Charity registration number 1078746
THE LOWY-DENES CHARITABLE FOUNDATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
THE LOWY-DENES CHARITABLE FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr. Mark Sassoon Mr. Joseph Pearlman Mr. Stephen Goldberg Mr. Benjamin Sassoon Mr Ezra Sassoon
Charity number 1078746 Independent examiner Syed Taufiq Pasha, FCCA Pasha & Co. 220 The Vale London NW11 8SR
Bankers
HSBC 40 Temple Fortune Parade Golders Green London NW11 0QU
THE LOWY-DENES CHARITABLE FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
THE LOWY-DENES CHARITABLE FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The trustees present their annual report and financial statements for the year ended 31 March 2023.
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 [governing document], the Charities Act 2011 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)" (effective 1 January 2019).
Objectives and activities
The objectives of the charity , as established, continued unchanged are:
1 The advancement of education according to the tenets of the Orthodox Jewish faith
2 The Alleviation of poverty
3 The relief and care of orphans, the elderly and the infirm
4 The Preservation and protection of mental and physical health
Public Benefit
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Grant making policy
The Charity's distribution policy is to avail the intended beneficiaries of funds according to the objects of the charity as soon as they are in hand.
Achievements and performance
Financial review
In the period under review, the charity made a Surplus of £84,882 (2022: deficit £251,812).
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
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 charity accepts requests from improvised individuals and families and on the basis applies to individuals for donations in order to alleviate property and payment are made by the Trustees as and when they see fit.
Structure, governance and management
The Lowy-Denes Charitable Foundation is a legal registered charity (No. 1078746) and constituted by Deed of Trust.
The trustees who served during the year and up to the date of signature of the financial statements were:
Mr. Mark Sassoon
Mr. Joseph Pearlman Mr. Stephen Goldberg Mr. Benjamin Sassoon Mr Ezra Sassoon
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The days to days activities are delegated to Mr. Mark Sassoon supported by all other trustees.
- 1 -
THE LOWY-DENES CHARITABLE FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
The trustees' report was approved by the Board of Trustees.
Mr. Mark Sassoon
Trustee Dated: 16 October 2023
- 2 -
THE LOWY-DENES CHARITABLE FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE LOWY-DENES CHARITABLE FOUNDATION
I report to the trustees on my examination of the financial statements of The Lowy-Denes Charitable Foundation (the charity) for the year ended 31 March 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of 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
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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:
-
1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
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.
Syed Taufiq Pasha, FCCA Pasha & Co.
220 The Vale London NW11 8SR
Dated: 16 October 2023
- 3 -
THE LOWY-DENES CHARITABLE FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 26,801 | 8,650 |
| Investments | 4 | 69,322 | 232,143 |
| Total income | 96,123 | 240,793 | |
| Expenditure on: | |||
| Charitable activities | 5 | 11,240 | 492,606 |
| Net income/(expenditure) for the year/ | |||
| Net movement in funds | 84,883 | (251,813) | |
| Fund balances at 1 April 2022 | 919,342 | 1,171,155 | |
| Fund balances at 31 March 2023 | 1,004,225 | 919,342 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
THE LOWY-DENES CHARITABLE FOUNDATION
BALANCE SHEET
AS AT 31 MARCH 2023
| 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 16 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Net assets Income funds Unrestricted funds |
2023 £ £ 415,250 848,125 1,263,375 22,906 7,859 30,765 (11,964) 18,801 1,282,176 (277,951) 1,004,225 1,004,225 1,004,225 |
2022 £ £ 415,250 780,558 1,195,808 22,907 5,140 28,047 (9,900) 18,147 1,213,955 (294,613) 919,342 919,342 919,342 |
|---|---|---|
The financial statements were approved by the Trustees on 16 October 2023
Mr. Mark Sassoon Trustee
- 5 -
THE LOWY-DENES CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
Charity information
The Lowy-Denes Charitable Foundation is an unincorporated charity and constituted by Deed of Trust.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). 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 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts 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 freehold properties and to include investment properties and certain financial instruments at fair value]. 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.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
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. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
- 6 -
THE LOWY-DENES CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
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 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.
