2021-12-31-accounts

JOHN PEARCE FOUNDATION

(Registered Charity No. 1181348 and Company No. CE016045) ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

JOHN PEARCE FOUNDATION

ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENTS

	Page
Annual Report of the Trustees	1 - 5
Independent Auditor’s Report	6 - 8
Statement of Financial Activities (including Income and Expenditure Account)	9
Balance Sheet	10
Statement of Cashflows	11
Notes to the Financial Statements	12 - 17

Page 1

JOHN PEARCE FOUNDATION

ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their report and independently audited financial statements of the John Pearce Foundation (“the Foundation” or “the CIO”), for the year ended 31 December 2021. These have been prepared in accordance with the accounting policies set out on pages 12 to 14 and comply with applicable charity law.

The financial statements comply with the Charities Act 2011, the Foundation’s Constitution dated 21 December 2018 and 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 – SORP (FRS).

1. REFERENCE AND ADMINISTRATIVE DETAILS

John Pearce Foundation, (registered charity number 1181348 and registered company number CE016045) is based and administered in the United Kingdom. The registered address is 29 Queen Anne’s Gate, London, SW1H 9BU.

Trustees:

The Trustees of the Foundation who held office during the period and continue to serve at the date of this report are:

• Rupert Bentley

• Nicolas Bentley

• Michael John Winarick

The Trustees did not hold any beneficial interest in the fund at 31 December 2021 or at any time during or since that period.

Bankers:

Clydesdale Bank 154-158 Kensington High St, Kensington, London, W8 7RL

Solicitors:

BDB Pitmans LLP 50 Broadway, Westminster, London, SW1H 0BL

Accountants:

Rawlinson & Hunter LLP Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ

Independent Auditor:

Rawlinson & Hunter Audit LLP Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ

Website:

https://johnpearce.org/

Page 2

JOHN PEARCE FOUNDATION

ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

2. STRUCTURE, GOVERNANCE AND MANAGEMENT

The Foundation is a charitable incorporated organisation governed by its Constitution dated 21 December 2018 and is registered as a charity with the Charity Commission for England and Wales.

The Trustees are resident in the United Kingdom and meet regularly to discuss and develop the Foundation’s goals and strategy and to review grant proposals and general grant requests.

The number of Trustees shall be a minimum of two at any one time and new Trustees shall be appointed by ordinary resolution by the existing Trustees. The range of skills represented on the Trustee Board will be kept under review as the Foundation develops over time.

Induction and Training

As part of their training, Trustees are given an information pack which includes the Foundation's Constitution and the Charity Commission guidance on Trustees' Responsibilities. All Trustees are aware of their legal duties and obligations in respect of the management of the Foundation, including in relation to the protection of its assets.

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Annual Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources, including the income and expenditure of the Foundation for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2019 (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Foundation will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust 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 irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Foundation’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

No Trustee received any remuneration during the period from 1 January 2021 to 31 December 2021.

Page 3

JOHN PEARCE FOUNDATION

ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

2. STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Disclosure of information to Auditor

In so far as the Trustees are aware:

• there is no relevant audit information of which the charity’s auditor is unaware; and

• the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Internal Controls

The Trustees have overall responsibility for ensuring that the Foundation has appropriate systems of internal controls. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Foundation. The Trustees are also responsible for safeguarding its assets and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss.

Risk Management & Corporate Governance

A risk assessment has been undertaken which comprises:

• An annual review of the risks the Foundation may face;

• The establishment of systems and procedures to mitigate those risks; and

• The implementation of procedures designed to minimise any potential impact on the Foundation should those risks materialise.

This continuing process will identify risk areas to which the Foundation is vulnerable and highlight any necessary safeguards that will need to be put in place. No major risks were identified at the date of these accounts.

The Trustees have signed fit and proper declarations in line with HMRC guidance.

In addition, the Trustees have taken due consideration of Good Governance – A Code for the Voluntary and Community Sector, ensuring that the seven main principles of the Code are adhered to. These are:

• Organisational purpose;

• Leadership;

• Integrity;

• Decision-making, risk and control

• Board effectiveness;

• Equality, diversity and inclusion; and

• Openness and accessibility.

