DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
# **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
## **YEAR ENDED**
**31 DECEMBER 2021**
**REGISTERED CHARITY NUMBER 1125035**
DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**_________________________________________________________________________________________**
## **TRUSTEES**
Bernard Lewis Caroline Grainge Clive Lewis Leonard Lewis
## **REGISTERED ADDRESS**
Chelsea House West Gate London W5 1DR
## **AUDITOR**
BDO LLP 55 Baker Street London W1U 7EU
## **BANKERS**
Barclays Bank Plc Strand Leicester Leicestershire LE87 2BB
## **INVESTMENT MANAGERS**
Stonehage Fleming Investment Management Limited 15 Suffolk Street London SW1Y 4HG
DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2021**
**_____________________________________________________________________________________________**
## **Contents**
## **Page**
- 2 Trustees' annual report
- 5 Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements
- 6 Independent auditor’s report to the trustees of the Bernard Lewis Family Charitable Trust
- 9 Statement of financial activities
- 10 Statement of financial position
- 11 Statement of cash flows
- 12 Notes forming part of the financial statements
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DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
## **TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021**
**_____________________________________________________________________________________________**
The trustees present their report and financial statements of the charity for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the charity’s trust deed, 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.
## **Structure, governance and management**
The Bernard Lewis Family Charitable Trust (“the Trust”) is a registered charity, number 1125035 and is constituted by a Deed of Trust dated 12 June 2008.
The Trust does not invite donations from members of the general public.
The Trust achieves its objectives mainly by making grants to other charitable institutions and deserving causes.
New trustees are appointed by the settlor of the Trust, Bernard Lewis, during his lifetime, and thereafter by unanimous approval of the trustees. On appointment of the new trustees, one of the existing trustees explains to the new trustee the decision-making process of the Trust and provides an overview of the administrative procedures employed by the Trust.
The trustees meet at regular intervals to discuss and consider the status of the Trust’s funding, reserves, risks, investments and grant making. The administration of grants and the processing and handling of applications is carried out by employees of Lewis Trust Group Limited and River Island Clothing Co. Limited. The services provided by these employees are included in the Trust as a gift in kind. The Trust has only one paid employee.
## **Trustees**
The trustees listed below held office during the year and to the date of this report:
Bernard Lewis Caroline Grainge Clive Lewis Leonard Lewis
## **Objectives and activities**
The Trust was established to express the charitable intentions of members of the family of Bernard Lewis (“the settlor”), which includes Bernard Lewis, Clive Lewis, Leonard Lewis, Caroline Grainge and certain companies that they own together with other members of the Lewis Family.
Income and capital of the Trust is to be used, in whole or part, exclusively for the benefit of charitable purposes at the discretion of the trustees.
The trustees have referred to the Charity Commission's guidance on Public Benefit with due regard when reviewing the type of activities, the Trust should undertake. The Trust aims to provide support for a range of charitable causes in the public benefit, including in the areas described in the Achievements and performance section below.
The legally permitted objectives are wide and cover generally accepted charitable objectives.
## **Grant making policy**
The main areas the Trust funds are Child health, child development and disability, Mental Health, Racial Equity, Displaced People, Education and the Jewish community. But new areas are considered regularly.The Trust has established its grant making policy to achieve its objectives for the public benefit. Various charities submit their request for consideration of a grant to the Trust and decisions of approval of grants are made at trustee meetings, with consideration of whether the requests meet the Trust’s aims and objectives. Grants provided may be single payments, or for 2/3 years. Many grants are unrestricted.
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DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)**
**_____________________________________________________________________________________________**
## **Achievements and performance**
The main charitable activities funded by the Trust by way of grants and activities undertaken directly (including allocated support costs and governance costs) during the year are:
- £264,296 for medical general support;
- £508,840 for child and social care;
- £53,464 for support for the elderly;
- £168,948 for Jewish community support; and
- £831,827 for general funding.
During the prior year the James Lewis Foundation ceased to operate as an independent charity. In the prior year the Trust released the outstanding grant commitment due to the James Lewis Foundation which resulted in a credit to charitable activities of £nil (2020: £655,579).
