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2021-06-30-accounts

Charity Registration No. 1068604

Company Registration No. 03506892 (England and Wales)

THE SOLTI FOUNDATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

THE SOLTI FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs G T Solti-Dupas
Mrs C V Solti-Carrington
Mrs V Drabbe-Seemann
Mr B Eagles
V T Baker
Janice Martin
Secretary V T Baker
Charity number 1068604
Company number 03506892
Registered office 162 Rivermead Court
Ranelagh Gardens
London
SW6 3SF
Independent examiner SBM Associates Limited
24 Wandsworth Road
London
SW8 2JW

THE SOLTI FOUNDATION

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Statement of financial position 5
Notes to the financial statements 6 - 11

THE SOLTI FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 30 JUNE 2021

The trustees present their annual report and financial statements for the year ended 30 June 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles of association , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Lady Valerie Solti

Sadly the Chair of our trustees, Lady Valerie Solti, died on the 31st March 2021.

She founded the Solti Foundation on the death of her husband, Sir Georg Solti, in 1997 as she wanted to continue the work he had done throughout his life in supporting young musicians. She was equally dedicated to supporting young musicians in any way she could and through the Foundation was able to make such a difference but also often supported many herself by introducing them to others who could mentor them, providing opportunities for them to perform and even at times allowing them to live in her house when they had no-where else to stay. The tribute letters we received from so many young musicians after her death talked about how she was their fairy god-mother and made such a difference to so many. She will be greatly missed but her work in supporting young musicians will carry on.

Objectives and activities

The charity's objects are to promote music education and to encourage young musicians, particularly when they are in financial need and there has been no change in these during the year .

The charity aims to achieve the objectives by the making of grants to individuals and to organisations that benefit individuals who meet the grant making criteria of the charity.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Three grants were awarded, benefiting institutions , in an amount of £27,000. The low number of grants awarded is entirely due to the effects of the Covid-19 pandemic. Most master classes, performances and other face-to-face teaching opportunities were cancelled following the United Kingdom lockdown in March 2020. Subsequently the institutions who benefitted from our grants were able to work within the framework of the Covid restrictions.

Investment income from the portfolio excluding realised gains was lower than in the previous year at £1 1 , 897 compared to £ 14 , 117.

Financial review

The value of the total investment portfolio in creased from £ 784,650 to £959,278.

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which allows the generation of income sufficient to cover management, administration and support costs and to respond to applications for grants. Unrestricted funds were maintained at this level throughout the year. The trustees, who are responsible for the reserves policy of the charity, monitor and review it at regular intervals and are satisfied that the balance of funds held at the year end was adequate for the needs of the charity.

Risk

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

THE SOLTI FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Structure, governance and management

The charity is a company limited by guarantee.

The governing document of the charity is the Memorandum and Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Lady Valerie Solti (Deceased 31 March 2021) Mrs G T Solti-Dupas Mrs C V Solti-Carrington Mrs V Drabbe-Seemann Mr B Eagles V T Baker Janice Martin

The appointment of trustees is governed by the memorandum and articles of association.

The trustees are responsible for the administration and investment policy of the Charity . A board of trustees of six members meet regularly to administer the charity .

Trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association and the recent financial performance of the charity. They are also briefed on the decision making pro cesses and a business plan is presented.

The trustees' r eport was approved by the Board of Trustees.

V T Baker

27 February 2022

THE SOLTI FOUNDATION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE SOLTI FOUNDATION

I report to the trustees on my examination of the financial statements of The Solti Foundation (the charity) for the year ended 30 June 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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

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.

SBM Associates Limited

24 Wandsworth Road London SW8 2JW

Dated: .........................

THE SOLTI FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2021

Unrestricted Unrestricted
funds
funds
2021
2020
Notes
£
£
Income and endowments from:
Donations and legacies 3 14,539
941
Investments 4 11,967
14,117
Other income 5 666
-
Total income 27,172
15,058
Expenditure on:
Cost of r aising funds 6 7,866
3,288
Costs of c haritable activities 8 30,468
27,245
Total resources expended 38,334
30,533
Net gains/(losses) on investments 11 185,327
(3,181)
Net movement in funds 174,165
(18,656)
Fund balances at 1 July 2020 895,021
913,677
Fund balances at 30 June 2021 1,069,186
895,021

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE SOLTI FOUNDATION

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2021
£
£
-
959,271
959,271
1,684
110,871
112,555
(2,640)
109,915
1,069,186
1,069,186
1,069,186		 2020
£
£
416
784,650
785,066
1,914
110,681
112,595
(2,640)
109,955
895,021
895,021
895,021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2021.

The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 27 February 2022

Mrs G T Solti-Dupas

Trustee

Company Registration No. 03506892

THE SOLTI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

Charity information

The Solti Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 162 Rivermead Court, Ranelagh Gardens, London, SW6 3SF.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered are accrued as expenditure in the year of offer but will be credited to the Statement of Financial Activities in the year of expiry if any conditions are not met.

THE SOLTI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers

25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

THE SOLTI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 12,539 941
Other 2,000 -

4 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Income from listed investments 11,897 13,727
Interest receivable 70 390
11,967 14,117
Other income
Unrestricted Total
funds
2021 2020
£ £
Royalties 666 -

5 Other income

THE SOLTI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

6 Cost of r aising funds

Unrestricted
funds
2021
£
Investment management
7,866
7,866		 Total
2020
£
3,288
3,288

7 Costs of c haritable activities

Depreciation and impairment
Office expenses
Bank charges
Exchange differences
Accountancy fees
Travelling
Grant funding of activities (see note 8)		 2021
£
416
1,474
-
125
1,453
-
3,468
27,000
30,468		 2020
£
416
1,640
55
(22)
1,453
475
4,017
23,228
27,245

8 Grants payable

Grants to institutions (3 grants):
Prussia Cove
Southbank Sinfonia Fellowship
The Royal Scottish National Orchestra
Foundation Georg Solti Accademia
Grants to individuals		 2021
£
8,000
9,000
10,000
-
27,000
-
27,000		 2020
£
556
9,000
10,000
899
20,455
2,773
23,228

THE SOLTI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 185,327 (3,181)
Tangible fixed assets
Computers
£
Cost
At 1 July 2020 1,664
At 30 June 2021 1,664
Depreciation and impairment
At 1 July 2020 1,248
Depreciation charged in the year 416
At 30 June 2021 1,664
Carrying amount
At 30 June 2020 416

12 Tangible fixed assets

THE SOLTI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

13 Fixed asset investments

Listed Cash in Total
investments portfolio
£ £
Cost or valuation
At 1 July 2020 766,580 18,070 784,650
Additions 374,593 13,194 387,787
Valuation changes 185,327 - 185,327
Disposals (398,493) - (398,493)
At 30 June 2021 928,007 31,264 959,271
Carrying amount
At 30 June 2021 928,007 31,264 959,271
At 30 June 2020 766,580 18,070 784,650
14 Debtors
2021 2020
Amounts falling due within one year: £ £
Other debtors 601 1,104
Prepayments and accrued income 1,083 810
1,684 1,914
15 Creditors: amounts falling due within one year
2021 2020
£ £
Accruals and deferred income 2,640 2,640
16 Related party transactions

There were no disclosable related party transactions during the year (2020 - none) .