lcd to grnnts ￿yable. The T￿￿tt5 consider thot by mainiaining and building the apithl base of the Founthiion. which should 8ener* ￿t￿er in¢om¢. lh¢ Tru5tr¢S will bc able io increas¢ grnnts payable whilst ensurinB the Foundauon's kyng iemi fvtsue and helping to prevent any diffliThution to thc Founthition causcd by inflaiion. Accounlin8 sthndariLs requi￿ ¢apiMI PfDfits lobe inchulcd within thc utwestyiacd incotn¢ fibnd and accordingly the accounLS refle¢1 ihis treathien4 howtver as Sthied aknve the Trustees aim (o build the unresllic￿d income fijnd r¢5erv¢ ovcr Un￿ lo cnsure the long￿r￿ fwwe of th¢ Found*ion. covit>19 may impact the net assets of the charity in th 5hDrt iern) the TrusM are of the view that the charity's Investhien￿ are sound and thai th¢ir ttscrvcs ￿l1¢Y ryl C¢)nlinue ￿ I￿ followed alEoiL there muy bo iempordry falls in values. Lryal *dmlm15trntfve The Legal and Administraiive Inf0rn￿10n S￿ oui afterthE title page fo￿￿5 part of the Re￿￿. The finTrnci#l staletnents comply with cuTh¢nt stalUtLry the Trust De¢d and pr¢scni a¢couDihn8 rcgulaiions. Th¢ Foundation is crAwitsicd under a Trust Deed dawd 29 April 1999 and was r¢gisiered a5 a chariry in England and Wales on 15 July 1999 u¢J&r re8i51ration nunther 1076579. The 8OVErning b(Kiy is the Board VETr￿S1¢e* Future mis(ccs mu51 b¢ #DDDinled bv re501uticffi of the Trustttk R15k mAn•gtmettt The Tn￿¢e5 arkrb)wledBc their respon5ibilitics recognise that grMMI prddice includes consid¢ration and reporting of risk management. The Tn&ecs have examined thr major Stra￿le, business and operdlionJl ri$ks involv¢d ITh tho Found￿10n.5 ac(iviiieS and hav¢ corthL¢d a risk assessmeni. The Tru5tces INive identified and cotLsid(¥td risks underthe following cateBories: Governance and Tnanagernent Operational risk FiTharKial risk Envirnfimenthl and cxtemal factty5 CompliwKe with the law and rE8ul*ions Th¢ Tn￿1¢￿8 h&ve rcviewcd and ass¢ssed the fftiial itnpact ofihe major risks id¢ntificd and have noted thc steps tsken ￿ mi(Lgate dK)5¢ risks. The Tnwecs are Conf￿¢11[ thai CUTTenily thtte are no medium or high risks the FoundDuon and the likelthood of sucls risks arisin8 is knw. Any significani dwjgcs in proccdurES havc a risk assessment made prior￿ irnplemcntation. Regulu reviews of the risk &wssment are rnade prior lo Meetin￿ of the T￿￿ets. PETER HARRISON FOUNDAT1014 Report of the trusttts for the yeAr eDded 31 M•y 2021 (toAthiued) 10. Staiemellt of Trnsttts, rospDnsll￿lt1eS Thc Trusttcs are responsible for pryring the Trus(c¢s' Kq￿ and th¢ financial staicments irt accordance with applicable law and Uniied Kin8dom Accouniing Standarth (Unilcd Kingdom Gcrterdlly AeceNed Accounting Prnclicc) including FRS 102'The Finan¢ial Repjrting Sthndard applicablc in thc UK and Retthli¢ of IrelJnd'. The law apwicable to charilios in Englartd and Wale5 reqllires the Tntstees io prepare financial statetTKnts for cach financial year which give a tru¢ and fair view of the swe of the affaits of th¢ FouTthiion and of the income and expenditure of the Foundaiion thai perityl. In weparing these financial statcmenrs the Tntstees rr rrquired to". . Sek￿ SUiLiblc accouniing pDiicies and thtn apply them c￿ls*￿Y. . obscrwc the mCth￿￿ and prsn¢iplcs in the Chariiie5 SORP. . stai¢ whether applirabl¢ UK A¢cow)ting Siatldards hav¢ b￿fft followcd Athjrrl io any Mail￿￿1 dynurcs disclosed and explained in the finlhncial statetnen ' makE judgemcnts and ￿lT￿ateS ar¢ rrasLM)able and wuden(' an ' pre￿re the financial stsicrnents on the going concern b¥is wiless it is iwprcyriaie ￿ prrsumc thai thc Fwrtdauon whll C￿lIn￿¢ in bu6iJKS& Th¢ Tn]$￿$ are rcsponsible for keeping prow Dccouniing rccords which di5¢10se with r¢asonabl¢ accuracy al any lime the fin8n¢ial position of the Foundaiion and ￿ uuble them ￿ enswe that the financial 5Wtemcnts comply with the Charilies A¢t ?01 l and the Chariiy (Accouthts and Kcports) Regulations ?008 and thc provisions ofthe tyuA deed. They are also responsible for5af¢Bwdin8 the assets of tlle Found)tion 8nd hence lor ￿kIll8 reaso￿ble sieps for thc prevenlion aThl ddection of fraud and other irrcgularilies. ii. Audltor5 MoDr¢ Kingston Smith LLP knve indicat¢d their Wbllingness io Contin￿ in office and it is propos￿ thai they be re.appoint￿ oudilors f•)r the citsuing year. On behalf of the Board D*t¢ 21r Februlry 2022 PJGLeeDLL Trustee PETER HARRISON FOUNDATION Indrpendent Avdltor's Report to the TThOtts of Ihe Prter Harrlsm FotyndAtIo Oplnlon Wc have audiied th¢ financial Statements of the Pcttt Harrison Fourtdauon Cor the year cndd 31 May 20? I which comprise (he Consolidatrd Staiemenl of Financial Adivilies. the Consolidated and Charity Bolancc ShccL the C(Nwlidaied Cash Flow Stsiemcnt a￿1 the financi¥l Statenxn￿ in¢luding si￿1r1¢ant accowiiing policies. Th¢ fiTJancial reponing framew(xk ihai has be¢n applied in their prcparnlion is applicable law and Uniied Kingdom Accounting StandaTd5. including FRS 102 'The Finoneilll Reporting StsMdaTd Applicable in the UK and Republic of Ireland. Iunited Kingdom Generally Accq)tcd AccountsnB Practic¢). In our opinion th¢ financial ststcments: giv¢ a true and fair view ofthc State of thc group and charity's affai[5 as •131 May 2021. and of i incoming resources and applicalion of resources. Cor the year then eW' . have bccn properly prepar￿ in accordan¢e wlth Unitcd Kirtgdom Gcn¢rnlly Acryttd A¢couMinB Practice. ￿d, havc preparcd in a¢cordan¢e with the [cquim￿nts of the Chariiics Ad 2011. BA515 for oplnlon Wr