The list of grants provided during the year is included in the analysis of charitable activities (Note 4).
The objectives of beneficiaries of the grants are in line with the objectives of the Trust. The amount of donation received from Lewis Trust Group Limited is expected to vary from year to year.
## **Financial review**
The charity’s financial activities are shown on page 9 of these financial statements.
The Trust’s work is entirely reliant on donation income from Lewis Trust Group Limited and investment income from investments held by the charity via Stonehage Fleming Investment Management Limited. The net movement of total funds for the year ended 31 December 2021 was an income of £1,289,098 (2020: income of £983,330) comprising of total income of £3,062,640 (2020: £2,574,135) and total expenditure, including any net losses or gains on investment, of £1,773,542 (2020: £1,590,805). Expenditure on charitable activities amounted to £1,827,375 (2020: £1,568,057).
Substantial donations of £3,015,000 (2020: £2,515,000) were received from Lewis Trust Group Limited, which is a subsidiary of LFH International Limited, a company in which the Trustees hold directorships and financial interests. The remainder of the income arises from investments.
The statement of financial position shows the funds of the Trust which comprises of investments in fixed and variable interest securities and bank balances, both of which generates income for the Trust. The policy of the Trust is to maintain cash at bank at a level that is adequate to cover grants payable and operating expenditure. Return on investments for the year was in line with expectations.
The fund balance as at 31 December 2021 was £10,349,470 (2020: £9,060,372) and consisted primarily of cash at bank and investments in securities. The trustees will continue to use these funds to meet the objectives of the Trust. At the balance sheet date, the Trust has net assets of £10,349,470 (2020: £9,060,372), including net current assets of £4,722,996 (2020: £8,894,892). The annual spend of the Trust is within the control of the Trustees and awards could be reduced or stopped if required. The Trustees consider that the Trust has more than adequate financial resources to continue in operation for at least twelve months following the issue of these financial statements and as such that the going concern basis of preparation continues to remain appropriate.
## **Plans for future periods**
The Trust has an adequate fund balance to meet the Trust’s commitments for the following year. The Trustees intend to increase grants steadily over the next few years. Reserves are set to cover the commitments made and operating costs for the period of committed grants, assuming no further income is received. The Trustees intend to maintain Reserves levels.
The investments are reviewed regularly with a view to maintain the income level without unacceptable investment risk.
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## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**TRUSTEES’ ANNUAL REPORT for the year ended 31 December 2021 (continued)**
**_____________________________________________________________________________________________**
## **Risks and principal uncertainties**
## **Risk management**
The primary risks faced by the Trust are performance of investments and capacity of the Trust to make effective grants. The major financial risks of the Trust are the uncertainty of the annual donation from Lewis Trust Group Limited and the variability of investment returns.
The trustees regularly hold discussions to consider and agree action plans to manage and mitigate the risks relating to income and the value and nature of its investments. Professional advice with regards to investments is sought from Stonehage Fleming Investment Management Limited.
## **Reserves Policy**
Given the expected fluctuations in donations received and investment income, the Trust’s policy is to retain a sufficient level of funds as a measure of continuity in supporting the charitable bodies, to which grants are given.
The value of funds held by the Trust for the financial year is £10,349,470 (2020: £9,060,372). This level of funds enables the trustees to achieve the aims and objectives of the Trust without being wholly reliant on the receipt of future donations.
Reserves are set to cover the commitments made and operating costs for the period of committed grants, assuming no further income is received. The Trustees intend to maintain Reserves levels.
........................................... Clive Lewis - Trustee
Chelsea House West Gate London W5 1DR
20 September 2022
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DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS for the year ended 31 December 2021**
**_____________________________________________________________________________________________**
The Trustees are responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they 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 these financial statements. the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
- state whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the financial statements;
- assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
- use the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and 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. 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. The Trustees who held office at the date of approval of this report confirm that, so far as they are aware, there is no relevant audit information of which the charity’s auditors are unaware. Each Trustee has taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.
