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2020-12-31-accounts

GRAND PRIX TRUST (Registered Charity No. 327454)

TRUSTEES’ ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

GRAND PRIX TRUST

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

CONTENTS

Page
Trustees' Annual Report 1 - 8
Independent Auditor’s Report 9 - 11
Consolidated Statement of Financial Activities 12
Consolidated Balance Sheet 13
Charity Balance Sheet 14
Consolidated Statement of Cash Flows 15
Notes to the Financial Statements 16 - 23

Page 1

GRAND PRIX TRUST

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and independently audited consolidated financial statements of The Grand Prix Trust (“the trust” or “the charity”) for the year ended 31 December 2020. These have been prepared in accordance with the accounting policies set out on in Note 1 and comply with the charity’s trust deed and applicable law.

1. REFERENCE AND ADMINISTRATIVE DETAILS

The Grand Prix Trust, registered charity number 327454, is based and administered in the United Kingdom. The registered address is Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ.

The names of the trustees who served throughout the year and continue to serve, unless indicated, at the date of this report’s approval are:

James Allen Peter Hamlyn Christopher Bliss Sir Patrick Head Ross Brawn Michael Jakeman Martin Brundle (Chairman) Mark Smith Karin Fink Jonathan Wheatley

Trust Administrator :

Client Co-ordinator:

Arlene Bansal Sally Oliver

Independent Auditor:

Bowker Orford 15-19 Cavendish Place, London, W1G 0DD

Accountants:

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

Investment Managers and Custodians:

Close Brothers Asset Management Ltd Eighth Floor, 10 Exchange Square, Primrose Street, London EC2A 2BY

Principal Bankers:

Bank of Scotland plc 33 Old Broad Street, London EC2N 1HZ

Coutts & Co.

The Composite Office, Level 1, Thanet Grange, Westcliff on Sea, Essex SS0 0EJ

Solicitors:

Stone King LLP Boundary House, 91 Charterhouse Street, London EC1M 6HR

Page 2

GRAND PRIX TRUST

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

2. STRUCTURE, GOVERNANCE AND MANAGEMENT

The Grand Prix Trust was established by a Deed dated 12 February 1987 and is an unincorporated charitable trust bound by the proper laws of England and Wales. The original settlor was Sir Jackie Stewart OBE.

The entire resources of the charity have been unrestricted throughout the year. The trustees have complete discretion for the use of the funds in pursuance of the charity’s objectives.

The trustees’ investment powers are unrestricted.

The power of appointing new and additional trustees vests in the trustees. Any number of additional trustees may be appointed irrespective of the number of trustees in office.

Induction and training

Training of the trustees is adopted on an informal basis. All trustees are kept informed at meetings of their duties and obligations under the law in addition to their proper conduct.

Trustees’ Responsibilities Statement

The trustees are responsible for preparing the Trustees’ Annual 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 period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper 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.

Disclosure of information to Auditor

Insofar as the trustees are aware:

Page 3

GRAND PRIX TRUST

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Internal Controls

The trustees have overall responsibility for ensuring that the charity has appropriate systems of internal controls and for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the financial statements follow best practice and all applicable law regulation and guidance. They are also responsible for the charity safeguarding its assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss. Control processes implemented by the trustees include:

3. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The objects of the charity are to apply capital and income for such charitable purposes, charitable institutions or charitable foundations, in such countries and in such manner as the trustees in their absolute discretion think fit. The trustees consider donations at the Appeals and Awards Committee meetings and also at the biannual trustees meetings.

Statement of Public Benefit

The trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to it. They consider that the information which follows in this annual report, about the trust’s aims, activities and achievements in the areas of interest that the trust supports demonstrates the benefit to its beneficiaries and through them to the public, that arise from those activities.

Grant Making Policy

The trustees’ grant making policy has been to generally consider making donations by way of direct funding to individuals and also by way of grants to charitable organisations. The Appeals and Awards Committee make awards on a majority decision basis and report back to the other trustees at the biannual trustee meetings. From time to time, the Committee will approach all of the trustees on decisions regarding significant awards, at their discretion.

As referred to in section 2 of the Trustees’ Report, the trustees continue to monitor the requirements of potential beneficiaries and with the expert guidance of Sally Oliver, the trustees’ retained client co-ordinator, the trust provides advice and guidance to beneficiaries, as well as providing financial support.

