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2024-08-31-accounts

THE HATTORI FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS

31 AUGUST 2024

THE HATTORI FOUNDATION

REPORT AND FINANCIAL STATEMENTS

31 AUGUST 2024

CONTENTS

Page
Company Information 1
Report of the Trustee 2-4
Report of the Independent Examiner 5-6
Statement of Financial Activities 7-8
Balance Sheet 9
Notes to the Financial Statements 10-15

1

THE HATTORI FOUNDATION

CHARITY INFORMATION

Charity Name

The Hattori Foundation

Charity No 1014709 Principal Address 7 Exton Street London SE1 8UE Governing Instrument Trust Deed dated 5 October 1992 Trustee Hattori Trust Company Limited (Company number 2749030) Directors of the Trustee Company Andrew Marriner (Chairman) (Also referred to as ‘Trustees’) Joji Hattori Piers Lane AM Lady Gomersall Paul Watkins David Whelton OBE Raphael Wallfisch Krzysztof Chorzelski Catriona Syed Honorary Patrons Mrs Toyoko Hattori Music Advisor Gordon Back Administrator Thomas Gant (appointed 20 February 2024, resigned 10 January 2025) Hannah Burchett (appointed 21 January 2025) General Manager Glenn Kesby Solicitors Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD Independent Examiner Ross Stokes FCA The Accounting Collective LLP Studio 8, 229 Shoreditch High Street London E1 6PJ Investment Managers Cazenove Capital Management Limited 12 Moorgate London EC2R 6DA Investment Powers Wide discretionary powers

2

THE HATTORI FOUNDATION

REPORT OF THE TRUSTEE

The Trustee presents its annual report and financial statements of the Settlement for the year ended 31 August 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 the Statement of Recommended Practice (second edition) and Accounting Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102).

STRUCTURE, GOVERNANCE, MANAGEMENT AND RISK MANAGEMENT

The Foundation is constituted under a Trust Deed dated 5 October 1992.

Individual Directors of the Trustee Company are invited to propose names of suitable potential Directors for approval by the Board. Any approved individual would be approached informally and if interested, formally invited to join the Board by the Chairman.

The Trustee has considered the question of risk generally and believes that the major risk to the assets of the Foundation (and to its activities in general) to be fluctuations in the stock market. The Trustee has sought to mitigate this risk by engaging the services of a well-respected firm of investment managers and by keeping the performance of that firm under review.

OBJECTIVES AND ACTIVITIES

The Foundation is established for:

During the year, the Foundation conducted auditions and made awards to young musicians to assist with projects which they had submitted to the trustees, as indicated below.

Since 2015, The Hattori Foundation has run the building known as 1901 Arts Club, offering subsidised spaces for performances, rehearsals, meetings and events to other charities and emerging artists.

Grants are made at the discretion of the Trustee and usually follow an audition. Details of grants made during the year are set out below.

ACHIEVEMENTS AND PERFORMANCE

During the year the Foundation received 24 Junior applications. Awards ranging between £500 and £1,000 were made to eleven applicants totaling £7,500.

75 Senior applications were received from which 17 were invited to audition. Senior Awards of between £4,000 and £7,000 were made to five applicants including one ensemble, totaling £26,000. In addition to the Senior Awards, a further nine finalists were paid assistance grants of between £1,000 and £4,000 each, totalling £21,000. One special project was awarded a grants of £2,000. No Concerto Debut prize was awarded this year.

3

THE HATTORI FOUNDATION

REPORT OF THE TRUSTEE

FINANCIAL REVIEW

Reserves policy

The balance of unrestricted funds is represented by (a) sums invested with Cazenove Capital Management Limited classified on the balance sheet as fixed asset investments and (b) current assets which the Trustee regards as free reserves. The Trustee expects grant commitments to be funded as they fall due from future income; failing this, the Foundation has recourse to sums invested.

INVESTMENT POLICY AND PERFORMANCE

The Trustee’s investment policy is to preserve capital in line with inflation as a minimum and to maintain a sustained annual income above £80,000 per annum to enable the Foundation to continue its annual grant giving in music. During the year investment income has shown a increase of £12,769 (2023 – increase of £9,157). Net realised and unrealised gains on investments amounted to £384,902 (2023 – losses of £35,118).

PUBLIC BENEFIT

The Trustee has had regard to the guidance issued by the Charity Commission concerning public benefit. The Trustee is satisfied that the information given in this report, particularly regarding the activities undertaken and the achievements during the year, when read in conjunction with the objectives of the Foundation, demonstrates that the requirement to identify public benefit have been met.

