REGISTERED CHARITY NUMBER: 1122175
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
FOR
THE LEO AND BETTY GRUSS CHARITABLE TRUST
Keelings Limited Statutory Auditors, Chartered Tax Advisers and Chartered Certified Accountants Broad House The Broadway Old Hatfield Herts AL9 5BG
THE LEO AND BETTY GRUSS CHARITABLE TRUST
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Report of the Independent Auditors | 4 | to | 5 |
| Statement of Financial Activities | 6 | ||
| Balance Sheet | 7 | ||
| Cash Flow Statement | 8 | ||
| Notes to the Cash Flow Statement | 9 | ||
| Notes to the Financial Statements | 10 | to | 12 |
| Detailed Statement of Financial Activities | 13 |
THE LEO AND BETTY GRUSS CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and financial statements for the year ended 31 December 2020. In preparing this report and these accounts, the trustees have adopted the provisions of the Statement of Recommended Practice: Accounting and Reporting by Charities ('the Charities SORP (FRS102)') effective 1 January 2019 and the Charities Act 2011.
OBJECTIVES AND ACTIVITIES
Charitable Aims
The aim of the charity is to the relief of poverty, to advance the religion of the Jewish faith in accordance with the Orthodox practice, to advance Jewish education and such other purposes as are recognised by English law as charitable.
Public Benefit
The trustees have complied with the duty imposed by section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
ACHIEVEMENT AND PERFORMANCE
Review of Activities
The charity was formed on 7 November 2007, during the lifetime of Leo and Betty Gruss. Their intention was to bequeath their estate to the charity so that the funds could be spent to fulfil the charity's objectives. Sadly, Mrs Gruss died in 2018 and Mr Gruss died in 2020. During the year, probate has been granted on the estate of Mr Gruss and the charity has been advised that it is the beneficiary of the residue of the estate of the late Mr Gruss, which amounts to approximately £2,900,000. During the year, as the Global Pandemic affected the world, the charity did not undertake any activities. However, since the year end the trustees have been considering how the funds of the charity will be spent.
The charity's aims are referred to above and the trustees are working to achieve these aims by the funding of projects which will meet the charity's objectives.
The charity is required to comment on how it assesses its successes in meeting its aims. As the charity had no activity during the year, there are no successes to report.
The intention is that once the charity has spent all its funds the charity will be dissolved. Currently the trustees anticipate that this will be within the next five years.
Response to the Global Pandemic
The global pandemic commenced in March 2020. Due to lockdown and tier restrictions, the trustees were unable to meet. Some of the funds from the estate of the late Mr Gruss were received by the charity towards the end of the year, hence the trustees were unable to meet the charity's objectives during this accounting period. However, the charity is fortunate not to have suffered financially due to the pandemic.
The Trustees believe that the charity is able to continue for at least the next twelve months because of the funds received during and after the year end.
FINANCIAL REVIEW
Financial Review and Reserves Policy
The charity's financial position is set out in the statement of financial activities, together with the balance sheet and notes to the financial statements.
The legacy amounted to £2,893,571 and represents the amount that was receivable from the estate of the late Mr Gruss. These funds are held as unrestricted funds. At the year-end, unrestricted funds stood at £2,887,971 (2019: £100).
The trustees' reserves policy is to hold sufficient monies to fund the projects that the trustees believe will meet the charity's objectives, Therefore, they are satisfied with the charity's overall results for the year. Reserves are that part of a charity's unrestricted funds that is freely available to spend on any of the charity's purposes. On this basis, the charity's Reserves were approximately £2,887,971 at the year-end. The Reserves are held in cash and as accrued income.
FUTURE PLANS
There is a particular project that the trustees are considering and this is to make a donation to a building project in Jerusalem that is planned to eventually be occupied by the Hassadna Jerusalem Conservatory which is a charity that provides high quality music education opportunities. The donation is subject to relevant approval and authorisation and will only be made when this has been received. There are other donations that the charity will make in the future that will meet the charities objectives.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT Structure, Governance and Management
The trustees are responsible for the activities of the trust. New trustees are nominated by serving trustees and may be appointed at any meeting. Resolutions are passed by majority vote, with the chair having a casting vote in the event of a tie. New trustees are provided with the documents relating to the constitution, objects and activities of the trust, together with current financial and other information relating to the operation of the trust. All trustees are expected to keep up-to-date with the requirements of the Charity Commissioners. Trustees are encouraged to be alert to issues that might affect the charity. Major and day-to-day decisions, such as those regarding aims, objectives and specific granting of funds, are undertaken collectively by the trustees. None of the trustees are remunerated and there are no employees.
