2023-09-30-accounts

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

COMPANY REGISTRATION NUMBER: 1713103 CHARITY REGISTRATION NUMBER: 287009

THE DAVID PEARLMAN CHARITABLE FOUNDATION

Company Limited by Guarantee

Financial Statements

For the year ended 30 September 2023

COHEN ARNOLD

Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Financial Statements

Year ended 30 September 2023

	PAGES
Trustees' Annual Report (Incorporating the Director's Report)	1 to 4
Independent Auditor's Report to the Members	5 to 10
Statement of Financial Activities (Including Income and Expenditure
Account)	11
Statement of Financial Position	12
Statement of Cash Flows	13
Notes to the Financial Statements	14 to 21

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 30 September 2023

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 30 September 2023.

Reference and administrative details

Registered charity name The David Pearlman Charitable Foundation Charity registration number 287009 Company registration number 1713103 Principal office and registered New Burlington House office 1075 Finchley Road London NW11 0PU The trustees Mr D A Pearlman Mr M R Goldberger Mr S Appleman (Retired 24 October 2023) Mr J Hager (Retired 26 October 2023) Mr H A Pearlman Company secretary Mr M R Goldberger Auditor Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

Structure, governance and management

Governing Document

The David Pearlman Charitable Foundation is a company limited by guarantee and is governed by its Memorandum and Articles of Association.

Organisation

The charity is administered by the governors who are the trustees. Every governor/trustee holds office until he/she shall die or shall cease to hold office by virtue of Article 48 of the Articles of Association.

The day-to-day affairs of the charity are administered by the Governors (Trustees) whose Chair is Mr D A Pearlman.

Where there is a requirement for new trustees, these are identified and appointed by the existing trustees. The chair of trustees is responsible for the induction of any new trustee, which involves awareness of a trustee's responsibilities, the governing document, administrative procedures, and the history and philosophical approach of the charity. A new trustee receives copies of the previous year's annual report and accounts, with detailed explanation thereof.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 September 2023

Structure, governance and management (continued)

Related Parties

Details of transactions with Related Parties are disclosed in Note 23 to the Financial Statements.

Risk Management

The trustees have identified and reviewed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity, and are satisfied that systems are in place to mitigate those risks.

It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Objectives and activities

The charity is established to further those purposes both in the United Kingdom and abroad recognised as charitable by English Law. To achieve these objects the charity utilizes its income to make grants and donations.

The charity's principal activity throughout the year was the provision and distribution of donations and grants to charities, and no change is envisaged in the immediate future.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.

Achievements and performance

During the year the charity continued its philanthropic activities in support of religious, education and other charitable institutions. The charity made charitable donations aggregating £517,931 (2022: £335,850).

The financial results of the charity for the year to 30 September 2023 are fully reflected in the attached Financial Statements together with the Notes thereon.

Financial review

Financial Position

The financial position of the charity is satisfactory. The Statement of Financial Activities shows a net deficit for the year of £224,536 (2022: £18,245 deficit).

Reserve Policy

It is the policy of the charity to maintain unrestricted funds, which are the free reserve of the charity, at a level, which the Trustees think appropriate after considering the future commitments of the charity and the likely administrative costs of the charity for the next year.

As at 30 September 2023 the charity had £5,648,818 Unrestricted Funds and £649,350 Permanent Endowment Funds.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 September 2023

Financial review (continued)

Investment Policy

Under the Memorandum and Articles of Association, the charity has the power to make any investment, which the Governors (Trustees) see appropriate. The Governors (Trustees) regularly review the Charity's position and needs in respect of the investment policy.

The Governors (Trustees) consider the return on investments, in terms of both income and capital growth, to be satisfactory.

The Governors (Trustees), having regard to the liquidity requirement of the charity and to the reserves policy have operated a policy of keeping available funds in an interest deposit account.

Grant Making Policy

Grants are made to charitable institutions and organisations which accord with the objects of the charity.

Plans for future periods

The Trustees plan to continue to make distributions in accordance with their grant making policy and to ensure that an appropriate level of reserves is maintained.

Investments

The charity's investment properties are included in the Financial Statements at valuation. The properties have been valued by the Governors (Trustees). The Governors (Trustees) are of the opinion that the open market value of the properties is at least equal to the amount stated in the Financial Statements.

