31 DECEMBER 2015 - Charity Commission

JAMES PERCY FOUNDATION

Company Limited by GuaranteeRegistered Charity

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2015

Charity Registration Number 1144494Company Number 07723208


REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2015

CONTENTS Page

Reference and administrative details

Trustees' report (Incorporating the Strategic Report) 2-13

Independent Auditors' report 14

Statement of financial activities 15

Balance sheet 16

Cash Flow Statement 17

Notes to the financial statements 18-22


REFERENCE AND ADMINISTRATIVE DETAILS

Trustees Mrs Martine Helene Suzanne LhuillierMr Henry Charles Micktem PageMr Tomas HuntingfordMr Eduard Hunting ford Lhuillier

C- g-g 50 &-g 6 a & D~llaRegistered office: haysmacintyre

Chartered Accountants26 Red Lion SquareLondon WC1R 4AG

Auditors: haysmacintyreChartered Accountants26 Red Lion SquareLondon WC IR 4AG

Governing document: Memorandum and Articles incorporated 29 July 2011 as amended by SpecialResolution registered at Companies House on 20 October 2011. Registered with the

Charity Commission on 1 November 2011.


TRUSTEES' REPORT (INCORPORATING THE STRATEGIC REPORT)


The trustees present this report and audited financial statements for the period from 1 January 2015 to 31 December2015.

CHARITABLE OBJECTS

The objects of the Charity as set out in our statutory document are:

(i) The advancement of education through all lawful means including (but not limited to) the promotion ofeducation for women, children and young people;

(ii) The relief of poverty;

(iii) The promotion of health and relief and prevention of sickness, disease or physical or mental disability.

These objects form the basis ofour grant-making activities which are divided into the following main areas:

~ Education/Training

~ The advancement of health or saving of lives

~ Disability

~ The prevention or relief of poverty

~ Economic/Community development/Employment/Women empowerment

~ General charitable purposes

The Charity aims to focus its resources on areas with high need and on projects and interventions which are the mostcost-effective. It therefore provides grants to charitable bodies and NGOs who are able to have the biggest impact. Thisis further discussed below.

GRANT-MAKING POLICY

Grants are mainly awarded to European NGOs, but also to other international and national charities. Grant-makingguidelines, which are provided to organisations seeking funding, have been drawn up and approved by the Board.Organisations are required to submit a detailed application for each project that is put forward for funding.

Applications for funding are studied by a committee known as the Grant-Making Committee, which is currently made upof the trustees.

Upon receiving applications, due diligence is performed on every potential grant recipient. This involves an in-depthreview of their financial statements, incorporation documents, impact measurement and monitoring policies. The Charityrequests two references from suitable persons (i.e. significant donors) as well as information on the organisation as awhole (organisation chart, trustees, etc.). No project receives funding unless the due diligence check is satisfactory.

Afier the due diligence check, the Grant-Making Committee ensures that the applications are in line with the Charity'spriority interventions (as outlined on the Charity's website), that the potential grant recipient has the necessary expertiseand experience to implement the proposed project and that they have provided suitable indicators to measure the outcomeof their interventions.

At least one Trustee visits each organisation and their projects before each project is funded. They check on-site howother projects run by the organisation are implemented (if appropriate), discuss the proposed project in further detail and

gain a greater understanding of the area, local factors and whether the organisation's other projects are well-run.

Visits are also tnade, by one of the trustees or an appointed representative, to on-going and/or completed projects and areport is drafied and made available (i) to the trustees upon project completion and/or (ii) to the Grant-MakingCommittee for prior approval of extensions and additional grants.


TRUSTEES' REPORT (continued)


The Charity's partners are asked to submit interim and annual reports, as appropriate, to update the trustees on projectimplementation, whether the partner is on target to attain the objectives set out in their application and any changes to theproject. Afler signature of a partnership agreement, the Charity's partners are contractually obliged to notify the Charityof any changes to the project and any significant changes to their organisations.

Upon completion of each project, a completion report is prepared, giving further details on the outcome of the projectand the extent to which the objectives of the projects were met.

The Charity focuses on providing grants through Western NGOs rather than local NGOs. The trustees believe that

projects implemented by Western NGOs, with their experience, influence and resources, will reach more beneficiariesand have a more significant and sustainable impact. The James Percy Foundation is particularly interested in funding

pilot programmes that can be rolled out to scale.

In 2015, the Charity focused on finding new NGO partners. Trustees met with several London-based NGOs and severalpotential projects were visited in Malawi, Rwanda and India. One of the projects visited in Rwanda was approved and

other projects are under review.

APPOINTMENT AND TRAINING OF TRUSTEES

Trustees are appointed to the Charity Board by the existing trustees through a nomination and election process. A list oftrustees appointed during the period of this report is provided on page l.

Trustee training is provided by the Charity's advisors and other training organisations as required. Trustees areencouraged to attend appropriate external training courses I seminars to enhance their expertise.