conducted our audit in AKcordanct with Iniernalional on Auditing (UK) {ISAs UKII and applic&ble law. Our responsibilities under those standariLs are further dcscribed in the AUdi￿r'S Respon5ibiliti¢s for the illdii ofthe fina￿121 sthtements of our repoTL Wc independcnt of the chllrity in aC￿rdance with the ethical requircments that are relevani to audit of I1￿ financial staiements in the UK. including the FRC'S Eihical STJndard. and wc have fuifillcd our othcr cthieal responsibilities in accordance with these reguirements. We Ixlicv¢ ihat the audit evidence WE hrtve obtaincd is sufficienl und appropriaie to Provide a basis for our cpinioD. Conclu51ons relatlnE to golng con¢¢rn In audiling th¢ financial 5tatemeTrts. wc h#ve conclud¢d that the In￿. Usc of the going concern basis of accounring in the preparation of the financiul Ststem￿ts i% appn)priat Based on the work we have perform& we h&ve not idcntified any ￿￿tErIal uDcert&iniies relating to events or condition5 that. indiyidually or collectivety. may c35L signific￿1 doubl on the 8roup and ch•rity'S abiliry to continue a5 a going concern for a period of * le￿ twelvc months from wljen the financial staiemcnts authoriscd for issue. Our responsibililic5 und the re5ponsibililies of the trU5tCe5 with ¢0 going concern ￿¢ de5cribcd in the rel¢vartt sections of this reporL Other Informatl•n The other inforrnJtion comprises the infonnalion inclth in the arn)ual other than the financial statcrnents and our audhtor's report thereon. The truMees are rcsponsiblc for the othcr information contained within the 4mnuol rq)OTL Our opinion the financial sthtements does not covcr other inforniation and, cxcept th the extent otherwise expli¢idy sta￿1 in our repori wc do noi express any foTm Df assurJn¢¢ conclusion thereon. Our rcsponsibility is to read the cther infornution and, in doing 50. con5idcr whdher thc other infornutio is materially incon5isl¢ni with the firtoncial s¢aiwrtrtL4 or our knOWledb￿ obtsined in th¢ CQUTse of ihe audit or othejwisc appcars to be materially mi551al¢d. If we ideniify such material inconsis1￿cleS or appaTent ma￿rial misstatemenls, we are required io dete￿Ine Wh￿}￿r there is a materi&l missi&tement in the financial ststcTn¢nts themselvc5. Ir. bascd ott the work wc have wfonncd. we conclude thai therc 15 material mislla(ement of this other inf0m￿li0￿ we arc Tequired kn Teport thJ¢ f Wc hav¢ nothing ￿ rcport in thi5 regar PETER HARR150N FOUYDATION Indeptndent AudltDf's Rq)Drt to the Trusitts of the P¢t¢r H￿rISO￿ Fowtsdatlon (eonthiued) Matters on whlth we are required to report by exeeptio We have nothing ¢0 rqM)rt in respe￿ of the following matters w1￿¥t the Charities Act 2011 Tcquires us io rcport ￿ you if, in our opinion.. thc infDrrnation given in thc Tn￿ets. Ann￿￿ Rfport i5 I￿onsIs1Cnl in any m•i¢rial respcci with thc finDncial statements. or the Broup and charity has not kept adequ41¢ accowitsng record&. or the financial slat¢n]enLS are not in agreem¢nt with ihe accowiting recor& and rewrn5" or wc have no¢ rcc¢ived all thc infonna¢ion and explan￿1￿ wc rcquired for our audiL Respo*slblllties of trwtees As explained mor¢ fully in the tTh￿tees, Ttsp)nsibililies s¢atunent sct out on page 7. the tswiees are responsiblc fDr th¢ prqjarauon ofthc financial and for king saiisficd that th¢y give a and fair view, and for such internal control %LS the trusiees dete￿in¢ is neccssary to enable the preparntion of financial 5tstcmcnts that are free from JnaLuial misstaiemcnL whcthrr due w fraud or effor. In prcparing th¢ financial s¢atoMits, the tru5*e5 [c4x￿SIble for as5usiog th¢ g￿llP and charity's ability to ¢ontinue as a going concern. disclosing. J5 a￿licable. motters related to going concern and ￿Ing the going eoneem basi5 of accounting unless the trustr¢s cither Irt￿d ￿ liquidaie the charity or to CCa5C perations. or have no realistic alternative IX￿ io do so. Audltor's responslbllltlts f•r the audlt oftht nHancknl 5tit¢m¢nts We have been oppoinied ouditor under section 144 of the Charitits Ad 2011 and report in Ac¢ordon with rcgulations made und¢r 5¢ftion 154 of that ACL Our objective5 4re lo obiuin reasonable &ssllrdnce aboui whether ¢he firtancial stalemertts ￿ a whole are frce from maicrial missthiemcnL whcthcr due lo fraud or effoT. and to issue an auditor's report ihat includcs our opinion. ReLsoMble a55wJnce is a high level of assura￿e, is T￿t a guarnntee thai on audit onducicd in accordancc with ISA5 {UK) will always det¢a a material misswemcnt when li exists. Misslaiements can arise from fraud or error and arr considered material if. individually or in aggregaK they could reasonably b¢ expected to inflvertce the ttonomic decisio]L% of ￿$￿S thken on th¢ basis of these fmancial ￿a￿nents As port of an uudil iT] accordance with ISAS (UK) we exercise PTofcssional judgemenk and m@in￿1￿ profcs5ional s¢epti¢ism throughout the audit. We also: Ideniify and a55C55 thc risk5 of malcTiII missthwnen( ofthe fuwcial StslcnKn￿ wheth¢r due io fraud or error, design and wforni audil PT¢xeduTes responsive io those risk4 and dKain audit cvidcnce (Iwi is 5uificienr and appropria￿ io provide a baSL5 for our opinion. Thc risk of d￿e￿ID8 J material mi55¢￿temen[ Tesulting from fraud is higher thyn for one resulting from error, as fraud rnay involve collusion. forgery. intcniional omissions, rnisrcprr5¢nthiion& or the overridc of in￿nal conlrol. Obtllin an ￿nd¢￿tanding of internal control rtlcvont io the audit in ordtt ￿ design audit procedures