The Trustees recognise that good governance plays an essential part in securing the future of the Foundation and confirm that the said principles of the Code are followed by them in leading, directing and managing the Foundation.

Page 4

JOHN PEARCE FOUNDATION

ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

3. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The objects of the Foundation are restricted specifically to the application of CIO funds, at such time or times and in such manner, for the public benefit, as the Foundation Trustees may in their discretion think fit for any exclusively charitable purposes in any part of the world. The Foundation operates as a grant-making charity, supporting charitable projects and organisations with grants of varying sizes and durations.

The Trustees are looking to develop solid framework for future grant-making activities and have refined their grant-making focus areas. The Trustees have pursued a broad strategy of ensuring proper due diligence in the assessment of potential grants and ensuring that grants are made subject to appropriate terms and conditions.

Statement of Public Benefit

As a grant-funder, the Foundation’s activities will provide public benefit to the individuals and communities who are beneficiaries of the Foundation’s funded projects. The Foundation’s public benefit is not limited with reference to geography or otherwise. The Trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to it. They consider the information which follows in this annual report, about the Foundation’s aims, activities and achievements in the areas of interest that the Foundation supports, demonstrates the benefit to its beneficiaries and through them to the public, that arise from those activities.

Grant Making Policies

The Trustees’ grant making policy has been to generally consider making donations by way of direct funding and also by way of grants to charitable organisations recognised as such in their respective jurisdictions for projects that are exclusively charitable under English law. The Foundation has put in place sound grant arrangements so that it can properly select appropriate grantees and impose prudent terms on grants, including, as appropriate, monitoring and evaluation of the way in which funds are applied by grantees.

Fundraising

The Trustees have referred to the Charities (Protection and Social Investment) Act 2016 (“the Act”) and the Guidance on Charities and Fundraising issued by the Charity Commission (“CC20”). They confirm that the Act and CC20 have no impact on the charity as it does not engage in any public fundraising activities.

4. ACHIEVEMENT AND PERFORMANCE

Charitable Activities

During the year the Trustees continued their grant programme awarding a number of grants to Horse Racing related projects and Palliative Care initiatives. Horse Racing was of particular interest to the late eponymous John Pearce who bequeathed the initial funding for the Foundation. By awarding grants to projects in the Horse Racing community the Trustees believe they are both preserving the legacy of John Pearce and benefiting the general public more widely.

Grants totalling £1,476,380 (2020: £316,817) were awarded during the year, amounting to 95% (2020: 74%) of total expenditure.

Page 5

JOHN PEARCE FOUNDATION

ANNUAL REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

5. FINANCIAL REVIEW

The Statement of Financial Activities on page 9 shows total incoming resources for the year of £2,503,341 (2020: £10,715), charitable activities of £1,552,391 (2020: £428,119). There was no expenditure on raising funds. Grant expenditure amounted to £1,476,380 (2020: £316,817), Support costs amounted to £76,011 (2020: £111,302) and are included within charitable activities.

The Trustees received a further donation from the estate of the late John Pearce to further their charitable work in the world of Horse Racing.

The balance of reserves at 31 December 2021 is £2,490,060 (2020: £1,539,032)

Reserves Policy

The Trustees have examined the Foundation’s requirement for resources in light of the main risks to the organisation and have no outstanding commitments or cash demands which are not adequately covered by existing resources. The net assets of the Foundation are regarded as unrestricted reserves and the funds at 31 December 2021 will be retained to make grants in accordance with the Foundation’s charitable objects and any policies. The Trustees consider that the freely expendable funds are appropriate and adequate taking into account plans for grants to be awarded in future and have at present therefore not designated any specific reserves. However, the Trustees will keep this under constant review. In future years, a specific reserves policy may be required.

6. PLANS FOR THE FUTURE

The Trustees do not propose to deviate from the current objectives and activities of the Foundation as detailed in Section 3 of this report but will further develop and refine their strategies, policies and procedures in future.