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## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
## **INDEPENDENT AUDITORS REPORT TO TRUSTEES OF BERNARD LEWIS FAMILY CHARTABLE TRUST for the year ended 31 December 2021**
**___________________________________________________________________________________________**
## **Opinion on the financial statements**
In our opinion, the financial statements:
- give a true and fair view of the state of the Charity’s affairs as at 31 December 2021 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
We have audited the financial statements of Bernard Lewis Family Charitable Trust (“the Charity”) for the year ended 31 December 2021 which comprise the statement of financial activities, the statement of Financial Position, the statement of cash flow 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, including _Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## **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 Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## _Independence_
We remain independent of the Charity in accordance with the ethical requirements 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.
## **Conclusions related 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 Trustees’ Annual Report, other than the financial statements and our auditor’s report 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. 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 there is 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.
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DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF BERNARD LEWIS FAMILY CHARITABLE TRUST for the year ended 31 December 2021 (continued)**
**___________________________________________________________________________________________**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is inconsistent in any material respect with the financial statements; or
- adequate accounting records have not been kept by the Charity; or
- the financial statements are not in agreement with the accounting records and returns; or
- 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 in respect of the Trustees’ Annual report and the Financial Statements, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor 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 an auditor’s report 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.
_Extent to which the audit was capable of detecting irregularities, including fraud_
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:
Based on our understanding of the Charitable company and the sector in which it operates, we identified that the principal laws and regulations that directly affect the financial statements to be the Charities Act 2011. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
In addition, the Charitable company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation.
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## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF BERNARD LEWIS FAMILY CHARITABLE TRUST for the year ended 31 December 2021 (continued)**
**_____________________________________________________________________________________**
_Extent to which the audit was capable of detecting irregularities, including fraud (continued)_ In addition, the Charitable company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation.
In order to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, we made enquiries of management and those charged with Governance about whether the entity is in compliance with such laws and regulations, and we inspected any relevant regulatory and legal correspondence.
Audit procedures capable of detecting irregularities including fraud performed by the engagement team included:
- discussions with trustees and management, including consideration of any known or suspected instances of noncompliance with laws and regulations and fraud;
- reading minutes of meetings of those charged with governance, and reviewing any correspondence with HMRC or the Charity Commission for England and Wales;
- verification of a of sample of grant expenditure to ensure that the awards are consistent with the Charitable company’s objectives and any grants to related parties are appropriately disclosed in the financial statements; and
- in addressing the risk of fraud through management override of controls; testing the appropriateness of journal entries and other adjustments, in particular with unusual accounts combinations.
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 than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the Charity’s trustees, as a body, in accordance with the Charities Act 2011. 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 auditor’s 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.
BDO LLP, Statutory Auditor London, UK 20 September 2022
BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
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DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2021**
**__________________________________________________________________________________________**
|**Note**
**Income from:**
Donations
2
Investment income
3
**Total**
**Expenditure on:**
Charitable activities
4
**Total**
Net gains/(losses) on investments
6
**Net income**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**2021**
**Unrestricted**
**Funds**
**£**
**2020**
**Unrestricted**
**Funds**
**£**|
|---|---|
||3,015,000
2,518,001
47,640
56,134|
||3,062,640
2,574,135|
||(1,827,375)
(1,568,057)|
||(1,827,375)
(1,568,057)|
||53,833
(22,748)|
||1,289,098
983,330
9,060,372
8,077,042|
||10,349,470
9,060,372|
All amounts relate to continuing operations. All funds are unrestricted.
All gains and losses recognised in the year are included in the Statement of Financial Activities.
The notes on pages 12 to 19 form part of these financial statements.