Trustees' responsibilities statement

The trustees, who are also directors for the purposes of company law, 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).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, 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 applicable Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Companies Act 2006. 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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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 September 2023

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

14/6/2024 The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Mr D A Pearlman

Trustee

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of The David Pearlman Charitable Foundation

Year ended 30 September 2023

Opinion

We have audited the financial statements of The David Pearlman Charitable Foundation (the 'charity') for the year ended 30 September 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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 FRS 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 charity's affairs as at 30 September 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 charity 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of The David Pearlman Charitable

Foundation (continued)

Year ended 30 September 2023

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of trustees' remuneration specified by law are not made; or

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

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of The David Pearlman Charitable

Foundation (continued)

Year ended 30 September 2023

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of The David Pearlman Charitable

Foundation (continued)

Year ended 30 September 2023

Auditor's responsibilities for the audit of the financial statements

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:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the company through discussion with the trustees and senior management and identified which were most significant with respect to the financial statements. We identified financial reporting legislation (including related companies legislation) and taxation legislation as being most significant to these financial statements. We communicated these identified frameworks throughout our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations.

• We discussed with the trustees and senior management the policies and procedures regarding compliance with these legal and regulatory frameworks.

• We assessed the susceptibility of the company's financial statements to material misstatement due to non-compliance of legal and regulatory frameworks, including how fraud might occur, by enquiry with the trustees and senior management during the planning and finalisation phases of our audit and using proprietary disclosure checklists. This was determined to be low.

• Based on this understanding we designed our audit procedures to identify non-compliance with the identified legal and regulatory framework, which were part of our procedures on the related financial statement items. Our procedures included reviewing the company's internal controls policies and procedures, reviewing the minutes of board meetings and correspondence with regulatory bodies including HMRC, testing transactions outside the normal course of the business and journal entries, and discussions with the trustees and senior management.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of The David Pearlman Charitable

Foundation (continued)

Year ended 30 September 2023

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of The David Pearlman Charitable

Foundation (continued)

Year ended 30 September 2023

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members 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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Goldberg (Senior Statutory Auditor)

For and on behalf of Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

14/6/2024

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Statement of Financial Activities (including income and expenditure account)

Year ended 30 September 2023

			2023		2022
		Unrestricted	Endowment
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	5	82,500	–	82,500	75,000
Investment income	6	356,346	–	356,346	363,127
					
Total income		438,846	–	438,846	438,127
					
Expenditure
Expenditure on raising funds:
Investment management costs	7	(79,042)	–	(79,042)	(69,283)
Expenditure on charitable activities	8,9	(547,921)	–	(547,921)	(343,579)
					
Total expenditure		(626,963)	–	(626,963)	(412,862)
					
Net losses on investments	12	(36,419)	–	(36,419)	(43,510)
					
Net expenditure and net movement in
funds		(224,536)	–	(224,536)	(18,245)
					
Reconciliation of funds
Total funds brought forward		5,873,354	649,350	6,522,704	6,540,949
					
Total funds carried forward		5,648,818	649,350	6,298,168	6,522,704
					

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 14 to 21 form part of these financial statements.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Statement of Financial Position

30 September 2023

		2023		2022
	Note	£	£	£	£
Fixed assets
Investments	16		5,300,000		5,845,000
Current assets
Debtors	17	51,447		62,086
Cash at bank and in hand		1,074,374		728,323
				
		1,125,821		790,409
Creditors: amounts falling due
within one year	18	(127,653)		(112,705)
				
Net current assets			998,168		677,704
					
Total assets less current liabilities			6,298,168		6,522,704
					
Funds of the charity
Endowment funds			649,350		649,350
Unrestricted funds			5,648,818		5,873,354
					
Total charity funds	19		6,298,168 		6,522,704 

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:14/6/2024

Mr D A Pearlman Trustee

The notes on pages 14 to 21 form part of these financial statements.

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DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Statement of Cash Flows

Year ended 30 September 2023

Year ended 30 September	2023
	2023	2022
	£	£
Cash flows from operating activities
Net expenditure	(224,536)	(18,245)
Adjustments for:
Net losses on investments	36,419	43,510
Dividends, interest and rents from investments	(356,346)	(363,127)
Changes in:
Trade and other debtors	10,639	6,965
Trade and other creditors	14,948	(7,332)
		
Cash generated from operations	(518,876)	(338,229)
		
Net cash used in operating activities	(518,876)	(338,229)
		
Cash flows from investing activities
Dividends, interest and rents from investments	356,346	363,127
Proceeds from sale of other investments	508,581	191,490
		
Net cash from investing activities	864,927	554,617
		
Net increase in cash and cash equivalents	346,051	216,388
Cash and cash equivalents at beginning of year	728,323	511,935
		
Cash and cash equivalents at end of year	1,074,374 	728,323 

The notes on pages 14 to 21 form part of these financial statements.