7. AUDITOR

A resolution will be proposed at the Trustees’ Meeting that Rawlinson & Hunter Audit LLP be reappointed as auditor to the Charity for the ensuing year.

Approved by the trustees and signed on their behalf by:

Rupert Bentley 20/09/2022 ………………………………………………… …………………... Trustee Date

Page 6

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF

JOHN PEARCE FOUNDATION

Opinion

We have audited the financial statements of John Pearce Foundation (“the Foundation” or “CIO”) for the year ended 31 December 2021 which comprise the Statement of Financial Activities (Including Income and Expenditure Account), the Balance Sheet, Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the Foundation’s affairs as at 31 December 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Foundation in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Foundation's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report of the Trustees and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 7

INDEPENDENT AUDITOR’S REPORT (continued)

TO THE TRUSTEES OF

JOHN PEARCE FOUNDATION

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the Trustees’ report; or

• adequate accounting records have not been kept; or

• the financial statements are not in agreement with the accounting record and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities set out on page 2, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Foundation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Foundation or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our assessment of the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur, is considered to be low. This conclusion was reached after the consideration of the following:

Page 8

INDEPENDENT AUDITOR’S REPORT (continued)

TO THE MEMBERS AND TRUSTEES OF

JOHN PEARCE FOUNDATION

• due to the relatively simple business model and low number of transactions within the Foundation there are comparatively few unexpected fluctuations in the reported results and balances and any such unexpected items would be specifically enquired into by us; and

• there are a number of individuals which comprise “management” and therefore there is no single individual who is likely to be able to override controls to effect a fraud.

We designed our audit procedures to respond to identified audit risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements. Some of the specific procedures performed to detect irregularities, including fraud, are detailed below:

• the review of control accounts and journal entries for large, unusual or unauthorised entries;

• the analytical review of the detailed statement of financial activities for variances that are either unexpected or felt not to be in accordance with our understanding of the charitable activities during the year;

• obtaining and reviewing for completeness a list of entities and persons considered to be related parties (as defined by Financial Reporting Standard 102) and reviewing the ledgers of the Foundation for previously unreported related party transactions;

• review of transactions and journals for any indication of fraud or management override.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report

Use of our report

This report is made solely to the Foundation’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Foundation’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Foundation and the Foundation’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Rawlinson & Hunter Audit LLP

Statutory Auditor Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ 20 September 2022

Rawlinson & Hunter Audit LLP is eligible to act as an auditor in accordance with Section 1212 of the Companies Act 2006.

Page 9

JOHN PEARCE FOUNDATION

(Registered Charity No. 1181348 and Company No. CE016045)

STATEMENT OF FINANCIAL ACTIVITIES (including Income & Expenditure Account)

FOR THE YEAR ENDED 31 DECEMBER 2021

	Page	2021		2020
		£		£
Income from:
Investments (note 2)	14	3,341		10,715
Donations (note 3)	14	2,500,000		-
Total Income		2,503,341		10,715
Expenditure on:
Charitable Activities (note 4)	15	1,552,313		428,119
Total Expenditure		1,552,313		428,119
Net income/(expenditure)		951,028		(417,404)
Net movement in funds		951,028		(417,404)
Reconciliation of funds
Total Funds Brought Forward at 1 January 2021		1,539,032		1,956,436
Total Funds Carried Forward at 31 December 2021		£ 2,490,060	£	1,539,032

All amounts relate to continuing operations.

There were no recognised gains and losses for the years ended 31 December 2020 and 2021.