In 2015, Martine Lhuillier successfully completed an on-line course organised by MIT University entitled EvaluatingSocial Programs.

In 2015, Tomas Huntingford successfully completed the Financial Markets course organised by Yale. He also materiallyenhanced his knowledge of property financing through multiple real estate projects linked to his current role with his

employer (unrelated to the Charity).

Eduard Huntingford Lhuillier passed CFA Level 1 in December 2015, which has increased his understanding of theCharity's financial matters.

The Trustees have set up a dedicated training session with a specialist advisor to go through governance, controls and

charity management best practices and leam about the latest guidance. If this training is successful the Trustees will

consider scheduling at least one training session per year.

RISK MANAGEMENT

The Charity has processes that ensure that risks are mitigated and appropriate action to manage them is taken. Theseprocesses are reviewed and improved on a regular basis. The risks to the Charity are both financial and operational and

reviewing them ensures that the appropriate mitigating action is taken in order to address these risks. The main risks areassociated with the effective management of the Charity's investments and the recipient organisations' use of the grants

that are awarded. The trustees address these risks through their close and active involvement in the funding monitoring

process and through regular reviews and meetings with the Charity's appointed lawyers, investment managers and

bankers. As well as performing due diligence on potential grant recipients as indicated above, the Charity performs due

diligence checks on all its advisors and financial institutions.




REVIEW OF ACTIVITIES AND FUTURE DEVELOPMENTS

In 2015, the trustees awarded grants to 7 projects in the total sum of6434,306.

A summary ofeach project is set out below:

A. New Projects

In 2015, the Charity awarded Funding to the following project:

I. Organisation:Project:Date approved:Total funding requestedDonations paid in 2015:Grant period:

Save the ChildrenAdvancing the right to read (ARR)19 May 20158127,0420181,886 (Euro equivalent of f.127,042)1"January 2015 to 31"December 2015 (the project will continue until 2017)

Project summary: ARR aims to deliver a continuum of services for Rwandan children from birth to nine

years old - at home, at school and in the community. By 2017, it aims to ensure thatRwandan children acquire strong literacy skills, laying the foundation for their on-

going success through four project pillars:

1. Closing the gap in early childhood development and learning before school,helping families build pre-school children's emergent reading skills, and developinga sense that reading can be fun.

2. Improving the teaching of reading in school through training and support forteachers.

3. Developing a culture of literacy and learning outside of school by creatingopportunities for children, their parents and communities to practice and enjoyreading together.

4. Increasing children's access to high-quality, local-language materials by working

with local publishers, stimulating and meeting demand for a sustainable supply ofreading materials.

The Charity was asked to provide funding for pillars 2, 3 and 4.

Reasons for funding: (i) the project appeared to receive a high level of support from the Rwandan

education authorities, local leaders and communities, (ii) the Rwandan team is highly

professional and motivated, (iii) the project adopts a holistic approach and (iv) it is a"signature programme". It is therefore oriented towards sustainability because it is

based on evidence, which in turn is used to advocate for government replication and

scaling up.

Project review: The completion report was sent on 11 April 2016. The activities were implemented

as planned, however the results from the random control testing will only beavailable from June 2016 at the earliest.

Martine Lhuillier performed a field visit in May 2016; she visited two schools, two

reading clubs, a family home and a book development workshop. She interacted with

the main stakeholders and some of the programme beneficiaries. She found that the

activities clearly benefit the beneficiary children, teachers, local publishers and their

communities.




REVIEW OF ACTIVITIES AND FUTURE DEVELOPMENTS (continued)

B.On-going projects

The Charity continued to provide funding to the following projects in 2015:

1. Organisation:Project:

Date approved:Total funding requestedDonations paid in 201StDonations paid in 2014:Project end dater

Malaria ConsortiumIntegrated Community-based lnterventions for Malaria Services (ICIMS) in SouthernNations, Nationalities and Peoples Region (SNNPR), Ethiopia30 August 20146299,587679,666 (Euro equivalent of f57,264)67L686.28 (Euro equivalent of657,263)12 October 2017

Project summary: This project aims to improve the use and effectiveness of community-based healthservices in SNNPR in terms of malaria prevention and treatment. MalariaConsortium work closely with the public health system to implement this project in

order to "bridge the gaps" in health service delivery at community level.

Project review: Martine Lhuillier visited this project in March 2015; five months after programmeimplementation began. The project was in its early stages, but she found the activitiesthat she was able to visit satisfactory.

The Charity received the final version of the annual report in January 2016. Delays in

implementation made it difficult to measure the impact that this project is having sothe grant-making committee was only able to approve six months' further funding tothis project. Upon receipt of the interim report and a further on-site visit, this projectwill be submitted to the committee for approval of further funding.

2. Organisation: Bosco Boys Welfare Society (BBWS)Project: Quality Education to Tribal Children —Empowerment of Tribal WomenDate approved: 13 February 2013Total funding requested: Rs 6,520,554 (approx. 690,080)Donations paid in 2015: 651,275

Donations paid in 2014: 642,733Project end date: 31"March 2016

Project summary: The objectives of this project were (i) to assist school-going children with theireducation through support classes and (ii) to instil leadership and unity in womenthrough Self Help Groups.