that ure appropriaie in th¢ ¢ir¢umstanccs, I￿t not for the PllTP￿ of eXpr￿Ing an opinion on the effeciivene55 of the sryoup and chariry's iniernal control. Eyaluaie the apprDpriateness of accouniin& policies w¢d gnd the rea50nthl¢rt¢ss of accounting eMimatC5 and rclai¢d disclosures mad¢ by the Erns￿5. PETER HARRISON FOUNDATION Indepeudent Audltor's Report to the Trustees of the Pder Harr15•n Foundatlott (coatlmued) Audttor'5 rfsponslbllltirs for the •udlt ofthe fwttdal Stateu￿•￿ . Conclude on the appropriatcntss of t￿￿￿¢$. use of the BQill8 conccrn basis of accouniing and based on ihe audit evidence obtained, whether a material wicertainty exists related to events or condiiicrfLs that may ca51 significant doubt on thc group and charity's ability to conunuc a5 a Boing conc¢rn. If wc conclude that a material uncertainty exists, we are r¢quired ID draw attention in our auditor's report to the relaicd dixlosurcs in the financial 5ta(cmcnLS or, ifsuch disclosures arc inJd¢quale. io modify our opinion. Our conclusions are b&sed on the audil cvidence obtained up to the dale of our audilor'5 report. How¢ver. ture cvents or conditions may cause the group and charity io ¢¢ase ￿ contirtue as a Boing conccrn. Evaluatc ih¢ overall prcsenthiion. stTucthtye aThl conteni of the finartial siatcrTthts. including the disclosures, and whether the financial stsi¢ments weprrseni the uNicrlying transactions and cvcrtts in a manncr thai achievc5 f4ir prescnlaiion. We communicate wth those chjrged with governa￿¢ rewding. other malleE& the planned scope and timing of th¢ Judit 5ignifieant audit findings, including any SiBnifJcant deficicncies in internal control thai we identify during our audiL EJplAnatlon as to what extent the uudlt was ¢0•sldtred cap•ble ol dettttivg Irregul*rldes Indudin2 Iraud Irregularities. including fraud. are instan￿5 of non-coThyliance with laws and regulations. W¢ design proc¢durcs in line wilh our rcsw)nsibilitic4 ondined above. io delcci maierial miss￿￿ments in r¢specl of i￿egUlaritICs, including fraud. The exteni to wh￿h (yjr prIthI￿ ¢yble of deteaing i￿1￿rItIes, including fraud is detailcd below. Thc objectiVC5 of our audit in respeci of fraurL are; io id¢ntify and ass￿5 the risk5 ofmaierial missia¢¢rncni of the financial stst¢ments dut to fraud. to obthin suffici¢n¢ uNJropriale #udii evidence regarding the as5CSscd risks ofmit¢rial misststemcnt duc lo fraud, through designing and implcmcniing approprillie responses to those assessed risks" and io respond apprDprialely to iMst8nce5 of frnud or suspccicd fraud idcnlificd during the audiL Howcv¢r. thc primary responsibility for thc prBv¢niion and detection of fraud rests with both rnanagement and thosc charged wilh governance of the gr(wp and charity. Our appro￿￿ was as follows.. we obthined an w)derswJding of the Icgal and regulatory requirements applicable lo ihe charity ihrough th¢ use of peTman¢nt audit flle infomiation. updaied this year for any changes th31 have identificd by management or by our own iDvestigaiion5 and considered thai ihe most significant are the ChaTitses Act 2011, Ihe Charity SORP. and UK financial reporting standwds as ISSU￿ by the Finaneial Rcporting Council; . we obtain¢d an understmiding of how the grow and charity complies with thcsc requiremcnts by discussions with managcmeni and th05¢ charged with governancc and through reviews of relevant Jccounthng and managemeni recoTds: ' we 4Lssessed the risk of Tha￿la1 mi&stalemenl of ihe financial st8iemenL%, including the risk of maierial misslJt¢ment duc to fraud and IK)W it mighi O￿llr. bascd on ourwork as oudined above: ' we enquirod of managcmeni and those clwgcd with govcrnw as to any known instances of non- compliance or suspected rton-compliancc with laws Jmd regulations. Using nSSL￿18tcd diKumentsry vidcncc io beiier undcT5thnd items of iotrresL . based ort this understhnding, w¢ dcsigned spccific appriyiatr audii W￿¢threS to identify instances of non.compliance with laws and r¢gulJtirJns. A5 well &$ specific audii ic5ting. this includrd appmaching tlccouniing records with Jn inquisiiiv¢ and scrytical mindset Such thai we examined ilem5 lhut were feli b¢ of intcrcst or of higher Tisk in this are& and Ob￿lnIng addillon￿ ￿rrobO￿tsve cvidcnce as rrquired. io PETER HARRISON FOUNDATION ltydependent Audltor's Report to tbe Trnstee5 octke Peter H•rrlson FD4ndAtIDll (¢oDtIDued) ExplAn4tlon xs to what extent the #udli w*s ¢fj#sldered CAp4ble of ddertlRg Irregu]Arftie4 i•elDdlng frAud (continued) To addrc&5 thc risk of fraud through managcm¢nt ovtrride of controls. wc cattied out the followiTrB work: . procedurcs were undertaktn io identify any unusulll or unexpttled matt¢ts. and thc rationale behind any such maticrs w&s examined. . journal entries were ieviewed io ideniify unusual tTJnsacii . jud8cm¢nts and asswnpuons made in determining the accouDiing ￿1￿mIeS set ou¢ in thc aceountin8 policies w¢re reviewed. Therc are inhcrcnt limith(ions in the audii procethircs dc5CTibed above. We are1¢55 likcty io bccome aware of instances of non-compliance with laws and regulalions that are not closely relaied to events and trJnsaclions r¢flccied In the financial 51atemcnts. A15D. the risk of noi de￿illg a mAierial misststanent due lo fraud 15 hiBher than the risk of noi deieciing one resulting from error. as fTaud may involve d¢libcrdte conc¢8lment by. for cxampl¢. forgery or inkniional misrcpre5cntation& or through collusion. Use of our report This report is rnud¢ solcly to thc sroup and charitys Inisiecs, as a in ac¢the with Chapter 3 of Part 8 of the Charities Act 2011. Ouraudit work has b¢¢n underthken 50 that we might ￿1¢ to (he group and eharity's tTU5tecs Ihose matt¢TS we are Teqwred ￿ stale io in on auditor's rcwrt and for no other purpose. To ihe fullest extcnt pem)itted by law, wc do accW or tssume responsibility 10 any party othcr ihan the chariry and group and charitls ¢nL%lecs 3$ a bcrfly, for our audii Work, for this rrpoN or for the opinion we havc formed. 