Risk Assessment
The trustees are actively involved in the day-to-day running of the charity. They have assessed the major risks to which the charity is exposed and have satisfied themselves that systems have been established, or that other appropriate measures have been taken, to mitigate those risks, insofar as is reasonably practicable, but it is recognised that systems cannot give absolute assurance that risks have been eliminated. The trustees continue to keep the charity's activities under review, including considering of any major risks that might be present from time to time.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1122175
Principal address
4 Royal Mews Alexander Road London Colney St Albans Hertfordshire AL2 1FH
Trustees
Mrs R Paul Dr S Cohen Professor M Baum Mr A Levine Ms K North (appointed 25.02.2021)
Auditors
Keelings Limited Statutory Auditors, Chartered Tax Advisers and Chartered Certified Accountants Broad House The Broadway Old Hatfield Herts AL9 5BG
Solicitors
Manuel Swaden Solicitors 340 West End Lane London NW6 1LN
Bankers
Barclays Bank PLC Leicester LE87 2BB
Clerk to the trustees
Ms H Rook
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
Approved by order of the board of trustees on 28 October 2021 and signed on its behalf by:
Professor M Baum – Trustee
Mrs R Paul - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE LEO AND BETTY GRUSS CHARITABLE TRUST
Opinion
We have audited the financial statements of The Leo and Betty Gruss Charitable Trust (the 'charity') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE LEO AND BETTY GRUSS CHARITABLE TRUST
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the Entity and the industry in which it operates and considered the risk of acts by Management which were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, compliance with Financial Reporting Framework FRS102, Charities Act 2011, General Data Protection Regulations, and applicable Health and Safety and Employment Legislation. We made enquiries of the Trustees of the Charity to obtain further understanding of the risks of non-compliance. We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:
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agreement of the financial statement disclosures to underlying supporting documentation;
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enquiries of Management regarding known or suspected instances of non-compliance with laws and regulations;
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review of minutes of the Board meetings throughout the year;
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obtaining an understanding of the control environment in place to prevent and detect irregularities.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher that the risk of not detecting one resulting from error. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Keelings Limited Statutory Auditors, Chartered Tax Advisers and Chartered Certified Accountants Broad House The Broadway Old Hatfield Herts AL9 5BG
9 December 2021
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 EXPENDITURE ON Other NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2020 Unrestricted fund £ 2,893,571 5,700 2,887,871 100 **2,887,971 ** |
2019 Total funds £ - - |
|---|---|---|
| - 100 |
||
| 100 |
The notes form part of these financial statements
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
BALANCE SHEET 31 DECEMBER 2020
| Notes CURRENT ASSETS Debtors 6 Cash at bank CREDITORS Amounts falling due within one year 7 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 8 Unrestricted funds TOTAL FUNDS |
2020 Unrestricted fund £ 2,393,571 500,100 2,893,671 (5,700) 2,887,971 2,887,971 2,887,971 2,887,971 **2,887,971 ** |
2019 Total funds £ - 100 |
|---|---|---|
| 100 - |
||
| 100 | ||
| 100 | ||
| 100 | ||
| 100 | ||
| 100 |
The financial statements were approved by the Board of Trustees and authorised for issue on 28 October 2021 and were signed on its behalf by:
Professor M Baum - Trustee
Mrs R Paul - Trustee
The notes form part of these financial statements
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2020 £ 500,000 500,000 500,000 100 500,100 |
2019 £ - |
|---|---|---|
| - | ||
| - 100 |
||
| 100 |
The notes form part of these financial statements
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020
| 1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM | OPERATING ACTIVITIES | OPERATING ACTIVITIES | |
|---|---|---|---|---|
| 2020 | 2019 | |||
| £ | £ | |||
| Net income for the reporting period (as per the Statement of Financial | ||||
| Activities) | 2,887,971 | - | ||
| Adjustments for: | ||||
| Increase in debtors | (2,393,571) | - | ||
| Increase in creditors | 5,700 | - | ||
| Net cash provided by operations | 500,000 | - | ||
| 2. | ANALYSIS OF CHANGES IN NET FUNDS | |||
| At | 1.1.20 | Cash flow | At 31.12.20 | |
| £ | £ | £ | ||
| Net cash | ||||
| Cash at bank | 100 | 500,000 | 500,100 | |
| 100 | 500,000 | 500,100 | ||
| Total | 100 | 500,000 | 500,100 |
The notes form part of these financial statements
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
The presentation currency of the financial statements is the Pound Sterling (£).
Going concern
The trustees have a reasonable expectation that the charity will continue to operate for the foreseeable future, even given the impact of COVID 19, and so these financial statements are prepared on the going concern basis.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires the trustees to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the trustees opinions, there are no significant judgements or key sources of estimation uncertainty.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Donations and Legacies
Grants, legacies and endowment income are accounted for as soon as the charity is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt is reasonably certain.
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.
Governance costs
Governance costs include all costs associated with the compliance of the legal framework of the Charity, including audit and accountancy fees.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Financial instruments
The charity only enters into basic financial instruments that result in the recognition of financial assets and liabilities.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
continued...
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
2. DONATIONS AND LEGACIES
| Legacies 3. SUPPORT COSTS Other resources expended |
2020 £ **2,893,571 ** |
2019 £ - Governance costs £ 5,700 |
|---|---|---|
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 or for the year ended 31 December 2019, nor were there any employees during the year.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Prepayments and accrued income 7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors 8. MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS |
At 1.1.20 £ 100 100 |
2020 £ 2,393,571 2020 £ 5,700 Net movement in funds £ 2,887,871 **2,887,871 ** |
Unrestricted fund £ - 100 100 2019 £ - 2019 £ - At 31.12.20 £ 2,887,971 **2,887,971 ** |
|---|---|---|---|
continued...
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
8. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 2,893,571 2,893,571 |
Resources expended £ (5,700) **(5,700) ** |
Movement in funds £ 2,887871 2,887,871 |
|---|---|---|---|
9. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2020.
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THE LEO AND BETTY GRUSS CHARITABLE TRUST
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| INCOME AND ENDOWMENTS Donations and legacies Legacies Total incoming resources EXPENDITURE Support costs Governance costs Auditors' remuneration Auditors' remuneration for non audit work Total resources expended Net income |
2020 £ 2,893,571 2,893,571 2,400 3,300 5,700 5,700 **2,887,871 ** |
2019 £ - - - - - - - |
|---|---|---|
This page does not form part of the statutory financial statements
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