**Charity registration number 1186192**
## **THE PIPA FOUNDATION**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 5 APRIL 2022**
## **THE PIPA FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** L Filho (Chairman) L Vinhaes R Vinhaes **Charity number** 1186192 **Principal address** 7 Daisy Lane London SW6 3DD **Independent examiner** S Coleman ACA Gerald Edelman LLP 73 Cornhill London EC3V 3QQ **Bankers** Cashplus Bank 6th Floor One London Wall London EC2Y 5BB Itau Private Bank Bleicherwey 30 8002 Zurich
## **THE PIPA FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Statement of Trustees' responsibilities|3|
|Independent examiner's report|4|
|Statement of financial activities|5|
|Balance sheet|6|
|Notes to the financial statements|7 - 11|
## **THE PIPA FOUNDATION**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 5 APRIL 2022**_
The Trustees present their annual report and financial statements for the period ended 5 April 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 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 (FRS 102)" (effective 1 January 2019).
## **Objectives and activities**
The charity's objects are: 1) To support Brazilian contemporary artists in the field of visual arts, architecture, literature, music and performing arts;
2) To promote exchange between Brazilian and British culture through arts;
The main intention of the trustees is to provide free unlimited public access to exhibitions of Brazilian Art and Culture to allow the public the opportunity to experience Brazilian culture. From this public benefit will be gained by way of the advancement of the education of individual persons. The goal is to enthuse the public with the exhibits available and encourage further thought and deeper understanding of the subject matter which will prove to be an inspiration to all.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
The plans that the charity had were severely affected by Covid as with much of the Arts world. In this area of activity the impact has been and still is relevant, as exhibitions and other events like art fairs have been cancelled or postponed. This sector is only now starting to get back to normal. The ambitious plans of the Trustees are still being delayed by a multitude of issues including transportation. It is hoped that the Charity will be able to hold its first exhibition in the not to distant future.
You will note from the financial review detailed above that the charity is in a very stable financial position with no liabilities. Therefore everything is in place to provide the support and assistance required to achieve the aims and objectives of the charity in the medium to long term. In the short term the Trustees have resolved that grants will be considered to support the work and development of artists and other relevant projects in the support of Brazilian culture.
## **Financial review**
I am happy to report that the charity is in a very stable financial position with the net income for the year being £805,862 (2021: £4,872). The main reason for this is the acquisition of shares in Investidor Profissional Gestão de Recursos Ltda - best known by its trademark IP Capital Partners. IPCP is Brazil’s most traditional independent investment manager and has long been involved in supporting Brazilian contemporary art. The charity acquired its shares at par value via the Trustee Roberto Vinhaes, who was one of the company’s founding partners. This investment not only gives the charity a stable and secure financial base but should provide a reliable income stream for the forseeable future.
Income in the year was £440,037 (2021: £5,010) predominantly arising from income from the IPCP investment described above. Also a gain on revaluation of the IPCP shares at the year end arose of £366,852.
Expenditure in the year was £4,268.limited to support costs.
As set out above the charity is now in a very stable financial position. The Trustees are reviewing their plans for the future including the creation of a suitable reserves policy to take into account the anticipated commitments of the charity. Funds held at 5 April 2022 were £810,734.
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## **THE PIPA FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **Structure, governance and management**
The charity was established by a constitution dated 6 November 2019 and was formed as a Charitable Incorporated Organisation.
The Trustees who served during the year and up to the date of signature of the financial statements were:
L Filho L Vinhaes R Vinhaes
The Trustees meet regularly in order to discuss the ongoing administrative and other issues arising and then implement the decisions made themselves. Thus there are no employees of the charity.
The Trustees' report was approved by the Board of Trustees.
**Trustee**
**Dated**
13 April 2023
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## **THE PIPA FOUNDATION**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 5 APRIL 2022**_
The Trustees are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources of the charity for that year.
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;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable 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 charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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## **THE PIPA FOUNDATION**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PIPA FOUNDATION**
I report to the Trustees on my examination of the financial statements of The PIPA Foundation (the charity) for the year ended 5 April 2022.