PLANS FOR FUTURE

The Foundation will continue making awards to young musicians, ensembles and organisations and to provide extra support with performing opportunities at its premises, the licensed venue known as 1901 Arts Club.

STATEMENT OF TRUSTEE RESPONSIBILITIES

The Trustee is responsible for preparing the Report of the Trustee and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

The law applicable to charities in England & Wales requires the Trustee 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,

4

THE HATTORI FOUNDATION

REPORT OF THE TRUSTEE

STATEMENT OF TRUSTEE RESPONSIBILITIES (continued)

The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at the time the financial position of the charity and enable the Trustee to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity’s Trust Deed. The Trustee is 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.

Approved on behalf of the Trustee on 7 June 2025 and signed on its behalf

Andrew Marriner

Chairman

5

THE HATTORI FOUNDATION

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEE OF THE HATTORI FOUNDATION

I report to the Trustee on my examination of the financial statements of The Hattori Foundation (‘the charity’) for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.

This report is made solely to the charity’s Trustee, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s Trustee those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s Trustee as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the Trustee of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

6

THE HATTORI FOUNDATION

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEE OF THE HATTORI FOUNDATION

(continued)

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Ross Stokes, FCA

The Accounting Collective LLP Chartered Accountants, Studio 8, 229 Shoreditch High Street, London, E1 6PJ.

7 June 2025

7

THE HATTORI FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Note
INCOME AND EXPENDITURE
Investment income
Dividends and related income
1
Deposit interest
Resources expended
Investment management fees
Charitable activities
Grants
1&2
Consultancy
Auditions
Net incoming resources from investment and grants
Turnover
Event income
Other income
Donations received
Less: cost of goods sold
Bar consumables
Catering
Agency Staff
Artists and performances
Gross profit – carried forward		 2024
2023
117,137
104,368
1,238
3,054
118,375
107,422
13,656
13,813
58,250
53,050
10,000
10,000
267
246
68,517
63,296
36,202
30,313
86,940
84,695
4,400
4,800
30,000
-
121,340
89,495
8,788
9,686
4,412
6,456
7,321
7,205
6,034
5,458
26,555
28,805
94,785
60,690

The accompanying notes form an integral part of these financial statements

8

THE HATTORI FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

(continued)
Note
Gross profit – brought forward
Total gross income
Overhead expenditure
3
Other recognised gains and losses
Unrealised (losses)/gains on investment assets
5
Realised gains/(losses) on investment assets
5
Net income for the year
Fund balances brought forward – unrestricted funds		 2024
2023
94,785
60,690
130,987
91,003
180,962
121,858
(49,975)
(30,855)
393,550
(53,995)
(8,648)
18,877
384,902
(35,118)
334,927
(65,973)
3,317,681
3,383,654
3,652,608
£
3,317,681
£

All amounts relate to continuing activities.

All recognised surpluses and deficits are included in the statement of financial activities which shows the total net movement in funds for the year.

The accompanying notes form an integral part of these financial statements

9

THE HATTORI FOUNDATION

BALANCE SHEET - 31ST AUGUST, 2024

Note
FIXED ASSETS
Tangible assets
4
Investments
5
CURRENT ASSETS
Debtors and prepayments
6
Cash held by investment managers on
income account
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
Creditors
7
Provision for grants not yet paid
2
NET CURRENT ASSETS
NET ASSETS
REPRESENTED BY
Unrestricted funds
Restricted funds
Andrew Marriner - Chairman		 1,908
2,553
3,636,213
3,252,695
3,638,121
3,255,248
(890)
7,570
66,169
98,241
65,279
105,811
7,074
6,378
43,718
37,000
50,792
43,378
14,487
62,433
3,652,608
£
3,317,681
£
3,652,608
£
3,317,681
£
-
£
-
£
2024
2023
Approved by the Trustee of The Hattori
Foundation and signed on its behalf on 7
June 2025.

The accompanying notes form an integral part of these financial statements

10

THE HATTORI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

31 AUGUST 2024

1. ACCOUNTING POLICIES

a. Basis of preparation of accounts

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2021, the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102.