24 February 2022 MoDre Kingmon Smith LLP Sthwtory auditor B¢ichworth Ho 5745 Station Road Redhill RHI IDL m(￿r¢ Kingsion Smith LLP is eli8ibl¢ to aci 8$ aUdI￿r in of Section 1212 ofthe Companies Acl ?(￿)6. li PETER HARRISON FOUNDATION ConsolldAted Statement of FinAndal Actfvltles f•r the yur ended 31 May 2021 2021 2021 Expewdable endowment f¥Dds 2021 202D Unrtstrlcted Income Totll Tol#l IneDme fro￿. Investrncnts and cash deposits Rcntal income 1.4L?.475 1528.376 1,48?,484 .528J76 1,530,029 .791,652 Total income 3.010.851 3,010.860 3.321.681 Expendilure on: Raising fvnds.. Rentthl ociivity Charitable aclivities 182287 1587.096 18?.287 1,587J96 250,195 2.198.757 5rMb Totsl expendiwre 1.769.383 1.769,883 2.448.952 Net opemtlng (expendlture)ADeome 1241.468 (491) 1240,977 872,729 Net realis¢d inveslment gain 974.950 974.950 366.516 unrcalised invcslment105ses (153.0151 (153.015) (1,620.898) Nel incl￿￿[¢xP¢ndttllrc) and nwvement in fiuMIs 1063.403 (491) 2,06?,91? {381.653) Recon¢lllatSon of funds Funds broughi fonward 3.875.rJ99 45,088.405 48,963J04 49,345,157 Funds ¢*rrfed forwArd 5,93850? 45,087.914 51.026,416 48,963,504 All omounts Telote to continuing activities. All rc¢o8nised gains and losses a￿ inc14￿ed in the Str￿men[ of financial activiti The nolcs on pages 16 10 27 form Iwrt of these finan¢wl Aatemen Page 12 PETER HARRISON FOUNDATION Cijnsolldaled B#lAnce Sheet Is It 31 MAY 2(111 No¢e5 2021 2020 Flx¢d xsset5 Managed inv¢stmeni funds Investment proiKrties Loans Total invcstments 8.136,192 18.075.(KKI 11.550,(KKI 37.761,192 6.994,207 19J70,000 21 ?00,000 47,564.207 CuTrent •ssets Debtors Cash at bank and in hand Cash 4nd bank balances Short lcnn dwi 1.167264 558209 20,(KKI 14283.73? 20.000 4,114,095 15.470.996 4,692,304 Credltors: ￿nDu]Its due Y4ithl* ooe ye*r Charitable grants provided and contracted for, b noi paid Other CTediiors 11.H3.407) {219.295) 11.853.280) {293.464) (1.672.707) 1? 146.744> Net Current usets 13.798294 1,545,56AI Total #s5ets less eurreni Ilabllltles 51559.486 50,109.767 Credltor5: arnounts pAyable After rn0￿ than y￿r Chllritable grant5 providcd and contsadd fDr. but not paid {533.0701 (1.146.263) Net asx¢$ 51,026,416 48,963.5(M Expendable endowments Endowmenl gifts ExpendAble endowrncnt gift 45,￿l.{K￿l 86.914 45.001,000 87,405 45.087.914 45,088.405 Intome (Ind5 Unrestricted income ￿nd 5.938.502 3.875,099 Total expend•ble eDdoTmlettt And IRcorne funds 51.026.416 48,963.504 tes on pagcs 16 to 27 forni part financial sta*ment nancial slatemcnL8 were Teview¢d approved by the Board of Tn• on Up Febnwy ?0?2 ese PJGlxe Trustee PETER HARRISON FOUNDATION BalAnee Sheet A5 At 31 M•y 2021 Note5 21J21 2020 Flxed Assets Managcd investhi¢nt funds Loan to subsidiary company 1nvcsu￿cnl in subsidiary company Tothl investsmen 8.136,192 38,8LK),INKI 1.0 46,937.197 6.994.?07 38,800,000 I.OLK) 45.795.207 Current •sset5 Dcbiors C&qh ai bank and in hand Cosh and bank balancc5 Short temi dewjsits 1.366.956 1.932,698 io.(KM) 10.( 1,941.18? 3,7?1.433 3,883.880 Credkors: 4mounts f*lllng due •vl¢bln one yur Charithble gTanlS. provided and ￿ntracted not pnid Othcr ¢rediiors (1.443.407) (l J53280) 120,532) (17.543) (1.460.950) 11.873.81?} Nel current assets 2,260,483 ?,010.008 TotAI asset5 less current Il*blllt5 49.197.675 47,805 ?75 Credltor5: 4mounts piyable After more tban oue year C7)an￿b]e gran¢s. provided and rontracted. bul noi paid (533.07DI (1.146,263) 46.659,012 Net #ssets 48.664.605 Expendable ewd•AvmeDts Endowment gifts Ext*ndablc ¢ndowm¢ni gift 45,001.LMJO 87,405 86,914 45.087.914 45.088,405 In¢owe funds Unreswicted income 3.576,691 1570,607 Total expendable tndovlment Into￿t fvnd5 48.664.605 46.659,01? Th¢ notes on pages 16 10 ?7 fonn PArt of ¢h¢se fmancial 5th1cm￿ts. ancial statementswerc r¢viewed Jnd apymved by the Board orTn￿le¢S. ¢)n l* February ?0?2 EJG￿eD Trnstee 14 PETER HARRISON FOUNDATION CoAsolldaled Statemeni of C￿h Flows for the ye*r emded 31 May 2•21 2021 2020 I¥EI intomel(expendlture) for the Yepgr¢lThg perl•d AdjustmcnLS for: Reulised gains on investments UnTcali5¢d losses on invcsthients Income receivuble from invcstments and deposits Rents rcccivable from inv¢stsncnts Decrease in debiors Decrcasc in creditor5 ? 062.917 (381.653) 1974.950) 153.015 (1.48? 484) 11528.376) 57,033 (1,045,445) (366,516) 1,620.898 11530,0291 {1,791.6521 43,177 {768,985) Net cash llsod by oper*tlng *ctlvltlo5 {1758.295) (3,174.7601 Clsh nows from Invesdng *etlvltles: Dividend distribuiion5 and Intere￿ received Rent r¢c¢iv¢d Proceeds from investsneni loan repayrnents Purcha5¢ ofinvcstmcnt loans 1.451781 1567.409 9.￿)7,74? 1.471.644 1.491.343 7,866.516 16.750.000) Net CASh prnvlded by Imvesthig •¢tlvltle5 12,927.932 4.079,503 ChAnge In cxsh In the reportlng perlod 10.169.637 904.743 Cash at th¢ beginning ofthe tcporting peri 4.134.095 3.229J52 C*sb gt the end of the rep•rtlng wiod 14J03,73? 4.134.095 An4lys15 of ca5b 31 Miy 2021 31 MAY 202D Cash and bank balance5 Shon ienn dew)sits ?0.