JOHN PEARCE FOUNDATION (Registered Charlty No. 1181348 and Company No. CE016045) ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 RAWLINSON & HUNTER
JOHN PEARCE FOUNDATION ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 CONTENTS Pagg Annual Reporl of the Truslees Independent Auditorfs Report Statement of Financlal Activities {including Income and Expenditure Account) Balance Sheet 10 Statement of Cashflows Notes to the Financial Slatements 12-17
Page 1 JOHN PEARCE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trust8es present their report and independently audited financial statements of the John Pearce Foundation 1.the Foundation" or 'the CIO"). for the year ended 31 December 2023. These have been prepared in 8ccordance wth the accounting policies sel out on pages 12 to 14 and comply with applicable charity law. The financial statements comply with the Charities Act 2011 and where applicable the Charities Act 2022, the Foundation's Constitution dated 21 December 2018 and Accounting and Reporting by Charities.. Slalement of Recommended Practice 8pplicable to charities preparing Iheir accounts in accordance with the Financial Reporting Standard applicable in Ihe UK and Republic of Ireland Charities SORP IFRS 1021- REFERENCE AND ADMINISTRATIVE DETAILS John Pearce FoLtndation, {registered charity number 1181348 and registered company number CE016045) is based and administered in th8 United lfjngdom. The registered address is 29 Queen Anne's Gale, London. SW1H 9BU. Trustoes: 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 2023 or at any time during or since that period. Bankers: C Hoare & Co 37 Fleet Street. London, EC4P 4DQ Solicitors: BDB Pitmans LLP 50 Broadway, Westminster, London. SW1 H OBL Accountants: Rawlinson & Hunter LLP Eighth Floor. 6 New Street Square, New Fetter Lane, London, EC4A 3AQ Indépendent Audltor: Rawlinson & Hunter Audit LLP Eighth Floor. 6 New Street Square, New Fetter Lane, London. EC4A 3AQ Website: https:Iljohnpearce.orgl
Page 2 JOHN PEARCE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE. GOVERNANCE AND MANAGEMENT The Foundation is a charitable incorporated organisation governed by its Constitutior) dated 21 December 2018 and is registered a5 a charity with Ihe 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 al any one time and new Trustees shall be appointed by ordinary resolution by the existing Trustees. The range of skills represented on Ihe Trustee Board will be kept under review as th8 Foundation develops over time. Induction and Training As part of their training. Trustees are given an inlormation 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 th8 Foundalion. including in relalion lo the protection of its assets. Statoment of Trustees. Responslbilltles 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 Slandards {United Kingdom Generally Accepted Accounting PraGtioe). The law applicable to tharities 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 IrOrnIng SoUrCeS and application of resources. including the income and expenditure of the Foundalion for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently-, observe the melhods and principles in the Charities SORP (FRS 102)- make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial statements- and prepare the financial statements on the going concem basis unless it is inappropriate lo 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 Df the Foundation and enable them lo ensure that the rinancial statements comply with Ihe Charities A¢t 2011 and where applicable, the Charities Act 2022, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Irusl 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 irregularitie5. The Trustees are responsible for the maintenance and integrity of Ihe rpOrate 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 2023 to 31 Decernber 2023.
