Charity number: 1073371
The Quitak Foundation
Trustees' report and financial statements
for the year ended 5 April 2021
The Quitak Foundation
Contents
| Page | |
|---|---|
| Legal and administrative information | 1 |
| Trustees report | 2 - 4 |
| Independent examiners' report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 11 |
The Quitak Foundation
Legal and administrative information
| Charity number | 1073371 |
|---|---|
| Business address | 19 Windsor Avenue, |
| Edgware, | |
| HA8 8SR | |
| Registered office | Northside House, |
| Mount Pleasant, | |
| Barnet, | |
| Herts | |
| EN4 9EE | |
| Co-Settlor | Marguerite Quitak |
| Trustees | Alex Portnoy JP ACCA |
| Gary Quitak | |
| James A.C. Meston Cert PFS MIFP | |
| Ruth Portnoy | |
| Michelle Ginno | |
| Accountants | Davis Bonley |
| Chartered Accountants | |
| Northside House, | |
| Mount Pleasant, | |
| Barnet, Herts. | |
| EN4 9EE | |
| Bankers | TSB Bank Plc |
| PO Box 373, | |
| Leeds, | |
| LS14 9GQ | |
| Investment Advisors | JPM Asset Management |
| 400 Thames Valley Park Drive, | |
| Thames Valley Park, | |
| Reading, | |
| RG6 1PT | |
| Solicitors | Parkes Wilshire Johnson |
| 59 Church Hill Road, | |
| East Barnet,, | |
| EN4 8SY |
Page 1
The Quitak Foundation
Report of the trustees for the year ended 5 April 2021
The trustees present their report and the financial statements for the year ended 5 April 2021. The trustees who served during the year and up to the date of this report are set out on page 1.
Structure, governance and management
The Trust is a registered charity established under a Deed dated 17th December 1997. The Trust was established by gifts from Mr & Mrs Simon Quitak. Further assets were received by the Trust from the Estate of the late Mr Quitak. The Trust does not actively fundraise and seeks to continue the charitable work desired by the Settlors through careful stewardship of existing resources.
Under the terms of the Trust Deed there may not be more than five Trustees. The appointment of new Trustees is vested in the settlors during their lifetime and the continuing Trustees thereafter.
The Trustees carry out all the management functions with the assistance of professional advisors, where necessary. The Trustees have power under the terms of the Trust Deed to make any investment they see fit.
Objectives and activities
The Trust was established by the late Mr Simon Quitak and his wife to provide funds for the advancement of:
a) education in accordance with the tenets and doctrines of the Jewish Faith
b) medical research
Public benefit
The Trustees have referred to the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives, in planning future activities and setting the Grant making policy.
The Trust furthers its charitable purposes for the public benefit throught its Grant making policy which aims to fund the advancement of education and medical research (including ancillary support services) by providing support to organisations and projects which further these goals.
The beneficiaries of the Grant making policy are ultimately (a) the students who receive scholarships (b) the general public who benefit from the work of the medical establishments that are supported by the Trust and (c) the people who benefit from the activities of the students supported by the Trust, once they take up take up work positions in the community, having completed their education (d) The students attending the establishments supported by the Trust.
Risks
The Trustees consider that there are no major risks to which the Charity is exposed.
Achievements and performance
The Trustees may in their absolute discretion distribute the Trust's funds for such charitable purposes as they so determine.
The Trustees make grants to organisations that full within the main objectives established by the settlors. They are constantly looking for new major projects to support.
The Trust has been supporting the Forgotten People Fund which assists Ethiopian Jewish minority group living in Israel to finish their studies achieving professional qualifications. All students using the programme are regulary monitored by the FPF who report back to the Trustees. The success of this project is measured by the fact that most students receive a higher education and most complete their training and go on to successfully work in the community.
Page 2
The Quitak Foundation
Report of the trustees for the year ended 5 April 2021
The Trust has also supported 'Out for Change' [an organisation that assists people from the very religious Jewish communities improve their educational outcome], World ORT, Magen David Adom and various other medical organisations in the UK, France and Israel.
Financial review
The Trustees have, with the guidance of their investment advisors, placed the Trust's assets into investments to provide an income stream to fund grants and administration costs.
The "income yield/return" this year is in the order of 1.5%. This, in the current low interest rate environment is a good yield. However the total return on capital employed should also be acknowledged. Following last year's 'dip' due to the biggest financial market shock in living memory, the fund has recovered and the total return on capital since the investment was made now stands at £142,618.37, or 11.7% over 21 months or 6.7% p.a.
In the near and medium term pure income generation will continue to be a challenge as the pandemic recovery takes place, and dividends from investments slowly pick up. Fixed income and bond investments will also continue to generate less of a yield than has historically been the case but the challenge for the investment managers will be to identify where the best opportunities start to present themselves. The growth of the overall funding base will allow the grants and commitments of the Foundation to continue without affecting the level of the initial endowment made, and this has continued well into the current financial year.