- 13 -

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements

Year ended 30 September 2023

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is New Burlington House, 1075 Finchley Road, London, NW11 0PU.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

The charity meets the definition of a public benefit entity under FRS 102.

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

Judgements made by the trustees in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are as follows:

(i) Property valuation

The valuation of the charity's investment properties is inherently subjective, depending on many factors, including the individual nature of each property, its location and expected future net rental values, market yields and comparable market transactions. Therefore the valuations are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of difficult market or economic conditions.

(ii) Trade debtors

Management uses details of the age of trade debtors and status of any disputes together with external evidence of the credit status of the counterparty in making judgements concerning any need to impair the carrying values.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

- 14 -

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 30 September 2023

3. Accounting policies (continued)

Fund accounting (continued)

Designated funds are unrestricted funds earmarked by the trustees for particular future project or committment. The charity has no designated funds at the Balance sheet date.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

These are included in the Statement of Financial Activities (SOFA) when;

• the charity becomes entitled to the resources;

• it is probable that the charity will receive the resources;

• the monetary value can be measured with sufficient reliability.

This includes income from investments and deposits, rentals from property assets and grants and donations received by the charity.

Incoming resources with related expenditure

Where incoming resources have related expenditure (as with fundraising contracts or investment income) the incoming resources and related expenditure are reported gross in the SOFA.

Grants and donations

Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources. Donations represent voluntary amounts receivable during the year.

Liability recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources, it is probable that a transfer of economic benefits will be required in settlement and the amount can be measured reliably.

Charitable activities

Grants are charged in the period in which paid; they comprise donations to third-party institutions in accordance with the charitable objects of the charity and its public benefit objectives.

Investment management costs

Investment management costs include costs relating to the investment properties on an accrual basis.

Governance costs

Governance costs include costs of the preparation and audit of the financial statements and cost of any legal advice to trustees on governance or constitutional matters.

- 15 -

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 30 September 2023

3. Accounting policies (continued)

Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are initially recorded at cost, which includes purchase price and any directly attributable expenditure.

Subsequent to initial recognition

• Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the income and expenditure account in the period that they arise; and

• No depreciation is provided in respect of investment properties applying the fair value model.

Investment property fair value is determined by the Trustees based on their understanding of property market conditions and the specific property concerned, using a sales valuation approach, derived from recent comparable transactions on the market, adjusted by applying discounts to reflect status of occupation and condition.

Acquisitions and disposals of properties

Acquisitions and disposals are considered to have taken place at the date of legal completion and are included in the financial statements accordingly.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

4. Limited by guarantee

The charity is a Company Limited by Guarantee and has no share capital. The liability of each Member in the event of winding up is limited to £1.

5. Donations and legacies

Donations and legacies
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Donations
General donations	82,500	82,500	75,000	75,000
				

- 16 -

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 30 September 2023

6. Investment income

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2023	Funds	2022
		£	£	£	£
	Rents receivable	356,346	356,346	363,127	363,127
					
7.	Investment management costs
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2023	Funds	2022
		£	£	£	£
	Property outgoings	79,042	79,042	69,283	69,283
					
8.	Expenditure on charitable activities	by fund type
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2023	Funds	2022
		£	£	£	£
	Grant funding activities (institutions)	517,931	517,931	335,850	335,850
	Support costs	29,990	29,990	7,729	7,729
					
		547,921	547,921	343,579	343,579
					

9. Expenditure on charitable activities by activity type

	Grant funding		Total funds	Total fund
	of activities	Support costs	2023	2022
	£	£	£	£
Grant funding activities (institutions)	517,931	–	517,931	335,850
Governance costs	–	29,990	29,990	7,729
				
	517,931 	29,990 	547,921 	343,579 

10. Analysis of support costs

Analysis of support costs
	Grant funding
	activities	Total 2023	Total 2022
	£	£	£
General expenses	1,442	1,442	529
Consultancy Fees	21,348	21,348	–
Auditor's remuneration	7,200	7,200	7,200
			
	29,990	29,990	7,729
			

- 17 -

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 30 September 2023

11. Analysis of grants

All grants paid relate to grants made to charitable institutions and organisations supporting the undermentioned charitable purposes which accord with the objects of the charity.

• The prevention and relief of poverty

• The advancement of education

• The advancement of religion

• The advancement of health or the saving of lives

• The advancement of citizenship or community development

• The advancement of the arts, culture, heritage or science

• Any other charitable purpose

An analysis of grants paid is included in these Financial Statements in Note 21.