Page 4

GRAND PRIX TRUST

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

4. ACHIEVEMENTS AND PERFORMANCE

Investments

The assets of the charity consist principally of investments and cash and these are collectively recorded on the Balance Sheet and supporting notes at their market value on that date. Any increase or decrease over cost on the restatement of these values is recorded in the Statement of Financial Activities.

The trust owns 100% of the issued share capital of 200 ordinary shares of £1 each in Grand Prix Trading Limited, a company registered in England and Wales, the results of which are incorporated in the consolidated financial statements on pages 12, 13 and 15.

The investment objective of the charity is to achieve a balance of capital growth and income consistent with a portfolio invested in a prudent manner with a maximum equity exposure of 75%. Members of the Investment Sub-committee meet regularly to review the performance of the portfolio and report their findings at the main trustees’ meeting.

Investments

The investment managers, Close Brothers Asset Management, work with the trustees towards an agreed investment policy. Their period end summary report is detailed as follows:-

Asset Allocation and Strategy Asset Allocation and Strategy See
2020 2020 Notes
£ %
Cash 193,781 6.98
Multi Asset 64,705 2.33
Property 51,057 1.84
Commodities 105,652 3.81
Alternatives 208,814 7.52
Fixed Interest UK Government 229,845 8.28
Other 200,794 7.23 1
————————————————— —————————————————
1,054,648 37.99
————————————————— —————————————————
Equities UK 431,999 15.56 2
North America 478,033 17.22
Europe 311,615 11.22
Japan 32,160 1.16
Asia Pacific 273,883 9.87
Emerging Markets 36,563 1.31
Global 157,222 5.67
————————————————— —————————————————
1,721,475 62.01
————————————————— —————————————————
Total 2,776,123 100.00
══════════════════ ══════════════════

Page 5

GRAND PRIX TRUST

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE (continued)

Asset allocation notes:

  1. Non UK Government bonds held are AAA rated by S&P and Aaa by Moody’s.

  2. UK Smaller and Mid Cap exposure is primarily and substantially in the form of investment in either unit or investment trusts.

Post period end

Since the end of the financial period under review the Investment Sub-committee has made no changes to the current investment mandate.

The investment policy is reviewed on a regular basis at the meetings of the Investment Subcommittee.

Annual Review – provided by Close Brothers Asset Management

The fund produced returns of 1.0% in the calendar year 2020 (after fees). This was an underperformance vs the ARC Balanced peer group that returned 4.8% over the same period. The underperformance was in part due to the de-risking of the portfolio in March 2020 following a conversation with the Trustees around concerns of unforeseen liabilities the Charity would possibly have to meet and hence a request for higher cash/liquidity. The fund continues to outperform the ARC Balanced peer group over the rolling 3yr and 5yr periods.

Our global diversification helped protect the portfolio from the worst of the sell-off in asset prices in the latter part of Q1 2020. Exposure to US large capitalisation names as well as leading global giants in the Swiss market with exposure to healthcare, consumer staples and technology helped insulate the portfolio from the adverse effects of the global lockdown. Our minimal exposure to conventional fixed interest is driven by continuing low Government Bond yields with many maturities and regions providing negative real returns. We continue to favour equities due to better growth opportunities for multinational companies around the world.

The portfolio remains well-diversified with 30% in non-equity assets and a continued international bias within the equity allocation (18% UK vs 48% overseas at the time of writing). Within the UK, we have continued to avoid companies overexposed to the UK domestic economy and have stuck with large-cap multinationals that derive the majority of their revenue overseas. At the margin, we have more recently added to cyclically orientated areas that are likely to benefit from the economic recovery.

Overall the portfolio yields 2%, which we would expect to rise as a handful of holdings look to reinstate their dividends. Bond yields continuing to be sat at historically low levels, with the UK 10 gilt currently yielding 0.8%.

Financial markets underwent a dramatic sell-off from early March 2020, following the Covid-19 pandemic. Markets rallied from their lows at the end of March as the magnitude of the monetary and fiscal support became apparent. US stocks climbed more than 40 per cent from a mid-March low, with the broader US index finished up over 15% in 2020. The UK market also recovered from its March lows, but remained the laggard compared to its global peers, down close to 12% over the year.