Project review: Martine Lhuillier visited this project in December 2015. She found that this projecthas really made a positive change to the lives of its beneficiaries, particularly duringthe second and third years of implementation when the charity focused on the mosteffective project components.

Impact/Objectives: The beneficiary children's level of English, Maharathi and Mathematics improvedsignificantly —the learning levels of 87.5% of the beneficiary children improved

(target 50%). In addition, parents have started to pay fees towards these classes,which shows that they appreciate and understand their importance.





The Self Help Groups meet regularly, 58'/o of the women beneficiaries increasedtheir level of awareness on savings, income generation, children's education, childimmunisation, cleanliness, alcoholism, roads, bridges, etc. (target 40'/s). All the SelfHelp Groups have implemented a monthly savings programme, 203 have opened abank account (target 120). 72/s of the women beneficiaries have started incomegeneration activities (target 40/o).

3. Organisation:Project:Date approved:Total funding requested

Donations paid in 2015:Donations paid in 2014:Project end date:

Bihar Water Development Society (BWDS)Enhancement ofEducation, Health and Livelihood in Bihar13 November 2012Rs 13,409,820 (approx. 0198,582)067,327

057,66831" January 2016 (one month later than expected due to delays caused by theAssembly election in Bihar).

Project summary: This project was implemented in 108 villages spread over 6 districts in Bihar. ltaddressed the educational, health and livelihood needs of the poorest andmarginalised families in these villages. This project was implemented using a rightsbased approach. Supplementary education was provided to poor dropout children andthe organisation aimed to raise awareness on the Right to Education programme andinform the community how to access government schemes, such as schemes relatingto education. The project also addressed the health needs of the beneficiary childrenand their family members and created awareness about health and hygiene. Womenwere organised into Self Help Groups for their social, economic & politicalenhancement.

Project review: Martine Lhuillier visited this project in December 2015. She found that the behaviourof the beneficiaries had dramatically changed since her first visit in February 2013.During her first visit she noted that when asked to read or do maths, most of thechildren would run away and the women were so shy that they would not speak whenasked questions. During her latest visit, the children were keen to answer questionsand demonstrated satisfactory improvements in literacy and mathematics. Thewomen were keen to speak and share their experiences and had to take turns soeveryone could be heard. During the field visit, Martine inspected the registers andnoted that attendance levels at the Supplementary Education Centres and parents'meetings were very good.

Impact/Objectives: Almost all the child beneficiaries attend Government Schools, which was not thecase before. Thanks to the awareness raising component of this project, over two-thirds of the beneficiary women opted for institutional childbirth and had theirchildren vaccinated. In addition, half of the women beneficiaries now receive otherGovernment benefits such as the Below Poverty Line housing, old age and widows'

pension and family planning schemes. More than half of the women in the Self HelpGroups opened a bank account and have started a small business. The CompletionReport for this project was received in March 2016 and the outcomes are in line with

the expected impact.

Women: 270 self-help groups were formed and now benefit 3,044 members (target270 SHGs). More than 60'/s of the beneficiary women now have access to basichealth, education Jt livelihood related benefits (target 50/o). 54'/o of the beneficiarywomen engage in sustainable income generating activities (target 50'/o).





Children: 1256 beneficiary children now study in 29 Supplementary EducationCentres (SECs) (target 30 SECs and 1200 children). On average tbe beneficiarychildren's learning outcomes improved as follows between 2015 and 2013: Hindi:74.17/a vs 32.42/a, Mathematics: 80.59/a vs 41.89/o, English: 68.08/s vs 29.69'/v

(target 50/o). 98/a of the beneficiary children have enrolled in Government schoolsand 80'/o of their parents participated in school management committees.

Health: more than $0/o of the beneficiary children were immunised (target 40/o),70'/o of beneficiary pregnant women opted for institutional childbirth and attendhospitals for regular check-ups (target 40'/o).

4. Organisation:Project:Date approved:Total funding requested

Donations paid in 2015:Donations paid in 2014:Project end date:

Chirag Education Culture and Health Awareness CentreResidential project for Manjhi children in Bihar25+ July 2012Rs 3,995,450 (approx. 058,694)618,305

015,22331a December 2015 (actual end date 31st January 2016).

Project summary: This project focused on children from the Musahar, Turiah and Dome tribes; groupswhich are very much neglected in India. The aim was to encourage these children toattend government schools. The children attended two yearly residentialprogrammes, providing them with a strong educational foundation. The teachersinvolved with this project visited the families and village schools after each trainingsession as part of a follow-up programme to ensure that the beneficiary childrenattended school regularly.