The notes on page 12 to 17 form part of these financial statements

Page 10

JOHN PEARCE FOUNDATION

(Registered Charity No. 1181348 and Company No. CE016045)

BALANCE SHEET

AS AT 31 DECEMBER 2021

	Page	2021	2020
Fixed Assets		£	£
Tangible Assets (note 5)	16	724	782
Current Assets
Debtor (note 6)	16	2,736	4,340
Cash at bank (note 7)	16	2,564,380	1,550,383
Total Current Assets		2,567,116	1,554,723
Liabilities
Creditors - amounts falling due within one year (note 8)	16	(77,780)	(16,473)
Net current assets		2,489,336	1,539,032
Total net assets		£ 2,490,060	£ 1,539,032
The funds of the charity:
Unrestricted funds		2,490,060	1,539,032
Total charity funds		£ 2,490,060	£ 1,539,032

The financial statements were approved and authorised for issue by the Trustees and were signed on their behalf by:

Rupert Bentley 20/09/2022 ………………………………………. …………………………. Trustee Date

The notes on page 12 to 17 form part of these financial statements

Page 11

JOHN PEARCE FOUNDATION

(Registered Charity No. 1181348 and Company No. CE016045)

STATEMENT OF CASHFLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

	Page	2021	2020
Net cash flow from Operating Activities		£	£
Net movement on funds for the year	9	951,028	(417,404)
Less: Investment income and deposit interest	14	(3,341)	(10,715)
Add: Depreciation	15	310	260
Decrease/(increase) in debtors	16	1,604	(3,985)
Increase/(decrease) in creditors	16	61,307	(6,065)
Net cash generated by/(used in) Operating Activities		1,010,908	(437,909)
Cash flows from Investing Activities
Deposit interest	14	3,341	10,715
Purchase of property, plant and equipment	16	(252)	-
Net cash generated by Investing Activities		3,089	10,715
Net increase/(decrease) in cash in the period		£ 1,013,997	£ (427,194)
Reconciliation of net cash flow to movement in net funds
Net cash resources at 1 January		1,550,383	1,977,577
Net increase/(decrease) in cash		1,013,997	(427,194)
Net cash resources at 31 December		£2,564,380	£ 1,550,383
Analysis of net funds:
Cash at Bank (note 7)	16	2,564,380	1,550,383
		£ 2,564,380	£ 1,550,383

The notes on page 12 to 17 form part of these financial statements

Page 12

JOHN PEARCE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (“Charities SORP FRS 102”), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The Foundation constitutes a public benefit entity as defined by Charities SORP FRS 102.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

Incoming Resources

Investment income is derived from interest and dividends receivable from investments and is accounted for in the period in which the Foundation is entitled to receipt. Interest from deposit accounts are included as and when received only. All incoming resources are included in the SOFA when the Trust is entitled to the income and the amount can be quantified with reasonable accuracy.

Voluntary donations include donations.

Resources Expended

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation committing the Trustee to the expenditure.

Charitable activities include governance costs made during the period and are expended through the SOFA when the offer is conveyed to the recipient.

Cost of raising funds relate to the costs incurred by the Foundation in managing its investment portfolios.

Governance costs relating to the general running of the Foundation, as opposed to the management functions inherent in generating funds.

Page 13

JOHN PEARCE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Financial instruments

The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value.

Grants payable

Grants payable are made to third parties in furtherance of the Trust's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without conditions, or the recipient has a reasonable expectation that they will receive a grant and that any conditions attaching to the grant are outside of the control of the Trust.

Status of funds

The entire resources of the fund are unrestricted and the Trustees have complete discretion for their use in pursuance of its objects.

Taxation

The Foundation is not subject to any taxes on its charitable activities.

Irrecoverable VAT is charged against the activity for which expenditure was incurred.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised as expenditure.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held on call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are within borrowing in current liabilities.

Provisions

Provisions are recognised when the Foundation has an obligation at the Balance Sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Employee benefits

When employees have rendered service to the Foundation, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The Foundation operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Tangible Fixed Assets

Tangible fixed assets are included at their cost value and depreciated using the straight line method over 5 years.

Page 14

JOHN PEARCE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES (continued)

Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for twelve months from the date of signing of these financial statements. The forecast income and reserves are sufficient to cover all of the budgeted expenditure to be able to continue as a going concern.

The Covid-19 pandemic and current ongoing conflict in Ukraine have affected the global economy. Having considered the contingency plans in place and having reviewed updated cashflow forecasts, the Trustees consider the adoption of the going concern basis in preparing these financial statements continues to be appropriate.