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DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**STATEMENT OF FINANCIAL POSITION as at 31 December 2021**
**_____________________________________________________________________________________________**
|**Note**
**Fixed assets**
Fixed and variable interest securities
6
**Current assets**
Other debtors
7
Investments (bank deposit accounts)
Cash at bank
**Creditors: Amounts falling due**
**within one year**
8
**Net current assets**
**Creditors: Amounts falling due**
**after more than one year**
Grants payable
9
**Net assets**
**Income funds**
Unrestricted funds|**2021**
**£**
**£**
5,656,474
15,030
3,223,070
1,933,626
5,171,726
(448,730)
4,722,996
10,379,470
(30,000)
10,349,470
10,349,470|**2020**|**2020**|
|---|---|---|---|
||**£**
15,030
3,223,070
1,933,626
5,171,726
(448,730)|**£**
15,019
5,437,625
4,212,143
9,664,787
(769,895)|**£**
352,980
8,894,892|
||||9,247,872
(187,500)|
||||9,060,372|
||||9,060,372|
The notes on pages 12 to 19 form part of these financial statements.
The financial statements were approved by the trustees and authorised for issue on 20 September 2022.
………………………………… Clive Lewis Trustee
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DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
## **STATEMENT OF CASH FLOWS as at 31 December 2021**
**_____________________________________________________________________________________________**
|**Note**
**Net cash provided by operating activities**
11
**Cash flows from investing activities:**
Dividends and interests from investments
Additions of investments
Proceeds from sale of investments
**Net cash (used in)/provided by investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
12/13|**2021**
**Total funds**
**2020**
**Total funds**
**£**
**£**|
|---|---|
||708,160
311,612
48,429
58,048
(5,582,753)
-
333,092
103,999|
||(5,201,232)
162,047
(4,493,072)
473,659
9,649,768
9,176,109|
||5,156,696
9,649,768|
The notes on pages 12 to 19 form part of these financial statements.
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## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2021**
**_____________________________________________________________________________________________**
## **1. Accounting policies**
The following accounting policies have been applied in preparing the financial statements.
## **Basis of preparation and assessment of going concern**
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011. The financial statements have been prepared to give a ‘true and fair’ view and 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 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) effective from 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Trust constitutes a public benefit entity as defined by FRS 102.
The trustees consider that there are no material uncertainties impacting the Trust’s ability to continue as a going concern. The most significant areas of judgement and key assumptions that affect items in the accounts are to do with estimating the liability from multi-year grant commitments. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the trust are the level of investment return and the performance of investment markets.
At the balance sheet date, the Trust has net assets of £10,349,470 (2020: £9,060,372), including net current assets of £4,722,996 (2020: £8,894,892). The annual spend of the Trust is within the control of the Trustees and awards could be reduced or stopped if required. The Trustees consider that the Trust has more than adequate financial resources to continue in operation for at least twelve months following the issue of these financial statements and as such that the going concern basis of preparation continues to remain appropriate.
## **Income recognition**
Donation income is accounted for when the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. Interest on investments is accounted for on a receivable basis.
## **Donated services and facilities**
Gifts in kind are included as income and expenditure to the extent that a commercial value can be placed on such gifts.
## **Expenditure recognition**
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.
## **Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market mid-price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
## **Other debtors**
Other debtors are interest income which is recognised on an accrual basis.
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## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
**____________________________________________________________________________________________**
## **1. Accounting policies (continued)**
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash balances and call deposits.
## **Creditors**
Creditors falling due within one year and after more than one year include grants payable payments made to third parties in furtherance of the charitable objectives of the Trust. In the case of the unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Trust.
## **Funds accounting**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Unrestricted funds include a revaluation reserve representing the restatement of investment assets at market values.
## **2. Donations Received**
All donations received relate to unrestricted funds.