Page 3 JOHN PEARCE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE. GOVERNANCE AND MANAGEMEKf l¢ontinued) Disclosuro of bnforn)atlon to Auditor In so far as the Trustees are aware= there is no relevant audit infomiation of which the charlty's auditor is unaware,. and the Truslees have taken all steps that they ought to have laken to make themselves aware of any relevar)t audit information and to 8stablish that the auditor is aware of Ihal information. Internal Controls The Trustees have overall responsibility for ensuring that the Foundation has appropriate systems of inlemal Gontrols. 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 sleps for the prevention and deleclion of fraud and other legUlarl11es. The system of internal controls is designed to provide reasonable, but not absolute, assuran againsl material misstatement or loss. Rlsk Managoment & Corporato Governan¢o 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 impaGt on the Foundation should those risks materialise. This continuing process will identify risk areas lo which the Foundation is vulnerable and highlight any necessary safeguards that will need to be put in place. No major risks were idenlrfied al the date of these acoounls. The Trustees have signed fit and proper declarations in line with HMRC guidance. In addition, the Trustees have laken due consideration of Good Governance A Code for the Voluntary and Community Sector, ensuring Ihal the seven main principles of the Code are adhered to. These are.. Organisalional purpose., Leadership., Integrity.. Decision-making, risk and conlrol Board effediveness., Equality, diversity and inclusion.. and Openness and accessibility. The Trustees recognise that good govemance plays an essential part in securing Ihe fulure 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 2023 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 arKI organisations with grants of varying sizes and durations. The Trustees are looking lo develop solid framework for future grant-making a¢tivities and have réfined their granl-making focus areas. The Trustees have pursued a broad strategy of ensuring proper due diligence in the assessment of potential grants and ensuring that granls are made subject to appropriate terms and conditions. Statement of Public Benefit As a grant-funder. the Foundalion's activities will provide public benefil lo the individuals and communities who are beneficiaries of the Foundation's funded projects. The Foundation's public benefit is not limited with reference lo g8ography or otherwise. The Trustees a aware of the Charity Commission guidance on Public Benefit and confimi that they have complied with the duty in Secllon 4 of the Charities Act 2011 to have due regard to it. They consider the informalion which follows in this annual r8POrt, about the Foundation's aims, activities and a¢hievements in the areas of interest that the Foundation supports, dernonstrates the benefit to ils beneficiaries and through Ihem lo the public, that arise from those activities. Grant Maklng PoliGifrs The Trustees, grant making policy has been to generally consid8r making donations by way of direct funding and also by way of grants to charilable organisations rewgnised 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 properfy select appropriale grantees and impose prudent tems on grants, including. as appropriate, monitoring and evaluation of the way in which fund5 are applied by granlees. Fundraislng The Trustees have referred to the Charities (Protection and Social Investment) Act 2016 ('Ihe Act.) and the Guidance on Charities and Fundraising issued by the Charity Commisslon ("CC20"1- They confirm that the Acl and CC20 have no impact on the charity as it does not engage in any public fundraising adivities. ACHIEVEMENT AND PERFORMANCE Charltable Activllies During the year the Trustees continued their grant programme awarding a number of grants lo Horse Racing related projects and Palliative Care initiatives. Horse Raang was of particular inlerest to the late eponymous John Pearce who bequeathed the initial funding for the Foundation. By awarding grants to projects in the Horse Racing community Ihe Trustees believe they are both preserving the legacy of John Pearce 8nd benefiting the general public more widely. Grants tolalling £1,946,74812022.' £716,822) were awarded during the year, amounting to 95 /0 (2022: 880/.) of total expenditure.