The Trustees hold, in immediate accessible form, sufficient funds to cover one year's administrative costs, the amount of grants already commited for the future twelve months, plus a contingency fund equal to the prior six months expenditure.
Plans for future periods
The Trustees have been seeking new projects during the year and are currently in discussions relating to a major infrastructure project with 'Hand in Hand' an organisation in Israel whose mission is to build partnership and equality between Jewish and Arab citizens through their network of integrated Jewish-Arab schools and communities.
Statement of trustees' responsibilities
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).
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 charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
Page 3
The Quitak Foundation
Report of the trustees for the year ended 5 April 2021
The trustees are responsible for keeping proper accounting records which 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 and the Charity (Accounts and Reports) Regulations 2011. 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.
On behalf of the board
Alex Portnoy JP ACCA
James A.C. Meston Cert PFS MIFP
29 June 2021
Page 4
The Quitak Foundation
Independent examiner's report to the trustees on the unaudited financial statements of The Quitak Foundation.
I report on the accounts of The Quitak Foundation for the year ended 5 April 2021 set out on pages 2 to 11.
Respective responsibilities of trustees and independent examiner
As the charity's trustees you are responsible for the preparation of the accounts, in accordance with the requirements of the Charties Act 2011 ("the Act"). I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examminsation, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Basis of independent examiner's statement
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
-
(i) which gives me reasonable cause to believe that in any material respect the requirements:
-
to keep proper accounting records in accordance with section 41 of the Act; and
-
to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act
have not been met; or
- (ii) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Andrew Davis FCA Chartered Accountant Independent examiner Davis Bonley Northside House Mount Pleasant
Barnet
EN4 9EE 22 November 2021
Page 5
The Quitak Foundation
Statement of financial activities
For the year ended 5 April 2021
| Unrestricted | Unrestricted | Unrestricted | 2021 | 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| funds | Total | Total | ||||||||||
| Notes | £ | £ | £ | |||||||||
| Incoming resources | ||||||||||||
| Incoming resources from generating funds: | ||||||||||||
| Voluntary income | 2 | - | - | 51,250 | ||||||||
| Investment income | 3 | 32,686 | 32,686 | 14,525 | ||||||||
| Total incoming resources | 32,686 | 32,686 | 65,775 | |||||||||
| Resources expended | ||||||||||||
| Charitable activities | 4 | 53,830 | 53,830 | 34,443 | ||||||||
| Governance costs | 5 | 13,328 | 13,328 | 13,791 | ||||||||
| Total resources expended | 67,158 | 67,158 | 48,234 | |||||||||
| Net incoming/(outgoing) resources | ||||||||||||
| for the year | (34,472 | ) | (34,472 | ) | 17,541 | |||||||
| Realised gains on disposal | ||||||||||||
| of investment assets | 35,721 | 35,721 | 1,368 | |||||||||
| Net incoming/(outgoing) resources before | ||||||||||||
| other recognised gains and losses | 1,249 | 1,249 | 18,909 | |||||||||
| Other recognised gains and losses | ||||||||||||
| Unrealised Gains/(Losses) on investment | assets | - | (175,050 | ) | ||||||||
| Net movement in funds | 1,249 | 1,249 | (156,141 | ) | ||||||||
| Total funds brought forward | 1,614,478 | 1,614,478 | 1,631,893 | |||||||||
| Realised gains set against unrealised reserve | ||||||||||||
| Total funds carried forward | 1,615,727 | 1,615,727 | 1,475,752 |
The notes on pages 8 to 11 form an integral part of these financial statements. All funds are unrestricted
Page 6
The Quitak Foundation
Balance sheet
as at 5 April 2021
| Notes Fixed assets Investments 7 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 8 Net current assets Net assets Funds 9 Unrestricted income funds: Unrestricted income funds Unrealised investment gains/(losses) Total unrestricted income funds Total funds |
2021 £ £ 1,700,524 36,527 36,527 ) (900 35,627 1,736,151 1,615,726 120,425 1,736,151 1,736,151 |
2020 £ £ 1,445,130 31,522 31,522 ) (900 30,622 1,475,752 1,614,480 ) (138,728 1,475,752 1,475,752 |
|---|---|---|
The financial statements were approved by the trustees on 29 June 2021 and signed on its behalf by
Alex Portnoy JP ACCA Trustee
James A.C. Meston Cert PFS MIFP Trustee
The notes on pages 8 to 11 form an integral part of these financial statements. All funds are unrestricted
Page 7
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2021
1. Accounting policies
1.1. Basis of preparation and assessment of going concern
-
The financial statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s). The financial statements have been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their Accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 January 2015, and the Charities Act 2011.