Project review: Martine Lhuillier visited this project in November 2015 and found that it had greatlyimproved since her previous visit. Tests in Hindi, Mathematics and English weregiven to the beneficiary children at the end of each residential programme in order tomeasure learning outcomes. On average, the children's results improved by 25.$'/o.

Street plays and songs were used to raise the children's awareness of the importanceof education, health, cleanliness, hygiene and other issues. Successful Manjhi peoplegave talks to the children to motivate them to study. The director and teachers visitedthe beneficiaries' parents in the villages once a month to motivate them to send theirchildren to study and ensure that they attend the Government schools.

Impact/Objectives: During the third year, 1645 children attended the residential programme, which ismore than 200 children above the target of 1400. 93'/o of the higher level childrenwere able to read text books in Hindi and small sentences in English. 76'/o were ableto perform five digit sums. 80'/o of the lower level children learnt the Hindi and

English alphabets and 90'/o are now able to perform simple additions. 95'/o of asample of beneficiaries passed a test on learning outcomes, which only 20'/o of asample of 40 non-beneficiary comparable children passed. 92'/o of the beneficiariesare now enrolled in Government schools.





B.Completed projects

The following projects completed during 2015:

1. Organisation:Project:Date approved:Total funding requestedDonations paid in 2015:Donations paid in 2014:Project end dater

Creative Handicrafts

Su~port for children of slum and tribal communities in Mumbai, Maharashtra12 May 2012Rs 5,039,200 (approx. 674,556)012,114620,25230 November 2015 (parts of the project were able to continue for 6 months longerthan originally planned).

Project summary: Through this project, Creative Handicrafts nurtures the growth of children byproviding education, nutrition and an enriching environment through Pre-schools(Balwadis) and a Child Development Centre (Bal Vikas Kendra).

Project review: The project activities were implemented as planned. The number of beneficiaries wasslightly lower than hoped: 187 children benefitted from the pre-schools instead of200 and 130 children benefitted from the Child Development Centre instead of 150.All the child beneficiaries live in slums. Small children benefited greatly fromattending regular study classes as this enabled them to learn some of the alphabet andbasic numbers and got them accustomed to the routine of attending school. 96children from the pre-schools were enrolled in Government schools in June 2015 andthe remaining pre-school children will enrol next year. All the children benefitedfrom the nutrition programme and health check-ups. One of the reasons for thesuccess of this project is that the teachers received regular training on teachingmethodologies. Even though the teachers had no teaching qualifications, the trainingthey received helped them to engage the children and motivate them to attend theclasses. Martine Lhuillier visited this project in November 2014 and observed thatthe teachers had been well trained. The children were highly motivated and appearedto enjoy learning. According to the pre-School and Child Development Centre'sregisters attendance was high —around 80'/n

Impact/Objectives: 82'/o of the pre-school beneficiary children are now able to read and recognise theMarathi and English alphabets, numbers and names of different items (animals,colours, flowers, fruit, vegetables, etc.). The same test was given to 30 comparablenon-beneiiciary children and only 27'/o passed. All the children who used the ChildDevelopment Centre (CDC) facilities are continuing their studies in higher education(secondary school or university), whereas according to a survey conducted byCreative Handicrafls on 30 comparable non-beneficiary children from the slums, 28had dropped out and only 2 were continuing their education.

2. Organisation: Reach Education Action Programme (REAP)Project: Quality Education for the Tribal children in MaharashtraDate approved: 25 July 2012Total funding requested: Rs 10,821,150 (approx. 0160,000)Donations paid in 2015i 023,733Donations paid in 2014: 625,835Project end date: 31" December 2015 (the project was due to end in March 2015 but was able to

continue in one of the districts for an additional 9 months)





Project summary: This project aims to enhance the quality of education provided to rural tribal children.In rural areas there are few schools, the public school system is inadequate andchildren have no parental guidance or other support. Supplementary classes are usedto address these problems and to ensure that all these children leam and stay inschool. The aim of this project is to bridge a gap in the children's education and notto duplicate the education that is already provided by the government. It also aims toput children who have dropped out of school back into normal education.

Project review: The Charity's funding of this project came to an end on 31"December 2015. Thecompletion report was sent on 12 March 2016. Thaiza Dias, who visited this projectin February and March 2015, found that the learning levels in Maths, English andMarathi were good.

Impact/Objectives: According to the Completion Report: (i) 3814 children in total attended thesupplementary classes which is significantly higher than the target of 2600 and (ii)overall attendance (75'/o to 80/o) was good but lower than expected (85'/s). 110teachers received monthly training to enhance their skills.

3. Organisation: Chirag Education Culture and Health Awareness CentreProject: Supplementary education and women empowerment in BiharDate approved: 25 July 2012Total funding requested: Rs 3,069,000 (approx. 645,433)Donations paid in 2015:-Donations paid in 2014i 025,635

Project end date: 31"September 2015

Project summary: This project provided supplementary education to children from families livingbelow the poverty line. Women receive training through Self Help Groups (SHGs),which will enable their socio-economic development.