Page 6

GRAND PRIX TRUST

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

5. FINANCIAL REVIEW

Incoming Resources and Resources Expended

Incoming Resources

Incoming resources totalled £163,808 (2019 - £289,331) and has decreased from 2019 due to a reduction in the amount of voluntary income received in the year due to the Covid-19 pandemic. The income for the year was received from the trust’s investment portfolio, cash deposits and various donations.

Costs of Raising Funds

The costs of raising funds totalled £26,145 (2019 - £82,785) and includes investment management fees, tax credits on investment income, bank charges and the fees incurred in relation to online fundraising. This figure has decreased following the cancellation of fundraising events usually hosted as a result of the Covid-19 pandemic.

Investment management fees totalled £21,751 (2019 - £22,387). Close Asset Management charge an annual client management charge of 0.75% plus VAT on the value of funds under management at quarterly intervals.

Charitable Activities

Charitable activities for 2020 totalled £117,141 (2019 - £205,427) and include donations made and governance costs. The latter comprising of charity administration fees, case advisor fees, and audit fees.

In accordance with usual practice, the trustees met their objectives for the public benefit by making donations of £41,375 (2019 - £117,797) to individuals and charitable causes.

Payments to the Charity Administrator, including related expenses, totalled £34,465 (2019 - £47,300) whose duties include supporting the fundraising, general management and governance of the charity.

Client co-ordinator fees totalled £33,433 (2019 - £34,271). The case advisor acts in an advisory capacity to the trustees to identify prospective beneficiaries and ways to assist them.

Insurance premiums were £1,734 (2019 - £1,631) and relate to the renewal of the trustee indemnity insurance policy of the charity.

The audit fee represents a provision of £4,200 (2019 - £4,200) for the audit of these financial statements.

Page 7

GRAND PRIX TRUST

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW (continued)

Reserves Policy

The 21 year accumulation policy expired on 12 February 2008 and therefore any undistributed income is no longer accumulated, with any balance remaining carried forward within the Income Fund, to be distributed at a future date.

Until 12 February 2008, it had been the trustees’ policy to build the capital fund to achieve financial stability and to ensure that adequate income would be available for distribution once the accumulation period had expired.

Total charity reserves at 31 December 2020 were £2,906,367 (2019 - £2,900,963) with income reserves of £353,896 (2019 - £333,374).

The trustees are acutely aware of their responsibilities to utilise the resources available to them to further the charity’s objectives. A significant number of mechanics, who can potentially benefit from the charity’s assistance are approaching their more senior years and as such, the trustees expect to see a steady increase in demand for support in the coming years, which they are confident will utilise the annual incoming resources and any accumulated income. It is due to this anticipated future demand that the trustees continue to raise funds for the charity, with a view to increasing the capital base to somewhere in the region of £3 million.

The trustees communicate on a regular basis and meet formally twice a year to review their investment and distribution policy.

Risk Management

A risk assessment has been undertaken which consists of:

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

The trustees have signed fit and proper declarations in line with HMRC guidelines.

Page 8

GRAND PRIX TRUST

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

6. PLANS FOR THE FUTURE

In 2016, the trust decided to revise its scope, which included all F1 team employees, trackside or factory based, plus contract staff employed on F1 activities. It was also extended, at the trustees’ discretion, to other bodies with personnel that were directly employed in F1, such as photographers or catering staff. This has worked well and has extended the reach and effectiveness of the trust.

This work continues with regard to working with F1 teams, suppliers and employers along with other motorsport events and organisations where we can make aware, meet and interact with potential beneficiaries, and other people who may know of an eligible person who needs help.

The trust has increased its social media presence and also focussed on the important social side, with a view to dramatically increasing our registered members.

The trust has undertaken Regional Member’s meetings which have brought great success and continue to grow. These meetings will continue with the intention of expanding to other areas to reach a broader audience.

The trust goes from strength to strength in terms of awareness and effectiveness.

The Covid-19 pandemic has created significant operational and financial pressures on the Charity and their beneficiaries. The charity will continue to provide support to those in need and have introduced new procedures to ease the applications.

The charity received the second of five annual instalments of £100,000 in December 2020 following five 5 year pledge agreement from an individual donor.