( 14283.732 20,￿0 4.114.095 14.303,732 4,134.095 Thc notcs on pagcs 16 to 27 fonn part of thcsc fmancial siatemenls. 15 PETER HARRTSON FOUNDATION Notes formlng pirt of the tons•Md4ted fiMw¢l•l ststemtNts f•r the yt*r 31 M*y 2021 l A¢¢ouTrtlng polltlts xvis ofpreparn¢ion apido¥.f£vmeiil ofgoing concern The finjncial siaiemcnL4 have bccn prrpared under th¢ hi*orical cost convcniion. ￿ mc4Jified by thc r¢valuation or inveStm￿ts ai markei value. and are in accordance wilh A¢couniin8 aThJ Rq)Drting by Charitie5.' &U1¢n￿￿t of Recommended PTrciice awjliubk to chariiics PTewing theira¢counts in accoTdancE with the Financial Rcporting Standard 2pplicablc in the UK and Rcpublic ofircland (FRS 102) cffcctiv¢ l January 2015 ('Ihe SORP,), FRS 102: The Finoncial Reporting &8rwJard applicable in the UK And Republic ofir¢l8nd I'FRS 102,), Ihc Charities Act 2011 nd UK Gcncrally Accewed Acctymung PTadiCe. The financial sthlements prqMr¢d in Sierling which 15 the fvnthional cwtcnry oftho th￿iry. Moncthry amounts in these financial are Tounded to the TKares1 POWML Thc Poundation constiwtes a public b¢nefit eniity a5 defined by FRS 101 The Tru51c¢s coThsidcr that the￿ ar¢ no ma*rial uncertaiDiiCS about thc Foundation's ability 10 conilnuc as a goin& concern. COVTt>19 has lcd ￿ short lern fluen￿riOnS in Tnve5tt￿1l vAlucs bui thc nei effect ovcr all of the group's investsncnts has no¢ bccn 5i8nifiGrynt. The Foundation's cath bolances ￿ce￿ its grani fLKnmiunenLg and other liJbilitÉ¢S 50 there is no risk ihut the Foundation Cann￿ meet rurTrnt obli8ations. COV11%19 has in¢rca5cd th¢ risk of 2 fall in income, bowever thc Trustee5 are able 10 scl gFlln(s with ncl incwnc. aecordingly the Tnjsices confidcnt of the Founda¢ion's ability to continue ￿ a going C¢NLcern forat I￿t nv¢lvc nwnths from th¢ dlltc of approval of thesc finafKial sthiernenLS.. Crilicul ttecounliNg eslimotes andareaF ofjudgmeni In preparing finoncial statements il is nttewry io make ccrtain Judgm￿ cstim8tr5 and assumptions tho¢ aff￿1 thc arnounts re¢oBnised in ihe financial 5Utcmeft¢s. The tr￿CeS con5ithr that thc valuation of thr subsidiary's inve5ts￿l prop¢rtscs is Ehc only amount which requir¢5 judwent and cstimaiion and thai could have a signifitani cffect on the rinanciDI stalcmcnts. Th¢ investh)ent rnies. valuaiions ar¢ based Advi￿ from the subsidiary'5 propcrry consulthnts of thLir View of ih¢ marker valuc tsi the year end. Prrwty valuauons nccessarily Tcquirc judgmertl however tho subsidiary's property consul￿)L5 arc exw¢s in their field the ttu51ces eonsidcr thai the risk of a mulcriul misstlltcment is unlikcty tooccur. Furthuw the imp¥d ol& missra￿en1 would n(A affcci the ability C*f the Foundalion io grant coIiimiiments as the F¢xmdwth's cash bDlattces and readily tcalisable invesmKnlS are sufficient io setde its 8fdnt ¢ommiuneThts in full. Groupfin#nciol sraiemertf These financial 5tht¢tnents con501idote thc rc5uIts of the charity and its wholly oMm¢d subsidiary PHF Invcstm¢nts Limiied on D line by linc IKsis. A 5eparlllc s￿￿ement offinancial iclivities. or Inco￿ and expendiwrc accounL for lh¢ charity itseifis not presenlcd bccause thc tharity has takcTh *fvantsge of th¢ cxeTnpiions Atfordcd by ih¢ Charitics SORP FRS 102. INcome Incomc is accounted for 8r05S irt the period in which thc Found*ioD is eniiiled ￿ receipL Erpe4rydiiiire All cxpenditurc is included on an accruals b￿1% Support costs comprise COSt5 forproc£&%inE grani whic￿lOn& incI￿ling swJpJrt io idual potL'nti&l applican gcthcr with Eovemanee costs m¢eiing cons11￿tiOnal and s￿￿tory requirewnts which include th¢ cosi of T￿￿tte mEctings and audii fees. Whcrc costs ¢ann￿ be dirccLiy Ittril￿trd ￿ eikn of these categorics an apw)rtionmeni 15 made bas¢d ots c5tima¢ed 5thff tin*. 16 PETER HARRISON FOUNDATION Notes formlThg p*rt Of Ike eo45011dated Ibnanclal statements for tbe ye*r epded 31 May Z021 leoilluued Accounilng polkles (contSnu¢d) Chorifablegramis charged in the)WrO￿ offollomry." {al Awarded by the Tn￿$. and all eontracDJal condilions mct irt the ycar. b} Awardcd by the Tru5tC¢s in the previou5 ycar forwhi¢h the contrxNMI icmLs have becn mei in thc curreni year. FiYed&Ysei Envcrimeni.f Invcstmcni PfOPCrtirs are ststed ai thcir eslimaied nwkd valu¢ No dwciation 15 provided on invc5tment propeni¢s. Thc managed invcsitrmi furtds are Stated al their lis*d price. Loons for prom developmcnt are sthicd at cott Ic55 provision for diminuiion in value. The properry dcvelopmcnt loans earn intcrcst for certain ofthc loa￿. a share of any nel dev¢lopn￿niPrOfjt. bui not of any loss￿. Th¢ shar¢ of nct devclopmcnt profits is ac£ouni¢d for when thcy dEtermined with rcasonablc certainry. The Foundaiion'5 invcstsncnt in its subsidiary urtdenakin& PHF Investtwits Limited is UTW4UQ(ed and shown a¢ cosL As ¢onsolidaied fin&ncial statements are prcsente¢ in view of thc disclosw¢s at note 6 regarding th¢ 5ub5Lditiry. the TrnM¢c5 do noi belicv¢ that e51imaling the markeL value ofthis inv¢strrtht and includirtg this Wdlue on thc charity Balancc SIKei would be relev#nt to w¢r5' uThleNaNJing of the aCcLMm￿ As o Tesult thc iThvesimcTri 15 prcs¢nied ai hisioric cost. The Stalcment of financial Adivitie5 includes realised gains and losw from invc5trn￿ts that havc becn sold and unr¢aiiscd gains and losses aTising frum ihe revaluaiion of inY¢srrnenL8 t1￿ are still held. Oiherfinamciol iRslrumeNts a) C&sh and cash 4uival¢nts Cash 4Lnd cash cquivalents include cash ai banks and in Imttd and kn ie(m &pJsits with a mawriry of three months or Icss. bl Debiors Crcdiio Debior5 and crediiors receivable OT payable within yw ofthc T4N￿1n8 datr are C4Tricd 41th¢irtransDction price. Dcbtors and creditors that are receivable or payabk in more than year and not subjcct to a markci ra(¢ of inicr¢st arc measurcd ai the prescrti valu¢ of thc expected fithw¢ Tcceiptsty payrnr￿ discountcd at a markci rnic of interest. Grants poyTrbl¢ afier m(ffe than one year are no( con5idcrtd to bc financial inStrUn￿nts thcy are non-conwacturJl in turc fjnd cOn￿q￿LtIY arc measured at thciT pr¢5cni •th. Erpendahle endoivM¢wifu#ds Wherc fvnds ay¢ ghvcn to be held a5 eTMknW￿nts. they aTC slwrn as wrthle endow￿￿[ funds in th¢ fin#nciAI statements. Bxtthdable cnd0wm￿ts are those whcre the tr￿$1 tern￿ provide for conv¢r5ion io Inco￿ under certain circurwtsn¢e5. Of the endowTh￿ft1 fimds £86.914 {1020: £87.405) is rcstricKd to eX￿￿tUre subieci ￿ the donor'5 approval. 17 PETER HARRISON FOUNDATION Notes formlttg part of the fin#ndal st•tements f(tyr the yc4r ellded 31 MAY 2021 (ton¢lDued) 2 Imcome from Investments And eash deposM5 2D21 20211 Incomc from listed invc5trn¢nts Interest receivable from loans for property thve10pn￿I Inierest r¢ceivable from bank deposits and other depc6ii accounts: Unresiricted income ￿fid Expcndablc ¢ndowmcni fund 259,244 l ??? 149 307.302 ?10,079 1.082 12.486 162 1.482,484 .530.029 All of the incomc shDwn abovc, othcr thall the interesi receivablc for the expendabl¢ endowment fimd. is anributhblc ¢0 the Iinre51Fickd incom¢ fithd in both year& 3 Subsidlary The wholly owned subsidiary. PHF Invtstmcttts LIMIt￿ pays the IOVKT of a) its thxable profits and b) thc amount thai can be lawfully distributed to the chariry under a Deed of CovenanL A summary of the subsidiary's results is shown below: 21121 202D Rertthl incomc Inier&qi receivable O￿alIng expcns¢s for rental activili¢S Fair value losses on inv&stmenl pwpcrties Other okKrntinB cxpcnses Inlcresl payable on shoreholdeT loans Share of D¢¢ dev¢Iopn￿I ptDfit on loan5 1,528J76 1.791,652 1.217,764 (250,195) (1.085.(MM)) (30,2021 (1.014.540) 366,516 {18?,287) (1295,0(KJ) 115.561) (814,81M)) 974.950 ProfAI on ordI￿ry activiiies DonJlion payable to prcni dwity Profit (2020: loss) retained in the subsidiary 1.418.692 (1,361.373) 995,995 {1.91? 151) 57,319 (916,157) All of the income and expendihtrc of PHF Investh￿nts Limite(L in¢luding rental income and ren￿1 expenditure, 15 allributable to the unrestricted In¢C*￿ fimd in iM)th yeaws. 18 PETER HARRISON FOUNDATION Notes fornilh¥ pArt ofthe fitta#ci*l st*teJuents for the ye*r euded 31 May 2021 (contiwued) 4 Ch#rltgble adlvlttes Cr4u15 aivarded Support Tol41 2021 Opportunities through Sport Care for Children and Young People with Special Needs Education Tn￿le¢s. Discretion - Unrc5trictrd income fimd - Ex￿dable cndowmcnt filljds Less grants awarded in wcvious years not taken up 874.090 365.961 149.752 125.000 500 (￿J.752) I￿.184 45.181 9.8?2 7.858 974274 411.142 159,574 132,858 51KJ 190,752} .424JS1 163.045 1.587.596 2020 Opporninities through Sport Carc for Children and Young People with Spccial Needs Educalion Trusiees, Discretion - Unrestricted income fimd - Expetldllble endowmetti fun L¢ss grants aw8rd¢d in previous years thk¢# up .012.992 637,050 154J72 214,IXIO ?,000 (27.602) 114.650 65.817 14.862 10.616 1.1 ?7.642 702.867 169.?J4 224,616 2,LMJO (27,602} 1.992,812 205.945 2,198,757 Thc 5UPPOrt costs have becn ￿p[￿lOned io grants awarded on the bftsis ofthe number of grants aworded. cxcept for expendable endowmeni funds where expendimre is subjeci io the donor's approval. ReconeiliAtIDn of grants pr•vlded or roserved: 2•21 2020 GraDts awarded during the year Add charitable granLS awarded and contracted itt previous y¢or but not paid at 31 May 2020 1.424.551 1.99?.812 2.999.543 3.795,896 4.474.094 5,788.708 {2.447.617) 12.789,1651 Charitable grants puid during the year Charitable grants provided and contracted for but paid * 31 May ?O?I 1,976.477 2,999,543 Charitable grants provided and contraci¢d for bul n(rt paid coryi%e: Grnnts payable after rn￿¢ than one yrar but within fiv¢ ycu5 Grants ptsyable after five years Grnnts payable afteT more than one year Granls payable during the next yeaT 511538 21.532 533,070 1.124,047 ?2,?16 ,146.263 1.443,407 1,853,280 .976.477 2,999,543 PETER HARRISON FOUNDATION No¢e5 fomlng part Df the finantl*l 5thtememts for ihe ye•r ended 31 M#y 2D21 (cond•ued) S Support ¢05ts Gr•nt Governance TDtAI 511ppDrt CDsIs Costs 202I St4tf¢Dsts Gross sa]arics Empknyer'5 N￿10￿￿1 Insurance Pension Sr&ff recruitment and trnining 59.525 4,802 2.401 295 3,982 321 63.507 5,123 2562 795 67P23 4.464 71,487 Professlonal fre5 Audit fees Lcgal and professional fees 21.096 8.113 21,096 8.113 29209 Premises t•sts Renl Ral¢s Prcmi5cs llJODagement 19.092 8J18 5538 1.277 556 370 20J69 8,874 5,908 32,948 2203 35.151 Office ¢osts 25.493 1.705 27,198 125,464 37.581 163,045 Support costs compris¢ costs for processing gront applicatio￿ including suNKKt ￿ a¢￿￿1 Srtd pxeftliol applicants. 