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:
Land and buildings NIL
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.
1.10 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, 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.
- 7 -
THE LOWY-DENES CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
Basic financial assets
Financial assets classified as other financial assets are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.
Impairment of financial assets
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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.
1.11 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12 Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
- 8 -
THE LOWY-DENES CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
3 Donations and legacies
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Donations and gifts | 26,801 | 8,650 |
4 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Rental income | 11,855 | 7,179 |
| Income from listed investments | 31,909 | 29,037 |
| Gains from listed trading investments | 25,558 | 195,927 |
| 69,322 | 232,143 |
5 Charitable activities
| Charitable Expenditure Heading 1 Charitable Expenditure Heading 2 2023 2023 £ £ Insurance - 137 Repairs and maintainence - 355 Bank charges - 97 Loan interest - 2,957 - 3,546 Grant funding of activities (see note 7) 4,430 - Share of governance costs (see note 8) 3,264 - 7,694 3,546 |
Total 2023 Charitable Expenditure Heading 1 Charitable Expenditure Heading 2 2022 2022 £ £ £ 137 - 275 355 - 1,784 97 - 119 2,957 - 5,364 3,546 - 7,542 4,430 482,760 - 3,264 2,304 - 11,240 485,064 7,542 |
Total 2022 £ 275 1,784 119 5,364 |
|---|---|---|
| 7,542 482,760 2,304 |
||
| 492,606 |
- 9 -
THE LOWY-DENES CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
6 Description of charitable activities
Charitable Expenditure Heading 1
Donation payments
Charitable Expenditure Heading 2
Rental expenses
7 Grants payable
| Other Donation payments |
2023 £ - 4,430 4,430 |
2022 £ 450,000 32,760 |
|---|---|---|
| 482,760 |
8 Support costs
| Support costs | |||
|---|---|---|---|
| Accountancy Analysed between Charitable activities |
Support costs Governance costs £ £ - 3,264 - 3,264 - 3,264 |
2023 £ 3,264 3,264 3,264 |
2022 £ 2,304 |
| 2,304 | |||
| 2,304 |
Governance costs includes a provision made for the Accountant of £2,304 (2022: £2,304) to prepare the accounts .
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year.
10 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
- 10 -
THE LOWY-DENES CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
10 Employees
(Continued)
There were no employees whose annual remuneration was more than £60,000.
11 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
12 Tangible fixed assets
| Land and Cost At 1 April 2022 At 31 March 2023 Carrying amount At 31 March 2023 At 31 March 2022 |
buildings £ 415,250 |
|---|---|
| 415,250 | |
| 415,250 | |
| 415,250 |
13 Fixed asset investments
| Listed | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 1 April 2022 & 31 March 2023 | 780,558 |
| Carrying amount | |
| At 31 March 2023 | 780,558 |
| At 31 March 2022 | 780,558 |
14 Debtors
| 2023 | 2022 | |
|---|---|---|
| Amounts falling due within one year: | £ | £ |
| Other debtors | 22,906 | 22,907 |
- 11 -
THE LOWY-DENES CHARITABLE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
| 15 Loans and overdrafts Bank loans Payable after one year The long-term loans are secured by fixed charges over the Charitys' assets 16 Creditors: amounts falling due within one year Other creditors Accruals and deferred income 17 Creditors: amounts falling due after more than one year Notes Bank loans 15 Other creditors |
2023 £ 124,001 124,001 |
2022 £ 140,663 |
|---|---|---|
| 140,663 | ||
| 2023 £ 2,304 9,660 11,964 2023 £ 124,001 153,950 277,951 |
2022 £ - 9,900 |
|
| 9,900 | ||
| 2022 £ 140,663 153,950 |
||
| 294,613 |
- 12 -