|Voluntary donation – Lewis Trust Group Limited
James Lewis Foundation
Donated services and facilities:
Lewis Trust Group Limited and River Island Clothing Co. Limited|**2021**
**£**
**2020**
**£**|
|---|---|
||3,000,000
2,500,000
-
3,001
15,000
15,000|
||3,015,000
2,518,001|
## **3. Investment income**
|Bank interest
Fixed and variable interest securities|**2021**
**£**
**2020**
**£**|
|---|---|
||5,123
22,782
42,517
33,352|
||47,640
56,134|
## **4. Charitable activities**
|**Summary by Activity**
Child and social care
Medical general support
General funding
Support for the elderly
Jewish community support|**2021**|
|---|---|
||**Grants**
**awarded**
**Activities**
**undertaken**
**directly**
**Support**
**costs**
**and**
**governance**
**costs**
**Total**
**Charitable**
**activities**
**£**
**£**
**£**
**£**|
||450,000
-
58,840
508,840
247,170
-
17,126
264,296
724,000
57,661
50,166
831,827
50,000
-
3,464
53,464
158,000
-
10,948
168,948|
||1,629,170
57,661
140,544
1,827,375|
13
DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
**____________________________________________________________________________________________**
## **4. Charitable activities (continued)**
|**Summary by Activity**
Child and social care
Medical general support
General funding
Support for the elderly
Jewish community support
Medical general support – Release of
James Lewis Foundation grant payable|**2020**|
|---|---|
||**Grants**
**awarded**
**Activities**
**undertaken**
**directly**
**Support**
**costs**
**and**
**governance**
**costs**
**Total**
**Charitable**
**activities**
**£**
**£**
**£**
**£**|
||597,670
-
39,972
637,642
372,500
-
11,824
384,324
890,876
50,029
45,853
986,758
50,000
-
1,587
51,587
158,300
-
5,025
163,325
(655,579)
-
-
(655,579)|
||1,413,767
50,029
104,261
1,568,057|
The charity undertook direct charitable activities and awarded grants to a number of institutions in furtherance of its charitable activities.
Details of each activity are as follows:
|**Child and social care**
Children Heard & Seen
Newlife the Charity for Disabled Children
The Movement for Non-Mobile Children
University of Bedfordshire
Just for Kids Law
The Professional Teaching Institute
TalentEd
Allocated support costs and governance costs
**Medical general support**
Myaware
Nicholas Mills Foundation
Young Epilepsy
Epilepsy Society
Meath Epilepsy
CW+
Allocated support costs and governance costs|**2021**
**Number of**
**grants**
**awarded**
**2020**
**Number of**
**grants**
**awarded**
-
1
1
2
-
1
-
1
1
1
1
1
1
-
-
-
1
1
-
1
1
1
-
1
1
3
1
-
-
-|**2021**
**£**
**2020**
**£**|
|---|---|---|
|||-
6,075
300,000
406,995
-
24,600
-
100,000
30,000
30,000
90,000
30,000
30,000
-
58,840
39,972|
|||508,840
637,642|
|||5,000
5,000
-
10,000
67,170
225,000
-
22,500
75,000
110,000
100,000
17,126
11,824|
|||264,296
384,324|
14
DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## **4. Charitable activities (continued)**
Details of each activity are as follows:
|**General funding**
Salusbury World
IntoUniversity
Mental Health Innovations
WildTeam
The Friends of St Anne’s Church
Partisan Community CIC
Sea-Changers
Lyra in Africa
Criminal Justice Alliance
Donate4Refugees
London Prisons Mission
The AMOS Bursary
Dignity in Dying
Compassion in Dying
Magic Bus UK
The Centre for Social Justice
Switch Back
Spark Inside
The Shalom Foundation Zionist Federations
The Henry Jackson Society
Shelter
Care4Calais
Healing Justice London
Help Refugees
Social Investment Consultancy
BAC-IN
European Lawyers
We Belong
Project 507
May Edwards
Off Ploy
Pimlico Opera
Imperial Health Charity
Greenaway Foundation
Zionist Federation