108etheT with governanct eosts meding constitutional and stathtory requircments which include th¢ cosl of Trnstee meetings und audii fees. Where cc6ts cannvi bE direaly atiTibukd to either of these categories wn apportionmenL is n)ad¢ bas¢d on estinkn￿ed stsff lime. No Tnjsiee receivcd any reMU￿tiOn orwas rcimEKwsed for ex￿￿5 incurred on the aciivi(ies of the Foundation. The av¢rd8C number of pers(￿ employed thiring the ye8rw&q 3 (?0?0: 3), all employees are part lim¢ t*ing equival¢nl 1.3 (2020- 1.4) full (ime cmploy¢es. All erryyloytt time is involvcd in providing Cithcr 5UPPOrt to ihe govemthnee of the charity or Sup[￿ servic¢5 to charitsble activitie& The TT￿￿ttS consider the Foundation's key manttgemtht personnel comprisc thc TnL8tets and thc Dir¢¢tor. Thc total ¢mploymeni bcnefits of the key management peTsonrtel were £25 ?61 (2020: £32J16). No employee's emoluments ¢x¢¢¢ded £60.000 in either ycar. 20 PETER HARRISON FOUNDATION Notes forjnlng part ofthe finAnthl sl*l¢ments for ¢h¢ ye•r ¢•ded 31 May 2021 S S•ppori tosts (eontlnued) Gr*nt mAkIng 05ts Governance Tothl support Costs C05t5 2020 Staff e05ts Gross 5alarics Employer's Nalional Insura￿¢ Pension Siaff recruiirnent and training 672lXI 5.423 1579 210 4.260 344 163 71,460 5,767 2.742 210 75.412 4,767 80,179 Profe551onal fe Audit fees Leblil and professional f¢es 25.890 21,176 ?5,890 21.176 47.1)66 47.066 Prem15e5 costs Rcnl Rates Premi5cs manag¢Th¢ni 19.155 8.510 &488 1.214 540 20J69 9.050 6.899 34,153 2.165 36,318 Offl¢e ¢osls 28,159 1.785 29.944 20th •Dlllwers*ry recepdon And brochure 741 12.438 149.421 56,5?4 205,945 21 PETER HARRISON FOUNDATION Nfjtcs C•nnlng part ofthe IlnandAi statements for tke yev ended 31 M*y 2•21 {￿NtInuEd) 6 Inve5tmentS Managcd Imvestmujt fuuds Inv¢stment propfftlts Loans TotAI Cor group Group Cos1 and ￿/￿￿110￿ Ai l Junc 2020 Addiiions Disposals Revoluation gainsJ{IossC5) 6.994207 19J70.0(XI 21.200,Ot 47J64207 (9.650.(K)O) 19.650.orKI) {153.015) 1.141.985 (1.295.IXMJ) At31 Mhy2021 8.136.192 18.075,IKIO 11.550.0￿ 37,761,192 Hi.floric cart Ai31 May20?1 A(31 May 2020 75(Kl.(Krf 7JLKI,(KK) 10,025,702 20.025.702 11.550,Otrf> 21200,0(NJ 39.075.702 48.725.702 Man4g¢d Imvestmtnt In InVe5¢m￿l (uNd5 5ubsldi4ry COIIIPADY L•8n to subsldlllry compgny Total for bnrity ChArlty co.fl and vuluaho Ai l June 2020 Revaluation gain 6994207 1.141.985 38.8￿.(￿ 45,795,207 1.141,985 At31 May2021 .136.192 i.0￿) 38.800.IMO 46,937,192 HisloriL cos1 Ai31 May2021 At 31 May 2020 1.0 38,800,000 38,800.000 46.301.LKKI 46JOI,LXIO 7.51N].(KM) Thc rnanaged Investn￿nI funds are all list￿ and comprisc: COIF Chariiics InV￿￿ent Fund manL8ed by CCLA Inve5tmcThl Manag¢ment Limitr(L Newton Growth and Income Fund for Chariiies manuged by Ncwton InVesth￿ni Managemcni Limi¢cd (both mix¢d funds), Chariues UK Equity Index Fund managed by BlackRock Investmeni Management (UK) Limited Jnd 'Charifvnd' rnaNa8ed by M&G Investment managen￿ni Limiied (both UK LNvity funds). All of thc managed inv¢sthi¢ni funds kre held principally to generat¢ income. The Foundation's wholly rNned yjbsidiary, PHF Inv¢stmertts Limiied (conwany number 0677?346), holds invcsunenl propertie5 for which il cullec15 rental incotne (sce ￿￿e 3). The inve51meni properti¢s w¢re wdlued by prolessional extem31 vlllucrs. Colliers Iniernational Valuation UK LLP (folliers?, on an op¢n Truwket basis as ai 31 May ?0? l. Thc valuations do noi facior in any pol¢ntial Ch￿bleS in value iwnd 31 May 202J. During the yeaT two12020: Iwo) ofthe group's loans wcre rqwid and H shtre ofdevelopmcni profits of£717,208 {2020: £366.516) JJr05¢ On Ihc5r louns. In llddiiion the group received a shore of developmEnt profits of £?57.742 (2020.. £nil) in rcspccl of L loan that was repaid in 20?0. the profil share WAS eontingenl on the sal¢ of PHrt of1￿ developmeni as tli15 Wa5 unknown in Y120 no contingenl ussei was provided in 2020 and the profil 5harc has ￿ert reeognised this year. The lowl profil sharcs of £974,950 (202tr. £366516) hav¢ b¢¢n thown as a Tealised iDvcstsncn( goin. PHF Investtnents Lirniied had aggrcgatc C8pitsI and rescrvL8 a¢ ￿ ycar end of L?.362.811 (?O?O: L?,305,492). The company's results for the yw ar¢ shown in noie 3. PHF InveSth￿nts Limited is incoryjorated in En&land Jnd (Mje of the TtW¢e5, Peier Lec. is a director of the company. The fOr￿￿r T[￿￿te. Peier Harrison dece￿d, also a dircc(Dr of the cowy untsl the dale ofhis dellth on 18 Junc 2021. The loan from the FoUn￿lOn to PHF Invcstsrtnts Limikd 15 Tepayable on 8 May 2024 or earlier ai the discrelion ofthe companls directors. Interesi is ￿e1Vable on the loan at 2•/• aixTrve the wevailing Bank of England bu¢ ￿. 22 PETER HARRISON FOUNDATTON Note5 formlng ptrt of the f￿1￿￿*1 statements for the year endtd 31 M*y 2•21 (conthiDed) 7 Debtors Gro¥p 2021 GrMp Z112D Charfty 2•21 Ckarlty 21120 Trade debtors Profit shares reccivablc Oiher deb￿rS and prepayments Accrned income receivable Donation Teceivable from subsidiary company ?91J98 717208 28J13 251.923 44.591 222.220 5.583 20,246 3110 .912.152 .361.373 1.167264 558.209 1.366,956 1.93?.698 8 Other credllfjr5 Grwp 2021 Group 2020 Charlty 21121 Charfty 2020 Reni received in advance Trade crediiors Aeernals TJxcs and social security Other creditor5 101.169 56.778 34.498 36.850 14?,959 20.542 37.13? 76.043 16,788 28 17,515 1,300 19,?3? 293.464 17,543 20.53? PETER HARRISON FOUNDATION Notes formlng pArt ofthe stxtemenis for the yur ended 31 Mthy 2021 {tont(n¥ed) 9 AnAIy515 of fDMd$ Gr0￿P At l Juwe 202• ExpeDdh•re G4lns *nd 1055e5 At31 MAY 2D21 Expendable endowmettts Enthiwment Bif 45.LK)I,(MN) 45.¢X)I.OCN) Further ex￿ndable endowmcnr gitts 87.40S 45.088.405 {5(Kl) 15(X)) 86,914 45.087,914 Incorne f¥nds Unrc5trictcd furtd 3.875.099 3.010.851 11.769.383) 821.935 5,938.502 48.963.504 3.010.860 {1.769.883} 821.935 51,026,416 ChaTIty At l J•w¢ 2020 IDeome Expe•dltur¢ Galns and 1055e5 At31 M•y 2021 Expendable endowmettts Endowmenl gifts 45.