Project review: The Charity's funding of this project came to an end on 31st September 2015, asagreed. The completion report was received in December 2015. This project wasimplemented as planned. To enhance the learning skills of the child beneficiaries, theinstructors received training, 15 supplementary education centres were established,benefiting 450 children &om Below the Poverty Line families, the children weretested on their learning outcomes and a summer camp was organised. To release thewomen beneficiaries from their economic dependency on money lenders, 51 SelfHelp Groups (SHGs), totalling 612 women were formed and to prepare potentialcommunity leaders, training and street plays were organised.

Impact/Objectives: Impact for the different objectives: (1) enhancing the learning skills of the children:50'/s of the children passed the annual test (target 60'/o), 80'/o attendance at thesupplementary education centres (target 80/o), 15 instructors, 2 animators and onesupervisor were trained (target = same), 264 children attended a summer camp (target= 250), (2) releasing women from their economic dependency on money lenders: theself-help group leaders and members received training, 51 self-help groups (SHGs)opened a Bank account (target 50 SHGs), their total savings is 2.5 times and theinter-loaning 4.7 times the amounts expected, (3) the community leader training andstreet plays have contributed to an increase of 69.33'/o in the number of projectbeneficiaries who benefit from the Government's welfare schemes, such as ScheduleCasts/Schedule Tribes stipends, school uniforms, school midday meals, housing etc.





4. Organisation:Project:

Date approved:Total funding requestedDonations paid in 2015:Donations paid in 2014:Project end date:

Save the Children

Improving the treatment of childhood diarrhoea and pneumonia in Amhara, Oromiaand Southern Nations, Nationalities and People's Regions (SNNPR), Ethiopia15 April 2014f122,762

6153,417.08 (Euro equivalent of f122,762)31"July 2015 (four months later than expected due to delays)

Project summary: This project aimed to reduce morbidity and mortality among children under-fiveyears old by improving the treatment of childhood diarrhoea and pneumonia inAmhara, Oromia and SNNPR regions of Ethiopia. It aimed to increase coverage inthe target areas oforal rehydration salts (ORS) and zinc for the treatment ofdiarrhoeaand amoxicillin for the treatment of pneumonia by increasing demand for theappropriate diarrhoea and pneumonia treatments and improving access to, and the

quality of, community case management services and interventions.

Project review: The Charity's funding of this project came to an end on 31" July 2015. MartineLhuillier visited it in March 2015 and the completion report was sent on 19 October2015. Overall this project achieved the majority of its objectives, with some of theresults even exceeding Save the Children's expectations. This project proved that,with support and training, the Health Extension Workers who work in the villages,can not only pmvent illnesses but also give treatments and save lives of manychildren under five years old. The treatment of diarrhoea and pneumonia for childrenunder 5 greatly improved in the three implementation areas. During the projectimplementation period, ORS, zinc and amoxicillin treatments were respectivelyavailable in at least 94/o, 71.3/o and 57.3'/a of the Health Posts covered by thisproject Treatment outcomes improved for over 98'/s of pneumonia and diarrhoeacases.

Some of the ICCM activities (supportive supervision, demand creation, supplyissues, Performance Review and Refresher Training) have been incorporated into anew Government implemented project (Community Based New born Care) and willtherefore continue without any further funding.

Impact/Objectives: The project's objective of reducing under-five mortality by improving the treatmentof childhood diseases, diarrhoea and pneumonia was mostly achieved. Since projectinception, under-five mortality decreased by 40'/o. An estimated 4,900 under-5 deathsin the target zones were averted through the introduction of child survival strategies,including ICCM. Most of the targets were achieved and some were even exceeded.1,788,923 children under 5 and 5,422 Health Extension Workers benefited from thisproject. For children under 5 in the project implementation area: (i) 88s/o of childrenwith pneumonia received antibiotics (target- 48.2'/a), (ii) 62'/o children with

suspected pneumonia were taken to an appropriate health provider (target- 64.49'o),

(iii) 95'/s of children with diarrhoea were taken to an appropriate health provider(target - 41.4/o), and (iv) 47/o children with diarrhoea received ORS (target-31.4'/e).

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FINANCIAL REVIEW

In the year to 31 December 2015 the Charity received donations totalling 01,350,000 and generated interest andinvestment income of0673,886. Costs totalled 0260,341. Investment/property costs amounted to 0217,036.

0434,306 was spent on charitable projects, of which approximately 52% was spent on education-related projects, 18% onhealth related projects, 18%on projects that related to health and education, and 12% on projects that related to educationand women empowerment.

The net movement in funds of 61,677,311 is being held in investments and cash to support the charitable purposes in thefuture.