12. Net losses on investments

Net losses on investments
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Loss on investment property valuation	(95,000)	(95,000)	(110,000)	(110,000)
Gains on disposal of investment
properties	58,581	58,581	66,490	66,490
				
	(36,419)	(36,419)	(43,510)	(43,510)
				

13. Auditors remuneration

Fees payable for the audit of the financial statements

2023	2022
£	£
7,200 	7,200 

14. Staff costs

No salaries or wages have been paid to employees during the year.

15. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

No Trustee expenses have been incurred.

- 18 -

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 30 September 2023

16. Investments

	Investment
	properties
	£
Cost or valuation
At 1 October 2022	5,845,000
Additions	–
Disposals	(450,000)
Fair value movements	(95,000)
	
At 30 September 2023	5,300,000
	
Carrying amount
At 30 September 2023	5,300,000
	
At 30 September 2022	5,845,000 

All investments shown above are held at valuation.

Investment properties

The investment properties are stated at trustees' valuation as at 30 September 2023 based on the trustees' understanding of property market conditions and the specific property concerned, using a sales valuation approach, derived from recent comparable transactions on the market, adjusted by applying discounts to reflect status of occupation and condition.

The historical cost of the properties at 30 September 2023 is £4,422,610 (2022: £5,072,610).

17. Debtors

17.	Debtors
		2023	2022
		£	£
	Rent and service charges	40,428	42,194
	Other debtors	11,019	19,892
			
		51,447	62,086
			
18.	Creditors: amounts falling due within one year
		2023	2022
		£	£
	Rent and service charges charged in advance	53,628	60,832
	Other creditors	74,025	51,873
			
		127,653	112,705
			

- 19 -

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 30 September 2023

19. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
	At 1				At 30
	October			Gains and	September
	2022	Income	Expenditure	losses	2023
	£	£	£	£	£
General funds	5,873,354	438,846	(626,963)	(36,419)	5,648,818
					
	At 1				At 30
	October			Gains and	September
	2021	Income	Expenditure	losses	2022
	£	£	£	£	£
General funds	5,891,599	438,127	(412,862)	(43,510)	5,873,354
					
Endowment funds
	At 1				At 30
	October			Gains and	September
	2022	Income	Expenditure	losses	2023
	£	£	£	£	£
Permanent Endowment
Fund	649,350	–	–	–	649,350
					
	At 1				At 30
	October			Gains and	September
	2021	Income	Expenditure	losses	2022
	£	£	£	£	£
Permanent Endowment
Fund	649,350 	– 	– 	– 	649,350 

20. Analysis of net assets between funds

Analysis of net assets between funds
	Unrestricted	Endowment	Total Funds
	Funds	Funds	2023
	£	£	£
Investments	4,650,650	649,350	5,300,000
Current assets	1,125,821	–	1,125,821
Creditors less than 1 year	(127,653)	–	(127,653)
			
Net assets	5,648,818	649,350	6,298,168
			
	Unrestricted	Endowment	Total Funds
	Funds	Funds	2022
	£	£	£
Investments	5,195,650	649,350	5,845,000
Current assets	790,409	–	790,409
Creditors less than 1 year	(112,705)	–	(112,705)
			
Net assets	5,873,354	649,350	6,522,704
			

- 20 -

DocuSign Envelope ID: 3AF1083E-17D4-4537-8D1C-A05DD0EA4B31

THE DAVID PEARLMAN CHARITABLE FOUNDATION COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 30 September 2023

21. Grant funding activities

Recipients of Institutional Grants

Recipients of Institutional Grants
	£
St Paul`s Cathederal Foundation	250,000
The National Youth Theatre	73,000
The English Heritage Trust	50,000
The Duke of Edinburgh`s Award	38,000
Future Dreams Breast Cancer Charity	23,000
The Cure Parkinson`s Trust	21,464
Service to the Aged Limited	15,000
Jewish Care	13,500
Other grants (under £10,001)	33,967
	
	517,931 

22. Analysis of changes in net debt

Analysis of changes in net debt
					At
	At	1	Oct 2022	Cash flows	30 Sep 2023
			£	£	£
Cash at bank and in hand			728,323	346,051	1,074,374
					

23. Related parties

Donations received represent £50,000 from Acemark Properties Limited and £20,000 from Colsan Limited certain of the directors of which are Mr D A Pearlman , Mr H A Pearlman and Mr J Hager who are trustees of the charity.

Also included in donations received is £12,500 received from one of the trustees personally.

- 21 -