Pag8 5 JOHN PEARCE FOUNDATION ANNUAL REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW The Slatemenl of Financial Activities on p2ge 9 shows total inooming resources for the year of £49,977 12022.. £3,028,334), charitable activities of £2.051,518 (2022.. £816,276). There was no expenditure on raising funds. Grant expenditure amounted to £1,946.748 (2022: £716,822), Support costs arnounted to £104,77012022.' £99,454) and are included within charitable acts'vities. The balance of reserves at 31 December 2023 is £2,700,577 {2022- £4,702,118). R•s•rvos 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 nol adequately covered by exisling resources. The net assets of the Foundation are regarded as unrestricted reserves and the funds at 31 December 2023 will be retained to make grants in accordance with the Foundation's charitable objects and any policies. The Trustees consider Ihat the freely expendable funds are appropriate and adequate taking into account plans for grants lo be awarded in future and have al present therefore not designated any Specific reserves. Howev8r, the Trustees will keep this under constant review. In future years, a specific reserves policy may be required. PLANS FOR THE FUTURE The Trustees do not propose to deviate from the current objectives and activities of the FourKlation as detailed in Section 3 of this report but will further d8velop and refine their str8tegies, policies and procedures in future. AUDITOR A resolution will be proposed at Ihe Trustees, Meeting that Rawlinson & Hunter Audit LLP be re- appointed as auditor to the Charity for the ensuing year. Approved by the trustee5 and slgned on tholr behalf by- rLiJert bentle5' Ioct 9. 20L4 16..57 GMT+II Trustee 09110124 Date
Page 6 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF JOHN PEARCE FOUNDATION Oplnlon We have audited the financial slatemenls of John Pearce Foundation I'th8 Foundation" or "CIO.) for the year ended 31 December 2023 which comprise the Slaternent of Financial Aclivities {Including Income and Expenditure Account), the Balance Sheet, Statement of Cashflows and notes to the financial statements, inclLJding 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 Slandard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion Ihe financial statements: give a twe and fair view of the state of the Foundation's affairs as al 31 December 2023, and of its incoming rèsources 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 ol the Charities Act 2011 and where applicable, the Charities Act 2022. Basls for oplnlon We Gonducied our audit in accordance with Intemational Standards on Auditing IUKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in Ihe Auditor's responsibilities for the 8udil of the financial statements section of our report. We are independenl of the Foundation in accordance with the ethical requirements that are relevanl lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fijlfilled our other elhical 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 relatlng to going concem 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 nol identified any malerial uncertaintiès relating lo events or conditions that. individually or collectively, may cast significant doubt on the Foundation's ability to conlinue as a going concern for a period of at least twelve months from when the financial stalements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees wth respecl to going concem a described in the relevant sections of this report. Other information The Trustees are reswnsible for the other information. The other inforrnation comprises the Infomiation included in the Annual Report of the Trustees and Financial Statements. other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other information and 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 5talements, our responsibility is to read the other information and, in doing so, consider whether the olher information is materially inconsistent with the financial slalements or our knowledge obtained in Ihe course of the audit or olherwise appears to b8 malerially misslaled. If we identify such material inconsistencies or apparent material misstatemenls, we are required to determine whether this gives rise lo a material misstatement in the financial statements themselves. If, based on the work we have perforrned, 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 thls regard. Matters on whlch we are requiTod lo report by exception We have nothing to report in respect of the following matters in relation lo which the Charilies (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion= the information given in the financial slatements is inconsistent in any material r8spect with the Trustees, report., or sufficient accounting records have not been kepl,. or the financial statements are not in agreement with the accounting record,. or