Approved by the trustees on and signed on their behalf by:

C J A BLISS

19/10/2021

Page 9

REPORT OF THE INDEPENDENT AUDITOR

TO THE TRUSTEES OF

GRAND PRIX TRUST

Opinion

We have audited the financial statements of The Grand Prix Trust (“the trust” or “the charity”) for the year ended 31 December 2020 which comprise the Statement of Financial Activity, Balance Sheet, Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

Other information

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

Page 10

REPORT OF THE INDEPENDENT AUDITOR

TO THE TRUSTEES OF

GRAND PRIX TRUST (continued)

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.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 2, the trustees are responsible for the preparation of financial statements which 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Page 11

REPORT OF THE INDEPENDENT AUDITOR

TO THE TRUSTEES OF

GRAND PRIX TRUST (continued)

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.

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

Use of this report

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

R PARMAR

19/10/2021

Bowker Orford

15-19 Cavendish Place London W1G 0DD

Date:

Bowker Orford is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 12

GRAND PRIX TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Funds Unrestricted Funds
Capital Income Total Total
Page
Fund		 Fund 2020 2019
£ £ £ £
Income from:
Investments (note 2) 18 - 58,248 58,248 79,753
Donations (note 3) 18 - 105,560 105,560 209,578
————————————————————— ————————————————————— ————————————————————— —————————————————————
Total income - 163,808 163,808 289,331
————————————————————— ————————————————————— ————————————————————— —————————————————————
Expenditure on:
Charitable activities (note 5) 19 - 117,141 117,141 205,427
Raising funds (note 6) 19 - 26,145 26,145 82,785
————————————————————— ————————————————————— ————————————————————— —————————————————————
Total expenditure - 143,286 143,286 288,212
————————————————————— ————————————————————— ————————————————————— —————————————————————
Net income / (expenditure) before net
gains / (losses) - 20,522 20,522 1,119
Net (losses) / gains on investments
(note 7) 20 (14,623) - (14,623) 339,563
Net unrealised (loss) on investment cash
(note 14) 22 (495) - (495) (453)
————————————————————— ———————————————————— ————————————————————— —————————————————————
Net movement in funds (15,118) 20,522 5,404 340,229
Reconciliation of funds:
Total funds brought forward
at 1 January 2020 2,567,589 333,374 2,900,963 2,560,734
————————————————————— ————————————————————— ————————————————————— —————————————————————
Total funds carried forward
at 31 December 2020 £ 2,552,471 £ 353,896 £ 2,906,367 £ 2,900,963
═════════════════════ ═════════════════════ ═════════════════════ ═════════════════════

There are no recognised gains or losses other than those included in the Statement of Financial Activities.

All income and expenditure relate to continuing activities.

The notes on pages 16 to 23 form part of these financial statements

Page 13

GRAND PRIX TRUST

CONSOLIDATED BALANCE SHEET

AT 31 DECEMBER 2020

Page 2020 2019
Fixed Assets £ £ £ £
Investments and cash at market value
under management (note 7) 19 2,763,361 2,792,827
Current Assets
Debtors (note 8) 21 2,763 5,313
Prepayment 1,099 1,634
Cash at bank (note 9) 21 158,952 123,475
————————————————————— —————————————————————
162,814 130,422
Creditors- amounts falling
due within one year (note 10) 21 (19,808) (22,286)
————————————————————— —————————————————————
Net current assets 143,006 108,136
————————————————————— —————————————————————
Total assets less current liabilities £2,906,367 £ 2,900,963
═════════════════════ ═════════════════════
Represented by:
Unrestricted funds
Capital fund 2,552,471 2,567,589
Income fund 353,896 333,374
————————————————————— —————————————————————
Total Charity funds £ 2,906,367 £ 2,900,963
═════════════════════ ═════════════════════
Approved by the Trustees on
and signed on their behalf by:

C J A BLISS

19/10/2021

The notes on pages 16 to 23 form part of these financial statements

Page 14

GRAND PRIX TRUST

CHARITY BALANCE SHEET

AT 31 DECEMBER 2020

Page 2020 2019
£ £ £ £
Fixed Assets
Investments and cash at market value
under management (note 7) 19 2,763,561 2,793,027
Current Assets
Debtors (note 8) 21 2,763 5,313
Prepayment 1,099 1,634
Cash at bank (note 9) 21 158,101 122,624
————————————————————— —————————————————————
161,963 129,571
Creditors -amounts falling
due within one year (note 10) 21 (19,808) (22,286)
————————————————————— —————————————————————
Net current assets 142,155 107,285
————————————————————— —————————————————————
Total net assets £ 2,905,716 £ 2,900,312
═════════════════════ ═════════════════════
Represented by:
Unrestricted funds
Capital fund 2,551,800 2,566,918
Income fund 353,916 333,394
————————————————————— —————————————————————
Total Charity funds £ 2,905,716 £ 2,900,312
═════════════════════ ═════════════════════
Approved by the Trustees on
and signed on their behalf by:

