Charity number: 1073371
The Quitak Foundation
Trustees' report and financial statements
for the year ended 5 April 2023
The Quitak Foundation
Contents
| Page | |
|---|---|
| Legal and administrative information | 1 |
| Trustees report | 2 - 6 |
| Independent examiners' report | 7 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| Notes to the financial statements | 10 - 14 |
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 | |
| Trustees | Alex Portnoy JP FCCA |
| Gary Quitak | |
| James A.C. Meston Cert PFS MIFP | |
| Ruth Portnoy | |
| Michelle Ginno | |
| Independent Examiner | Andrew Davis FCA |
| Davis Bonley | |
| Chartered Certified 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 2023
The trustees present their report and the financial statements for the year ended 5 April 2023. 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, subsequently amended by a Deed of variation dated 23rd December 1998. The Trust was established by gifts from Mr & Mrs Simon Edgar Quitak. Further assets were received by the Trust from the Estates of the late Mr & Mrs 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 now vested with the continuing Trustees.
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 & Mrs Simon Edgar Quitak to provide, inter alia, funds for the advancement of:
a) Jewish education
b) medical research
c) medical support services
d) welfare, sport and social and cultural activities
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 Jewish education, medical research (including ancillary support services) welfare, soical and cultural activities 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.(e) The people who receive the welfare, social and cultural support provided by the organisations to whom the Trust makes Grants.
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.
Page 2
The Quitak Foundation
Report of the trustees for the year ended 5 April 2023
The Trust has been supporting the Forgotten People Fund which assists the 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.
The Trust has also supported 'Out for Change' [an organisation that assists people from the very religious Jewish communities improve their educational outcome], and various other organisations in the UK, and Israel. Additionally, the Trust has sent funds through Tikva UK to assist in supporting the eductional and welfare needs of children in Ukraine and Romania.
The project in Israel with Hand in Hand to create recreactional facilities for the children at the Bridge over the Wadi school for Arab and Jewish children was sucessfully completed during the year under review.
Page 3
The Quitak Foundation
Report of the trustees for the year ended 5 April 2023
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.
Review of the year
The period from April 22 to April 23 was once again mixed. Following on from the previous year of volatile returns, even when factoring in the Ukraine war, when it might have been thought that peak volatility had been reached, market conditions dictated that had not been the case. Although inflation had been anticipated the level and duration of elevated inflation levels had been sorely underestimated by policymakers.
The cost of energy had a major bearing on this along with it's knock on impact into the soaring cost of commodities, raw materials and in turn food and consumer items.
Central bankers in all major economies were late to acknowledge that the inflation pressures and impact would not be transitory. Some were more decisive than others. The central banks it seems have only one, albeit blunt, instrument with which to tackle inflation, interest rates. The US Federal Reserve increase rates more decisively than most and the impact of their decision making has been seen more than in the UK, as an example. The Bank of England has raised rates at 15 consecutive meetings and inflation may only have just started to peak. The danger is that these rate rises take some time to have their impact felt and there are many that feel that there may have been too much tightening. The impact of this decision making may be felt for some time to come.
One effect of rising interest rates should be that deposit interest increases but this has been slow in coming through. Overall markets had a brief rally though the middle of 2022 but there was more bad news to come in the form of the mini budget, which was poorly received by the financial sector.
Gilt yields surged and long term rate expectations (higher for longer) became the key focus. While higher gilt yields (interest rates on government borrowing) are good in terms of an income like return, the impact on the underlying capital value has been devastating for those bond holders. These are asset that are supposed to be among the safest for investors but the average gilt fund has seen a capital reduction of around 18% over the period.
Fortunately the Foundation has had very low exposure to these types of investment, less that 2% of the funds available. The Foundation had an inflow of funds from the estate of the Late Mrs Marguerite Quitak at the end of the previous reporting period and it was decided that the volatile market conditions were not conducive to prudent investing and therefore these funds were held in cash. The interest rate on cash within the Elevate account has risen slowly as UK rates rose, although as with all financial institutions these increases have not matched the increases of the Base Rate.
Of late the decision has been taken to look to some Structured Deposits to achieve a better yield on that large cash holding.
The portfolio invests in assets/funds that are in some cases accumulation funds and others income funds. When looking at the "income received" in the form of dividends and interest the figures were £6,768.89 dividends and £9,679.00 in interest.
The "income yield/return" in this year has been in the of 0.7% and the capital value had seen a reduction over the year of 5.6%
As an aside the nature of the cyclical investment environment has seen that reduction mitigated in the first quarter of the new investment year significantly.