-
1.2. The Trust constitutes a public benefit entity as defined by FRS 102.
-
1.3. The Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.
1.4. Fund structure
All the Trust's funds are unrestricted which the Trustees are free to use for any purpose in furtherance of the charitable objects.
1.5. Incoming resources
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Voluntary income, where received, is by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Donated services and facilities, where received, are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.
Income from investments is included in the year in which it is receivable.
1.6. Resources expended
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
1.7. Investments
Investments held as fixed assets are revalued at achievable market price at the balance sheet date and the gain or loss taken to the statement of financial activities.
Page 8
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2021
| 2. Voluntary income Donations, including gift aid receipts 3. Investment income Unrestricted funds £ Income from UK listed investments 32,686 32,686 4. Costs of charitable activities - by activity Grant funding activities £ Grants made to organisations for educational and medical activities, including ancillary services. 53,830 53,830 The Charity does not make Grants directly to individuals. |
2021 Total £ - - 2021 Total £ 32,685 32,685 2021 Total £ 53,830 53,830 |
2020 Total £ 51,250 |
|---|---|---|
| 51,250 | ||
| 2020 Total £ 14,527 |
||
| 14,527 | ||
| 2020 Total £ 34,443 |
||
| 34,443 | ||
Page 9
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2021
5. Governance costs
| Unrestricted funds £ Investment platform fees 3,523 Investment manager's fees 6,405 Professional fees 2,500 Independent examiner's fee 900 13,328 |
2021 Total £ 3,523 6,405 2,500 900 13,328 |
2020 Total £ 8,391 2,500 2,000 900 |
|---|---|---|
| 13,791 |
In addition to the investment fees set out above there are also costs associated with the investments that have always been reflected in the quoted unit prices and therefore ultimately in the fund value. In recent years, the Financial Conduct Authority has required, in the interests of transparency, that these costs be shown on an annual basis so that investors can make comparisons. For the year to 5 January 2021 Standard Life reported costs amounting to £11,192.
6. Payments to Trustees
| Professional fees paid to Trustees Investment manager's fees Professional fees |
2021 £ 6,405 2,500 8,905 |
2020 £ 2,500 2,000 4,500 |
|---|---|---|
The professional fees were paid to Mr A Portnoy and the Investment Manager's fees were paid to JPM Asset Management Limited of which Mr J Meston is a director.
Other than providing the professional services mentioned above the Trustees give freely of their time and expertise without any form of remuneration or benefit.
Number of employees
The average monthly numbers of employees (including the trustees) during the year, calculated on the basis of full time equivalents, was as follows:
| 2021 | 2020 |
|---|---|
| Number | Number |
| 1 | 1 |
Page 10
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2021
| 7. | Fixed asset investments | Listed | Unlisted | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| investments investments | Total | ||||||||||||||||
| £ | £ | £ | |||||||||||||||
| Valuation | |||||||||||||||||
| At 6 April 2020 | 1,391,427 53,702 |
1,445,129 | |||||||||||||||
| Additions | 12,553 | - | 12,553 | ||||||||||||||
| Disposals | - (53,702 |
) | ) (53,702 |
||||||||||||||
| Revaluations | 296,544 | - | 296,544 | ||||||||||||||
| At 5 April 2021 | 1,700,524 | - | 1,700,524 | ||||||||||||||
| Historical cost as at 5 April 2021 | 1,570,000 | - | 1,570,000 | ||||||||||||||
| All fixed asset investments are held within United Kingdom Platforms. | |||||||||||||||||
| 8. | Creditors: amounts falling due | ||||||||||||||||
| within one year | 2021 | 2020 | |||||||||||||||
| £ | £ | ||||||||||||||||
| Accruals and deferred income | 900 | 900 | |||||||||||||||
| 9. | Analysis of net assets between funds | ||||||||||||||||
| Unrestricted | Total | ||||||||||||||||
| funds | funds | ||||||||||||||||
| £ | £ | ||||||||||||||||
| Fund balances at 5 April 2021 as represented by: | |||||||||||||||||
| Investment assets | 1,700,524 | 1,700,524 | |||||||||||||||
| Current assets | 36,527 | 36,527 | |||||||||||||||
| Current liabilities | (900 | ) | (900 | ) | |||||||||||||
| 1,736,151 | 1,736,151 | ||||||||||||||||
| 10. | Unrestricted funds | At | At | ||||||||||||||
| 6 April | Incoming | Outgoing | Gains and | 5 April | |||||||||||||
| 2020 | resources | resources losses |
2021 | ||||||||||||||
| £ | £ | £ | £ | £ | |||||||||||||
| General unrestricted income fund | 1,614,478 | 32,686 | (67,159 | ) 35,721 |
1,615,726 | ||||||||||||
| Revaluation reserve | 170,866 | - | - ) (50,441 |
120,425 | |||||||||||||
| 1,785,344 | 32,686 | (67,159 | ) ) (14,720 |
1,736,151 |
Page 11