In November 2015 the Charity completed the purchase of a German property in the city of Esslingen (adjacent toFrankfurt). The purchase price was 67,580,000 (including capitalised costs the asset was booked at 08,423, 163). Thepurchase was partially financed with a loan I'rom Signal Iduna for a value of 04,150,000 —with two separate trenches fora term of 10 and 15 years. The property is now fully let and is delivering an estimated 6400,000 rental income per annumand net income of c. 6220,000 per annum, of which c. 090,000 is contributed towards a savings account with the lender.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The James Percy Foundation is a company limited by guarantee governed by its Memorandum and Articles ofAssociation dated 29 July 2011 as amended by Special Resolution registered at Companies House on 20 October 2011.Itis registered with the Charity Commission as a charity. The Charity currently has 4 members, which is the currentmaximum.

Pay policy for senior staff

The trustees consider the board of trustees comprise the key management personnel of the charity in charge of directingand controlling, running and operating the Charity on a day to day basis. All trustees give of their time fieely and nodirector received remuneration in the year. Details of directors' expenses and related party transactions are disclosed in

note 3 to the accounts.

The Charity currently employs no staff.

Related partier and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between atrustee of the charity with any of our contractual partners must be disclosed to the full board of trustees. In the current

year no such related party transactions were reported.

RESERVES POLICY

The Charity was in receipt of donations of approximately EI,350,000 in the year, which is unrestricted and which theCharity plans to use to finance grant-making activities over the medium to long term. Unspent capital is being investedto generate further income, however the nature of the investments will ensure that there is sufficient liquidity to ensurethat cash is available to award in grants when opportunities arise. Given the high liquidity of the Charity's portfolio thetrustees do not require the Charity to hold significant &ee reserves and therefore their policy is to maintain cash availablefor the following 6 months ofdonations.

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FUTURE PLANS

The Charity has selected some reputable Western NGOs who work in Africa and India, whose activities are in line withthe Charity's objects, as set out above. The trustees involved in the selection of projects have visited several of theseNGOs in the UK. The Charity would like to concentrate their outgoing grants on a small number of partner organisationsso that they can ensure that the grants awarded are used in the intended manner and have the highest impact possible.

In 2016 the Charity will undertake a review of its governance, financial controls and risk management practices toidentify potential improvements.

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TRUSTEES' RESPONSIBILITIES STATEMENT

The trustees, who are also directors of the charitable company, are responsible for preparing the Report of the trusteesand the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial period. Under that law the directorshave elected to prepare the financial statements in accordance with United Kingdom Generally Accepted AccountingPractice (United Kingdom Accounting Standards and applicable law). Under company law the directors must notapprove the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of thecompany and of the profit or loss of the company for that period. In preparing these financial statements, the directors arerequired to:

~ select suitable accounting policies and then apply them consistently;~ observe the methods and principles in the Charities SORP;~ make judgments and accounting estimates that are reasonable and prudent~ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain thecompany's transactions and disclose with reasonable accuracy at any time the financial position of the company andenable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible forsafeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraudand other irregularities.

So far as each of the directors is aware at the time the report is approved:

~ there is no relevant audit information of which the company's auditors are unaware;~ the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit

information and to establish that the auditors are aware of that information; and

The trustees have taken advantage of the exemption available to small companies and have not prepared a strategicreport.

BY ORDER OF THE BOARD OF TRUSTEES

Tomas HuntingfordTrustee

Dated: 23 May 2016

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF


We have audited the financial statements of James Percy Foundation for the year ended 31 December 2015 whichcomprise the Statement of Financial Activities, the Balance Sheet, the Cashflow Statement and the related notes. Thefinancial reporting &umework that has been applied in their preparation is applicable law and United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 ofPart 16 of theCompanies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's membersthose matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other than the charitable company and itsmembers, as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of trustees and auditorAs explained more fully in the Trustees' Responsibilities Statement set out on page 13, the trustees (who are also thedirectors of the charitable company for the purposes of company law) are responsible for the preparation of the financialstatements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law andInternational Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing PracticesBoard's Ethical Standards for Auditors.

Scope of the audit of the financial statementsA description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website atwww. frc.org. uk/auditscopeukprivate.

Opinion on financial statementsIn our opinion the financial statements:~ give a true and fair view of the state of the charitable company's affairs as at 31 December 2015 and of the

charitable company's net movement in funds, including its income and expenditure, for the year then ended;~ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and~ have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Trustees' Annual Report for the financial year for which the financialstatements are prepared is consistent with the financial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to youif, 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 take advantage of the small companies' exemption in preparing the Trustees'

Annual Report.

dam Halsey (Senior statutory auditor)for and on behalf of haysmacintyre, Statutory Auditor

26 Red Lion SquareLondonWC IR 4AG

Dated: 23 May 2016

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STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME th EXPENDITUREACCOUNT

FOR YEAR ENDED 31 DECEMBER 2015

Notes

Total2015

Total2014

INCOME FROM:

DonationsInvestments

Total income

1,350,000673,886

2)023i886

17,056,284240,998

17,297,281

EXPENDITURE ON:

Raising fundsInvestment management and raising funds costsInvestment property costsBank interest

Charitable ActivitiesGrants in support of education, relief of poverty 4and advancement ofhealth