C J A BLISS

19/10/2021

The notes on pages 16 to 23 form part of these financial statements

Page 15

GRAND PRIX TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS

AT 31 DECEMBER 2020

Page 2020 2019
£ £
Net Cash flows from operating activities
Net incoming resources before gains 12 5,404 340,229
Less investment income and deposit interest (58,248) (79,753)
Loss / (gain) on investment assets 14,623 (339,563)
Decrease in debtors and prepayments 3,085 3,680
(Decrease) / increase in creditors (2,478) 5,279
Loss on revaluation of investment cash 22 495 453
Net cash expended from operating activities (37,119) (69,675)
Cash flows from investing activities
Investment income 18 58,123 79,497
Deposit interest 125 256
Payments to acquire investments 20 (216,584) (331,592)
Receipts from sales of investments 20 408,471 266,902
Net cash generated from investing activities 250,135 15,063
Net increase / (decrease) in cash and cash equivalents for the year 213,016 (54,612)
Reconciliation of net cash flow to movement in net funds
Net cash resources at 1 January 2020 127,450 182,515
(Loss) on revaluation of investment cash 22 (495) (453)
Cash and cash equivalents at 31 December 2020 £ 339,971 £ 127,450
Cash and cash equivalents consist of:
Cash held with Coutts & Co 21 132,695 99,040
Cash held with Close Brothers 19 193,781 17,150
Cash held with Bank of Scotland 21 13,495 11,260
£ 339,971 £ 127,450

The notes on pages 16 to 23 form part of these financial statements

Page 16

GRAND PRIX TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and preceding period.

Basis of accounting

The charity constitutes a public benefit as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The trust continues as public benefit entity as defined by FRS 102.

Fixed Asset Investments

Investments are included at closing mid-market value (excluding any accrued interest) at the Balance Sheet date. Realised gains and losses on investments are recognised on disposal of investments and any unrealised gain or loss on revaluation is taken to the Statement of Financial Activities. The determination of any gains and losses is calculated by reference to the value of such assets at the beginning of the accounting period.

Investments in subsidiary undertakings are stated at cost.

Incoming resources

Voluntary donations include donations under Gift Aid with the associated tax credits included when receivable. Interest from deposit accounts is included when received.

Investment income is derived from dividends and interest receivable from investments and is accounted for in the period in which the trust is entitled to receipt.

Resources expended

All expenditure is included on an accruals basis, which is where there is a legal or constructive obligation committing the trust to the expenditure.

The costs of generating funds consist of investment management fees, non-reclaimable UK tax credits and bank charges.

Charitable activities comprise grants and donations made during the year, governance costs and expenditure incurred providing grant support and monitoring and are expended through the Statement of Financial Activities when the offer is conveyed to the recipient.

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

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value.

Consolidation

The consolidated financial statements comprise those of the trust and its wholly owned subsidiary, Grand Prix Trading Limited.

Page 17

GRAND PRIX TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

ACCOUNTING POLICIES (continued)

Status of funds

All funds are held on an unrestricted basis. The trustees have complete discretion for the use of the funds in pursuance of the trust’s objectives

Debtors and creditors receivable / payable within one year

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

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the entity's cash management.

Provisions

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

Taxation

The charity is not subject to any taxes on its charitable activities. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the level of income and expenditure is sufficient with an income level of reserves for the charity to be able to continue as a going concern.

The Covid-19 pandemic has created significant operational and financial pressures on the charity. Having considered the contingency plans in place, the support to businesses announced by the UK Government and having reviewed updated Cashflow forecasts, the trustees consider the adoption of the going concern basis in preparing these financial statements continues to be appropriate.

Judgements and key sources of estimated uncertainty

In preparing these financial statements, the trustees have to make judgements on how to apply the charity’s accounting policies and make estimates about the future. The critical judgement that has been made at arriving at the amounts recognised in the financial statements and the key area of estimation uncertainty that has a significant risk of causing a material adjustment to the carrying value of assets and liabilities in the next financial year, is discussed below:

 Listed investment valuations.