we have not reiVed all the informalion and explanations we require for our audit. R•sponsibilltiès of trustees As explained more fully in the Statement of Trustees Responsibllities set out on page 2, Ihe 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 Ihe Trustees determine is n8cessary to enable the preparalion of financial statements that are free from material misstalement, whether due to fraud or error. In p paring the financial slatements, the Truslees are responsible for assessing the Foundation's ability to continue as a goirbg conrn, disclosing, as applicable, matters related lo going concern and using Ihe 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. Audltof s responsibilities for the audit of tho flnancial statements We have been appointed as auditor under seclion 145 of the Charities Act 2011 and report in accordance with regulations made und8r section 154 of that Act. Our objective5 are to obtain reasonable assurance about whether the financi81 statements as a whole are fre8 from material misstalement, whether due to fraud or error. and lo issue an auditor's report thal IncldeS our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conduded 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 Ihe 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 misstalemenls in respect of irregularilies, including fraud. The extent to which our proGeduTes are capable of detectin9 irregularities, including fraud is detailed below. Our assessment of the susceptibilily of the entit9 financial statements to material misstatement. including how fraud mighl occur, is considereé to be low. This conclusion was reached after the consideration of the following:
Pagè 8 INDEPENDENT AUDITOR'S REPORT (continued} TO THE MEMBERS AND TRUSTEES OF JOHN PEARCE FOUNDATION due to the latiVelY 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 Ihere are a number of individuals which comprise 'management" and therefore there is no single individual who is likely lo be able to override controls to effecl 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- Dbtair)ing and reviewing for completeness a list of entities and persons considered to be related parties las defined by Financial Reporting Standard 102) ar)d reviewing the ledgets of Ihe Foundation for previously unreported related paty transactions., review of transactions and joumals for any indicatK)n of fraud or managemenl overrid8. Because of the Inhent limitations of an audit, there is a risk that we wll not detect all irregularities, including those leading lo a material misstatement in the financial slalements or non-compliance with regulation. This risk increases the more that compliance with a law or gulatIOn is removed from the events and transactions reflected in the financial slatemenls, as we will be less likely to bewme aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather Ihan error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentalion. A further description of our responsibilities for the audit of the financial stalements is located on the Financial Reporting Council's website at.. www.frc.org.ukJaudl(orsresponsibilities. This description fomis part of our auditor's report Use of our roport This report is made solely to the Foundation's Trustees, as a body, in accordance wilh Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken $0 that we might state lo the Foundation's Trustees those matters we are required to state to them in 8n audito¢s report and for no other purp058. To the fullest extent permitted by law, we do not accept or 2ssume responsibility to anyone other than the Foundation and the Foundation's Trustee5 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 Streel Square New Fetter Lane London A3AQ & Hunter Audit LLP i eligible for appointment as auditor of the Foundation by virtue of its eligibility for appointment as auditor of a company under 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 & Expendlture Account) FOR THE YEAR ENDED 31 DECEMBER 2023 Page 2023 2022 Incorne from: Investments (note 2) Donations (note 3) 14 14 49,977 28,334 3,000,000 Total Income 49.977 3.028,334 Expenditure on: Charitable Activities (note 4) 15 2,051,518 816,276 Totsl Expendituro 2.051,518 816,276 Net (oxpenditur¢llln¢ome 12,001,541) 2,212,058 Nel movement in funds 11 (2,001,541) 2,212,058 Reconclllatlon of funds Total Funds Brought Forward at 1 January 2023 4,702,118 2,490.060 Total Fund5 Carrled Forward at 31 December 2023 10 £ 2,700,577 £ 4,702,118 All amounts relate to continuing OFerations. The were no recognised gains and losses for the years ended 31 December 2022 and 2023. The notes on page 12 to 17 forrn part of Ihese financial statements
