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2021-03-31-accounts

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

REPORT AND STATUTORY ACCOUNTS

YEAR ENDED 31 MARCH 2021

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

I N D E X

Year ended 31 March 2021

Page
Report of the Trustees 2
Independent Examiner’s report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9

1

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

R E P O R T O F T H E T R U S T E E S

Year ended 31 March 2021

The Trustees present their annual report and accounts of the charity for the year ended 31 March 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 of the financial statements and with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Structure, governance and management

The Trust was constituted on 17 December 2014, and is governed by the trust deed. The identification and appointment of new Trustees is considered by the existing Trustees. The Trustees who served during the year are shown in the ‘Reference and administrative details’ section below. All trustees give their time freely and no trustee remuneration was paid in the year. The major risks to which the charity is exposed, as identified by the trustees, have been reviewed and systems have been established to mitigate those risks.

Objectives and activities for the public benefit

The Trust’s Objects are to promote such Charitable Purpose or Charitable Purposes as the Trustees shall in their absolute discretion think fit. Such Objects include but are not limited to the following:

The Trust makes grants to charities and other charitable purposes in accordance with its Objects, and are agreed by the Trustees.

The Trustees, having regard to the public benefit guidance published by the Charities Commission, in accordance with Section 17 of the Charities Act 2011, consider that the purpose of activities of the charity satisfy requirements of the public benefit as set out in Section 4 of the same Act.

Financial review

The accounts are set out on pages 7 to 15.

The charity received donations totalling £100,100 (2020 - £160,080) during the year. The Trustees made grants to 85 (2020 - 21) charities during the year totalling £216,788 (2020 - £49,359).

The Trustees’ policy is to distribute the income as it arises and not to accumulate reserves. Whilst the Trustees are aware of the potential need for a small reserve to meet running costs or for exceptional circumstances, it is the Trustees’ intention to obtain further voluntary income to meet those costs as and when they arise.

Gifts of expendable endowment funds are designated to be held as capital, but the Trustees have the discretionary power to use the funds as income.

At the year end the charity had reserves of £888,648 (2020 - £699,406), of which £888,648 (2020 - £699,406) relates to the expendable endowment fund and £nil (2020 - £nil) relates to the unrestricted income fund. The Trustees will distribute income for charitable purposes in line with the Trust’s objectives and capital will be distributed at the Trustees discretion.

The financial performance of the charity is fully dependent on the donations it receives from the settlor, Mr M Pignatelli, and this is expected to be the case going forward.

Achievements and performance

The success of the Trust is measured in terms of the level of donations it receives during the year from the settlor, Mr M Pignatelli, and the performance of the investments these donations are applied to. The funds are then distributed through grants to charitable individuals and institutions in furtherance of the objectives of the charity at the Trustees’ discretion.

2

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

R E P O R T O F T H E T R U S T E E S ( c o n t i n u e d )

Year ended 31 March 2021

During the year the charity made grants to: Able Child Africa Action in Africa Age International Angkor Hospital for Children UK Anglican International Development Basispoint Ireland BLESMA the Limbless Veterans Books to Africa Butterfly Space CHIFUNDO UK Child in Need India Children Change Colombia CHILDREN OF WATAMU Compass Children’s Charity DeafBlind UK DFN UK Education and Health Trust Uganda Edinburgh City Mission Educate. Educate For Life FRANK Water Friends of Atsede and Indie’s Clinic Friends of Ibba Girls’ School Friends of Kipkelion Future of Taru Headway – The Brain Injury Association Helm Training Limited Hope Community Village Hope Rescue Hospices of Hope International China Concern Impact Foundation In Touch / Kids United IT Schools Africa Jacaranda UK Foundation Jairah Funds Joshua Orphan and Community Care Just Small Change Karuna Kashmiri and African Deaf Children’s Trust Legs 4 Africa Lepra Lucy Air Ambulance for Children Made with Hope Make a Difference Schools - Mombasa Makhad Martha Trust MTV Staying Alive Foundation National Star Niger Delta Youth Association Operation Smile UK Our Sansar Over the Wall

3

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

R E P O R T O F T H E T R U S T E E S ( c o n t i n u e d )

Year ended 31 March 2021

Phoenix Foundation Plus (Forth Valley) Limited Prevent 2 Protect Read for Good Resolve Now Safe Anaesthesia Worldwide Safe Child Thailand (formerly Thai Children’s Trust) Support and Love via Education Sebastian’s Action Trust Second Sight Serendip Children’s Home Sisterland UK Ltd Sunshine Wishes Children’s Charity Teen Action The Biojemmss Organisation The Citizens Foundation UK The Congo Children Trust The Life Foundation The North London Foodbank The Soko Fund TIKVA TY CARIAD AFRICA United World Schools Vietnamese Mental Health Services Village Water Wamba Community Trust Whitehaven Community Trust World Villages for Children Y Bont Young & Inspired Zambia Orphans Aid UK Zamcog

Plans for future years

The charity’s plans for the future rest on the charitable intentions of the settlor, Mr M Pignatelli, who will provide donations to the Trust to further its charitable objectives at his own discretion.