Page 4
The Quitak Foundation
Report of the trustees for the year ended 5 April 2023
Recent changes
Decisions have been taken about the deployment of capital in the current year with an initial £500,000 invested in a 4 year structured deposit paying 0.56% per month (6.6% p.a.) A further £500,000 has been earmarked for deployment in September.
The anticipated total income from these amount - circa £66 - £70,000 will go a long way towards supporting the Foundation's ongoing and new commitments.
In the period the Foundation purchased £50,000 of units in the following investments Fundsmith Equity Rathbone Global Opportunities Royal London Sustainable World Trust Scottish Mortgage Investment Trust.
Reserves Policy
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 continue support to Tikva UK in its endeavours to help with the education of orphaned children still in the Ukraine and those who have been evacuated to Romania. The Trust is also supporting up to fifty of these children in an after school programme. The support offered to the Forgotten People Fund also continues at an enhanced rate. The Trustees are always looking for new projects and welcome applications from organisations that provide services that fall within the Trust's objectives.
At the date of signing these accounts the Trustees had concluded an Agreement with Lev Chash an organisation in Israel that supports sick children and their families by providing accommodation near to the hospital where they are undergoing treatment so that they do not need to travel immediately. This helps aid their recovery. The Trustees have agreed to make a grant of NIS 255,000 to help set up a guest house for this purpose.
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 5
The Quitak Foundation
Report of the trustees for the year ended 5 April 2023
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 FCCA 21 August 2023
James A.C. Meston Cert PFS MIFP
Page 6
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 2023 set out on pages 2 to 14.
Respective responsibilities of trustees and independent examiner
As the charity's trustees you are responsible for the preparation of the accounts, you consider that the audit requirement of section 43(2) of the Charities Act 1993 (the Act), as amended by section 28 of the Charities Act 2006 does not apply and that an independent examination is needed. It is my responsibility to examine the accounts under section 43(3)(a) of the Act, as amended; to follow the procedures laid down in the General Directions given by the Charity Commission under section 43(7)(b) of the Act, as amended; and to state whether particular matters have come to my attention.
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 no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
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 8 November 2023
Page 7
The Quitak Foundation
Statement of financial activities
For the year ended 5 April 2023
| Unrestricted | Unrestricted | Unrestricted | 2023 | 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| funds | Total | Total | |||||||||||
| Notes | £ | £ | £ | ||||||||||
| Incoming resources | |||||||||||||
| Incoming resources from generating funds: | |||||||||||||
| Voluntary income | 2 | 16,963 | 16,963 | 1,950,000 | |||||||||
| Investment income | 3 | 29,127 | 29,127 | 19,588 | |||||||||
| Other incoming resources | 4 | - | - | 91 | |||||||||
| Total incoming resources | 46,090 | 46,090 | 1,969,679 | ||||||||||
| Resources expended | |||||||||||||
| Charitable activities | 5 | 252,298 | 252,298 | 83,925 | |||||||||
| Governance costs | 6 | 22,576 | 22,576 | 16,153 | |||||||||
| Total resources expended | 274,874 | 274,874 | 100,078 | ||||||||||
| Net incoming/(outgoing) resources before | |||||||||||||
| other recognised gains and losses | (228,784 | ) | (228,784 | ) | 1,869,601 | ||||||||
| Other recognised gains and losses | |||||||||||||
| Unrealised Gains/(Losses) on investment assets | (187,796 | ) | (187,796 | ) | (62,909 | ) | |||||||
| Net movement in funds | (416,580 | ) | (416,580 | ) | 1,806,692 | ||||||||
| Total funds brought forward | 3,542,845 | 3,542,845 | 1,736,154 | ||||||||||
| Total funds carried forward | 3,126,265 | 3,126,265 | 3,542,846 |
The notes on pages 10 to 14 form an integral part of these financial statements. All funds are unrestricted
Page 8
The Quitak Foundation
Balance sheet
as at 5 April 2023
| Notes Fixed assets Investments 8 Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Net assets Funds 11 Unrestricted income funds: Unrestricted income funds Unrealised investment gains/(losses) Total unrestricted income funds Total funds |
2023 £ £ 2,900,028 - 227,135 227,135 ) (900 226,235 3,126,263 3,256,543 ) (130,280 3,126,263 3,126,263 |
2022 £ £ 2,987,750 100,000 456,296 556,296 ) (1,200 555,096 3,542,846 3,485,330 57,516 3,542,846 3,542,846 |
|---|---|---|
The financial statements were approved by the trustees on 21 August 2023 and signed on its behalf by
Alex Portnoy JP FCCA Trustee
James A.C. Meston Cert PFS MIFP Trustee
The notes on pages 10 to 14 form an integral part of these financial statements. All funds are unrestricted
Page 9
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2023
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 Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.