Pag8 10 JOHN PEARCE FOUNDATION {Regist•r¢d Charity No. 1181348 and Company No. CE016045) BALANCE SHEEr AS AT 31 DECEMBER 2023 Page 2023 2022 Fixed Assets Tangible Assets (note 5} 16 102 414 Current Assets Debtor {nole 61 Cash at bank (note 71 16 16 591 2,755,470 423 4,837,826 Total Current Assets 2,756,061 4,838,249 Liabilities Creditors - amounls falling due within one year (note 8) 16 {55,586) {136,545) Net current assets 2,700,475 4,701,704 Total not assets £ 2,700.577 £ 4,702,118 The funds of tho ¢harlty: Unrestricted funds 10 2,700.577 4.702,118 Total charlty funds 10 £ 2,700.577 £ 4,702,118 The financial statements were approved and authorised for issue by the Trustees and were signed on Iheir behalf by-. 09110124 Trustee Date The notes on page 12 to 17 form part of Ihese financial stslements
Page 11 JOHN PEARCE FOUNDATION {R8glstered Charity No. 1181348 and Company No. CE016045) STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 Page 2023 2022 Net ¢ash flow from Operating Actlvltles Nel movement on funds for the year Less.. Inveslmenl income and deposit interest Add- Depreciation (Increaseydecrease in debtors {DeGrease>lincrease in creditOTS {2,001,541) 149,977) 312 {168) 180.959) 2.212,058 (28,334) 310 2,313 58,765 14 16 16 16 Net cash (used Inygeneratod by Operating AGtivitios {2,132,333) 2,245,112 Cash flows from Investing A¢tivltlès Deposit interest 14 49,977 28,334 Nèt cash generated by Invesling Acllvltios 49,977 28,334 Net (decrease}lincrease in cash In the period £ {2,082,356) £ 2,273,446 Reconcillation of net cash Ilow to rnovemenl in net funds Net cash resources at 1 January 4,837,826 2,564,380 Net {decrease)lincrease in cash (2,082,356) 2,273,446 Net cash rosourcos at 31 Decernr £2,755,470 £4,837,826 Analysis of net funds: Cash at Bank (note 7} 16 2,755,470 4,837,826 £ 2,755,470 £ 4,837,826 The notes on page 1210 17 form part of these financial statements
Page 12 JOHN PEARCE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES Basls of Preparatlon of Financlal Statemants The fir)anci81 slatemenls 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 Ihe UK and Republic of Ireland IFRS 102) {'Charities SORP FRS 102'}, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 102), the Charities Act 2011 and where applicable. the Charities Act 2022 and UK Generally Accepted Accounting Practice. The Foundation constilules a public benefit entity as defined by Charities SORP FRS 102. The significant accounling policies applied in the preparation of these financial slalements are sel out below. These policies have been consistently applied to all years presenled unless otherwise staled. In applying the financial reporting framework, the Trustees have made a number of subjective judgements. for example in respect of signific8nt 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 lo be reasonable under the Circumstan$. The nature of the estirllation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecling these financial statemenls are detailed within the relevant accounling policy below. Incomlng Resources Inveslment income is derived from interest and dividend5 receivable from investrnents ané is accounted for in the period in which the Foundation 15 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 lo the income and the amount can be quantified with reasonable acojracy. Voluntary donations include donation$. Resources Expgnded All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligalion committing the Truslee to the expenditure. Charltable activities include governance costs made during the period and are expended Ihrough the SOFA when Ihe offer is conveyed to the recipienl. Cost of raising funds relate to the costs incurred by the Foundation in managing its investment portfolios. Governance costs relating to the general running of the Foundation, as opposed to the management functions inherent in generating funds.
Page13 JOHN PEARCE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Financial instruments The Foundation only has financial assels and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transadion value and subsequ8nlly measured al their settlement value. Grant$ 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 expeclation that they will receive a grant and Ihe Trustees have agreed to pay the grant without condilions, or the recipient has a reasonable expectation that Ihey will receive a grant and that any conditions attaching to the grant are OLJtside of Ihe control of the Twst. ststus of funds The entire resources of the fund a unrestricted and the Trustees have complele discretion for their use in pursuance of its object5. Taxatlon The Foundation is not subject to any laxes on its charitable activities. Irrecoverable VAT is charged against the activity for which expenditure was incurred. Debtors and ¢redltors recelvable I payablo wlthln one year Debtors and creditors with no stated interest rate and receivable or payable wilhin one year a recorded at transaction price. Any losses arising from impairmenl are recognised as expenditure. Cash and cash oqulvalents Cash and cash equivalents include cash in hand, depDsils held on call with banks, olher short-term highly liquid investments wilh original maturikn'es of three monlhs or less arKI bank overdrafts. Bank overdrafts, when applicab18, are within borrowing in current liabilities. Provlslons Provisions are recognised when the Foundation has an obligation al the Balance Sheel date as a resull of a past event. it is probable that an oufflow of economic benefits will be required in settlement and the amount can be reliably estimated. Employee bonofits When employees have rendered Servi lo the Foundation, short-lem employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that serviGe. 