The Harrington Scheme
Counselling & Psychotherapy Training Academy
Grants of less than £1,000
Activities undertaken directly: Kairos+
Allocated support costs and governance costs
**Support for the elderly**
Jewish Care
Allocated support costs and governance costs|**2021**
**Number of**
**grants**
**awarded**
**2020**
**Number of**
**grants**
**awarded**
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1
1
1
1
1
-
1
-
1
1
1
-
-
1
-
1
1
1
-
-
-
1
-
-
-
1
-
1
-
2
-
1
-
1
-
1
-
1
-
2
-
1
-
1
-
1
-
1
1
1
-
1
-
1
-
1
-
1
-
-
-
-
1
1
-
-|**2021**
**£**
**2020**
**£**|
|---|---|---|
|||10,000
-
30,000
-
35,000
-
15,000
-
2,000
-
30,000
-
15,000
-
5,000
-
30,000
-
15,000
15,000
4,000
28,800
60,000
-
70,000
-
150,000
250,000
200,000
-
-
50,000
-
5,000
3,000
98,375
-
-
-
65,455
-
-
-
2,514
-
20,000
-
45,000
-
19,600
-
30,000
-
15,000
-
10,000
-
103,732
-
1,500
-
30,000
-
5,000
-
3,000
50,000
25,000
-
10,000
-
55,000
-
2,300
-
600
57,661
50,029
50,166
45,853|
|||831,827
986,758|
|||50,000
50,000
3,464
1,587|
|||53,464
51,587|
15
DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## **4. Charitable activities (continued)**
Details of each activity are as follows:
|**Jewish community support**
Community Security Trust (CST)
Norwood
Jewish Leadership Council
Magen David Adom
Jewish Blind & Disabled
Westminster Synagogue
Jewish Deaf Association
Allocated support costs and governance costs
**Medical general support – release of grant**
**commitment**
James Lewis Foundation|**2021**
**Number of**
**grants**
**awarded**
**2020**
**Number of**
**grants**
**awarded**
1
1
1
1
1
1
1
1
1
1
1
2
-
1
-
-
**-**
1|**2021**
**£**
**2020**
**£**|
|---|---|---|
|||50,000
50,000
50,000
50,000
25,000
25,000
10,000
10,000
10,000
10,000
3,000
3,300
10,000
10,000
10,948
5,025|
|||168,948
163,325|
|||(655,579)|
During the prior year the James Lewis Foundation ceased to operate as an independent charity. In the prior year the Trust released the outstanding grant commitment due to the James Lewis Foundation which resulted in a credit to charitable activities of £nil (2020: £655,579).
Support costs and governance costs comprise:
|**Specific support costs**
Miscellaneous Expenses
Consultancy fees
**General support costs**
Travel
Administrative support
Auditor’s remuneration - audit fees
Conference Fees
Employee Salary
Legal Fees
Consultancy Fees
Subscriptions
Other
Investment management fees
Exchange rate variance|**2021**
**£**
**2020**
**£**|
|---|---|
||2,500
-
25,160
38,575
-
87
15,000
15,000
13,230
12,600
-
1,110
33,236
32,932
-
-
31,837
1,000
-
-
2,076
2,957
19,096
(1,591)
-|
||140,544
104,261|
Support costs and governance costs have been attributed to charitable activities and where these are not related to specific projects, they have been apportioned pro-rata to grants payable based on the scale of grants awarded.
16
DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## **5. Trustees’ remuneration**
No fees were paid to the trustees during the current or preceding year. Details of expenses reimbursed to related parties in which the trustees have an interest are shown in Note 10.
Administrative support, including staff time, is provided to the Trust by the Lewis Trust Group Limited and River Island Clothing Co. Limited. In accordance with the Statement of Recommended Practice for charities, an estimate is made for such services which amounts to £15,000 (2020: £15,000) for the year and is included in the statement of financial activities as donation receivable from Lewis Trust Group Limited and River Island Clothing Co. Limited (Note 2), with a matching expense included in support costs (Note 4).