1.3. 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.
1.4. 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.
Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.
1.5. 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.
1.6. 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 10
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2023
| 2. | Voluntary income | ||||
|---|---|---|---|---|---|
| Unrestricted | 2023 | 2022 | |||
| funds | Total | Total | |||
| £ | £ | £ | |||
| Legacies | 16,963 | 16,963 | 1,950,000 | ||
| 16,963 | 16,963 | 1,950,000 | |||
| The above represents the balance of a legacy from the Estate of the late Mrs | Marguerite Quitak | ||||
| 3. | Investment income | ||||
| Unrestricted | 2023 | 2022 | |||
| funds | Total | Total | |||
| £ | £ | £ | |||
| Income from UK listed investments | 29,125 | 29,125 | 19,589 | ||
| 29,125 | 29,125 | 19,589 | |||
| 4. | Other incoming resources | ||||
| 2023 | 2022 | ||||
| Total | Total | ||||
| £ | £ | ||||
| Other income | - | 91 | |||
| - | 91 | ||||
| 5. | Costs of charitable activities - by activity | ||||
| Grant | |||||
| funding | 2023 | 2022 | |||
| activities | Total | Total | |||
| £ | £ | £ | |||
| Grants made to organisations for | 252,298 | 252,298 | 83,925 | ||
| educational and medical activities, | |||||
| including ancillary services. | |||||
| 252,298 | 252,298 | 83,925 |
The Charity does not make Grants directly to individuals.
Page 11
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2023
6. Governance costs
| Governance costs | ||
|---|---|---|
| Unrestricted funds £ Investment platform fees 4,723 Investment manager's fees 11,905 Independent examiner's fee 900 Professional fees 5,000 Legal Fees - Audit fee - Subscriptions and training 48 22,576 |
2023 Total £ 4,723 11,905 900 5,000 - - 48 22,576 |
2022 Total £ 2,945 7,458 - 4,000 550 1,200 - |
| 16,153 |
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. The Fund Advisors have aggregated these implicit costs within the holdings and calculated them as below.
For the current holdings the implicit costs reported as a percentage are Slater Growth - 0.76% Baillie Gifford Sterling Bond - 0.52% Artemis Global Select - 0.89% Baillie Gifford Positive Change - 0.53% Fundsmith Equity - 0.94% Rathbones Global Opportunities - 0.77% Royal London Sustainable World - 0.77% Vanuard Lifestrategy "60" - 0.22% NASDAQ 100 ETF - 0.1%
The Fund Advisors have aggregated these implicit costs within the holdings and calculated them as below. For the year to 5 April 2023 Standard Life reported pure investment fund costs amounting to £9,530.
Page 12
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2023
7. Payments to Trustees
| Professional fees paid to Trustees Investment manager's fees Professional fees |
2023 £ 11,905 5,000 16,905 |
2022 £ 7,458 4,000 |
|---|---|---|
| 11,458 |
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:
| 2023 | 2022 |
|---|---|
| Number | Number |
| 1 | 1 |
| Fixed asset investments | Listed | ||||||
|---|---|---|---|---|---|---|---|
| investments | Total | ||||||
| £ | £ | ||||||
| Valuation | |||||||
| At 6 April 2022 | 2,987,749 | 2,987,749 | |||||
| Additions | 100,074 | 100,074 | |||||
| Revaluations | (187,795 | ) | (187,795 | ) | |||
| At 5 April 2023 | 2,900,028 | 2,900,028 | |||||
| Historical cost as at 5 April 2023 | 3,030,000 | 3,030,000 |
8. Fixed asset investments
All fixed asset investments are held within United Kingdom Platforms.
Page 13
The Quitak Foundation
Notes to financial statements for the year ended 5 April 2023
| 9. Debtors Legacy money unpaid at year end 10. Creditors: amounts falling due within one year Accruals and deferred income 11. Analysis of net assets between funds Fund balances at 5 April 2023 as represented by: Investment assets Current assets Current liabilities 12. Unrestricted funds At 6 April 2022 £ General unrestricted income fund 3,485,329 Revaluation reserve 57,515 3,542,844 |
2023 2022 £ £ - 100,000 2023 2022 £ £ 900 1,200 Unrestricted Total funds funds £ £ 2,900,028 2,900,028 227,135 227,135 ) (900 ) (900 3,126,263 3,126,263 At Incoming Outgoing Gains and 5 April resources resources losses 2023 £ £ £ £ 46,088 274,874 - 3,256,543 - - ) (187,795 ) (130,280 46,088 274,874 ) (187,795 3,126,263 |
|---|---|
Page 14