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 al 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 2023 ACCOUNTING POLICIES (continued) Going con¢em 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 expendilure for Iwelve months from the date of signing of these financial slalements. The forecast income 8nd reserves are sufficient to cover all of the budgeted expenditure lo be able lo continue as a going concern. The ongoing corbflicts in Ukraine and Middle East and other inflationary factors have affected the global economy. Having considered the conlingency plans in place and having reviewed updated cashflow forecasts, the Trustees consider the adopt*)n of the going Concern basis in preparing these financial slalemenls conlinues to be appropriate. Page 2023 2022 INCOME FROM INVESTMENTS De[lt interest 49,977 28.334 £ 49.977 £ 28,334 INCOME FROM DONATIONS Donations received 3,000,000 £ 3,000.000
Page 15 JOHN PEARCE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Page 2023 2022 EXPENDITURE ON CHARrrABLE ACTIVITIES Grants Awarded: Priscilla Bacon Norfolk Hospice Care Ltd Racing Welfare Lamboum Valley Housing Trust Her05 Charity Hong Kong Cancer Fund Marie Curie BRS Education Ltd The Wavertree Education Trust Limited Maggie's Racing to Relate National Association of Racing Staff (NARS) Reg. Charity No. 1166579 Reg. Charity No. 1084042 Reg. Charity No. 1049742 Reg. Charity No. 1115174 HK Charity 9112745 Reg. Charity No. 207994 Reg. Charity No. 1161555 Reg. Charity No. 1111771 Reg. Charity No. SC024414 Reg. Charity No. 1182855 650,000 622,446 300,000 126,195 98,301 60,306 48,000 33,000 8.500 256,777 103,368 60,308 150.000 30,000 68,902 47,467 Tolal Granls Awarded 1,946,748 716,822 Support Costs: Staff costs 72,141 12,993 8,100 8,100 1,950 876 312 298 60,016 12,573 8,400 7,800 2.020 1,584 310 29 3,684 3,038 Accountancy fees Independent auditor fees Insurance Office expenses Depreciation Banking charges Legal fees Trustee expenses 16 104,770 99,454 Total Charltable Activities £ 2,051,518 £ 816,276 Included within Staff costs are gross salaries of £58,80212022.' £50,379), social security wsls of £6,72912022.' £5,379), and pension Contributions of £3,264 (2022- £3,264). There are no employ8es who received total employee benefils of more than £60,000 during the year to 31 December 2023 (2022.. none). The average number of employees during the year was 212022'.11. The Trustees are the key management who received no emoluments during the year {2022= £nil} Audilor remuneration totalled £6.750 nel of VAT (2022.. £6,500).
Page 16 JOHN PEARCE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Page 2023 2022 FIXED ASSETS Flxluros, fittlngs and equipmont at COSt Balance al 1 January 1,554 1,554 Addilions Balance al 31 December 1,554 1,554 Accumulated doproclatlon Balance at 1 January 1.140 830 Charge for the year 11 312 310 Balance at 310ecember 1,452 1,140 Net Book Value al 31 December 10 102 414 DEBTORS Prepaymenls 10 591 423 CASH AT BANK Cash at bank 10 £ 2,755,470 £ 4,837,826 CREDITORS- amounts falling due within one year Donalions Accruals PAYE & NIC Trade Creditors 14.900 20,100 3,253 17,333 118,417 15.600 1,791 737 10 £ 55,586 £ 136,545
Page 17 JOHN PEARCE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Grants Payablo - Contingent Llabllities The Trustees made various pledges during the year with perfom)ance conditions attached. As the conditions for receiving these pledged grants were not met al the year end, these pledges were not recognised in these financial stalements. 10. RELATED PARTY TRANSACTIONS No related party transactions occurred duTing Ihe year ended 31 December 2023 (2022- none). No Trustee ceiVed any remuneration or reimbursement of expenses during the year ended 31 December 2023 {2022.' £3,038 incurred on their behalf in respect of accommodation coslsl. 11. ULTIMATE CONTROLLING PARTY The Truslees consider that the Foundation is jointly controlled by the Twslees and that there is no ultimate controlling party. 2023 2022 13. FINANCIAL INSTRUMENTS Financial assels measured at fair value 2,755,470 4.837,826 Financial assets measured at fair value consisl of cash at bank.