		Page	2021	2020
2.	INCOME FROM INVESTMENTS		£	£
	Deposit interest		3,341	10,715
		9	£ 3,341	£ 10,715
3.	INCOME FROM DONATIONS
	Donations received		2,500,000		-
		9	£ 2,500,000	£	-

Page 15

JOHN PEARCE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

		Page	2021	2020
4.	EXPENDITURE ON CHARITABLE ACTIVITIES		£	£
	UK Grants Awarded:
	Priscilla Bacon Norfolk Hospice Care Ltd	Reg. Charity No. 1166579	1,000,000	-
	Racing Welfare	Reg. Charity No. 1084042	131,427	130,179
	Hong Kong Cancer Fund	HK Charity 91/2745	91,547	-
	Racing to Relate	Reg. Charity No. 1182855	59,760	36,632
	National Association of Racing Staff (NARS)		49,280	-
	Marie Curie	Reg. Charity No. 207994	39,000	-
	St Michael’s Hospice Hastings and Rother	Reg. Charity No. 288462	34,469	-
	The Racing Centre Ltd	Reg. Charity No. 1107833	30,000	150,006
	The Wavertree Education Trust Limited	Reg. Charity No. 1111771	30,000	-
	Greatwood Charity Ltd	Reg. Charity No. 1117322	10,897	-
	Total Grants Awarded		1,476,380	316,817
	Support Costs:
	Staff costs		47,073	37,872
	IT		9,989	49,315
	Accountancy fees		7,200	8,400
	Independent auditor fees		7,200	8,400
	Office expenses		2,072	445
	Insurance		1,824	1,428
	Depreciation	15	310	260
	Banking charges		179	92
	Trustee expenses		86	50
	Legal fees		-	5,040
			75,933	111,302
	Total Charitable Activities	9	£ 1,552,313 £ 428,119

Included within Staff costs are gross salaries of £39,030 (2020: £31,506), social security costs of £3,943 (2020: £3,016), and pension contributions of £2,992 (2020: £2,448).

There are no employees who received total employee benefits of more than £60,000 during the year to 31 December 2021 (2020: none).

The average number of employees during the year was 1 (2020:1).

The Trustees are the key management who received no emoluments during the year (2020:£nil)

Auditor remuneration totalled £6,000 net of VAT (2020: £6,000).

Page 16

JOHN PEARCE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

		Page	2021	2020
5.	FIXED ASSETS		£	£
	Fixtures, fittings and equipment at cost
	Balance at 1 January		1,302	1,302
	Additions		252	-
	Balance at 31 December		1,554	1,302
	Accumulated depreciation
	Balance at 1 January		520	260
	Charge for the year	11	310	260
	Balance at 31 December		830	520
	Net Book Value at 31 December	10	£ 724	£ 782
6.	DEBTORS
	Prepayments	10	£ 2,736	£ 4,340
7.	CASH AT BANK
	Cash at bank	10	£ 2,564,380	£ 1,550,383
8.	CREDITORS - amounts falling due within one year
	Donations		58,132	-
	Accruals		18,000	14,400
	PAYE		1,193	790
	Business credit card		455	1,283
		10	£ 77,780	£ 16,473

Page 17

JOHN PEARCE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

9. Grants Payable – Contingent Liabilities

The Trustees made various pledges during the year with performance conditions attached. As the conditions for receiving these pledged grants were not met at the year end, these pledges were not recognised in these financial statements.

10. RELATED PARTY TRANSACTIONS

No related party transactions occurred during the year ended 31 December 2021. (2020: none)

No Trustee received any remuneration or reimbursement of expenses during the year ended 31 December 2021 but £60 was incurred on their behalf for accommodation costs (2020: £50 of accommodation costs)

11. ULTIMATE CONTROLLING PARTY

The Trustees consider that the Foundation is jointly controlled by the Trustees and that there is no ultimate controlling party.

		2021	2020
12.	FINANCIAL INSTRUMENTS	£	£
	Financial assets measured at fair value	2,564,380	1,550,383
	Financial assets measured at fair value consist of cash at bank.