4

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

R E P O R T O F T H E T R U S T E E S ( c o n t i n u e d )

Year ended 31 March 2021

Reference and administrative details

Settlor

Date of settlement Charity registration number Trustees

Registered address

Mr M Pignatelli 17 December 2014 1162522

Mr M Pignatelli Mrs J Pignatelli Ms C Pignatelli 22 Chancery Lane London WC2A 1LS

Approved by the trustees on 2022 and signed on their behalf by: 28 January

MR M PIGNATELLI Trustee

5

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

I N D E P E N D E N T E X A M I N E R ’ S R E P O R T

Year ended 31 March 2021

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

I report to the trustees on my examination of the accounts of the Trust for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). You are satisfied that an audit is not required for this year under charity law and that an independent examination is needed.

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. Dixon Wilson, a firm of Chartered Accountants of which I am a partner has provided bookkeeping services to the Trust and I have applied the FRC’s Revised Ethical Standard in carrying out my examination.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters than an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

GREGORY SMYE-RUMSBY ACA Dixon Wilson 22 Chancery Lane London WC2A 1LS

Date: 28 January 2022

6

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S

Year ended 31 March 2021

Unrestricted
Expendable
income
endowment
Note
Fund
Fund
£
£
Income and endowments from:
Donations and legacies:
Donations received
100
100,000
Gift aid receivable
-
25,000
Investments:
Dividend income
4,622
-
Interest income
-
14


4,622
14


Total income and endowments
4,722
125,014


Expenditure on:
Raising funds:
Investment management fees
-
2,347
Charitable activities:
Grants made
5
216,788
-
Accountancy fees
5
3,990
-
Administration fees
5
9,374
-
Bank charges
5
84
-


Total expenditure
230,236
2,347


Net gains/(losses) on investments
-
292,089


Net (expenditure)/income
(225,514)
414,756
Transfers between funds
225,514
(225,514)
Net movement in funds
-
189,242


Reconciliation of funds:
Total funds brought forward
-
699,406


Total funds carried forward
-
888,648

Total
Total
2021
2020
£
£
100,100
160,080
25,000
40,000
4,622
8,472
14
172


4,636
8,644


129,736
208,724


2,347
3,095
216,788
49,359
3,990
2,940
9,374
6,161
84
113


232,583
61,668


292,089
(135,277)


189,242
11,779
-
-
189,242
11,779


699,406
687,627


888,648
699,406

All income and expenditure derive from continuing activities.

7

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

B A L A N C E S H E E T

At 31 March 2021

Note
Fixed assets
Investments
7
Current assets
Debtors
8
Cash at bank
Total current assets
Liabilities
Creditors: Amounts falling due within one year
9
Net current assets
Total net assets
The funds of the charity
Expendable endowment fund
Unrestricted income fund
Total charity funds
2021
£
762,509
25,000
130,088

155,088
28,949

126,139

888,648

-
888,648

888,648
2020
£
385,165
40,000
278,445

318,445
4,204

314,241

699,406

-
699,406

699,406

The financial statements set out on pages 7 to 15 were approved by the Trustees on 2022 28 January and were signed on their behalf by:

MR M PIGNATELLI Trustee

8

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 March 2021

1. Accounting Policies

(a) Basis of preparation and assessment of going concern

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 SORP) effective on 1 January 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Trust constitutes a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.

(b) Fund accounting policy

The charity comprises of an unrestricted income fund and an expendable endowment fund. Unrestricted funds are general funds that are available for use at the Trustees’ discretion in furtherance of the objectives of the charity. Expendable endowment funds are capital funds that may be freely converted into spendable income as the trustees see fit.

(c) Income

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.

Donations are recognised when the Trust has entitlement to the income, there is reasonable assurance of receipt and the amount of income can be measured reliably.

Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.

Income from interest royalties and dividends is included in the accounts when receipt is probable and the amount receivable can be measured reliably.