## **Responsibilities and basis of report**
As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no 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 charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
S Coleman ACA Gerald Edelman LLP 73 Cornhill London EC3V 3QQ
Dated: 13 April 2023
- 4 -
## **THE PIPA FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 5 APRIL 2022**_
|**Notes**
**Income from:**
Donations and legacies
**3**
Investments
**4**
**Total income**
**Expenditure on:**
Charitable activities
**5**
**Net income before investment returns**
Net gains on investments
**9**
**Net income for the year**
Fund balances at 6 April 2021
**Fund balances at 5 April 2022**|**2022**
**£**
15
440,022
440,037
4,268
435,769
370,093
805,862
4,872
810,734|**2021**
**£**
5,000
10|
|---|---|---|
|||5,010|
|||138|
|||5,148
-|
|||4,872
-|
|||4,872|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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## **THE PIPA FOUNDATION**
## **BALANCE SHEET**
## _**AS AT 5 APRIL 2022**_
|**Notes**
**Fixed assets**
Investments
**10**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**11**
**Net current assets**
**Net assets**
**Income funds**
Unrestricted funds|**£**
439,744
(3,000)|**2022**
**£**
373,990
436,744
810,734
810,734|**2021**
**£**
4,872
-|**£**
-
4,872|
|---|---|---|---|---|
|||||4,872|
|||||4,872|
The financial statements were approved by the Trustees on 13 April 2023
**L Filho Trustee**
- 6 -
## **THE PIPA FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **1 Accounting policies**
## **Charity information**
The PIPA Foundation is a Charitable Incorporated Organisation. The registered office is 7 Daisy Lane, London SW6 3DD.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Investment income is recognised on the date of payment.
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## **THE PIPA FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Expenditure**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All resources expended are accounted for on an accruals basis and the irrecoverable element of VAT is included in the expense to which it relates . Charitable expenditure includes direct charitable expenditure in furtherance of the charity's aims and objectives and support costs incurred..Support costs include governance costs represented by audit costs and other professional fees incurred in connection with the meeting of the charity's constitutional and statutory obligations.
## **1.6 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.8 Taxation**
As a registered charity the Foundation is exempt from taxation on its activities which fall within the scope of part 10 ITA 2007 and section 256 of the Taxation of Chargeable Gains Act 1992.
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## **THE PIPA FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **1 Accounting policies (Continued)**
## **1.9 Foreign exchange**
Transactions denominated in foreign currency are recorded at the rate ruling at the date of transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in other recognised gains and losses in the Statement of Financial Activities.
## **1.10 APB Ethical Standard relevant circumstances**
In common with many entities of our size we use our independent examiners to assist with preparation of the financial statements.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
|Donations and gifts
**4**
**Investments**
Income from unlisted investments
Interest receivable
**5**
**Charitable activities**
Support costs (see note 6)|**2022**
**£**
15
**2022**
**£**
440,022
-
440,022
**2022**
**£**
4,268|2021
£
5,000|
|---|---|---|
|||2021
£
-
10|
|||10|
|||**2021**
**£**
138|
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## **THE PIPA FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **6 Support costs**
|**Support costs**|||
|---|---|---|
|Bank charges
Independent examination fees
Accountancy|**2022**
**£**
68
2,000
2,200
4,268|**2021**
**£**
138
-
-|
|||138|
## **7 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period. No expenses were paid to the Trustees in the year.
## **8 Employees**
The average monthly number of employees during the year was:
|Total
There were no employees whose annual remuneration was more than £60,000.|**2022**
**Number**
-|**2021**
**Number**
-|
|---|---|---|
||||
## **9 Net gains/(losses) on investments**
|Revaluation of investments
Foreign exchange gains|**2022**
**£**
366,852
3,241
370,093|2021
£
-
-|
|---|---|---|
|||-|
- 10 -
## **THE PIPA FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2022**_
## **10 Fixed asset investments**
||**Unlisted**|
|---|---|
||**investments**|
||**£**|
|**Cost or valuation**||
|At 6 April 2021|-|
|Additions|7,138|
|Valuation changes|366,852|
|At 5 April 2022|373,990|
|**Carrying amount**||
|At 05 April 2022|373,990|
|At 05 April 2021|-|
The investments stated above are held in the form of foreign unquoted equities. These holdings were purchased at par and then revalued at the balance sheet date by the Trustees on an open market basis.
## **11 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|Accruals and deferred income|3,000|-|
## **12 Related party transactions**
The charity acquired an interest in a non UK private company in the year known as IPCP (see Trustees Report for further details). The Trustee Mr R Vinhaes is a shareholder of this company and holds a substantial interest. The details of this investment are disclosed in note 10. Income arose on this investment in the year in the sum of £440,022.
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