The charity holds listed investments whose valuations are largely expected to be in line with the relevant stock prices listed on the London Stock Exchange.

Page 18

GRAND PRIX TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Page 2020 2019
2. INCOME FROM INVESTMENTS £ £
Income from UK quoted securities 39,261 59,584
Income from foreign quoted securities 21,030 20,496
Accrued income received 683 -
Adjustment for accrued income (2,851) (583)
——————————————————— ———————————————————
58,123 79,497
Deposit interest from accounts with
- Coutts & Co 123 241
- Bank of Scotland 2 2
- Close Brothers Asset Management - 12
HM Revenue & Customs repayment supplement - 1
——————————————————— ———————————————————
Total Investment Income 12 £ 58,248 £ 79,753
═══════════════════ ═══════════════════
3. INCOME FROM DONATIONS
Voluntary donations 12 £ 105,560 £ 209,578
═══════════════════ ═══════════════════

4. NET PROFIT FROM TRADING ACTIVITY OF SUBSIDIARY

The charity has a wholly owned trading subsidiary, Grand Prix Trading Limited, which is incorporated in England and Wales. The company organises fundraising events solely for the purpose of raising funds for The Grand Prix Trust. Once a working balance is available, the company donates its taxable profits to The Grand Prix Trust. The company was dormant for the year and also the prior year. Unaudited financial statements are filed with the Registrar of Companies each year.

2020 2019
£ £
Net assets £ 851 £ 851
═══════════════════ ═══════════════════

Page 19

GRAND PRIX TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

5.

Page 2020 2019
CHARITABLE ACTIVITIES £ £
Charitable donations made to individuals 41,375 117,797
Governance costs
Administration fees and expenses 33,433 47,300
Client co-ordinator fees 34,399 34,271
Audit fee 4,200 4,200
Legal fees 2,000 228
Insurance premium 1,734 1,631
——————————————————— ———————————————————
Total Charitable Activities 12 £ 117,141 £ 205,427
═══════════════════ ═══════════════════

Administration fees represent amounts paid to Arlene Bansal, whose duties include supporting the fundraising, general management and governance of the charity.

Client co-ordinator fees represent amounts paid to Sally Oliver who acted in an advisory capacity to the trustees with regards to identifying prospective beneficiaries and ways to assist these beneficiaries.

6.

EXPENDITURE ON RAISING FUNDS

Investment management fees 21,751 22,387
Tax credits on investment income - overseas withholding tax 3,995 4,130
Tax credits on investment income- UK reclaimable (301) (354)
Fundraising expenses 426 56,357
Online fundraising fees 274 235
Bank charges (group) - 30
————————————————————— —————————————————————
12 £ 26,145 £ 82,785
═════════════════════ ═════════════════════
FIXED ASSET INVESTMENTS (AT MARKET VALUE)
Held with Close Asset Management Ltd
Quoted investments within the United Kingdom 1,505,353 1,803,431
Quoted investments outside the United Kingdom 1,076,989 985,421
————————————————————— —————————————————————
2,582,342 2,788,852
Cash held as part of the investment portfolio 15 181,019 3,975
————————————————————— —————————————————————
13 2,763,361 2,792,827
Subsidiary undertaking (at cost) - see below 200 200
————————————————————— —————————————————————
14 £ 2,763,561 £ 2,793,027
═════════════════════ ═════════════════════

7. FIXED ASSET INVESTMENTS (AT MARKET VALUE)

Page 20

GRAND PRIX TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Page 2020 2019
£ £
FIXED ASSET INVESTMENTS (AT MARKET VALUE) (continued)
Net unrealised (loss) / gain on UK investments (25,546) 173,506
Net unrealised gain on overseas investments 86,610 160,921
———————————————————— ————————————————————
61,064 334,427
Net realised (loss) on UK investments (64,036) (1,872)
Net realised (loss) / gain on overseas investments (11,651) 7,008
————————————————————— —————————————————————
(75,687) 5,136
————————————————————— —————————————————————
Total net (loss) / gain on Fixed Asset Investments 12 £ (14,623) £ 339,563
═════════════════════ ═════════════════════

The charity owns the whole of the issued share capital, 200 ordinary shares of £1 each, of Grand Prix Trading Limited, registered company number 02122266 in England and Wales. The company is dormant with net assets of £851.