(M)I.(KK 45.001.000 FUrt￿r expendable cndownKnt Si￿$ 87,405 45.088,405 {5(Kl) {500) 86,914 45,087,914 Income funds UnTCStricied fund 1.570.607 1435.634 (1571.535) 1.141.985 3,576,691 46.659.012 2,435.643 (1.57?.035) 1.141.985 48,664,605 The endowment gifts may b¢ distributed ￿ the Tn￿ttS. discrdion. iNi the ¢uffent p)licy is io retain the endowment in order io moximi5e income for gr￿¢ distribuiion in cath year. The fi￿h¢r expcndable crthwm¢rti gifts are those where the ￿￿t wovide for ConversiL￿ io income undcr ccrtain CiTcuttL%tsnces. tkning the year one donation of £500 (20?Tr. 3 donation5 totslliThB q(MJO) was made. 24 PETER HARRISON FOUNDATION Note5 fonnlng pxrt ofthe fiuaDci•l Mxtememts for the yur eDd¢d 31 MAY 2021 (contlnwed) AnAlysls of fuMd5 (conthiued) Group Al l June Z019 l•¢ome Expendlts Galn$ At31 M8y 211211 Expendable Endowment gifts 45.(KJI.(MKI 45,001,￿0 Further exp￿dabIC endowment 8ift8 89243 45,090243 16? 162 (IOLKJ) (2.IMXJ) 87.405 4S,088,405 Income fund> Unrcstricted fund 4254.914 3J21519 (2.446.952) (1.254,382) 3.875.099 49J45,157 3J?1.681 {2.448.952) {1.254,382) 48.963,504 Charity At l Juwe 2019 l*¢ome Expenditsre GAln5 and losses At31 Miy 20211 E¥end*ble eTrdowm¢•ts Endowment gifts 45.001. 45,001,OOD FLth ¢xpcrwJable endowmMt gifts 89243 45.0￿.243 16? 162 (2,IXK)) {2.(KlO) 87,405 45,088,405 Income fuDds unrcart¢￿d fiind 1,034.265 3.238.795 (1166555) 1535.898) 1.570.607 46,1?4.508 3238.957 (? 168.SS5) (535,898) 46.659,012 25 PETER HARRISON FOUNDATTON Notes form1￿8 part of ¢he fin•n¢lxl st*ten*mts for the y￿r e•dod 31 May 2021 (conthivEd) 10 AnAIys1$ of net Assets between fund5 Group- 2021 Emdowment fllAd Expendable eDdowmewt fund Unre5tric¢ed income fund Tot#1 fund5 Fixed assets Currcnt as5¢ Current liabilitics 37.761.192 7239.808 37,761,192 8,144.274 15.470.996 (1,672.70?) (1.672,702) (533,070) 86.914 CTdilor5 payDblv aftEr more than one year (533,070) At31 May2021 45.￿1.1￿￿• 86,914 5,938,502 51,026,416 Chgrfty- 2DZI ExpendAble end0Wme￿t Ullrestrleted IDtDMe (￿d To¢AI ruDds rllnd Fixed asse 45.lX)I.O(￿l ,936.192 46.937.19? 3,634.519 3.7?1.433 (1,4￿.950> {1.4(4).950) Cul￿[ assets Current liabilitics 86.914 Crcdiiors pay¥bl¢ ail¢r more than one year 1533.0701 1533.070) At 31 May 2021 45.(M)I,￿) 86,914 3.57A691 48,664.605 Group- 21121J EndoYrneMt ExpeTrdAble eDd•vrnient fwnd Uwrestricted Income fund funds Fixed ossets Current ￿ets Current liabililies 45.(KII.IXKI 2.563 ?07 47,564207 4.604,899 4.692J04 (2.146,744) {2.146.744) 87.405 CreditOT5 payable after mor¢ thw] one yc*r (1.146 ?63) (1.146 ?63) At 31 May 2020 87.405 3,875,099 48,963,504 Charlty- 21120 EudowTheHt f•nd Expendxble endowrHellt rund Unrestrleted In¢•me fwnd Tot*1 fund$ Fix¢d assets Current asseL% Current liabilities 45.￿￿1.[ 794.207 45.795,207 3,796.475 3.883.880 (1.873.812) (1.873.812) 87.405 Creditors payable afier more than one year {1,146,263) {1,146,263) At 31 May 2020 45.￿1.£ 87,405 1.570.607 46,659,012 PETER HARRISON FOUNDATtoN Notes forn?Sng pArt of the fin•n¢knl stXLemeTrts for the yev epded 31 M*y 2021 l¢ontl*Y¢d) 1 l Rehted party trAnuctloD5 Dwing the ycor the Foundation operated from thc Second Floor, Foundation House, 4248 London Rood. Reigute, RH7 9QQ. The frtthold building is owned by the Pder Robert Harrison 1997 B Sett]emcni (th¢'B Sdtl¢ThKnt'). Peier Harrison KGCN CBE dcccascd was a tru51K of thr B ScttlemenL An a8￿¢m¢nI has bttn made between ¢he FouDda¢ion and ih¢-B" Sddemeb)t that the occupation by the"B" set￿ement Jnd the FouTJdation of the shared office is based M the space occupied by each entity Jnd thE number of staff cmploycd. During the ycar the Foundaiion w25 tharged wider this a8reemeni £20J69 {2020: £20,369) roT r¢nL £5.908 (2020: £7.054) for seryice thargcs, £8.874 (202￿. £8.895) for rates. £13.?99 {2020.. £14.160) for gertcral office costs and £444 {2020: £459) for inSUTrDce (ail figures include VAT}. The Founthicrfj's wholly owned subsidiary PHF Limiied is managed by Chaneerygatc Limited. Chancerygak Limited charged £lO?,368 (2070: £123.7fA)) for managing the propertie5 owned by PHF Investments Limited, advising on acqllisiiions atMI disp)sals of the subsidiary's invc5tmcDty advising on the 1gan5 fur PToperty developmeni and for admlnisttt1n￿ the eonyny. The Tn￿leeS consider thai these martagcm¢nt fees ar¢ charged at a commercial ratr. Pder L£c. a Tn￿lee. is a shareholder and dircclor of Chanccrygaie Limited bui does not participate in the neg￿l3110n of eiihtt the managemeni or performance fees chargeablc by Chatteerygate Limitcd. At the ycar end PHF Invcstmrnts Limiied had nei loans OUTsbinding 10 Chancerygate Limited of £1 1.704,804 (20?O: L?1,252,057) for the PUTPQ5¢ of prom developmenL These loans are rcpayable within 5 years and Intere￿ is chargcd ai buwttn 5Y• arml 8.5Y• with the company also entilled io ?0¥• to 30Ya of any net developrnent profits on c¢rtain of ihe loans once conwlete. During the year iniercst on th¢ loan5 of£12L),149 (2020: £1210.079) WBS carned. In addiiion £974.95012020- £366,516) wu5 paid by Chan¢¢ryga¢e Limiied ￿ PHF InvesthKnts Limited in tE4iccI of profit sharu on loans repaid during thr year. During the year PHF Inveslments Limil¢d. th¢ Foundation's wholly owned subsidiary. paid £814,8(KI12020.. £1,014540) of intere51 to the Fatsndation. The Company also made th)nation5 in rC5￿¢t of thc year of£i.361 J73 (2020.. £1,912.152) of which £1 J61,373 (?0?0: £1.192,512} is inCl￿d in the charity's debtors thc year end. 27