## **6. Fixed asset investments**
|Market value at the beginning of the year
Additions
Disposals at carrying value
Realised loss during the year
Unrealised gain during the year
Market value at the year end
Historic cost at the year end|**2021**|
|---|---|
||**OEICs**
**Fixed and**
**variable**
**interest**
**security**
**Total**
**£**
**£**
**£**|
||-
352,980
352,980
4,925,350
657,403
5,582,753
-
(333,092)
(333,092)
-
(19,887)
(19,887)
65,524
8,196
73,720|
||4,990,874
665,600
5,656,474|
|||
||4,925,350
657,403
5,582,753|
|Market value at the beginning of the year
Disposals at carrying value
Unrealised loss during the year
Market value at the year end
Historic cost at the year end|**2020**|
|---|---|
||**Fixed and**
**variable**
**interest**
**security**
**Total**|
||**£**
**£**
479,727
479,727
(103,999)
(103,999)
(22,748)
(22,748)
352,980
352,980|
|||
||250,591
250,591|
Individual investments held at the year end, which are over 5% of the portfolio by market value are:
|BlueBay Global Investment Grade Corporate Bond Fund
BlackRock ICS Sterling Liquidity Fund Class Heritage Dist
iShares GBP Corp Bond 0-5YR UCITS ETF
PIMCO Funds Global Investors Series Plc - Income Fund HI GBP P
Stonehage Fleming Global Equities Fund I Class A
UK Treasury 1.25% 22/11/2027 RPI Index Linked
UK Treasury 1.5% 22/07/2026
Vanguard Global Aggregate Bond UCITS Class Hedged Dist
Turkey Republic
Mexico Bond|**2021**
**£**
**2020**
**£**|
|---|---|
||469,308
-
585,638
-
425,679
-
545,405
-
2,211,088
-
345,721
-
319,879
-
307,544
-
-
293,878
-
59,102|
17
DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## **7. Other debtors: amounts falling due within one year**
|Accrued interest
Accrued dividend
Prepayments
**8. Creditors: amounts falling due within one year**
Grants payable
Accruals
**9. Creditors: amounts falling due after more than one year**
Grants payable||**2021**
**£**
**2020**
**£**|
|---|---|---|
|||2,380
15,019
11,850
-
800
-|
|||15,030
15,019|
|||**2021**
**£**
**2020**
**£**|
|||365,500
702,637
83,230
67,258|
|||448,730
769,895|
|||**2021**
**£**
**2020**
**£**|
|||30,000
187,500|
## **10. Related party transactions**
The following companies are related parties as they are held within the same group by LFH International Limited, a company in which the trustees hold directorships and financial interests in:
- Lewis Trust Group Limited
- River Island Clothing Co. Limited
- Cavendish Asset Management Limited
During the year, the following related party transactions took place:
Lewis Trust Group Limited and River Island Clothing Co. Limited, donated £3,015,000 (2020: £2,515,000) to the Trust, of which £15,000 (2020: £15,000) relates to donation received in the form of administrative support, as per Note 2.
The Trust donated £300,000 (2020: £406,995) to Newlife the Charity for Disabled Children, a charity organisation in which Mr. Bernard Lewis, Mr. Clive Lewis and Mr. Leonard Lewis are trustees.
During the prior year the James Lewis Foundation, a charity in which Mr. Leonard Lewis is a trustee, ceased to operate as an independent charity. The remaining creditor balance due to James Lewis Foundation of £nil (2020: £655,579) was released as a credit to expenditure on charitable activities. The Trust received £nil (2020: £3,001) as a donation from the James Lewis Foundation.
The charity has one employee, salary cost is included in the support cost (Note 4). The employee is a close family member of Clive Lewis.
18
DocuSign Envelope ID: CDB01922-701C-4195-9FAE-98C74977C9C2
## **BERNARD LEWIS FAMILY CHARITABLE TRUST**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 31 December 2021 (continued)**
## **11. Reconciliation of net income to net cash flow from operating activities**
|**Net income for the year as per the statement of financial activities**
**Adjustments for:**
Dividends and interests from investment
(Gains)/losses on investments
Increase in prepayments
Decrease in creditors
**Net cash provided by operating activities**
**12. Analysis of cash and cash equivalents**
Investments (bank deposit accounts)
Cash in hand
**Total cash and cash equivalents**|**2021**
**2020**
**£**
**£**|
|---|---|
||1,289,098
983,330
(47,640)
(56,134)
(53,833)
22,748
(800)
-
(478,665)
(638,332)|
||708,160
311,612|
||**2021**
**2020**
**£**
**£**|
||3,223,070
5,437,625
1.933,626
4,212,143|
||5,156,696
9,649,768|
## **13. Analysis of changes in net debt**
|Cash at bank and in hand|**At 1 Jan**
**2021**
**Cash flows**
**At 31 Dec**
**2021**
**£**
**£**
**£**|
|---|---|
||9,649,768
(4,493,072)
5,156,696|
||9,649,768
(4,493,072)
5,156,696|
19