Investment gains and losses includes any realised or unrealised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

(d) Expenditure and liabilities

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Trust to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis.

The charity has creditors which are measured at settlement amounts.

The charity accounts for basic financial instruments on initial recognition at the amount receivable or payable adjusted for any related transaction costs. Subsequent measurement is at amortised cost.

(e) Assets

Fixed asset investments in quoted shares, traded bonds and similar investments are valued initially at cost and subsequently at fair value (their market value as bid price) at the year end.

Debtors are measured on initial recognition at settlement amount. Subsequently, they are measured at the cash or other consideration expected to be received.

9

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 March 2021

1. Accounting Policies (continued)

(f) Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.

2. Prior Year Statement of Financial Activities

Unrestricted
Expendable
income
endowment
Total
Fund
Fund
2020
£
£
£
Income and endowments from:
Donations and legacies:
Donations received
80
160,000
160,080
Gift aid receivable
-
40,000
40,000
Investments:
Dividend income
8,472
-
8,472
Bank interest
-
172
172



8,472
172
8,644



Total income and endowments
8,552
200,172
208,724



Expenditure on:
Raising funds:
Investment management fees
-
3,095
3,095
Charitable activities:
Grants made
49,359
-
49,359
Accountancy fees
2,940
-
2,940
Administration fees
6,161
-
6,161
Bank charges
113
-
113



Total expenditure
58,573
3,095
61,668



Net gains/(losses) on investments
-
(135,277)
(135,277)



Net (expenditure)/income
(50,021)
61,800
11,779
Transfers between funds
50,021
(50,021)
-
Net movement in funds
-
11,779
11,779



Reconciliation of funds:
Total funds brought forward
-
687,627
687,627



Total funds carried forward
-
699,406
699,406


Total
2019
£
180,458
45,018
7,835
32

7,867

233,343

2,324
229,313
2,178
5,638
137

239,590

(22,066)

(28,313)
-
(28,313)

715,940

687,627

All income and expenditure derive from continuing activities.

10

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 March 2021

3. Trustees’ remuneration and expenses

The Trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind.

4. Employees

The Trust did not have any employees during the year (2020 – nil).

5. Analysis of charitable expenditure

The charity undertakes its charitable activities through grant making and awards grants to institutions in furtherance of its charitable objectives.

Grant funded Governance
activity
costs
£
£
Funded from unrestricted income fund:
Grant making
216,788
13,448


Total
216,788
13,448


Governance costs
2021
£
Bank charges
84
Administration fees
9,374
Accountancy fees
3,990

13,448

Accountancy fees payable to the independent examiner's firm as follows:
- Examination
700
- Accountancy
3,290

3,990
Total
2021
£
230,236
230,236
2020
£
113
6,161
2,940
9,214
500
2,440
2,940

(continued)

11

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 March 2021

5.
Analysis of charitable expenditure (continued)
Recipients of institutional grants:
Able Child Africa
Action in Africa
Age International
All Ears International
Angkor Hospital for Children UK
Anglican International Development
Basispoint Ireland
BLESMA the Limbless Veterans
Blue Cross
Books to Africa
Butterfly Space
CHIFUNDO UK
ChildAid to Eastern Europe
Child in Need India
Children Change Colombia
CHILDREN OF WATAMU
Compass Children’s Charity
DeafBlind UK
Demelza House Children’s Hospice
DFN UK
Education and Health Trust Uganda
Edinburgh City Mission
Educate.
Educate For Life
FINCA UK
FRANK Water
Friends of Atsede and Indie’s Clinic
Friends of Ibba Girls’ School
Friends of Kipkelion
Friends of Monze
Future of Taru
Giakonda Solar Schools
Global Vision International Trust
Headway – The Brain Industry Association
Helm Training Limited
Hope Community Village
Hope Rescue
Hospices of Hope
International China Concern
Impact Foundation
In Touch / Kids United
IT Schools Africa
Jacaranda UK Foundation
Jairah Funds
Joshua Orphan and Community Care
Julia’s House
Just Small Change
Karuna
Carried forward
2021
£
2,500
2,500
2,500
-
2,500
2,500
1,788
2,500
-
2,500
2,500
5,000
-
2,500
2,500
2,500
2,500
2,500
-
2,500
2,500
2,500
2,500
2,500
-
2,500
2,500
2,500
2,500
-
2,500
-
-
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
-
2,500
2,500