138,9$978,04711,799

434,306

98,729

603,921

Support costsOther

Total expenditure

Net income before investment gains

Net gains /(losses) on investments

Net income and net movement in funds for the 2year

20,49711,010

694,647

1,329,239

34$,072

1,677,311

27,24$7,774

737,673

16,559,608

685,045

17,244,653

Reconciliation of fundsTotal Funds bought forward at 01 January 2015

Total Funds carried forward at 31 December 2015

26,750,523

28,427,834

9,505,867

26,750,523

~ All income and expenditure in 2015 and 2014 was unrestricted.~ All amounts are derived from continuing activities.~ All recognised gains and losses are included in the Statement ofFinancial Activities.~ The notes on pages —18 - 22 form part of these financial statements

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BALANCE SHEET

AT 31 DECEMBER 2015

Company Number 07723208

Fixed AssetsInvestments

Current AssetsCash at bank and in handDebtors

Total Current Assets

Notes

457,23270,787

528,019

2015

32,159,691

3,$75,375

39875,375

2014

22,915,006

LiabilitiesCreditors falling due within 1 year

Net Current Assets

Total Assets less Current Liabilities

(109,876) (39,$58)4189143

32 577 834

398359517

26 75II 523

Creditors: falling due ager more than 1

year(4,150,000)

Net Assets 28 427 834 26 755,523

The Funds of the CharityUnrestricted general funds

Total Charity Funds

10 28,427,$34

28,427,834

26,750,523

26,750,523

Approved by the Trustees and authorised for their issue on 23 May 2016 and signed on their behalf by:

Mr Tomas HuntingfordTrustee

The notes on pages 18 - 22 form part of these financial statements

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STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2015

2015Note

20146

Reconciliation of Net Incoming Resources before gains and lossesto Cash Flow from Operating Activities

Net incoming resourcesDistributions from investment portfolioNet Returns on investmentIncrease in creditorsIncrease in debtors

1,329,239

(491,273)70,018

(70,787)

837,197

16,559,609(8,622,866)

(240,997)12,374

7,708, 120

CASH FLOW STATEMENT

Cash flows from operating activities

Cash flows from investing activitiesInvestment incomeNet financial investment

Cash provided by /(used in) investing activities

Cash flows from financing activitiesCash inflows from net borrowing

Cash provided by /(used in) financing activities

Increase /(decrease) in cash and cash equivalents in the year

837,197 7,708,120

491,2738,891,361

240,9974,426,394

4, 150,0004 150 000

(3,412,890) 3,522,723

8,400,088 4,185497

Cash and cash equivalents at the beginning of the yearChange in cash and cash equivalents due to exchange rate movements

3,875,375(5,253)

352,652

TOTAL CASH AND CASH EQUIVALENTS AT THE END OFTHE YEAR

457,232 3,875475

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NOTES TO THE FINANCIAL STATEMENTS


1. ACCOUNTING POLICIKSThe principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparationof the financial statements are as follows:

Basis of preparationThe 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 theFinancial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective I January 2015)-(Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

The James Percy Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilitiesare initially recognised at historical cost or transaction value unless otherwise stated in the relevant accountingpolicy note(s).

Reconciliation with previous Generally Accepted Accounting PracticeIn preparing the accounts, the trustees have considered whether in applying the accounting policies required byFRS 102 and the Charities SORP the restatement of comparative items was required.

No restatement has been required in making the transition to FRS 102 and the Charities SORP.

Preparation of accounts on a going concern basisThe trustees consider there are no material uncertainties about the Charity's ability to continue as a going concern.The review of our financial position, reserves levels and future plans gives Trustees confidence the charityremains a going concern for the foreseeable future.

Income recognitionAll income is recognised once the charity has entitlement to income, it is probable that income will be receivedand the amount of income receivable can be measured reliably.

DonationsDonations are included in full in the Statement of Financial Activities when there is entitlement, probability ofreceipt and the amount of income receivable can be measwed reliably.

Investment incomeInvestment income is recognised on a receivable basis once the amounts can be measured reliably.

ExpenditureExpenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it isprobable that settlement will be required and the amount of the obligation can be measured reliably. Expenditureis classified under the following activity headings:

~ Costs of raising funds comprises investment management and advisor fees~ Expenditure on charitable activities comprises grants made to causes that support the aims and

objectives of the James Percy Foundation~ Other expenditure represents support, administrative and governance costs associated with the day today management of the James Percy Foundation

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. The Charity isliable to pay income tax on German rental income which is charged against the relevant income stream.

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NOTES TO THE FINANCIAL STATEMENTS (continued)


Expenditure (continued)The Charity has no employees.

Expenditure allocated to the particular activity where the cost relates directly to that activity. However, the cost ofoverall direction and administration of each activity is included within 'Other expenditure. '

InvestmentsInvestments are a form of basic financial instrument and are initially shown in the financial statements at marketvalue. Movements in the market values of investments are shown as gains and losses in the Statement ofFinancialActivities.