There were no material investments representing more than 5% of the value of the total investment portfolio in the year.

Quoted investments: 2020 2019
£ £
Market value at 1 January 2020 2,788,852 2,384,599
Additions at cost 15 216,584 331,592
Disposal proceeds at carrying value 15 (408,471) (266,902)
Net realised investment (loss) / gain on sales (75,687) 5,136
Net unrealised investment gain on revaluation 61,064 334,427
———————————————————— ————————————————————
Market value at 31 December 2020 £ 2,582,342 £ 2,788,852
═══════ ═══════
Historical cost at 31 December 2020 £ 1,738,507 £ 1,921,064
════════════════════ ════════════════════

Page 21

GRAND PRIX TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Group Group Charity Charity
Page 2020 2019 2020 2019
8. DEBTORS £ £ £ £
Accrued income 2,108 4,959 2,108 4,959
HM Revenue & Customs 655 354 655 354
—————————————————— —————————————————— —————————————————— ——————————————————
13/14 £ 2,763 £ 5,313 £ 2,763 £ 5,313
══════════════════ ══════════════════ ══════════════════ ══════════════════
9. CASH AT BANK
Bank of Scotland Plc
Sterling deposit account 5,608 5,606 4,757 4,755
Sterling current account 7,887 5,654 7,887 5,654
—————————————————— —————————————————— —————————————————— ——————————————————
15 13,495 11,260 12,644 10,409
Coutts & Co 15 132,695 99,040 132,695 99,040
Close Brothers
US dollar capital a/c ($17,421) 12,762 13,175 12,762 13,175
—————————————————— —————————————————— —————————————————— ——————————————————
13/14 £ 158,952 £ 123,475 £ 158,101 £ 122,624
══════════════════ ══════════════════ ══════════════════ ══════════════════
10. CREDITORS - amounts falling due within one year
Investment management fees 5,697 5,765 5,697 5,765
Future commitments 5,000 2,375 5,000 2,375
Audit fee 4,200 4,200 4,200 4,200
Client co-ordinator 2,921 4,401 2,921 4,401
Trust administrator 1,936 4,957 1,936 4,957
Sundry expenses 54 588 54 588
——————————————————— ———————————————————— ———————————————————— ————————————————————
13/14 £ 19,808 £ 22,286 £ 19,808 £ 22,286
══════════════════ ══════════════════ ══════════════════ ══════════════════

Page 22

GRAND PRIX TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Page 2020 2019
11. FINANCIAL INSTRUMENTS
£ £
The carry amounts of the charity’s financial instruments are as follows:
Financial assets
Measured at fair value through SOFA:
-Fixed asset quoted investments (note 7) 20 2,582,342 2,788,852
-Cash under management (note 7) 19 181,019 3,975
-Cash at bank and in hand (note 9) 21 158,101 122,624
Measured at amortised cost:
-Accrued income (note 8) 21 2,108 4,959
-Other debtors (note 8) 21 655 354
-Prepayments 1,099 1,634
Financial liabilities
Measured at amortised cost:
-Accruals (note 10) 21 19,808 22,286
════════════════════ ════════════════════
The income, expenses, net gains and net losses
attributable to the charity’s financial instruments are
summarised as follows:
Income and expense
Measured at fair value through SOFA:
Net (losses) / gains (at fair value) 12 £ (15,118) £ 339,110
════════════════════ ════════════════════
12. FOREIGN EXCHANGE (LOSS)
Revaluation of Close Brothers US dollar account 12/15 £ (495) £ (453)
═════════════════════ ═════════════════════

Page 23

GRAND PRIX TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

15. TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS

No trustee received any remuneration or refund of expenses during the year ended 31 December 2020.

No transactions occurred between the trust and the trustees during the year ended 31 December 2020.

The following Trustees’ also were directors of Grand Prix Trading Limited during the year ended 31 December 2020:

16. ULTIMATE CONTROLLING PARTY

The ultimate controlling party are the trustees of the Grand Prix Trust.

17. DONATED SERVICES

Rawlinson & Hunter have donated their technical and advisory services in preparing the financial statements and other charity administration. The value of these services has been estimated at £24,000 plus VAT for the year ended 31 December 2020 (2019 - £32,000 plus VAT).