99,288
2020
£
-
-
-
2,500
2,500
-
1,859
-
2,500
-
-
-
2,500
-
-
-
2,500
-
2,500
-
-
-
-
-
2,500
-
-
-
-
2,500
-
2,500
2,500
-
-
-
-
-
-
-
-
-
-
-
-
2,500
-
-

29,359

12

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 March 2021

5.
Analysis of charitable expenditure (continued)
Brought forward
Kashmiri and African Deaf Children’s Trust
Kidasha
Legs 4 Africa
Lepra
Lucy Air Ambulance for Children
Made with Hope
Make a Difference Schools - Mombasa
Makhad
Martha Trust
MTV Staying Alive Foundation
National Star
Niger Delta Youth Foundation
Operation Smile UK
Our Sansar
Over the Wall
Phoenix Foundation
PIMA Palestine
Plus (Forth Valley) Limited
Prevent 2 Protect
Read for Good
Refugee Children’s Project
Reprieve
Resolve Now
Safe Anaesthesia Worldwide
Safe Child Thailand (formerly Thai Children’s Trust)
Support and Love via Education
Sebastian’s Action Trust
Second Sight
Serendip Children’s Home
Sisterland UK Ltd
Spread a Smile
Sunshine Wishes Children’s Charity
Survivor’s Network
Teen Action
The Biojemmss Organisation
The Citizens Foundation UK
The Congo Children Trust
The Life Foundation
The North London Foodbank
The Soko Fund
TIKVA
Transport for Ugandan Sick Children (TUSC)
Tushinde Children’s Trust
TY CARIAD AFRICA
United World Schools
Vietnamese Mental Health Services
Village Water
Wamba Community Trust
Carried forward
2021
£
99,288
2,500
-
5,000
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
-
2,500
2,500
2,500
-
-
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
-
2,500
-
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
-
-
2,500
2,500
2,500
2,500
2,500

201,788
2020
£
29,359
-
2,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,500
-
-
-
2,500
2,500
-
-
-
-
-
-
-
-
2,500
-
2,500
-
-
-
-
-
-
-
-
2,500
2,500
-
-
-
-
-

49,359

13

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 March 2021

5.
Analysis of charitable expenditure (continued)
Brought forward
Whitehaven Community Trust
World Villages for Children
Y Bont
Young & Inspired
Zambia Orphans Aid UK
Zamcog
2021
£
201,788
2,500
2,500
2,500
2,500
2,500
2,500

216,788
2020
£
49,359
-
-
-
-
-
-

49,359

All grants were made to the institutions with no restrictions attached and are to be used by the charities to meet their general objectives.

Expenditure on charitable activities was £230,236 (2020 - £58,573) of which £230,236 (2020 - £58,573) was unrestricted.

6. Related party transactions

The charity received donations during the year of £100,000 (2020 - £160,000) from the settlor and trustee, Mr M Pignatelli, without conditions attached.

7.
Fixed asset investments
Market value brought forward
Additions to investment at cost
Net gain/(loss) on revaluation
Market value as at 31 March 2021
Investments at fair value comprised:
Listed equities
2021
£
385,165
85,255
292,089

762,509

762,509
2020
£
517,830
2,612
(135,277)
385,165
385,165
8.
Debtors
Gift Aid receivable
25,000
40,000

14

THE CARMELA AND RONNIE PIGNATELLI FOUNDATION

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 March 2021

9.
Creditors: amounts falling due within one year
Accruals
Accountancy fees
Donations payable
Other creditors
2021
£
1,800
1,200
25,000
940

28,940
2020
£
1,800
2,160
-
244

4,204

10. Analysis of charitable funds

Brought
Forward
£
Unrestricted income fund
-
Expendable endowment fund
699,406

699,406
Income
Expenditure
Transfer
£
£
£
4,722
(230,236)
225,514
125,014
(2,347)
(225,514)



129,736
232,583
-


Gains/
(losses)
£
-
292,089

292,089
Carried
forward
£
-
888,648
888,648

Analysis of charitable funds – previous year

Brought
Forward
£
Unrestricted income fund
-
Expendable endowment fund
687,627

687,627
Income
Expenditure
Transfer
£
£
£
8,552
(58,573)
50,021
200,172
(3,095)
(50,021)



208,724
(61,668)
-


Gains/
(losses)
£
-
(135,277)

(135,277)
Carried
forward
£
`-
699,406
699,406

11. Financial assets and liabilities

The following financial assets are other financial instruments and are initially recognised at transaction value and subsequently measured at their fair value.

Financial assets

Fixed asset investments

762,509 385,165

15