The investment property was acquired on 17 June 2015 at its market value and has been included within thefinancial statements at that value (including capitalised costs). The trustees' policy, in line with FRS102, is tohold this property at an estimate of its fair value.

Creditors and provisionsCreditors and provisions are recognised where the charity has a present obligation resulting from a past event thatwill probably result in the transfer of funds to a third party and the amount due to settle the obligation can bemeasured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount afterallowing for any trade discounts due

FundsUnrestricted funds are donations and other income receivable or generated for the objects of the charity.

2. NKT MOVEMENT IN FUNDS 2015 2014

This is stated afier charging:

Auditors' remuneration (including VAT) 4,071 3,833

3. TRUSTEES' REMUNERATION AND REIMBURSED EXPENSES

The key management personnel of the Charity are the Trustees.

No trustee received remuneration for their services during the year.

The trustees received reasonable reimbursed expenses in connection with their roles as trustees of the Charityduring the year. For the year ended 31 December 2015 the reimbursed expenses amounted to 09,973 (2014:08,659).

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NOTES TO THK FINANCIAL STATEMENTS (continued)


4. GRANTS PAYABLE 2015 2014

A list of the grants awarded in the year is set out below:Patna Jesuit Society:a. Integrated Empowerment Action (IAE)b. Educational Programme for Musahar ChildrenJesuit province society:a. Education for migrating Dalit, tribal and poor childrenb. Promotive and curative health programs for tribal peopleBihar IYater Development Society (BWDS):a. Construction of a hostel for Dalit Boys, Gulnib. Enhancement ofEducation, health and livelihood, BiharCreative Handicrafts:Support for children in slum and tribal communities, MumbaiReach Education Action Programme:Quality Education for the Tribal Children in MaharashtraChirag Education Culture and Health Awareness Centre:a. Residential project for Manjhi children in Biharb. Dormitory for women, Boxer, Biharc. Supplementary education and women empowerment, BiharBosco Boys welfare SocietyQuality Education to Tribal Children —Empowerment of Tribal WomenPurnea Social and Educational SocietyEnsure education and health care of tribal and backward community hostelschildren in PumeaSave the ChildrenImproving the treatment of childhood diarrhoea and pneumonia in Amhara,Oromia and Southern Nations, Nationalities and People's Region (SNNPR)Advancing the Right to Read (ARR)Malaria ConsortiumIntegrated Community-based Interventions for Malaria Services (ICIMS) inSouthern Nations, Nationalities and People's Region (SNNPR), Ethiopia

67,327

12,114

23,733

18,305

51,275

181,886

79,666

86,57821,000

41,80715,477

8,77357,668

20,252

25,835

15,223

25,635

42,733

17,837

153,417

71,686

434,306 603,921

5. ANALYSIS OF OTHER EXPENDITURE2015 2014

Support costsLegal fees and governance costsAudit and accountancy

20,4973,3847,625

27,2481,6466, 128

31,506 35,022

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6. ANALYSIS OF TOTAL EXPENDITURE 20150

2014

Grants payableCosts ofraising fundsSupport and Othercosts

434,306228,$3531,506

694,647

603,92198,73035,022

737,673

7. INVESTMENTS 20156

20140

At 1 January 2015Net additionsNet gain I (loss)

At 31 December 2015

22,915,00611,198,871(1,954,186)

32,159,691

9,180,69913,049,260

685,047

22,915,006

Analysis of InvestmentsPropertyFixed incomeMulti-asset fundsEquitiesAlternativesCash

At 31 December 2015

8,423, 1636,359,689

443,75812,849,25$3,224,632

859,191

32,159,691

5,029,056438,797

11,987,6592,445,6213,013,$73

22,915,006

The Charity purchased an investment property during the year ended 31 December 2015 which represents 26% ofthe aggregate market value of the Charity's investments.

The Charity holds two illiquid hedge funds which have been valued at nil.

8. DEBTORS: amounts falling dueWithin one year

Trade debtors

2015

70,787

2014

9. CREDITORS: amounts fallingdue within one year

Accruals and trade creditors

2015

(109,876)

2014

(39,858)

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10. ANALYSIS OF NET ASSETS BETWEEN FIJNDS 2015 2014

Fund balances at 31 December 2015are represented by:

Investments

Current assetsCurrent liabilitiesNon-current liabilities

Net assets

11. TAXATION

32, 159,691528,019

(109,876)(4, 150,000)

28,427,834

22,915,0063,875,375

(39,858)

26,750,523

James Percy Foundation is a registered charity and therefore is not liable to income tax or corporation tax onincome or gains derived from its charitable activities within the United Kingdom, as they fall within theexemptions available to registered charities.

James Percy Foundation is liable to pay income tax and Value Added Tax within Germany.

12. LIABILITY OF MEMBERS

The Charity is constituted as a company limited by guarantee and has no share capitaL The liability of each of thefour members is limited to the sum of $1 per member.

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31 DECEMBER 2015 - Charity Commission

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