The Trustee considers that there are no material uncertainties about the Trust’s ability to continue as a going

b. Income recognition

All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations are recognised once received or once the Trustee considers that receipt is highly probable. In the event that a donation is subject to conditions that require a level of performance before the Trust is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Trust and it is probable that those conditions will be fulfilled in the reporting period.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by theTrust; this is normally upon notification of the interest paid or payable by the bank.

c. Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attached to that grant is outside of the control of the Trust.

d. Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

11

THE HATTORI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

31 AUGUST 2024

1. ACCOUNTING POLICIES (continued)

e. Governance costs

Governance costs comprise all costs involving the public accountability of the Trust and its compliance with regulation and good practice. These costs include costs related to the independent examiner’s fee together with other overhead costs. Details of these costs are set out in note 3 to the financial statements.

f. Charitable activities

Costs of charitable activities include prize awards and grants made.

g. Tangible fixed assets and depreciation

Tangible fixed assets consist of fixtures, fittings and equipment. Depreciation at a rate of 25% per annum has been charged to write down the value of these assets to their carrying values.

h. Financial instruments

The Trust has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Short term debtors and creditors

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 in the Statement of Financial Activities in ‘administrative expenses’.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand.

Offsetting

Financial assets and liabilities are offset and the net amounts presented in the accounts when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

i. Fund structure

The Trust has a single permanent fund. The terms of the trust deed allow the income to be accumulated and the capital to be spent if the Trustees so determine. Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the Trustees, at their discretion, wish to create a fund for a specific purpose.

12

THE HATTORI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

31 AUGUST 2024

1. ACCOUNTING POLICIES (continued)

j. Investments

Investments are stated at market value at the balance sheet date, which gives rise to unrealised gains and losses which are included in the Statement of Financial Activities. Realised gains and losses arising on the disposal of investments during the year are separately disclosed in the Statement of Financial Activities.

2. GRANTS PAYABLE

Grants payable brought forward
Net payments during year
Grants payable carried forward
3.OVERHEAD EXPENDITURE
Rent, rates and services
Printing, postage and stationery
Telephone and communications
Computer expenses
Photocopier expenses
Repairs, security and cleaning
Advertising and promotion
Legal and professional fees
Independent examination
Accountancy
Bank charges
Travel and transport expenses
Sundry expenses
Wages and salaries
Social security costs
Pension contributions
Depreciation		 2024
2023
(37,000)
(26,000)
52,250
42,050
15,250
16,050
43,000
37,000
58,250
£
53,050
£
2024
2023
9,313
3,900
541
360
2,803
2,682
1,671
1,912
2,794
3,202
85,345
42,384
1,964
1,316
4,907
6,284
1,550
1,350
1,550
1,350
481
374
89
363
3
138
52,590
41,446
-
-
13,933
13,178
1,428
1,619
180,962
£
121,858
£

13

THE HATTORI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

31 AUGUST 2024

4. TANGIBLE ASSETS

Cost
At 31 August 2023
Additions
Disposals
At 31 August 2024
Depreciation
At 31 August 2023
Charge for the year
On disposals
At 31 August 2024
Carrying values
At 31 August 2024
At 31 August 2023
5.INVESTMENTS
Market value at 1 September 2023 (excluding cash)
Additions
Disposals
Unrealised gain arising on revaluations in the year
Market value at 31 August 2024 (excluding cash)
Historic cost		 2024
3,252,695
(91,231)
81,199
393,550
3,636,213
£
2,475,651
£		 Fixtures,
fittings and
equipment
6,486
786
(1,567)
5,705
3,933
1,428
(1,564)
3,797
1,908
£
2,553
£
2023
3,297,202
(81,743)
91,231
(53,995)
3,252,695
£
2,485,683
£

14

THE HATTORI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

31 AUGUST 2024

6. DEBTORS

Trade debtors
Prepayments and accrued income
Sundry debtors
7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other taxation
Accruals		 2024
2023
4,454
5,171
-
-
(5,344)
2,399
(890)
£
7,570
£
2024
2023
3,002
2,649
847
704
3,225
3,025
7,074
£
6,378
£

8. REMUNERATION AND EXPENSES PAYABLE TO DIRECTORS OF THE TRUSTEE COMPANY

The Trustee received no remuneration during the year (2023 - nil). No expenses were reimbursed to the Trustee during the year (2023 - nil).

9. FEES PAID TO THE INDEPENDENT EXAMINER

Accountancy
Other fees
Independent examination
10.STAFF
The average number of staff during the year		 2024
2023
1,550
£
1,350
£
500
£
825
£
1,550
£
1,350
£
2024
20233
3
3

There were no employees with emoluments in excess of £60,000 during the year (2023 nil).

15

THE HATTORI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

31 AUGUST 2024

11. LEASE COMMITMENTS

The Foundation’s commitments for rental payments under operating leases during the year to 31 August 2024 are as follows:

2024 2023
Photocopier rental
£		 2,794
 £ 3,202

12. RELATED PARTY TRANSACTIONS

During the year Joji Hattori, a Director of the Trustee Company, donated £30,000 (2023 - £4,179) to cover expenses.`